BABM Feature Story

Electric Supply, Inc., Accentuating The Positive

Energizing the Bay Area
The Adams Family Just Keeps Going and Going
By David Liller

George Adams Sr., founder of Tampa Electric Supply, Inc., learned the need for keeping family close early in his own life. As a boy growing up in Depression-era Alabama, George's own father passed away when he was only 12, forcing young George into the adult workplace before he was even able to shave. "I began work immediately, shining shoes in the local barber shop on Saturday and delivering newspapers. By age 14, I was doing men’s work for one dollar a day and was fortunate to have a job."

Fortunate, but by no means easy. George Sr.'s early jobs included plowing behind a mule and loading green pine lumber directly from the saw. And although his father was not there to encourage his son through these tough times, his advice helped young George stay focused on providing for the family. "He said, 'Any job you undertake, no matter how small, or whether or not you like it, if you undertake it, always do your best.' I learned, even as a small boy, to set goals."

One of those goals was to start a business in which his family could take part. That led to the founding of Electric Supply, Inc. (formerly called Electric Supply of Tampa, Inc.) in 1970. George Sr., who had spent 24 years in the electric supply business with another firm before striking out on his own, said he never intended to operate a large corporation, but rather, focused on providing excellent service to customers. "I never hoped or expected to be big, but felt someday Electric Supply could be best. We wanted to be all things to a few, and not a little to many. Our number one goal was to give the best service in the business," he said.

George Sr. and other members of the family said those are some of the most important factors that lead the company from being a small start-up in 1970 to being the largest distributor of electrical supplies headquartered in Florida. The company was founded with $80,000 George Sr. borrowed by mortgaging the family home and a second house on a lake.

"We were the smallest electrical distributor in the Tampa area. We had limited (product) lines, limited space and limited capital," George Sr. said. He said that despite those challenges, the company paid off its loans in six years. It also stayed true to George Sr.'s vision of Electric Supply as a multi-generational business. "The business was originally conceived as a family business. When word first got out we were going to open, three different businessmen offered to supply capital for an interest in the business. It was hard to say no, but thankfully we did," said George Sr.

Since then, Electric Supply, Inc. has grown into a multi-divisional concern with more than 140 employees and annual sales that total more than $130 million. The company's growth, especially in the area of international sales, has attracted the attention of national business leaders. In 2002 Electric Supply received a visit from U.S. Secretary of Commerce Don Evans. Evans presented the firm with the Export Achievement Certificate for "Recent Accomplishments in the Global Marketplace” - primarily based on Electric Supply’s international sales team, established in 1998. The multi-lingual team offers an expanded line card of electrical and data communications products to customers in 39 counties in the Caribbean, Central America and South America.

George Adams Jr., who succeeded his father as President and Chief Executive Officer 18 years ago (George Sr. is still the Chairman of the Board and Executive Vice President of the company), said his father set the standard for the company through his honesty and hard work. "In the early days, all of the staff would leave work around 5:30 p.m. If there were orders to pick up or shelves to stock, George Sr. would strip to his boxers and work in the warehouse. The man was like the Energizer Rabbit," said George Jr.

Kelly Adams Pound, George Jr.'s daughter and administrative assistant, said the batteries in her 89-year-old grandfather have yet to wear down. "He's here six or seven days a week. He loves it; it's his life," she said.

While it might seem reasonable to expect a company so closely associated with its founder to have trouble transitioning to new leadership, family members say both George Sr. and George Jr. took steps early in the company's development to prevent management problems from occurring.

"From the earliest days, Dad made it very clear I would have the opportunity to succeed him," George Jr. said. "I was in the Navy Reserve while working at Electric Supply and going to USF (the University of South Florida). While sitting out a USF summer session to go on my two-week reserve cruise, I ended up getting married. Instead of going back to school, I opted for Dad’s offer to make a career at Electric Supply.

But that career didn't start at the executive level. George Jr. had to first get a feel for the electrical supply business at its most basic levels. "I started as a truck driver and warehouse worker. My electrical experience was very limited, but I learned by handling materials in the warehouse and occasionally helping customers when needed. During our first downturn, I borrowed a briefcase from my dad, filled it with product catalogs, and started to make sales calls. I did not have a clue as to what I was doing, but fortunately our customers were very forgiving," George Jr. said.

George Sr. said that even while his son was progressing through the ranks of Electric Supply, the two men were continually preparing for the future. "He (George Jr.) has been an important part of the business since day one. We talked and agreed on a number of important things, things like to always practice the “Golden Rule” with all we do business with, including our employees, customers and suppliers, and to never close any doors. We will always be mindful of these things," George Sr. said.

George Jr. agreed, saying his father planned for a smooth transition of managerial duties for the family-run business in several ways. George Jr. said his parents made a gift of stock and property to him and his sister to help ensure family control of the business. George Sr. also provided guidance as George Jr. took over as President and CEO.

"From day one, George Jr. and I had always tried to do everything we could do for each other. Each one tried to do 55% of the work. And I certainly wanted him to spend some time as President and CEO while I was still around. That was about eighteen years ago. The transition was very smooth," George Sr. said.

But that doesn't mean that the new generation of the Adams family is exempt from the challenges that face all corporate managers. They may, in fact, face issues that are specific to multi-generational businesses.

George Jr. said one of the lessons he learned early in his career with Electric Supply is that while he loves and respects his father, they are unique individuals who do things differently. "During the early years, Dad handled major purchases, payables, receivable, calling on our largest customers, check signing, payroll, invoicing, the general ledger, and many other things. While I appreciated his work ethic, I knew I would not be able to successfully succeed Dad if I attempted to emulate his management style. When I learned about empowerment and then a few other management techniques, I started to feel much better about my chances for success as CEO. An important thing for family businesses is to recognize that everyone has a unique management style, different strengths and weaknesses. So don’t be afraid to surround yourself with people whose strengths offset your weaknesses."

Pound and her cousin, Shaker Brock, Electric Supply's Warehouse and Delivery Manager, both echo George Jr.'s observation that each generation has managed the business in a unique way. "Different generations have different goals and ideas," Brock said.

"I think the most important thing is trying to see things from the other person’s point of view, although it is sometimes hard. Also, remembering that just because we may have different views and ideas, there are probably valid points in each person's ideas. You have to work together, keep an open mind, and always respect each other's opinions. Be willing to give and take," Pound added.

The family members all say they are aware of the potential hazards of working in a multi-generational business, and are constantly adjusting their managerial methods to avoid those pitfalls. "Personal feelings (could be a problem). It’s hard to leave problems at the office," Brock said.

"It can be difficult for me to confront family members regarding performance issues," George Jr. said. "Family owners must be made to realize that ownership does not equate to operational management or automatic employment." Yet all of members of the multi-generational business agree, the benefits of keeping family close, even in a working environment, far outweigh the challenges.

"The benefits of working with family include knowing, at least with my family, that I am working for, and with, fair, honest people who have good ethics, values, morals, etc., and will do the right thing," Pound said. " I am also able to easily trust the decisions of my father and grandfather and I get to see my family much more often than usual. And sometimes, having different generations look at the same thing, like a problem or opportunity, can present a solution or idea that you had not considered - sort of the whole idea of having many different eyes evaluating the same issue," she said.

Both George Sr. and George Jr. said other multi-generational businesses could benefit from their experiences by realizing family members must meet different, higher standards than other employees. They added that succeeding generations must avoid feelings of entitlement and come to the company ready to work. "Insist the next generation develop a strong work ethic before entering the business. If they are hired, hold them to a higher standard than you expect from their peers. I’m not suggesting that you should be cheap, but don’t overpay, and ensure they earn the respect of their peers before considering any promotions," George Jr. said.

Apparently it was a lesson George Jr. learned from his father and one that stayed with him even during very trying times. "When Isabel (George Jr.'s wife) was in labor at 1a.m., just prior to Kelly’s birth, I had to make a stop at a customer’s warehouse on the way to the hospital. I had to climb a fence to deliver a sales order. After all, the order had a commitment for 7a.m. the next day," he said.

It's that kind of dedication to family and the family business that all the current generations at Electric Supply, Inc. hope to pass on to those family members that come next. "Although it is very hard to predict, or even wager a guess, I would love to see the multi-generational trend continue. My hope is that Electric Supply will always be a family business," said Pound.

George Jr. said the family-oriented work ethic developed by that hard-working 12-year-old from Alabama, and one which he brought with him to Tampa, continues to have a major impact on Electric Supply and will do so in the future for some very important reasons.

"At Electric Supply, our second and third generations have the benefit of enjoying the strong foundation created by my dad... In a world of downsizing, rightsizing, layoffs, and reengineered work places, we are very proud of the fact that no team member has ever been laid-off from Electric Supply," George Jr. said.

back to top