Home Back Issues April 2012 The consummate Oregonian

The consummate Oregonian

| Print |  Email
Articles - April 2012
Thursday, March 22, 2012
Article Index
The consummate Oregonian
Page 2
Page 3
Page 4
Page 5

 

0412_TheConsummateOregonian_07
Tom Kelly, an avid sailor, and his crew aboard the Anam Cara during the 2011 Van Isle race around Vancouver Island.
// Photo courtesy of Sean Trew

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.”



 

More Articles

OB Video: Oregon MESA

News
Thursday, June 26, 2014

ThumbOregon Business hosts an informal roundtable discussion about the Oregon MESA (Mathematics, Engineering, Science Achievement) program.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

South Waterfront's revenge

News
Thursday, July 24, 2014
MoodyAveBY LINDA BAKER | OB EDITOR

Remember the naysayers?  Those who called the South Waterfront aerial tram a boondoggle?  Those who rejoiced at the massive sell off of luxury condos at the John Ross and Atwater Place?


Read more...

EPA Standards: A breath of fresh air for the region

News
Thursday, June 12, 2014
EPABY ANDREA DURBIN | OB GUEST BLOGGER

Last week, the Obama administration took an important and welcomed step in the effort to protect the health and well-being of all Oregonians by limiting carbon pollution from existing power plants.


Read more...

OB Video: Building trade ties with the EU

News
Monday, June 16, 2014
BritEmbCampionBY KIM MOORE | OB RESEARCH EDITOR

The Oregon economy could get a boost from a new trade agreement being negotiated between the U.S. and the European Union.


Read more...

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS