This week's roundup of Houston innovators includes Phillip Yates of Equiliberty, Chris Quintanilla, of Mexcor International, and David Hudson of Circulus. Courtesy photos

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from diversity and inclusion tech to sustainable plastics — recently making headlines in Houston innovation.

Phillip Yates, founder of Equiliberty

Phillip Yates joins the Houston Innovators Podcast to discuss two initiatives he's launching to support diverse founders in Houston. Photo courtesy of Equiliberty

Houston is currently celebrating its first Black Entrepreneurship Week, thanks to local entrepreneur and lawyer, Phillip Yates, who founded Equiliberty — a tech company focused on connecting and supporting entrepreneurs of color.

BEW has put on several opportunities — from the Black Market, which will allow people to shop local Black merchants, to a special Giving Tuesday event to support Black-focused nonprofits in Houston. Specifically, Yates wants to target a multi-generational crowd — that's what's goring to drive lasting changes.

"When you have a wealth initiative, you can't just talk to the parents or the youth — you're still going to have a missing link there," Yates says on last week's episode of the Houston Innovators Podcast, explaining the week's wealth challenge that will reinforce this idea. Click here to read more.

Chris Quintanilla, chief sales officer at Mexcor International

This Houston company created its own in-house tech infrastructure — led by Chris Quintanilla — to stay competitive within the alcohol distribution industry. Photo courtesy of Mexcor International

When Chris Quintanilla wasn't happy with his company's software, he built it himself. Mexcor International is a Houston-based importer and distributor of wine, spirits, and other types of alcohol. On his own, Quintanilla has developed 46 dashboards that supply details about things such as wine and beer inventory, contacts for account managers, product catalogs, and key performance indicators (KPIs) for the sales team.

Quintanilla says in-house creation of this system aligns with Mexcor International's culture of "wearing multiple hats" to move the business forward, demanding in-house innovation on the tech front.

"If you want to see something happen, you have to grab the bull by the horns and do it yourself," he says. "We are a medium-sized company. We just hired a true IT person in the last two or three years. We don't have million-dollar budgets for big IT departments. We kind of figure it out as we go." Click here to read more.

David Hudson, founder and CEO of Circulus

Houston-based Circulus, which just received a $100 million credit facility, focuses on innovative plastics recycling. Photo via circulus.com

Circulus Holdings secured a $100 million credit facility from Riverstone Credit Partners, which has an office in Houston. This "green" loan is aimed at supporting environmental sustainability.

David Hudson, founder and CEO of Circulus, says in a news release that the credit facility "enables Circulus to rapidly develop a broad network of facilities and further the company's commitment to sustainable manufacturing. We look forward to supporting green-based jobs and preserving our environment for future generations."

Circulus, a portfolio company of Houston-based private equity firm Ara Partners, recently opened its first plastics recycling facility. The 110,000-square-foot plant is in Riverbank, California, near Modesto. It employs 45 people. So far, other Circulus plants, each of which will be larger than the California facility, are planned for Alabama, Oklahoma, the Midwest, and the Northeast. Click here to read more.

This Houston company created its own in-house tech infrastructure — led by Chris Quintanilla — to stay competitive within the alcohol distribution industry. Photo courtesy of Mexcor International

How this Houston-based alcohol importer, distributor uses tech to stay ahead of the curve

boozy innovation

You might say that Mexcor International, a Houston-based importer and distributor of wine, spirits, and other types of alcohol, relies on a single bottle of vodka rather than a case of vodka when it comes to its tech capabilities.

The annual tech budget for the 300-employee company, founded in 1989, falls well below $500,000. Mexcor International's annual revenue hovers around $300 million.

"We do have a decent size tech budget, but it's tiny in comparison to large distributors with multimillion-dollar tech budgets," says Chris Quintanilla, chief sales officer at Mexcor International.

The company leans on an IT director, an IT specialist, and an IT support company to handle tech needs. In other words, Mexcor International's in-house tech resources are minimal.

So, when the company's sales and administration sales team needed to step up its tech game, Quintanilla created a cloud-based software system combining customer relationship management (CRM) and enterprise resource planning (ERP) functions to churn out real-time reporting on inventory, deliveries, and other business matters. He took on the project equipped with IT knowledge he picked up online and at a three-day training session in Colorado, coupled with some simple tech tinkering.

On his own, Quintanilla has developed 46 dashboards that supply details about things such as wine and beer inventory, contacts for account managers, product catalogs, and key performance indicators (KPIs) for the sales team. About 230 employees, or roughly three-fourths of the company's workforce, can access these dashboards. Information on these dashboards can help employees answer myriad questions, such as "Which delivery trucks are arriving today?" or "What percentage of orders are being picked up tonight?"

Quintanilla says one of the key benefits of the dashboards is the ability to see how soon the company will run out of various products at its Texas, California, Florida, and Louisiana warehouses. This functionality enables the company to swiftly head off shortages. It has come in especially handy amid ongoing supply chain snags triggered by the COVID-19 pandemic, he says.

The dashboards also let Mexcor International track which customers' sales have risen or fallen compared with the same time a month or a year ago. With this information at their fingertips, salespeople can chat with customers about whether, for instance, they might like to substitute a brand of poorly selling tequila for another brand of tequila, according to Quintanilla.

In short, the innovation spearheaded by Quintanilla has helped propel Mexcor International well beyond the old days of pen and paper, photocopies, and faxes.

So, why are companies like Quintanilla's turning to in-house capabilities to push past the pen-and-paper approach?

"Companies that develop their own technology have more control over their strategic direction and can better respond to the needs of the market. This can mean a significant competitive advantage when a company develops a compulsory technology before the competition," technology and innovation strategist Evans Baiya wrote for AllBusiness.com.

In a 2020 survey by Boston Consulting Group, 46 percent of corporate executives around the world planned to invest more in their in-house tech capabilities.

"Every enterprise must re-evaluate the capabilities that it can develop in-house with the talent it has and determine which ones to procure from service providers," the consulting giant says. "By building capabilities in-house, companies can reduce the risk of their transformation projects stalling and turn to service providers in areas where they suffer from talent gaps."

At Mexcor International, Quintanilla has stepped in to fill much of the company's gap in tech talent.

Mexcor International established the new cloud-based CRM and ERP system in 2019. It replaced a clunky network-based setup hampered by unwieldy financial, sales, delivery, and routing modules.

"It was just so slow. You could not get the information you needed, and the network was always down," says Quintanilla, adding that the company's network-based system had sustained ransomware and malware attacks.

With the cloud-based system now in place, Mexcor International employees can perform an array of tasks via laptop, desktop, tablet, or smartphone, he says.

Quintanilla says in-house creation of this system aligns with Mexcor International's culture of "wearing multiple hats" to move the business forward, demanding in-house innovation on the tech front.

"If you want to see something happen, you have to grab the bull by the horns and do it yourself," he says. "We are a medium-sized company. We just hired a true IT person in the last two or three years. We don't have million-dollar budgets for big IT departments. We kind of figure it out as we go."

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2 Houston space tech cos. celebrate major tech milestones

big wins

Two Houston aerospace companies — Intuitive Machines and Venus Aerospace — have reached testing milestones for equipment they’re developing.

Intuitive Machines recently completed the first round of “human in the loop” testing for its Moon RACER (Reusable Autonomous Crewed Exploration Rover) lunar terrain vehicle. The company conducted the test at NASA’s Johnson Space Center.

RACER is one of three lunar terrain vehicles being considered by NASA for the space agency’s Artemis initiative, which will send astronauts to the moon.

NASA says human-in-the-loop testing can reveal design flaws and technical problems, and can lead to cost-efficient improvements. In addition, it can elevate the design process from 2D to 3D modeling.

Intuitive Machines says the testing “proved invaluable.” NASA astronauts served as test subjects who provided feedback about the Moon RACER’s functionality.

The Moon RACER, featuring a rechargeable electric battery and a robotic arm, will be able to accommodate two astronauts and more than 880 pounds of cargo. It’s being designed to pull a trailer loaded with more than 1,760 pounds of cargo.

Another Houston company, Venus Aerospace, recently achieved ignition of its VDR2 rocket engine. The engine, being developed in tandem with Ohio-based Velontra — which aims to produce hypersonic planes — combines the functions of a rotating detonation rocket engine with those of a ramjet.

A rotating detonation rocket engine, which isn’t equipped with moving parts, rapidly burns fuel via a supersonic detonation wave, according to the Air Force Research Laboratory. In turn, the engine delivers high performance in a small volume, the lab says. This savings in volume can offer range, speed, and affordability benefits compared with ramjets, rockets, and gas turbines.

A ramjet is a type of “air breathing” jet engine that does not include a rotary engine, according to the SKYbrary electronic database. Instead, it uses the forward motion of the engine to compress incoming air.

A ramjet can’t function at zero airspeed, so it can’t power an aircraft during all phases of flight, according to SKYbrary. Therefore, it must be paired with another kind of propulsion, such as a rotating detonation rocket engine, to enable acceleration at a speed where the ramjet can produce thrust.

“With this successful test and ignition, Venus Aerospace has demonstrated the exceptional ability to start a [ramjet] at takeoff speed, which is revolutionary,” the company says.

Venus Aerospace plans further testing of its engine in 2025.

Venus Aerospace, recently achieved ignition of its VDR2 rocket engine. Photo courtesy of Venus Aerospace

METRO rolls out electric shuttles for downtown Houston commuters

on a roll

The innovative METRO microtransit program will be expanding to the downtown area, the Metropolitan Transit Authority of Harris County announced on Monday.

“Microtransit is a proven solution to get more people where they need to go safely and efficiently,” Houston Mayor John Whitmire said in a statement. “Connected communities are safer communities, and bringing microtransit to Houston builds on my promise for smart, fiscally-sound infrastructure growth.”

The program started in June 2023 when the city’s nonprofit Evolve Houston partnered with the for-profit Ryde company to offer free shuttle service to residents of Second and Third Ward. The shuttles are all-electric and take riders to bus stops, medical buildings, and grocery stores. Essentially, it works as a traditional ride-share service but focuses on multiple passengers in areas where bus access may involve hazards or other obstacles. Riders access the system through the Ride Circuit app.

So far, the microtransit system has made a positive impact in the wards according to METRO. This has led to the current expansion into the downtown area. The system is not designed to replace the standard bus service, but to help riders navigate to it through areas where bus service is more difficult.

“Integrating microtransit into METRO’s public transit system demonstrates a commitment to finding innovative solutions that meet our customers where they are,” said METRO Board Chair Elizabeth Gonzalez Brock. “This on-demand service provides a flexible, easier way to reach METRO buses and rail lines and will grow ridership by solving the first- and last-mile challenges that have hindered people’s ability to choose METRO.”

The City of Houston approved a renewal of the microtransit program in July, authorizing Evolve Houston to spend $1.3 million on it. Some, like council member Letitia Plummer, have questioned whether microtransit is really the future for METRO as the service cuts lines such as the University Corridor.

However, the microtransit system serves clear and longstanding needs in Houston. Getting to and from bus stops in the city with its long blocks, spread-out communities, and fickle pedestrian ways can be difficult, especially for poor or disabled riders. While the bus and rail work fine for longer distances, shorter ones can be underserved.

Even in places like downtown where stops are plentiful, movement between them can still involve walks of a mile or more, and may not serve for short trips.

“Our microtransit service is a game-changer for connecting people, and we are thrilled to launch it in downtown Houston,” said Evolve executive director Casey Brown. “The all-electric, on-demand service complements METRO’s existing fixed-route systems while offering a new solution for short trips. This launch marks an important milestone for our service, and we look forward to introducing additional zones in the new year — improving access to public transit and local destinations.”

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This article originally ran on CultureMap.