Keen eyes, ears aid D.M. office supplier Storey Kenworthy
By WILLIAM RYBERG
Storey Kenworthy prides itself on being focused, nimble and a stickler for details.
The three elements have helped the Des Moines-based company prosper for 70 years in the competitive business of selling office furniture, supplies and services to businesses ranging from small start-ups to Fortune 500 clients.
“We stick to our core,” said Dave Kenworthy, the company’s president and a grandson of one of the founders. “That’s where our knowledge, experience and expertise are.”
The core, however, offers opportunities.
An example: Employee Alfredo Orozco came up with the idea of setting up an in-house reupholstering service. New upholstery can save a client company the expense of buying new furniture when styles or office color schemes change.
Managers did the math – doing the work in-house vs. contracting it out – and decided it made sense.
The result: Orozco and his brother, Francisco, now make up the company’s two-man reupholstery department. Business has been good.
“We found a need and filled it,” Kenworthy said.
Storey Kenworthy is a survivor in an industry where independent operators must compete with huge chains such as Office Depot, Staples and OfficeMax, as well as other local companies – independent competitors such as Koch Bros. and Triplett Office Essentials in the Des Moines area.
Closings and consolidation thinned the ranks of independents nationally in the 1980s, said Simon De Groot, editor of Office Dealer and Office Solutions, two trade magazines.
The early part of the 21st century saw new challenges. Recession and the dot-com bust sent office furniture sales reeling. Sales, measured in wholesale value, dropped from $14.9 billion in 2000 to $12.4 billion in 2001, a 17 percent decline, according to the Business and Institutional Furniture Manufacturer’s Association.
Sales have recovered but won’t get near the 2000 figure again until next year, the group estimates.
The downturn was more pronounced on the coasts, compared with Iowa and the Midwest, said Glenn Oberlin, a partner in the Storey Kenworthy business.
Kenworthy said the company has been consistently profitable, and has shown solid sales growth – at a rate of 5 percent to 10 percent per year over the past 10 years. Sales have more than quadrupled since he joined the company 31 years ago, he said.
Surviving independents have “become masters of change,” De Groot said. “They’re certainly running their own businesses better today than ever, and probably providing customers better service and value than ever.”
Founded in 1936, Storey Kenworthy is celebrating its 70th anniversary this year, Kenworthy said.
With about 140 employees and operations in seven Iowa cities, the company describes itself as the largest family-owned office interior and products company in the state.
The business is owned by Dave Kenworthy, brother John Kenworthy, and Oberlin, a partner in the business since 1998.
In 2003, Storey Kenworthy opened Business Furniture Warehouse in Urbandale. The 36,000-square-foot store features furniture for small and mid-sized businesses.
Storey Kenworthy has made use of the Internet. About 55 percent of customer orders come over the Internet, said Kenworthy.
The divisions, in addition to the Business Furniture Warehouse, do business as Storey Kenworthy Office Products, Storey Kenworthy Office Interiors and WorkSpace Inc.
The company’s 48,000-square-foot building at 1333 Ohio St. in Des Moines includes an office supplies warehouse, stocking everything from paper clips to ink cartridges for printers. The company has no retail sales floor for office supplies, but does sell to walk-in traffic from a service counter.
The building also houses offices, a furniture showroom and a base for services such as interior design.
Furniture sales and interior design are the bread and butter of the WorkSpace Inc. division at 309 Locust St. in downtown Des Moines.
Good employees, products and commitment contribute to Storey Kenworthy’s success, said Kenworthy. Also important are the company’s business processes, which are frequently examined and improved, he said.
Checking details is key. An example: Before furniture is delivered, employees determine whether new furniture will fit inside elevators at the destination. Taking the stairs requires more delivery help.
Company leaders listen to ideas from employees such as Orozco, he added.
Orozco had years of experience in upholstery work. After working at Storey Kenworthy for a while, Orozco decided he could do work that the company had been contracting out.
The results: A new niche for Storey Kenworthy – and satisfying work for Orozco.
