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|Articles - April 2012|
|Thursday, March 22, 2012|
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On a slushy January morning in the Pearl District’s Bridgeport Pub, Kelly is participating in a panel on family business, sponsored by OSU’s Austin Family Business program. “There’s a word — entropy; if you don’t grow, you fall in on yourself,” Kelly told the audience. “If you don’t have vitality, you don’t have opportunity for your employees.” Growth, he concluded, “is one of our core values.”
Even in good years, 30% of all contractors go out of business. In bad times, such as the Great Recession, the industry “gets slammed,” says Kelly, whose own low point came in 2010 when Neil Kelly had 118 employees, down from 170 in 2008. Fueled by the condo boom, the company’s downtown cabinet business, which drove the $4 million division, “almost totally went away.”
As bad as things got, the Great Recession was not the worst downturn Kelly had experienced. That honor goes to the severe economic malaise that gripped the country in the early ’80s, a few years after Kelly took over the company at age 29. The succession coincided with what John Kelly, Tom’s fraternal twin and a Portland urban planner, describes as a “double whammy” on the company: the withdrawal of a line of credit from U.S. Bank and the elimination of a veterans home loan program that had also been a major source of financing. Kelly managed to pull the company through, and along the way learned about more than the harsh realities of the business cycle.
In a highly personalized sector like remodeling, most contractors are small, one-office operations, with a geographical reach that is often limited to the neighborhoods in which they are located. An anomaly in the industry, Neil Kelly has five locations, more than any other residential remodeler in the country. It’s an expansion- and acquisition-based business model that Kelly, who has a tendency to hedge when referring to his accomplishments, describes as “kind of pioneering, kind of groundbreaking.”
His first buyout, of Portland’s Kitchen Kitchens, occurred in 1988 as the country was climbing out of that first recession, followed by acquisitions in Eugene (2005), Bend (2008), and most recently Seattle (2011). “There’s no better time to expand than in an economic contraction,” says Kelly, citing as a key reason the availability of good employees. The company’s team-based management model, in which the same group of employees work together on projects, allows Neil Kelly to retain the feel of a small firm while enabling it to grow, Kelly adds.
Kelly’s management style has played a critical role in the company’s growth, says Tony Leineweber, a Neil Kelly board member and executive director of the Portland State University Foundation. “He has a very participatory approach that builds the confidence of his employees. So when he embarks on new initiatives, there’s a spirit of camaraderie that this is something we are all in together. In my view, Tom is one of the best performing managers around.”
Thursday, August 20, 2015
BY JACOB PALMER
Ask any college student: Textbook prices have skyrocketed out of control. Online education startup Lumen Learning aims to bring them down to earth.
Thursday, August 13, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
Portland-based startup ImpactFlow recently announced a $5.7 million funding round. CEO and co-founder Tyler Foreman talks about matching businesses with nonprofits, his time at Intel and the changing face of philanthropy.
Wednesday, July 15, 2015
Former Governor John Kitzhaber's resignation in February prompted some soul searching in this state about ethical behavior in industry and government.
Friday, July 10, 2015
BY AMY MILSHTEIN
When gossip crosses the line.
Wednesday, July 15, 2015
We asked readers how Obamacare has impacted their business.
Wednesday, August 19, 2015
BY KIM MOORE
A conversation with Chris Maples, president of the Oregon Institute of Technology.
Thursday, August 20, 2015
BY JOE CORTRIGHT
We get the education we deserve.
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Every once in a while we receive a letter in the (fictional) mailbag that is tough to describe and quite compelling. This week, Isabel, the new HR manager at LabCo (and someone who is new to HR), wants to know whether she may fire the owner’s son for having an Oregon medical marijuana card. In passing, Isabel also makes a number of alarming admissions about her motivation. Here is Isabel’s nerve-racking question and our response to it.
Oregon Sick Leave is here, and changes to the federal white-collar worker regulations are on the way. This workshop will prepare you for both. We invite you to participate in an interactive discussion on how to start planning now for the future impact on your operations and finances.
Presented by OEN + CENTRL + YESpdx.
This Roundtable will cover numerous issues under the employer "shared responsibility" rules of the Affordable Care Act, including how to track the "full-time" status of variable-hour employees, temporary or seasonal employees, and employees who experience a change in status or a break in service. Additionally, we will provide a brief overview of Code sections 6055 and 6056, which require most mid-sized and large employers to submit their first information reports to the IRS in early 2016 regarding the health insurance coverage being offered to employees. We invite you to participate in an interactive discussion on how to prepare for the future impact of the shared responsibility rules on your operations and finances.