Blog: City Blog

Local Business Owner Horace Andrews: ‘You Have to be Ready to Compete’

Decades before he owned Andrews Electric Services, Horace Andrews got started in the electricity business at the ground level – literally.

He was 12 years old, and his Uncle David, the founder of the company, would hire him for jobs that didn’t involve electricity but did require a small nimble body. So Horace would get dirty working in crawl spaces and other tight quarters.

“My work ethic was set early on,” Horace Andrews says. “My uncle would pick me up at 6 a.m., and he’d be sweating because he’d been working already.”

Andrews

From left: Andrews Electric Services founder David Andrews; his son, Hansel; current owner (and David's nephew) Horace Andrews

David Andrews started the company about 35 years ago – “one man and a truck,” Horace says. David had learned his trade in the Air Force, and he worked at Y-12 while he got his company up and running.

When David Horace founded his company, it was "one man and a truck." Here is one of the company's vehicles early on.

When David Horace founded his company, it was "one man and a truck." Here is one of the company's vehicles early on.

Andrews Electric has a fleet of 10 vehicles and 16 to 20 employees.

“I’m the second generation, and I’m trying to build the company,” Horace Andrews says. “Each generation has its own challenges. Trying to grow, you face resistance. The bottom line is, you have to be qualified, and you have to compete.”

Now, Andrews Electric, 3404 Martin Luther King Jr. Ave., has a fleet of 10 vehicles and 16 to 20 employees.

Andrews Electric was a subcontractor on the City’s retrofit of its almost 30,000 streetlights to LED technology. The massive switchover is now saving City taxpayers $2.2 million a year in electricity costs.

A voice for small businesses

Horace Andrews was an original member of the City of Knoxville’s Diversity Business Advisory Committee in 2016.

What are some of the difficulties that small businesses face?

The requirement to provide high-dollar bonding can be an impediment to mom-and-pop businesses, Andrews told the City. (Message received: The Law and Purchasing departments regularly review whether bonding levels can be adjusted.)

Generally speaking, Andrews says that no-bid jobs often come down to existing relationships – large companies or agencies tend to contract with vendors they know. That can make it hard for small companies to get their foot in the door.

And in electric services, Andrews says it’s a challenge to hire and retain experienced employees. Big companies can hire en masse and take their time training green recruits; small companies rely on a core of versatile, experienced employees.

As a Black business owner, Andrews says the City “has done a pretty good job” with its outreach efforts.

“The City helps make us aware of contracts and gives us opportunities to bid and do business with the City,” he says. “They really want to see small businesses and minority contractors succeed.

“But it’s on us as small businesses to get engaged. You need to be consistent in networking, in getting in front of people. You have to show up for the discussions, and you have to be ready to compete.”

Now, Andrews Electric has a fleet of 10 vehicles and 16 to 20 employees. The company was a subcontractor on the City’s retrofit of its almost 30,000 streetlights to LED technology. The massive switchover is now saving City taxpayers $2.2 million a year in electricity costs.

Now, Andrews Electric has a fleet of 10 vehicles and 16 to 20 employees. The company was a subcontractor on the City’s retrofit of its almost 30,000 streetlights to LED technology. The massive switchover is now saving City taxpayers $2.2 million a year in electricity costs.

Networking and sharing

The City of Knoxville emphasizes networking and sharing information about upcoming bidding opportunities with owners and managers of small local businesses.

When armed with information and given access to City directors to ask questions and familiarize themselves with upcoming projects, the little guys are better able to put together more competitive bids.

Pamela Cotham, head of the City’s Small Business and Diversity Outreach Office, says outreach efforts – such as the annual Business Breakfast or Diversity Business Expo – go a long way toward helping a small business connect face-to-face with City internal employees to grow their businesses.

“The City provides opportunities for vendors, contractors and business owners looking to connect with the City and collaborate or team on projects,” she says.

Small businesses have gotten small contracts with the City, then grown them over time. In other instances, small and minority-owned businesses have successfully teamed on City large projects; individually, they might not have had the range of skills or the capacity to bite off a large project, but together, they position themselves to do so.

“We applaud the determination and entrepreneurial spirit of our small business owners,” Cotham says.

In Fiscal Year 2020, the City awarded $4.3 million in contracts to minority-owned businesses – 5.7 percent of all City dollars spent that year.

That’s a higher dollar amount, and percentage, than in most years past. But the City’s goal is to be more accessible with its contracts.

Meanwhile, Andrews is eager to be at the table.

“Small businesses always adapt and recreate ourselves – we rebrand, remarket and remake,” he says. “Running a business can be a grind. There’s a lot of stress and worry. We rely on relationships, and we fight hard to build those relationships.”

Posted by evreeland On 22 February, 2021 at 2:56 PM