Morton Mandel

Morton Mandel
Born Morton Leon Mandel
September 19, 1921
Cleveland, Ohio, U.S.
Education Bachelor's degree
Alma mater Case Western Reserve University
Religion Judaism
Spouse(s) Barbara Mandel
Website
Personal website

Morton Leon Mandel (born September 19, 1921) is an American Business magnate, entrepreneur and a philanthropist. Along with his two brothers, Jack and Joe, he founded the Premier Industrial Corporation in 1940, which later became one of the world’s leading industrial parts and electronic components distributors. Mandel is known mainly for his philanthropic activities in Cleveland, and in Jewish and Israel institutions.

Mandel holds a bachelor’s degree and ten honorary doctorates.

Early life

Mandel was born in Cleveland, Ohio, to a Jewish family. His father, Simon, and his mother, Rose, along with his older siblings, Miriam, Jack and Joseph, immigrated from Galicia to America on June 19, 1920, after the First World War, with the help of the Red Cross.[1] In 1913, Morton's father went from Novasanz, Poland (near Krakow) to America, planning to bring his family once he became settled in Ohio.

Morton was born 15 months later in Cleveland, where his parents had a dry goods shop. The family moved a couple of times because they could not pay the monthly rent. Though Mandel slept in a room with his two brothers, wore hand-me-downs, and didn't have much, his parents showed each other and their children love and the values of honesty, decency, and generosity. Despite the family difficulties, Mandel's mother gave the little she had to those who asked her for help.[2] His family saved the Jewish tradition and sent young Mandel to an afternoon Hebrew school.[3]

After his bar mitzvah at age 13, he started working after school by selling hot dogs, drinks, peanuts and popcorn at Cleveland Municipal Stadium.[4] Mandel's father suffered from multiple sclerosis and was taken care of by his wife; eventually he became bedridden and his wife became the sole provider for the family, by selling clothing out of suitcases in Cleveland streets. After graduating high school, Mandel attended the chemistry program at Adelbert College, dropping out in his second year to join the automotive shop that he and his brothers had purchased from their uncle Jack.[5]

Business career

Early work

In spring of 1940, their uncle Jake decided to leave Cleveland for Chicago and offered to Jack that he buy the auto repair shop. Jack gathered the two brothers – Joe, who sold soap, and Morton, who worked in the shop, decided to join him. They spent their $900 savings to buy it and got a $3,000 loan for inventory from their uncle Jacob. On August 1, 1940 they opened Premier Automotive Supply Company which sold car parts and industrial tools.

Military service

In 1943, Morton was recruited to the U.S. Army due to World War II.[6] A few months after he enlisted, the Army sent him and thousands of others back to school, because it feared a wartime shortage of engineers. Mandel spent two years as a student for the Army, first at Pomona College in Claremont, California, and later at University of California, Berkeley. In 1945 the war was over and Mandel was sent back home to Cleveland.

“ She taught me about life, courage and believing in myself that I can do great things, and if I do not succeed the first time, I'll try again ... My mother helped me reach success. She kept on saying - I expect great things from you. ”

—Mandel on his mother[7]

During the time Mandel served in World War II, he was put in charge of transporting 15 wounded American soldiers from an army hospital in Memphis to another hospital deeper in the South. Along the way, the group stopped for lunch. The African American soldiers in the group were refused admission to the restaurant, in which German prisoners of war were being served. Outraged, Mandel took the whole group away from the restaurant, where he would have been able to pay with meal vouchers, and bought them sandwiches from a street vendor.[4]

Premier Industrial Corporation

On Mandel's return from his service in 1945, he joined back with Joe, who also returned from a military service, and Jack, who kept the business running. Since his return, Mandel was chairman of the company and handled the business management. Originally an auto-parts distributor, Premier Automotive was incorporated as Premier Autoware in 1946. Shortly after, they understood that their parts were sold by many distributors and their profit margin barely managed their living. After a few months of asking their customers what parts they needed, they formed a list of "hard to get" parts, bought them directly from Ford, Chevrolet and Plymouth, which manufactured the majority of the cars in America at the time, and started selling them. As a result, their sales started to increase with a large demand and their business began to grow.

“ We learned basic philosophy. If you find a need and fill it, you have something that will lead to growth. ”

—Mandel on his business philosophy[8]

Another decision they made was to develop a business attitude that put a mark on the customer service, that they concluded in: "Killing Yourself for Your Customer", "Always Trying to Raise the Bar" and "A Focus on Our People". By putting customer service at their top priority, they hired a man who was responsible assisting and understanding their customers’ needs. Later, they built a customer service departments that operated 24-hour, including holidays and weekends, answering clients and handling them. As they had with Disney World in Florida when one of their units broke down in one Saturday at 11:00, costing them $1,000 per hour. The company managed to flew them the necessary part, in a few hours, with no extra charge.[9]

In the mid-1950s their company established the industry spare parts division, which manufactured new parts like plaited bolts that wouldn't rust and later established the distributing electronic supply division. It led the company to start and find new specialty it could grow and support new customers. At that time, Mandel hired Bob Warren who helped transform the company and in 1962 became its President. In May 1960 the company changed her name to Premier Industrial Corporation and Mandel with Goldman Sachs led its IPO, and along with his brothers kept 70% of the ownership. 4 years later, they listed her for trade in NYSE. This allowed the company to formulate a broader financial base and make new investments which they made by acquiring more than a dozen of companies manufacturing industrial parts and electronic components. one who led her to the electronics business was purchasing Newark Electronics in 1968. In addition to specializing in the distribution of electronics equipment, maintenance products, and firefighting equipment, Premier Industrial Corporation marketed a wide range of products including lubricants, welding supplies and fasteners to over 100,000 customers around the world.

In the late 1960s Mandel began practicing in Cleveland Business Community as Director of Central National Bank of Cleveland and Cleveland Electric Illuminating Co. until 1979 when he left them and became more involved in philanthropic and Jewish activities. Along with Premier Industrial Corporation growth, Mandel met on a monthly basic Prof. Peter Drucker who consulted Mandel on varies matters in the company.

In the 1970s Premier Industrial Corporation started its operation in Europe and by 1977, the firm opened a $1.6 million corporate research and development center, where the company tailored its products to customers' needs. In 1984 the company had 18 divisions, with electronics constituting half of its sales of $465 million with a net income of $48 million.[10] Later on, they became one of the largest U.S. distributors of auto parts and electronic components.[3] During his staying in the Palm Beach Country Club he met Bernard Madoff, and later invited him to speak in front of the Premier Investment Comity. Although most of the members pushed for investing in his fund, Mandel declined because of Madoff's lack of transparency.[11] Premier Industrial Corporation earned numerous business awards, among were being in one of 50 top companies profiled in the 1995 book, Making It in America. In 1996 when Premier Industrial Corporation had 16 different divisions and was worth nearly $3 billion, it merged with the British company Farnell Electronics PLC to form Premier Farnell PLC, one of largest industrial and electronic components supplier in the world, where Mandel served as the company Deputy Chairman until 2002.[12]

Under Mandel role as Chairman in Premier Industrial Corporation for 36 years, until it's merge to Farnell Electronics PLC, it had 34 years which ended in profit growth and 30 of them its net profit, after taxes, was more than 10% of its business operations.

Israel Equity Limited (IEL)

Mandel first business involvement in Israel was in 2003 when Parkwood Corporation - The Mandel Brothers privet Investment Company, established the Israel Equity Limited where Mandel serves as a Chairman along with Moshe Weksler who act as a CEO. IEL is an investment company with the objectives to contribute the industrial sector in Israel whose focuses on buying industry companies and improve their management and business results by bringing to it new set of business skills. IEL acquired and invested in Tadbik Group, Bikur Rofe, Phoenicia Glass Works Ltd. and C.L.P. Industries Ltd. over ₪ 218 Million which in total employs more than 800 workers.

Mandel rarely invest in hi-tech sector, and has a few investments in this field. His first investment was in Medivent - the second fund in Israel which invested in hi-tech. In 2011 Mandel was also one of Pontifax third fund investors, which focuses in life science companies.

Personal life

In the early 1950s, Mandel met Barbara whom he married, having 3 children together. Mandel and his wife have been living for over 40 years in the same houses they have in Cleveland, Florida and New York.

In 1967, after the Six Day War, Mandel and his wife visited Israel which, along with his involvement in the Jewish community in Cleveland, became an important part of his life.[13]

In 2012, Mandel published his book It's All About Who You Hire, How They Lead...and Other Essential Advice from a Self-Made Leader explaining his business and philanthropy philosophy. The book was also published in Hebrew. On May 19, 2013 Morton received his bachelor’s degree from CWRU after completing all of his academic duties started in his first enrolment in 1939.

Philanthropy

Morton Mandel and his brothers began donating to charity in 1947 and as their business grew, their giving became more generous. In 1953 the three brothers founded the Mandel Foundation who supported Jewish and Cleveland charity causes. The foundation started getting involved in Israel philanthropy at the early 1990s. The Mandel Foundation headquarter is in Cleveland.

Since the late 1970s Mandel started devoting more and more time toward Philanthropic causes in Cleveland as he served on:

Mandel founded in 1973 Cleveland's Ten Plus Club, which aim to make business leaders who normally gave $1,000 or so upping their gift to $10,000. Mandel and his two brothers also donated more than $1 million to the human services campaign of Cleveland's United Way. In 1988, at a ceremony on the White House lawn Premier Industrial Corporation received from U.S. President Ronald Reagan the President Award for social initiatives of the private sector. At the same year the Mandel foundation made a naming gift for what was then the School of Applied Social Sciences at Case Western Reserve University. The school's social work program which had ranked 9th in the U.S.,[14] was awarded in 2013 an additional $8 Million from the Mandel Foundation. At the same year in 1988, Mandel Foundation along with The Cleveland Foundation, The George Gund Foundation, The Ford Foundation, and other local private, public and philanthropic interests formed the Cleveland Neighborhood Progress Inc.

In the early 1990s Mandel became one of the first funders to support initiatives reflected in the commission’s 1990 report “A Time to Act,” which called for strengthening the Jewish education profession and mobilizing community support for Jewish learning. In 1992 Mandel founded the Mandel Leadership Institute in Jerusalem and Be’er-Sheva, which trains potential leaders in social fields in varies programs: Educational Leadership School, the Training Program for State Senior Positions, Short Term Jewish Leadership Programs, Young Leadership Program in Israel Periphery and The IDF Education Development Program. In 2014, the Mandel Leadership Institute in Israel had over 500 graduates.

In 2004 the Mandel Center for Leadership in the Negev was established, who works closely with local authorities, non-profits and social activists to develop local leadership in the region, and improve the quality of life for Negev residents. The Center also works to create better relationships between the region’s Jewish and Bedouin communities. At Ben-Gurion University of the Negev, the Mandel Foundation offers a MBA program in Social Leadership to foster a new cadre of leaders in Israel who combine a business approach with a commitment to social values. The program also operates in the city of Eilat. In 2007 Mandel Foundation contributed $22.5 Million to establish the Mandel Center for the Humanities at Brandeis University that will study fields such as literature, language and philosophy. In an effort to revive Cleveland MidTown, a two miles part between downtown Cleveland and University circle, in 2009 Mandel invested $16 Million to open the Jewish Federation of Cleveland offices there.

Since 2010, a remarkable number of institutions and buildings have been established by the Mandel Foundation: the Mandel Building of the Jewish Federation of Cleveland; Mandel Jewish Community Centers in Cleveland and in Palm Beach Gardens (two of the largest donations ever made to local Jewish agencies); and the Mandel School for Advanced Studies in the Humanities at the Hebrew University of Jerusalem, adjacent to the university’s existing Mandel Institute of Jewish Studies. In 2010, the Mandel Foundation donated $13.5 Million to build the new Jewish Community Center at the Palm Beach Gardens and $12 Million to the new Mandel Wing for Jewish Art and Life at the Israel Museum in Jerusalem.

In early 2012, the Mandel Foundation donated $5 Million to public library of West Palm Beach after seeing their great contribution to education in particular children reading skills. Later that year the foundation also gave an $18 million grant for the building to house the new Mandel School for Advanced Studies in the Humanities at the Hebrew University of Jerusalem, as well as an annual support of $2.5 million for programs there.

In 2013 Mandel Foundation contributed $25 Million to build the new Bezalel Campus in Jerusalem, as addition to the support he give to Bezalel annuals exhibition. In June 2013 the Temple-Tifereth Israel received a matching commitment of $16 million from Mandel Foundation for a major expansion and renovation of its Beachwood campus at Ohio. In November 2013 Mandel Foundation announced a $5 Million donation to establish the Be’er-Sheva Children’s World Museum and a $1 million grant to the Cleveland Institute of Art campus modernization and unification. The Foundation also awarded a $5.25 million gift to Brandeis University to fund a newly endowed faculty chair and to strengthen the programming at Mandel Center for Studies in Jewish Education.

In 2014 The Smithsonian’s Cooper-Hewitt, National Design Museum in New York received a $10 million gift from the Morton and Barbara Mandel Family Foundation. The Mandel Foundation awarded in February 2014 a $13 Million grant to establish a new building for the Mandel Institute for Social Leadership and for programs in social leadership, which will be housed in the new building, at the Ben-Gurion University.

In total, Mandel, his wife and 2 brothers donated more than $1 Billion for educational, leadership and cultural causes, in which 1/3 of it went to Israel institution. The Mandel Foundation was also responsible for publishing more than 30 books and monographs.

Mandel serves on the Board of Governors of the Hebrew University in Jerusalem.

Awards and honors

Over the years Mandel has received numerous awards and citations for his contribution to various causes, among them:

Mandel has also received honorary doctorates from the following Universities:

References

  1. ↑ "Morton Mandel Book - It's All About Who (Prologue)". November 2012.
  2. ↑ "The Power of Giving". Haaretz Special Philanthropy Supplement.
  3. ↑ 3.0 3.1 Michael E. Bennett Mandels now Major Force in Jewish Philanthropy Cleveland Jewish News, August 19, 2010
  4. ↑ 4.0 4.1 Charles A. Radin Mort Mandel talks about doing good, doing well BrandeisNOW, December 10, 2012
  5. ↑ PERSISTENCE PAYS, Think - The Magazine of Case Western Reserve University
  6. ↑ Morton L Mandel : Enlistment Record from WW2
  7. ↑ "Morton Mandel describes his accomplishment as a reflection of his mother".
  8. ↑ The Mandel Legacy - "Our Cup Runneth Over"
  9. ↑ Jon Ostrowsky Mandel continues work to invest in humanities and Jewish education, January 18, 2013, The Brandies Hoot
  10. ↑ "The Encyclopedia of Cleveland History". 7 February 2005.
  11. ↑ [ ]New York Social Diary
  12. ↑ Hoovers a D&B company, Premier Farnell plc
  13. ↑ Guy Rolnik and Tali Heruti-Sover The stress-free life, March 18, 2010, Haaretz
  14. ↑ according to U.S. News & World Report's graduate school rankings

Further reading

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