The Great White Way
By Mindy Kroll
Client Profile
Universal Advisor, 2005 Issue No. 1
Only one-third of family-owned businesses in the United States survive into the second generation; of those, only one in five makes it to the third. Chicago-based White Way Sign, then, is something of an anomaly, as it’s both a fourth generation family owned business and the largest custom sign company in the United States. It’s hard to find an industry segment that White Way hasn’t served, from banks, hotels, casinos, and theaters to auto dealers, restaurants, shopping centers, and scoreboards for some of the most visible sports arenas around the world. So what’s their secret?
“One could easily lose direction and become blinded by the big dollars in the sports industry,” admits Bob Flannery, Jr., CEO of White Way Sign. “But our vision is to adhere to the tradition we’ve spent 80 years building — to never lose sight of the potential of the maintenance component of White Way’s commercial sign customers. It’s that, not the flashier, more recognizable, aspects, that has been and will continue to be the backbone of our business.”
The Early Days
White Way Sign was founded in 1923 by Thomas F. Flannery, an Irish immigrant who came to the United States with only $14 in his pocket. He learned the trade of sign maintenance through a local sign company. After serving in World War I, Tom formed his own sign maintenance company named after the bright lights that comprise Broadway’s vibrant theater district, dubbed “The Great White Way.” He ran a one-man-maintenance show; he was president, head (and only) electrician, salesman, and janitor and predominantly served the Chicago theater district up through and including World War II.
After World War II, however, the emergence of television began to threaten the theater industry; Tom realized that a large portion of his customer base would be going out of business and had to shift gears quickly. Car dealerships and shopping centers were beginning to pop up around Chicago, and Tom realized the potential of the new markets that would not only need service for signs but also brand new signs. It was the perfect opportunity for him to expand his business into sign design, manufacturing, and installation. He seized it.
Because of this new business, his one-man show days came abruptly to an end. His eldest sons joined the company in sales and administrative capacities, and in 1947, White Way moved into what continues to be their headquarters today: approximately 200,000 sq. feet that houses most of its manufacturing, design/engineering, research and development, and service dispatch.
All in the Family
“This isn’t a patronage organization,” insists Bob. “There’s no nepotism — no room for ego.” To assure the success of the business, White Way has seen to it that only family members who are truly interested and intend to be active participants in the business are employed. Most family members, in fact, have never asked to join White Way. And on the rare occasion where a family member displays interest but fails to meet White Way’s high standards? “They’re asked to leave,” Bob answers quietly.
“The expectations are stiff,” he continues. “Your last name guarantees you nothing.” In fact, it can be a liability, as expectations of family members are higher than those of other employees. “This isn’t an easy business,” cautions Bob. “There are so many different types of manufacturing and heavy electronics that it takes a tremendous amount of skill to survive in this environment, and no one ever wears only one hat; the intermingling between us has been and continues to be impeccable — and that’s the main reason why we’ve been able to survive without killing each other!”
Working at White Way
“We constantly strive to surround ourselves with talented people who, hopefully, are better at what they do than we are at what we do,” says Bob. When asked about staff turnover, he replies, “Over the years, we’ve had five employees who reached their 50-year anniversaries with the company and then kept going. In addition, for the past 25 years, we’ve given away two to three gold watches per year, signifying 25-year anniversaries. Turnover is incredibly small. It’s a phenomenon almost unheard of in the work world today, but then so is four generations of ownership.”
Someone who’ll soon be receiving his gold watch is Jim Wood, Regional Vice President and 24-year veteran of White Way. “The best part about working at White Way is the diversity of tasks,” says Wood. “Every situation is different. You could be working on a bank sign one day and a major league baseball scoreboard the next. Either way, at the end of it, there’s something tangible that you helped create, and there’s a certain measure of pride to be derived from that.”
Bob agrees. “It particularly hits home with the smaller entrepreneurs whose faces light up when they see their signs illuminated for the first time. It’s incredibly rewarding.”
The ’70s
Once White Way entered the sign design and manufacturing realm, the sky was the limit. The ’50s brought new customers such as automobile dealers, shopping centers, bowling alleys, and appliance stores. The ’70s introduced the mini computer, which revolutionized the industry. “We were always good at building big, spectacular, showy signs, but with miniaturization we could take the art of animated neon and light bulbs and take it to a whole new level,” says Bob. “We were able to offer it to businesses such as grocery stores and banks who had never been able to afford the technology. It further expanded our client base.”
But it wasn’t all smooth sailing. Zoning restrictions and Ladybird Johnson’s Highway Beautification Act created new challenges, and the oil embargo caused Bob to question his decision to enter the family business in the first place. “It was a scary time,” he remembers. “The patriotic thing to do was to turn off your electric signs. But it reinforced our commitment to our vision. Even though times were tough, the maintenance revenue never hiccupped. Not once.”
The Importance of Maintenance
Today, nearly 30 percent of White Way's annual revenue is from sign maintenance. “A sign is a highly visible calling card for the company it represents,” says Flannery, “and maintenance is a key component. We typically sign 60-month agreements with our customers, and the average life of a maintenance contract is about 18 years. We rarely lose an account due to poor service.”
How does White Way ensure that maintenance is done promptly? They actually dispatch night inspectors to ride around, look at the signs, and determine if they’re working effectively or not. In addition, at least once per year, they completely disassemble the signs, clean them, and reassemble them again. When they say, “we believe in quality signage that is artfully constructed of durable materials and constantly maintained and monitored,” they mean it.
The ’80s
Due to some of the zoning restrictions and The Highway Beautification Act, White Way began to consider how they could parlay their creativity into an arena that was less restrictive. Soon they had opportunities with Comiskey Park and Soldier Field to take their state-of-the-art technology and use it to design and develop scoreboards. “It was a rude awakening,” remembers Bob. “In Chicago, we were used to instant name recognition, but outside our little area, it was ‘White Way who’? We had a lot of work to do, but it’s proven worthwhile. Today there’s not a major bid where we aren’t called in for consultation.”
White Way has designed, built, and installed scoreboards for such notable arenas as Shea Stadium, Wrigley Field, Madison Square Garden, Joe Louis Arena, and the United Center. Over the last 15 years, 19 of the last 27 newly built pro sports arenas have chosen White Way Sign.
White Way Today
When it comes to gaining new clients, White Way takes a proactive approach. “If we sat back and waited for people to go to the Yellow Pages, we begin with ‘W,’” laughs Bob. You can tell he truly enjoys what he does. When asked what White Way is most passionate about, he lights up like one of the signs he helps bring to life. “We always love the magic show that a large, animated display can put on,” he says. “Way down deep inside, that’s our roots — ornate theater marquise — but we have to temper that to fit into architectural and aesthetic areas as well.”
Bob cites a recent Miller/Miller Light sign he’s particularly proud of. “The Miller sign ‘Spectacular’ that just went up on the Kennedy expressway is a good example of something that gives us the greatest joy. It has strong graphics, neon, animation, exposed lights, a message center — it embodies our capabilities much better than a static sign. It’s entertaining, it’s eye catching — we think it’s what we do best.”
