The Family Connection

“The biggest advantage of a small family business is the ability to make quick decisions and solve day-to-day issues quickly.” — Vong Keovongsa, Elevator Services Group

We focus this month (for the first time) on family businesses. The elevator industry is filled with family businesses of all sizes. Some of the best-known companies in the industry began as small family firms. Most of them grew as the family grew and, occasionally, would sell out to “the big guys” and use the money to start all over. ELEVATOR WORLD is a family business, now in its third generation and looking to a fourth.

Many of the OEMs were started by families. Elisha Graves Otis founded Otis Elevator Co. in Yonkers, NY, in 1853. When he died in 1861, his sons, Charles and Norton, formed a partnership and continued the business. Westinghouse Electric was founded by George Westinghouse in Pittsburgh, Pennsylvania, in 1886, building on the advancement of AC technology in Europe. Through acquisitions, its elevator division eventually became Schindler Group. In 1924, Finnish entrepreneur Harald Herlin bought KONE, a small elevator manufacturer. His son, Heikki Herlin, joined the company in 1928. The Herlin family still owns 65% of the company’s stock. KONE acquired Armor and Montgomery (both longtime family-owned companies) to make their presence known in the U.S. Among suppliers, GAL stands out. Started by German immigrant Herbert Glaser, it eventually had six members of the second and third generation running it before selling to a private equity investor.

There are so many more stories like this. One thing that holds true with all family businesses is pride. When your name is associated with it and your children and grandchildren are a part of it, you have (in the words of Alex Haley) a visible connection to the past and a bridge to the future.

When we announced the Family Businesses focus section, stories poured in from contractors, suppliers and consultants.

• Speaking of suppliers, our Kathleen Farrell interviews JT Peelle in Building on Legacy. He has taken on a new role as CEO of The Peelle Co. — a company his family has run for five generations.
• The DTM Dynasty by Kaija Wilkinson. Started back in 1982 by Joseph Montesano, the NYC-based consulting business now employs nine family members and is making room for more.
• Growing Along the Gulf by Breanna Erwin. Elevated Fabrication Systems is run by Steve and Robyn Erwin, and it’s all family with both of their children working there.
• Trust, Value and Communication by ElevatorInfo. The Elevator Industry Work Preservation Fund usually works with the larger OEMs, but chose to highlight three smaller businesses that say family makes for stronger connections and communications.
• Arrow Lift by Farrell. This accessibility and home elevator company in Minnesota credits its success to faith, family and teamwork.
• A New Start by Wilkinson. Irish immigrant Jack O’Shea came to the U.S. 40 years ago. He named his company Start because that’s what it gave him.
• Small Family Businesses Make Big Impacts by Vong Keovongsa. Our regular columnist learned about family business from his mother, who ran a produce stand. He talks this month about two elevator companies that enjoy the shared culture of family.
• Technology’s Role in Elevator Business Succession Planning by Jonathan Taub. The author is president of FieldBoss, a company that addresses the challenges businesses in the industry will face in the next five years and the need for succession planning.

Also in this issue, EW President and CEO T. Bruce MacKinnon presents a freewheeling interview, Riding the Wave, with the president of Dynasty Elevator covering family, business and elevators.

Our features include an article on an escalator replacement project in Denver’s busy airport; a residential elevator installation in an unusual lightwell; and finally, a designer who creates an elegant Art Deco look for an elevator serving a NYC co-op.

Of course, there is so much more. Please let me know what you like at ricia@elevatorworld.com.