Waiting For the Dust to Settle

As we go to press, construction futures look uncertain and contractors large and small appear to be holding tight — looking in both directions and waiting. According to Associated Builders and Contractors, layoffs are at an all-time low, but so is new hiring. The future of high-rise building looks bright for the second half of the year, and no one wants to lose skilled labor. Associated General Contractors of America says that investment remains positive while the growth rate has cooled. They are working with the current administration to limit regulations and the time it takes to greenlight projects. The recently announced tariffs have shocked and energized negotiators worldwide, and stock markets around the world are having “tariff tantrums.” It will take time for the dust to settle. Meanwhile, hold on to your good people and try trading American Bourbon for elevator parts!

This month we focus on Succession Planning (hopefully not the kind on TV). Nothing could be more relevant for our industry. According to Jonathan Taub, “The independent elevator contractor industry is dominated by multigenerational family businesses.”  As I have remarked before, even the multinationals were once family businesses. If family-run companies cannot figure out how to continue, they are quickly absorbed into one of the multinationals or by private equity (PE), which discovered our industry fewer than 10 years ago. We have six excellent articles and a feature that focus on Succession Planning.

• Passing the Torch by Kaija Wilkinson. For Minnesota-based Arrow Lift’s owner, the transition was organic. His three sons came into the company on their own schedules with different talents and hands-on experience.
• Lessons From Personal Experience by Sean Madden. This article poses the question, “What if family is not interested in taking over?” Madden discusses strategies.
• Succession Planning — Critical Roles by Vong Keovongsa. This regular EW contributor suggests that owners identify critical roles in the company and train potential leaders over time.
• One Size Does Not Fit All by Wilkinson. Dominik Sachsenheimer of Maven Group is interviewed and offers a variety of ideas including buy outs by various entities including PE, employees or competitors.
• Future-Proofing Your Workforce by Dot Mynahan. The author discusses our aging workforce and the fact that, in the elevator industry, it takes seven-10 years to develop a strong elevator technician.
• Driving Smarter Elevator Business Succession Planning by Jonathan Taub. Poor planning can lead to many issues, including “loss of knowledge,” high turnover and reduced business evaluation. Taub suggests a software approach.
• Family Ties is our feature article about 75 years of Pine State Elevator in Maine, a three-generation elevator company. Steve, sons Angus (who tragically passed away) and Travis McDuffie worked together in the company that Steve’s father built. Travis now leads the company and looks forward to celebrating its 100th birthday.

Another feature this month is U.S. Bank Tower by Nicholas Montesano. This building in Los Angeles was sold to Silverstein Properties in 2020. DTM and Silverstein in New York and Otis in L.A. worked through the pandemic to modernize the elevators and escalators while the building remained occupied.

We report on a slew (Southern for many) of events, including Lift Road Show Brasília and the 13th International Seminar on Elevators and Escalators in Iran.

Lastly, we offer a great article by Dr. K. Ferhat Çelik, Energy Efficiency of Elevators. The engineer compares hydraulics to machine-room-less systems, pointing out many interesting aspects of both systems.

Enjoy this issue and feel free to send me your thoughts at ricia@elevatorworld.com.