[Congressional Record (Bound Edition), Volume 158 (2012), Part 2] [Senate] [Pages 2104-2106] [From the U.S. Government Publishing Office, www.gpo.gov]RECOGNIZING F.S. VANHOOSE & COMPANY Mr. McCONNELL. Mr. President, I rise today to pay tribute to one of the most vital components of the American economy, the family-owned business. For over a century, Kentucky's own F.S. VanHoose & Company has persevered throughout the struggles that many small businesses face, and they are still on top. The company has a rich history of serving the Kentucky communities of Paintsville, Prestonsburg, Louisa, and the surrounding area. Although they have [[Page 2105]] evolved and changed throughout the years to keep up with their competitors, it is their dedication to the customer and to the employee that still lies at the heart of the organization. And that is something that has never changed--not in the VanHoose family, and not in the VanHoose Company. Frew S. VanHoose founded the lumber company in 1910. Frew's son Howard VanHoose, who worked briefly for the company after studying at the Kentucky Military Institute, would answer the call to serve his country in 1943. Howard VanHoose was killed in action in Germany in April of 1945, his son Joe Howard VanHoose aged only four at the time. Frew VanHoose went on to spend 54 years running the company as president and CEO, until he could not manage the business anymore due to his failing health. With the founder of the company stepping down, the course of the company would dramatically change. After a brief 2- week interlude, in 1964, Frew S. VanHoose's grandson Joe Howard VanHoose, then just 23 years old, became the new president of F.S. VanHoose & Company. In over a century of business, F.S. VanHoose & Company has had only two presidents in its entirety. Joe was perhaps inexperienced and not entirely ready to handle the management of his family's company, which under his grandfather, had grown to become a large, multi-faceted operation. In his own words, Joe described himself as ``23 going on 18.'' ``I thought to myself, Joe, it's either sink or swim. I swam,'' Joe said. Today, the company's sales rate is 30 times greater than it was in the mid-1960s. Joe has spent 58 years as the company's president and CEO. The business is financially stable and annually injects great amounts of out-of-county and out-of-state money into the local economy. VanHoose & Company has been listed by various national trade magazines in the top 400 businesses several times. The secret to this small-town lumber company's success is simple. By treating employees well and keeping turnover rates low, the employees are able and ready to stay at VanHoose & Company for the long haul. Next, Joe relies heavily on the leadership of his fellow family members throughout the company. He believes it is up to them to carry on the business in the future. Also, every business needs to be able to change with the times--and sometimes even before the times. Joe remembers VanHoose & Company using computers long before they were the norm. Now he can hardly imagine going a day without them. Last, but certainly not least, is pride. Each individual involved with the organization cares deeply about the well-being of the company, and reveals it in their day-to-day display of upstanding character and customer service. It is my hope that today, my fellow Senators will join me in recognizing the contribution that this company has made and is continuing to make in the Commonwealth of Kentucky. Success stories like that of F.S. VanHoose & Company resonate as examples of what hard work, perseverance, and dedication can lead to in our great country. There was an article recently printed in the publication ``Discover the Power of Southeast Kentucky,'' published by the Southeast Kentucky Chamber of Commerce in the summer of 2011. I ask unanimous consent that it appear in the Record. There being no objection, the article was ordered to appear in the Record, as follows: [From Discover the Power of Southeast Kentucky, Summer 2011] VanHoose Lumber Since 1910 When you meet Joe Howard VanHoose, president and CEO of F.S. VanHoose & Company, you notice first the smile, contagious laughter and friendly demeanor. Under all this congeniality he's a very good businessman who guided the family business from financial straits in the mid-1960s to the celebration of its 101st anniversary, making the company one of the oldest continuing retail businesses in the tri- state region. Joe VanHoose has seen the company through the worst of times and the best of times, with more good times than bad. F.S. VanHoose & Company was founded in 1910 by Frew S. VanHoose who ran the business until he was into his 80s. ``Technically, we have had only two presidents of the company in the 101 years of operation,'' Joe says with a smile. ``My grandfather's failing health in the 1960s changed our course. In 1964 I was nominated as president of our company. I was 23 going on 18. Oh, we had an interim president for two weeks. Frew gave one of his cronies the position with no money changing hands. The man was to get his with what was to come by turning the business around. A `falling out' over something said to him got him to throw down his keys and go home. ``At that time we had a longtime secretary/treasurer of the company named McKinley Baldwin, also a stockholder in the business, who nominated me as president. I'm pretty sure he was looking out for his own interest as well as the company's when he did that. He knew I was so green and inexperienced I would do whatever he said. I thought to myself, `Joe, It's either sink or swim.' I swam!'' Then he added with a grin, ``More out of fear than intelligence.'' Joe came from good stock. His father Howard VanHoose had graduated from Paintsville High School in 1935 and attended Kentucky Military Institute before joining his father in the family lumber business as manager of the Louisa operation. He was very active in civic affairs: a member of the Louisa City Council, vice president of the Rotary Club, secretary/ treasurer of the Business Men's Club and a member of the I.O.O.F. This was all interrupted in 1943 by a call to service for WWII. Howard VanHoose was killed in action in Germany in April 1945. Joe was but four years old. When Joe assumed the leadership role, F.S. VanHoose & Company had a hardware store, lumber yard and wholesale department in Paintsville, a facility in Prestonsburg and a lumber yard in Louisa. To get the company back on solid ground, Joe said he shored up some things and put good practices into place. ``We consolidated our Paintsville operations and the Louisa yard.'' Joe attributes much of the success of the company to hiring and retaining excellent employees. ``We give employees a good benefits package. This is one reason we have so many long- time employees. That, plus we treat them well. Low turnover means a lot to us as well as to our customer base--friendly, familiar faces. Besides our regular career employees, we have family members who have been here a long time. My cousin Scott Craft retired from here about six years ago. He was vice president. His brother Mike retired about two months ago. He was manager of our Prestonsburg operation as well as secretary/treasurer. I have a son, Harry, in the business now, and hopefully the family will carry the business on in the future.'' Another crucial move on VanHoose's part was changing with and sometimes before the times. His company utilized computers before it became the norm. ``It's so common now,'' he said ``that I wonder how companies ever operated without them.'' At one point the growing trend of ``chain yards'' started getting close to what was considered F.S. VanHoose & Company's market area, which was a 75-to-100-mile radius reaching into three states. ``They were getting into Huntington, around the Ashland Oil plant near Catlettsburg and in Ironton, Ohio. They were shifting into our market, and I knew we had to do something. I knew it would be just a matter of time before they were in our face. ``The older way of doing business was by operating off certain margins. We went through a gradual evolution from margin to volume.'' Over the years some of the large chains have moved on up the Big Sandy Valley into VanHoose's backdoor. Some stayed around a little while, others longer. ``We have taken some hard shots over the years, but we have managed. We have two large sales each year--spring and fall. We promote these sales in 25 newspapers with full-page ads. We use 10 to 12 radio stations and two TV stations, also. We have no outside sales, and this gets our name out there. It brings people in from other markets. We've been doing these sales since the early '70s.'' Joe said new facilities are planned for the Prestonsburg store. ``Adjacent to where we are now, we are renovating a large former Betsy Ross warehouse and plan a move into it soon. Also in Prestonsburg, we have a new manager since Mike retired. Calhoun Salyer from Paintsville had worked several years for us while going to college . . . probably 25 years ago. After he graduated from UK, he became secretary/ treasurer for us and stayed around about five years before going elsewhere. He is back. He had been in management and sales and has brought that expertise with him. He is a good addition. ``We are financially stable now. Sales are 30 times what they were in the mid-1960s. We bring a lot of out-of-county and out-of-state money into this area.'' Joe said that higher volume has required expansion of equipment and personnel to handle it. ``Today, we have a fleet of a dozen trucks and a maintenance department to keep them running well, a boom truck to handle drywall, 10 forklifts, and half a dozen piggyback trucks with forklifts hanging off the back for special deliveries . . . all to serve our customers. Our total personnel [[Page 2106]] varies between 37 and 50, depending on the economy.'' Another added value that has most certainly contributed to the company's success is also a source of pride. ``The amount of expertise that we have to offer to the customer that is free is phenomenal,'' Joe said. ``If a professional contractor wants to know something, he or she comes to us.'' ``In the 1980s and early '90s, national trade magazines had our little company listed in the top 400 several years in a row. No little feat considering the large amount of lumber companies in this country and their sizes.'' Joe grinned, ``Can you imagine continuing 101 years in the retail business and having only two presidents of the company during that time?'' When asked how much longer he plans to work, he laughs and answers, ``There was a man in Lewisburg, West Virginia, who ran his lumber company and showed up every day until he passed away at 103. I'd like to break his record.'' ____________________