THE NORTHEAST MISSISSIPPI A MONTHLY PUBLICATION OF JOURNAL PUBLISHING AND THE COMMUNITY DEVELOPMENT FOUNDATION FEBRUARY 2010 Prsrt Std US Postage PAID Tupelo,MS Permit #353 PAGE 2 BUSINESS JOURNAL FEBRUARY 2010 Expert: Family businesses in it for the long haul I The director of MSU’s have an advantage there be- world’s biggest retailer, is 40 cause they tend to be in it for percent-owned by a Walton Center of Family Enterprise the long haul,” Chrisman said. “Family-owned businesses family trust. The company was Research says family businesses “They are more likely to en- have an advantage there founded nearly 50 years ago by have advantages during dure sacrifices to make it in the Sam Walton. long term. They are more likely because they tend to be in During his research, he’s economic downturns. to rally and contribute re- found that family businesses sources to help the firm get it for the long haul. They are more common in the retail By Carlie Kollath through it.” are more likely to endure and service sectors and less BUSINESS JOURNAL Family members have a likely in the high tech and STARKVILLE – Family- stake in the success of the sacrifices to make it in the manufacturing sectors. owned businesses may have a company, he said. He added that the U.S. has a leg up over nonfamily-owned “They’ll work longer hours, long term. They are more smaller percentage of family businesses, says a business ex- accept lower pay when neces- likely to rally and con- business than other countries, pert. sary and do things that a regu- especially developing nations. James Chrisman, director of lar employee just would not,” tribute resources to help In the next 10 to 20 years, he Mississippi State University’s Chrisman said. the firm get through it.” doesn’t see a pronounced shift Center of Family Enterprise And sometimes people in James Chrisman in the U.S. to or away from Research and a management the family but not part of the family businesses. He expects professor, said the key for all business are more willing to can be beneficial,” Chrisman Many large companies, such the number will be fairly con- businesses these days is to donate time and resources to said. “There’s just on and on as ones on the S&P 1000, also stant with a slight upward weather the storm. Yet, some help the company succeed. how they can be helpful.” are family businesses, with trend. of the shared goals of family “The lack of a conflict of in- It’s good news for the busi- Chrisman estimating the per- “Family-owned businesses, businesses may put them in a terest can be very important,” ness community, considering centage is somewhere between like other businesses, don’t better position, he said. Chrisman said. more than half of all business- one-third and 40 percent. The have a long life span,” he said. The increased pressure from In addition, members of a es are family-owned. The fig- reason for the smaller percent- “Thirty to 40 years is old. Busi- the tough economy “puts a family tend to know each other ures vary wildly, depending on age, he said, is because family nesses come and go. That’s the strain on companies that are better and communicate bet- the origins of the figures. businesses have capital con- regular working of the econo- lacking resources, haven’t been ter than nonfamily employees. Chrisman said he usually straints and many times wind my.” around that long and are oper- “The likelihood of someone sees estimates between 65 to up compromising control if ating on a shoestring.” being able to get away with 90 percent. His calculations they want to grow. Contact Carlie Kollath at (662) 678-1598 “Family-owned businesses something is lower and that put it closer to 80 percent. For example Walmart, the or [email protected]. FEBRUARY 2010 BUSINESS JOURNAL PAGE 3 The furniture industry is much like family e all have rela- past 12 markets, I would say that at the Some have withered away, expense of others. Hey – busi- tives we love and the overall mood from last market. some have grown, others have ness is business. those we’d rather month’s market was better Buyers from branched out into other ven- But if there’s one thing the not be around than, say, the past three or four the top 100 tures. furniture family can – or at W – which, by the way, were held furniture re- There are many company least, should – agree about is unless forced to do so. At the family reunions, in the midst of the worst reces- tailers were execs who have worked at jobs. everyone smiles and laughs sion since the Great Depres- at the mar- other companies, where they The Mississippi Furniture and gets along for the most sion. ket in learned and developed their Association, led by Ken Pruett part. But there are some dis- Is the worst over for the fur- greater skills. and Crowell Armstrong, have agreements now and then. niture industry? numbers, Ever heard of the six degrees tried mightily to get the furni- Which brings us to the furni- Ray Allegrezza, editor-in- looking for of separation? In the furniture ture family in the state to get ture industry in Mississippi. chief of Furniture Today, sees Dennis products industry, it’s more like three or on the same page to fight for The Winter Tupelo Furniture “solid evidence” that it is. SEID and deals four. jobs. Market wrapped up last “Consumers are saving they could There are friendly competi- The MFA and many in the month, and the initial reports more money than before, so if flow tors. And some not-so-friendly. industry are fighting for cut- suggest that it was a decent they decide to buy home fur- through their stores. There is rivalry – and envy, of and-sew job tax credits again. market. More buyers than nishings, they likely will be And that’s where they run course. But what some see as a pri- usual were in town by many able to fund those purchases,” into the family of furniture But much like family gather- ority, some do not, the MFA accounts, although overall at- he said. “And retailers, after al- manufacturers in Northeast ings, most everyone plays nice. feels. tendance was still weak com- most a year of playing it close Mississippi. At the furniture market, For the good of the family, pared to the boom times of a to the vest with inventory, are From the time Morris Futori- everybody wants a piece of the maybe petty differences can be few years ago when 35,000 almost forced to replenish an set foot in the region 50 pie – only the pie is much put aside. people packed the market, their shelves.” years ago, almost every com- smaller these days. So there’s a restaurants and hotels. With that in mind, there pany in the region can trace its little more urgency in getting Contact Dennis Seid at [email protected] or Having attended 11 of the were buyers looking to do just roots to him. your name in front, even at the (662) 678-1578. The Winter Tupelo Furniture Market wrapped up last month, and the initial reports suggest that it was a decent market. More buyers than usual were in town by many accounts, although overall attendance was still weak compared to the boom times of a few years ago when 35,000 people packed the market, restaurants and hotels. PAGE 4 BUSINESS JOURNAL FEBRUARY 2010 A custom-built business Pettigrew Cabinets was founded in 1971 By Carlie Kollath inet-inspired caskets. BUSINESS JOURNAL The custom caskets are ex- PLANTERSVILLE – The Pet- amples of the many requests tigrew family makes cabinets fielded by Pettigrew Cabinets that are so well-loved, some since it started in 1971. The customers have been buried company focuses on custom in them. cabinets, islands and counter- Well, they aren’t buried in tops, but Jeff Pettigrew, presi- the actual cabinets, but in dent of Pettigrew Cabinets, custom-made caskets based said they’ve done many other on the company’s cabinets. projects, including mantles, The story goes, according to entertainment centers, jewel- Pettigrew Cabinets Vice Presi- ry boxes and woodwork for dent Jerry Pettigrew, that a cars and motor homes. woman died unexpectedly The company also has ex- and her husband was left to panded to sell kitchen appli- make the arrangements. ances from brands such as “She had liked her cabinets Fisher & Paykel, Viking and so much that her husband Sub-Zero. wanted her casket to match They usually do jobs within her cabinets,” Jerry Pettigrew 100 miles of Plantersville, but THOMAS WELLS they have done special jobs in Pettigrew Cabinets has been family-owned since its founding.The current ownership includes Earl Hammock,from left,Craig Pettigrew,Jerry Pettigrew,Jennifer Petti- said. The family-owned company the past on the Mississippi grew and Jeff Pettigrew. since has made two more cab- Gulf Coast and in Colorado. Humble beginnings Jeff Pettigrew’s father, Fred Pettigrew, started the wood- working company in a single building at the current loca- tion on Highway 6 East. “Dad was a school teacher,” Jeff Pettigrew said. “He always said because we weren’t making enough money (from his teaching), he went into woodworking.” Fred Pettigrew, who retired from the company last year, started off by building eight- track tape boxes, stereo boxes and cabinets.