The percentage of U.S. companies that make it to the 100-year mark is such a small number, there is no clear go-to source for accurate data on the topic. We know from the U.S. Bureau of Labor Statistics that only 36% of companies last 10 years and about 21% survive to see their 20th anniversary. Beyond that, the U.S. Census Bureau reports that only about 12% of companies are older than 26 years.
The prevailing theory, though unconfirmed, is that only about a half a percent (0.5%) of all companies have what it takes to last 100 years. This means that centennial firms truly do have lots to celebrate. They’re so rare it’s difficult to calculate just how rare they are.
One Indiana company that’ll be doing a lot of celebrating this year is Hammond-based Budd Mechanical Systems, a heating and cooling contractor that is turning 100 this year. The company was established by Clement T. (Budd) Clusserath in 1921 as Budd The Furnace Man & Sons, Inc. and has evolved throughout numerous business, economic, and technological changes over the generations.
Today, Budd Mechanical Systems is owned and operated by the third generation of Clusserath leadership under President Dana A. (Clusserath) Booth. The company is a certified WBE in the state of Indiana, a certified FBE in the state of Illinois, and has a regular staff of about 20 employees. Incredibly, the business is still located in its original Hammond location.
Building Indiana Business reached out to Dana Booth learn more about how companies like Budd Mechanical Systems have been able to stand the test of time.
Building Indiana Business (BIN): Let’s start with the million-dollar question. What’s the secret to staying in business for 100 years?
Dana Booth (DB): “Perseverance and caring for our customers and employees. This generation has fostered the same principles we attribute to the continued success of the company, which includes recognition of all the people and talent that get us through each and every year. We are proud of the generations of employees, some with three decades of service.”
BIN: Heating and cooling has changed a lot over the last 100 years. How has your company adapted?
DB: “Our technicians attend continuing education classes yearly.Our office staff stays informed about new developments by attending meetings and webinars on upcoming changes to our industry and new products.”
“Our scope of work has continuously broadened. Residential work was our main focus in the earliest days, and at this time residential heating and air conditioning is only a portion of our production. Commercial work is the bulk of our production currently.”
(BIN): Has the pandemic situation of the last few months been a unique challenge in your 100-year history? What’s changed?
(DB): “Each time our business has faced recessions, deaths, and retirements, we have had to transition our methods and continue on in new directions.Grit was instilled in us from the first generation.My grandmother worked daily at the age of 89.It’s all about solving problems and moving forward.”
“COVID-19 has made us stay focused on using good judgement with keeping our employees and customers safe. We have shifted to provide new IAQ (Indoor Air Quality) services for our customers, as we’ve been observing increasing demand for cleaner indoor air.”
Fundamentals Matter Most
If the Clusserath family’s experiences align with other centennial company histories, then good fundamentals are what matter most for business longevity. The success of a 100-year story is rooted in simple but essential principals: taking good care of your employees, delivering the best outcomes for your customers, and continually learning new things. Although 100 years is a rare milestone and a long journey, the steps needed to reach it are simple to take.
FAQs
Most businesses focus on serving customers, owning resources, being efficient and growing — but the Centennials don't. Instead, they try to shape society, share experts, create accidents, and focus on getting better not bigger. They're radically traditional — with a stable core, but a disruptive edge.
How do companies last 100 years? ›
They are:
- Strong corporate mission and culture.
- Unique core strengths and change management.
- Close relationships with business partners.
- Long-term employee relationships.
- Active members of the local community.
Beyond that, the U.S. Census Bureau reports that only about 12% of companies are older than 26 years. The prevailing theory, though unconfirmed, is that only about a half a percent (0.5%) of all companies have what it takes to last 100 years. This means that centennial firms truly do have lots to celebrate.
How to build a company to last 100 years? ›
But the key to building a successful 100-year company is sustainable growth and steady financial progress. Invest wisely in the company, spending as if it were your own money, and ensure that the financial leaders share your purpose and goal of building a company that will still be around a century from now.
How many US companies are older than 100 years? ›
How many US companies are over 100 years old? There are roughly 1,000 companies in the US that are over 100 years old. To understand how unique old companies are, just over 1,000 equates to only around 0.8% of the over 126,000 companies across the US in 2023.
What is the longest running company in history? ›
Very generally speaking, the oldest company in the world is usually recognized as Kongo Gumi, the Japanese construction company that was founded in 578 AD. It operated operated continuously for over 1,400 years until it was absorbed by another firm in 2006.
How long until a company is no longer a startup? ›
You reach a specific revenue and/or profit threshold.
One of the most well-known growth frameworks is the 50-100-500 rule. Using this yardstick, your company is no longer a startup if you have a $50 million revenue run rate, 100 or more employees or are worth over $500 million.
What is the hardest year of owning a business? ›
Make a commitment
The vast majority of businesses that fail do so within the first two or three years. It's true that the first two years in business are the hardest, especially for someone who is brand new to owning a business, and who has no experience managing staff or dealing with accounting or bookkeeping.
How long do most companies survive? ›
Average company lifespan of S&P 500 companies 1965-2030
In 2020, the average lifespan of a company on Standard and Poor's 500 Index was just over 21 years, compared with 32 years in 1965.
How many businesses don t survive 5 years? ›
About 45% of new businesses fail within the first 5 years. Failure to research the market, and prepare a business plan are common reasons for business failure. Many companies do not raise enough starting capital, which is essential for new businesses without a reliable revenue stream.
What Is the Oldest Business in the United States? The Shirley Plantation is the oldest company in America. It began operating almost 400 years ago, in 1638. The Shirley Plantation is the oldest family-owned business in the United States and the oldest active plantation in Virginia.
What is the oldest company still running today? ›
As of 2021, the Japanese construction company Kongō Gumi, founded in 578 C.E is the oldest existing company worldwide, and has operated for around 1443 years.
What company has a bad reputation? ›
What brands have a bad reputation? Brands with reputational challenges include Facebook (Meta Platforms Inc.), Wells Fargo, Boeing, Volkswagen, Uber, and others, which have faced controversies and negative publicity in recent years.
What is the average lifespan of a company? ›
In 2020, the average lifespan of a company on Standard and Poor's 500 Index was just over 21 years, compared with 32 years in 1965. There is a clear long-term trend of declining corporate longevity with regards to companies on the S&P 500 Index, with this expected to fall even further throughout the 2020s.
How many years do most businesses last? ›
According to the U.S. Bureau of Labor Statistics (BLS), approximately 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years. Only 25% of new businesses make it to 15 years or more.
How many companies are over 200 years old? ›
To be considered an old company, an organization must be in operation since its foundation and for longer than 200 years. These companies do not include educational institutions, government, or religious institutions. Around the world, there are over 5,500 companies that fit this description.
How many companies last 20 years? ›
40% of businesses fail within the first three years, 49.9% within five years, 65.8% within 10 years, 73.3% within 15 years, and nearly 80% within 20 years.
