Before any discussion takes place of MacKellar Associates, Rochester Hills, Michigan, here are some challenging — if not daunting — facts about family-owned businesses:
- According to the Harvard Business Review, approximately 70 percent of family-owned businesses won’t make it to a second generation.
- Only 30 percent of family businesses survive the transition from first- to second-generation ownership.
- Just 12 percent survive the transition from second to third generation. Only 13 percent of family businesses remain in the family more than 60 years.
- And, 47 percent of family business owners expecting to retire in five years do not have a successor.
Now, for some more encouraging news — with its first 100 years clearly visible in the rearview mirror, this year MacKellar Associates looks forward to its second century in business under the fourth-generation guidance of Andrew MacKellar.
MacKellar Associates founded by Malcolm MacKellar in 1923, began by representing two woolen mills and selling woolen body cloth, upholstery and headliners to the automotive industry. At that time, the agency’s customers consisted of the “Big Three” (Ford, General Motors, and Chrysler) and some almost-forgotten names from the past — Packard Motor Company and Studebaker.
The original corporate offices for the company were located in the historical General Motors Building in Detroit, Michigan. When Malcolm founded MacKellar Associates it consisted of a one-man sales operation backed by one secretary. This small, efficient operation continued for more than 20 years, developing a reputation of honesty, integrity, and excellent service.
Expanding Product Line
In the mid-1940s, Malcolm’s two sons, Glenn and Don MacKellar, joined the organization. With those additions, the company expanded its product line to include injection molded plastics and decorative metal parts. As personnel requirements increased and business continued to progress, the agency relocated once again from Detroit to the Congress Building in Southfield, Michigan.
In the 1970s, the third generation of MacKellars, Stephen and David, joined the family business, continuing to expand and diversify the company. Throughout the following years, MacKellar expanded to offices in Grand Rapids, Michigan, New Albany, Indiana, and Columbus, Ohio, and a newly built headquarters in Bloomfield Hills, constructed in 1988.
As MacKellar established the reputation of specializing in decorative products, the firm began to research other industries in order to capitalize on its knowledge and expertise. To complement the products that it represented, the decision was made to purchase a small screen-printing company that has since grown into the Promotional Marketing Division.
In 1999, it started the MacKellar Automotive Division offering automotive embroidery and screen printing on seat backs, headrests, floor mats, and door panels.
In 2010, MacKellar consolidated its corporate office and manufacturing facility into one newly furbished, state-of-the-art building.
It was this year, during the firm’s 101st year in business, that Andrew MacKellar took over as CEO. Admittedly MacKellar had limited interest in joining the family business. “I was a fairly good infielder and had dreams of playing baseball,” he says. Then, fate or circumstance took him in a different direction. “In 2004, I was attending Saginaw Valley State University when my father called me during my first year to let me know the company had a hole to fill. The plant manager at our screen-printing facility decided to leave and I was asked to take on the job.” That’s the course he followed all the while embarking on the long-term, eight-year, night-course plan to earn his degree in administration and international business at Oakland University.
Today finds MacKellar as the CEO of the company comprising four divisions:
- Manufacturers’ Representatives — Sales and Marketing of products/capabilities within the automotive, appliance, industrial, and emerging industries.
- Promotional Products — Enhancing corporate identity through designing, sourcing, and delivering market-leading branded merchandise.
- Custom Decorating — Specializing in design, embroidery, screen printing, and other unique processes and capabilities.
- The Blanket Lady — Creating hand-crafted, personalized blankets and accessories, making the perfect keepsake for any special occasion.
In total MacKellar Associates has more than 50 employees with six devoted to the rep side of the business. MacKellar explains that while still early in his term as CEO, “Most of my time is geared to the administrative and promotional/marketing side of the business.”
Rep Division
Speaking to the operation of the manufacturers’ rep division of the company, MacKellar explains that like so many other rep firms across the country, it had to deal with the effects and after-effects of the Covid pandemic. “We were able to weather the storm primarily because of the diversity that our organization offered. Without the diversity we enjoy, our continued growth and success would have been very difficult.
“Now, post-pandemic, most of our sales staff remain working remotely. The email community has grown quite a bit, and the typical phone calls don’t seem to happen as much as they used to. Virtual and team meetings and other forms of video conferencing have become much more prevalent. We’ve grown to rely much more on the technology that continues to grow.”
He adds that social media has been helpful in allowing the firm to maintain a presence in front of customers and principals. “We use social media for all of our divisions in an effort to promote products and services. This new technology complements our efforts to stay in touch via in-person and phone contacts.”
While still in the early stages of his tenure as CEO, MacKellar explains he’s still familiarizing himself with all the company’s operations. “Being the leader of a fourth-generation business puts a lot of weight on your shoulders. We’re fortunate that we’re strategically placed in the automotive mecca. I want to make sure I don’t upset the apple cart. I also keep in mind that there’s so much involved in running an organization that employs more than 50 individuals. I care for all of them and want to make sure they all have solid job security.”
When it comes to the firm’s continued membership in MANA, the agency’s website (www.mackellar.com) credits the value of its membership. “We appreciate MANA for being part of our story as we celebrate our ninth ‘non-consecutive’ year as a member in good standing! Our Manufacturers’ Rep Division looks forward to continuing to grow our relationship and truly appreciate all the support MANA continues to provide for us.” According to MacKellar, “We regularly use MANA as a resource, have joined in on the regular MANAchats and have had success when it comes to principals finding us, or us finding new principals. Our membership has also been valuable in letting us know about companies that might be quality customers for us. In addition, I’ve found that the rep members have created a community that is always willing to help others.”
Notable Dates From MacKellar Associates’ History
- 1923 — (President Warren Harding died in San Francisco.) Malcolm MacKellar founded MacKellar Associates and began to represent two woolen mills by selling woolen body cloth, upholstery and headliners to General Motors.
- 1945 — (World War II winds down and President Franklin Roosevelt dies.) Expanding the business into injection molded plastics and decorative metal components.
- 1987 — (The New York Giants were the Super Bowl champs and the Minnesota Twins won the World Series.) Purchased Burro Graphics screen printing and embroidery plant.
- 1989 — (The Berlin Wall comes down.) Opened three regional sales offices for the automotive/appliance business.
- 1999 — (U.S. judge declares Microsoft is a market-stifling monopoly.) MacKellar Automotive Division was established to offer embroidery and screen printing on seat backs, floor mats and door panels.
- 2009 — (In mid-January a U.S. Airways jet safely lands in the Hudson River.) Moved into a new corporate office building in Rochester Hills, Michigan.
- 2013 — (Boston is the site of a tragic bombing during its annual marathon.) New senior management team. Increased focus on diversification and global expansion.
- 2023 — MacKellar Associates celebrates its centennial anniversary.
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