In a three-week period in April 2020, 24 million people lost their jobs in the United States. And in Canada, no single province or territory remained unaffected by massive cuts. Many of these positions were in the service sector. With lockdown restrictions, supply chain slowdowns, mask and distancing requirements, and people afraid to leave their homes, businesses dependent on in-person customers, like bars, restaurants, and hotels, remained shuttered or operating far below capacity.

Even though the pandemic ushered in new ways of working, including remote and hybrid jobs and so-called “side hustles,” many service positions still required staff to be on site, not working from a home computer. Needing money to survive, even the most dedicated employees found work elsewhere, many of them never returning to service-oriented roles. And while this affected many industries, family-run businesses were especially hard-hit.

Empty seats, rising costs
Fast-forward to 2026 and the current state of North America’s service industry. Dr. Sylvain Charlebois, in a January 2026 article for Retail Insider, claims 4,000 restaurants across Canada will probably close this year. While that figure is down from an estimated 7,000 closures in 2025, it is not encouraging. Factors range from the high cost of dining out to tipping fatigue and shrinkflation. (If you think the burger at your favourite diner seems smaller, it’s not your imagination.)

The biggest hurdle of all remains inflation. Everything from groceries to gasoline is more expensive. Late last year, Restaurants Canada released its Foodservice Facts report, revealing that three in four Canadians “are eating out less often due to the rising cost of living.” The numbers are even higher for those aged 18 to 34, at 81 percent.

“While conditions have improved somewhat over the past year, this is still a very challenging market, as Canadians continue to face an affordability crisis and rising operational costs are squeezing operators’ margins,” said Restaurants Canada President and CEO Kelly Higginson in a media release. “To stay competitive and optimize limited revenues, restaurant operators need to understand current Canadian dining trends.”

Tightening our financial belts means fewer of us are eating out as often. And when we do dine out, many are opting for fewer drinks, or having a glass or two of wine at home first to save on costs. In fact, owing to recent research on the negative health effects of alcohol, some are giving up drinking altogether. The result: 41 percent of Canadian restaurants are operating at a loss or barely breaking even.

A reduction in customers is especially devastating for family-run establishments, which not only face high prices for meat and produce but also ever-increasing minimum wages, rent or mortgage payments, insurance, maintenance, and utilities. The Cost of Goods Sold (COGS) is greater than ever. Depending on the type of restaurant, many operate with a net profit margin of just three to nine percent.

Like restaurants, many other service industry businesses have seen a drop in activity, including hotels. Even with a decline in bookings from U.S.-based business travellers, Canadian total booking volume is up, increasing 6.14 percent year-on-year. In the United States, however, bookings continue to take a significant hit, dropping 9.73 percent in 2025. Contributing factors include heightened border security, economic uncertainty, businesses cutting non-essential travel due to budgetary constraints, heightened visa requirements, the weak Canadian dollar, and anti-American sentiment over trade restrictions and tariffs.

Even Airbnb properties, many of them family-owned and managed, are feeling the economic pinch. Some former Airbnb patrons say they get greater value and more consistent service from large chain hotels. Once considered budget-friendly alternatives, some Airbnb rentals now rival the cost of high-end hotels when fees for cleaning, cancellation, and extra guests are added in. And unlike most hotels, Airbnb properties lack security and amenities, including front desk staff, pools, gyms, vending machines, and designated work areas.

Youth taking charge
Although the current economic climate is challenging for businesses, especially smaller family-owned enterprises, there are bright spots. Tough times have forced many service sector companies to challenge the norms within their own operations. This includes thinking differently about business strategy, being more receptive to bold and sometimes unconventional ideas, pursuing technological improvements, crafting unique promotions, and finding ways to connect with customers that have never been tried before.

Many family-led businesses, such as restaurants, remain stuck in the past—leaving décor and menu items unchanged for years, even decades. Recognizing that this approach fails to attract new customers, younger family members are often more innovative, suggesting plant-based options and menu items that blend different culinary traditions. While some older relatives may be reluctant to change, saying things like “that’s the way it’s always been done,” the next generation rarely carries those hangups because they aren’t as attached to the past.

One of the biggest advantages younger people bring to family-owned businesses is their fluency in the digital world. For them, traditional forms of advertising, such as newspapers and TV commercials, are obsolete, ineffective, and expensive. With a deep understanding of social media platforms like TikTok and Instagram, they regularly post photos and videos that reach thousands of potential customers, not handfuls.

Family members who grew up with computers, the internet, texting, and instant messaging understand the speed, effectiveness, and cost savings that come from embracing digital tools. This includes websites featuring everything from product listings to location and driving directions; the ability for customers to place orders and bookings online; e-commerce capabilities; and data analytics to uncover trends, improve decisions, and accelerate business growth. Raised in a world of branded products, younger family members are quick to spot emerging trends, more willing to test new markets, and adept at creating readily recognizable imagery.

Past meets present
Blending years of business experience with youthful enthusiasm and technological awareness has its advantages. When more than one generation is involved, both the company and its customers benefit from the wisdom gained through decades of failures and successes combined with the adaptability and energy of younger people.

When the time comes for the older generation to step aside, succession planning becomes essential. A gradual transfer of responsibilities—and often ownership—requires identifying leaders well in advance. One of the biggest mistakes made by family-run enterprises is waiting until the founders are too old, physically or mentally diminished, or mere weeks from retirement before addressing the question of who comes next. For companies to continue without interruption, succession planning needs to begin years before the original owners depart.

Open and honest discussions are critical. One mistake founders often make is assuming that the younger generation—usually their children—wants to take over the business. Working alongside mom and dad is one thing; being responsible for the day-to-day operations of a company is quite another. That requires not only maturity but proven capability.

Although owning and operating a family-run business is a challenge in today’s tough economic climate, the right planning can create a legacy that lasts for many lifetimes.

The post Family Businesses, Tested and Resilient<p class="company">Navigating Today’s Economic Storm</p> appeared first on Business In Focus Magazine.

Featuring more than 725,000 square feet of indoor fabrication space and the newest fabrication tools and technologies at each Team location, the company ensures every project crafted by its skilled workforce meets the highest quality standards.

A history of growth
Team Industries, Inc.’s story began in 1987 when a group of employees, facing the bankruptcy of their employer, made the bold decision to purchase the company’s assets themselves.

“To save their jobs, that handful of individuals got together and they put their necks on the line,” shares Jon Viestenz, Director of Sales. “They pulled together a financial plan to buy the assets, and hence the name Team Industries, Inc.”

Through the late 1980s and onward, Team Industries expanded its Wisconsin footprint, adding fabrication bays, paint and blast facilities, loading areas, climate-controlled material warehousing, and additional office buildings. Strategic acquisitions followed, including opening a facility in Port Arthur, Texas. Each move was made to serve the company’s industries more effectively.

Most recently, in 2025, Team Industries expanded into the advanced technology and manufacturing industry by converting a 7,000-square-foot building into a dedicated ultra-high-purity fabrication facility, with the installation of an ISO 4 and ISO 7 certified cleanroom.

From the ground up
These feats of growth are truly impressive when considering the company’s roots.

As the years passed and the investors phased out, the last member of the original team is John Panetti, Team’s current President and CEO. Today, 38 years later, John’s sons, Tom and Dan Panetti, hold Executive positions within the company.

“From a family and a cultural standpoint, we have become the largest union shop fabricator in North America,” says Viestenz. “And we’ve been able to do that with a culture today that started with the same principles, the same disciplines, the same approach to safety and cleanliness 38 years ago—we just elaborated on it,” he shares.

“Today, we’re a debt-free company, 100 percent,” says Viestenz. “We’re just under 400 employees right now, and we went from pulp and paper and brewery to today, where we serve almost 20 different industries.”

A huge point of pride for Team is its company culture, something all employees—and the Panetti legacy—are pleased to embrace. “We have never lost track of the fact that we’re a family-owned business,” says Vice President of Sales, Estimating, and Supply Chain Management, Tom Panetti.

Team also values its long-standing partnership with UA Local 400 in Kaukauna, Wisconsin. In 2000, the two organizations collaborated to create a five-year UA pipe fabrication classification with an apprenticeship program, developing highly specialized tradespeople for the pipe fabrication industry.

Another feather in the company’s cap is its history of producing industry-leading welding positioners, which the company has developed and produced to serve in every one of its weld booths. They are also available for purchase by other operators and fabrication shops across North America.

Indeed, when it comes to all the elements this company holds dear—safety, succession planning, defined values, consistency, mission, willingness to invest in infrastructure, workforce development, and R&D—being a financially sound company (and fully intending to stay that way) means that Team Industries stays plugged in, never cutting corners or giving up. “We’re not in a position where we can afford to give up our defined values or willingness to invest in infrastructure or the future,” says Viestenz. “We can’t sit on our laurels and say we’re going to coast for a while.”

Living its values and investing in the long term
While these principles might seem like obvious keys to success, the difference is in the extraordinary way Team Industries holds true to them and honors them every day.

To this end, Team prioritizes investing in new equipment, a choice that is always at the forefront when discussing ways to support employees’ success and Team’s competitiveness across different industries. “It can be a daily discussion of where to upgrade and become more competitive with the best technology,” adds Panetti. That collaboration among equals has become vital for the company’s ongoing success.

“It’s one thing my father made sure of: that more than just one person is making the decision. Many department heads are brought in to examine the pluses and minuses and why [a given move] is going to be good for the team overall,” says Panetti.

John Panetti is always looking forward, particularly when purchasing Team Fabricators in 2008, taking a big leap of faith. Today, that shop is up and running at full capacity in Port Arthur, Texas.

“In 2008, there was a lot of rolling of the dice, a lot of sleepless nights, a lot of wondering if we can exist down there,” says Viestenz of the Texas location. “There were times along the way when industries we serve were slow, and we couldn’t make it work, but John Panetti didn’t throw in the cards. He doesn’t like giving in. The Panetti family made that investment, and here we are today, reaping the benefits of it.”

Taking risks and making investments are in the blood of this family dynasty, including the recently opened high-purity cleanroom, which calls for different machines, different processes, different materials, and investing in training. Again, this success has come not only from investing wisely but from maintaining financial stability.

This is a vertical integration step that Team Industries has invested in to move the company forward, striving once again to differentiate itself from competitors and providing a needed product for the industries it serves. “We’re basically now a turnkey solution to any fabrication need, no matter what industry you’re in, right here at Team Industries,” says Viestenz.

Nearly four decades of a good thing
Approaching its 40^th anniversary, Team Industries stands as a testament to what can be built through trust, patience, and shared values. The company’s growth is not measured solely in square footage or revenue, but in reputation, resilience, and people.

Building trusted, long-term relationships with its workforce, supply chain, and customers is also key, and an approach that Team has upheld for decades. So how does Team maintain that workforce structure? “Anybody can grow, but managing your growth, preparing for the future, and proving your company in hard times is very challenging, because a lot of companies just disappear when things go bad,” says Viestenz. In Team’s case, it has future-proofed its approach by knowing the industries it serves, he adds. “We’ve been able to be the leader, but we do it humbly. We’re grateful and blessed.”

A culture of community
The company is also grateful for its tenure and for the ability to weather the ups and downs of the industry over time. “Even though we have a large footprint, we’re still technically a small business at 500 employees or less,” Panetti says. “For some companies, when they grow too much, it’s difficult to maintain the personal touch they want to build their company on; you lose track of your roots. We want that culture to be ingrained in everybody. If you go too fast, you can’t capture that culture.”

That culture includes giving back through community involvement and outreach, whether through regular blood drives, contributions to the Make a Wish Foundation, or hosting high school and technical school students for tours and internships. “If you’re going to act and play a prominent role in a community like Kaukauna, Wisconsin, you have to give back,” Viestenz emphasizes.

Fortunately, the entire team agrees and works together to maintain the culture and atmosphere created at the outset. “Why are we better than our competition? Because when times get tough, even if we have to shrink in manpower, the infrastructure we invested in will be standing tall for the next shift, which we know will come,” Viestenz says.

“We’ll survive those valleys, and we’ll survive them in a way where we’ll still succeed, even in a downturn. If you look at our reputation and the tenure of our employees, it just speaks for itself.”

The post Teaming Up for Success Since 1987<p class="company">Team Industries</p> appeared first on Business In Focus Magazine.