Surviving a Challenging Economy

Business survivors in this tough economy have had to redouble their efforts to keep the doors open. Some have done a better job than others.

The University of Virginia’s Darden School of Business decided to find out which ones in Virginia have done the best job of navigating the rough waters of the current recession. Among the 15 finalists for the Tayloe Murphy Resilience Awards are two firms in Lynchburg. The winners will be announced tonight in Charlottesville.

Banker Steel not only survived the recession’s challenges, the firm and its 200 employees grew. Thomas A. Johnson Furniture also made the list for doubling its sales revenue from 2008 to 2009.

Both companies found a way to stay afloat despite the slow economy. Greg Fairchild, executive director of the Tayloe Murphy Center at UVa, said their success deserves attention. “People who have been growing these businesses in places that have challenges might know something that the rest of us need to know,” he said.

Marjette Upshur, Lynchburg’s director of economic development, nominated the two firms, along with several others, for the award. The business owners then provided information about how they responded to the recession.

The time period covered for the award has been particularly challenging for Banker Steel. Nearly two years ago, the firm lost $135 million in one week as the recession ate up credit markets and canceled construction projects. But the firm kept its 200 employees and this year it has hired about 60 new people as work has come back.

Don Banker, owner and chief executive officer of the firm, said the company used about $1 million in reserves to keep paying its workers, who cleaned and repainted the shop while the firm searched for steel work. After a few months, Banker Steel won a contract to provide steel for a Department of Defense agency office in Arlington.

Early this year, the firm won a $50 million contract for Barclay’s Center, a basketball stadium in New York. It was one of the projects canceled in 2008 but started again. The contract had led to the hiring of about 60 new people this year.

Thomas Johnson’s firm makes cabinets and furniture in a warehouse on Concord Turnpike. He has 10 employees. Last year, Johnson bought land on Mayflower Drive, where he plans to expand his manufacturing line and expand into wholesale and retail lumber sales.

Johnson said the contest has already helped him build business relationships that have helped draw attention to his company.

Banker also sees the potential value of the business competition. “I think the opportunity for companies to be able to share the things they’ve done to be resilient, whether they’re rewarded for it or not, (provides) a good information database,” he said. “It’s going to be nothing but a good process to educate others.”

That Lynchburg is the only city in the state with two finalists in the competition is a credit to the city’s business climate and its workforce. Both firms are worthy nominees for the Tayloe Murphy award.