Since 1918, Atlas has manufactured devices that gauge the damaging effects of light, water and temperature on goods ranging from textiles to steering wheels. Atlas’ devices and the chemicals used in them have been the basis of a profitable and growing–albeit unglamorous–business for several generations.

ATLAS MATERIAL TESTING SOLUTIONS Challenges: Needed to overcome an anticompetitive regulatory climate in Europe and the threat of competition from low-cost manufacturers in Asia.

John W. Lane bought Atlas in 1946, and his son Bill took over in 1975. Today their story proves that a relentless focus on international business and the ability to adapt and partner with foreign firms can enable even a niche company to grow into a global leader. Atlas was already exporting their products to more than 15 countries in the 1940s, but for years remained shut out of most of Europe because material test specifications were written by each nation’s industry organizations. Atlas, however, found a clever way around–or through–these regulations.

"When we established a European headquarters, we were able to get our local organization to work with top chemists to change the European national standards so we could become competitive," says Bill, 69, who is passing company control to his three adult children. With trade pathways open, his father made it a point to establish personal relationships on the Continent, traveling often to visit Atlas’ independent sales reps. "He saw other companies getting into this area," Bill recalls, "and felt that he had to be proactive in order to control our destiny."

TOP VIEW: Globalization is often portrayed as an inimical encroachment threatening family-run businesses. But it is a fact of life for any enterprise seeking to expand beyond a narrow, parochial domestic market–indeed, overseas competition is forcing even small, local firms to evolve. The worries articulated by many family business owners may be overdone; these companies may be particularly suited to operating in the international arena. Families can often react quickly to overseas developments and invest the time and capital necessary to truly understand foreign markets, which are the keys to success.

In the Netherlands, Bill met the Voelman brothers–who were in the same business–and in 1982 formed a joint venture that solidified Atlas’ foothold in Europe. Atlas also established companies in France, Germany, Switzerland and the UK, and eventually sacked independent reps in favor of Atlas salespeople. To date, Atlas’ strategy has proven successful. Sales have grown 10 percent per year for the past 12 years, and its return on equity currently exceeds 20 percent. In 1995, Atlas acquired one of its primary European competitors from a larger German firm. More recently, one of the Voelmans retired, opening the way for Atlas to gain control of the Dutch joint venture.

The core business is still owned by the Lane family. Bill’s three children–Gigi, Russell and Chuck, plus son-in-law Jim–hold executive positions. The company comprises a textile division, with 240 employees, and a weathering group, with 350, on three continents. But Atlas’ global expansion rests on finding foreign partners, installing local managers (the company has never moved an American manager to Europe) and aggressively buying competitors. Its European companies are run with operating committees that include Europeans, Bill says.

As in the 1940s, Atlas handles overseas issues with a level of tact some Americans might find extraordinary. Russell, Bill’s older son, earned a master’s degree from Garvin School for International Management in Glendale, Ariz., and now runs U.S. operations for Atlas’ weathering division. "In Europe, if you want to make a structural change, the walls and regulations are amazing," he says. "We are told, ‘You can’t do this, you can’t do that, or you face big fines or jail.’ It really limits our flexibility."