PROFILE FOR BUSINESS PROFILE MAGAZINE, NOVEMBER/DECEMBER ISSUE, 2003 SCHLICHTING & SONS EXCAVATING, INC., CELEBRATES 35 YEARS AS A FAMILY BUSINESS By: Iren Kleppe Schlichting & Sons Excavating, Inc. started as a family business and has remained so for 35 years. Ernie and Shirley Schlichting started the company in 1968 as a two-person operation, and it has today grown into a company that employs about 100 and the capability to undertake a wide range of projects. Today, the company is owned by second-generation Schlichtings: Brothers Bruce, Steven, and Robert along with their sister Connie DiGiovanni. Bruce serves as the company president, whereas brothers Robert and Steven are vice presidents. Connie has been with the company for 23 years; she is the office manager. In 1978, Michael Knoebber, who also serves as owner and vice president, joined them. “We always kidded that Mike was one of Mom’s adopted sons,” says Bruce Schlichting, adding that they were very happy to have him join. Today, a third generation of family members is also involved in the company’s operation. Several generations of family involvement has helped them continue to grow and be successful. All projects involve hands-on family involvement in their operations. For example, whereas Robert is responsible for the quarry, Steven is superintendent and tends to be assigned the “tougher” jobs to take them from start to finish. Bruce stays in close contact with the foremen and superintendents. “Everybody knows that they can always talk with one of the owners if there’s an issue,” reassures Bruce. For example, Bruce is available for questions with job scheduling and deadlines. For people in the office, there is always the opportunity to deal with Connie, should there be any questions. Functioning as office manager, Connie finds herself doing many things, including payroll, accounts payable, accounting, dealing with vendors, and more. Mike functions as superintendent: “Mike always wants to tackle the tough jobs and is never afraid to get in and take care of things himself,” says Bruce, adding, “many of our foremen have learned their skills from Mike.” The original owners came from Minnesota to Rockford for a better chance for jobs. Ernie Schlichting first did factory work, but found that he preferred working outside. When he got the opportunity to do some roadwork, he found it so enjoyable that he obtained training in order to continue with this line of work. “There were probably many times when my folks weren’t sure about the next paycheck. They had many scary times, taking risks and buying equipment. It takes a special kind of person to have a dream and stick with it. Mom was very supportive and exceptional in that way,” says Bruce. They were able to grow from a small company to a firm performing more than $20 million of work annually. Bruce’s sister, Connie adds that her mother, Shirley used to do the company books at home and that her parents worked very hard. “Of course, we work pretty hard, too” she adds. She adds that her mother quit her job at the time in order to help with the company, but had to go back to work again to help support the family. Connie explains that their parents are now retired and living in Florida. In fact, “Dad was just in yesterday,” she says, explaining that he likes to drive down to the company’s quarry whenever he comes in. She admits that the current generation owners still go to him and ask his advice. She believes her parents’ purchase of the quarry was probably what has benefited the company the most. “We are so proud of our parents,” she exclaims, “they started with one machine, and look around now and see! They started with nothing; it’s almost like a storybook example.” The current generation of family owners believes they have learned their qualities from their parents. “We say, there’s a right way, a wrong way, and Ernie’s way,” laughs Bruce. “Dad was well known for high standards, and we are trying to live up to his standards, qualities, and expectations—this is our greatest challenge. He earned a lot of respect and was considered an artist with his equipment.” Revealing his love for his work, Bruce describes how—when the equipment is all lined up at the end of the day and the sun is setting—shadows are accentuating the shapes and angles carved into the landscape they have transformed so that it almost looks like artwork. “This time of year (fall) is almost like harvest time, when you bring in the harvest and start winding down for the winter. It is very satisfying.”
Bruce says the current owners try to lead by example, and that “nobody works harder than my brothers in the field, they are really dedicated.” He also thinks this gets through to the crews and enables them to perform at high levels. Further illustrating this is the high number of employees who have been with them for 15-20 years. “This may be unusual in our line of business,” says Bruce, continuing that they have “a really solid nucleus of employees.” He adds that they have had to augment this with new hires, of which many are showing good potential for the future. Over the last few years, the company has improved its image regarding its ability to get significant jobs completed in a short amount of time. For example, in a recent, major project portions of the project were delayed for 10 weeks because of permits needed. However, they were still able to meet the client’s deadlines thanks to the number of people involved and their dedication. They even got a thank-you note from the client, something rare in this type of business. Of recent projects of note, Bruce mentions that they just finished the Ingersoll Manufacturing Campus, which was among the largest projects they have undertaken. Bruce adds that they got really good reviews by the owner and the architects, and that they are very pleased. Most of their business is repeat business, Bruce explains. Every year there is a nucleus of contractors that use their services almost exclusively. They rely on Schlichting & Sons for good quality, good pricing, and for meeting deadlines. “Our clients also know that if problems or issues come up, we can solve them through cooperation. It is not a win/lose situation, and we like to get problems solved fairly for everybody. That’s something we try to do for every project that comes along,” he adds. Besides his passion for the company and their work, Bruce is also very passionate about community involvement. Schlichting & Sons has been a long-time supporter of the Rock River Valley Pantry. Bruce had been a member of their Board for about 12 years, serving as Vice President, President, and Chairman of their fundraising committee. “Each year we have two fundraising events benefiting the Pantry,” he informs. “Our 15th annual golf outing this year brought in $10,600, which was sent to the Pantry.” The company also has a 12-week fundraiser benefiting the Pantry every year, where each employee makes a commitment to a payroll deduction plan. Bruce boasts that they have many generous employees, adding that the company matches these amounts dollar for dollar. “Last year we exceeded $20,000 for the Pantry,” he says, “and this year we expect to exceed that amount.” The fundraising for the Pantry, which has been going on for the past 16-17 years, started as a joint decision with the employees. According to Bruce, this was the charity where the employees felt they had the most impact. They have done random polls over the years, but still find that this is their employees’ preferred charity. “The Pantry is organized well and they have many people there with strong commitment,” adds Bruce. “This has been a good relationship for a long time,” he concludes. They also support the community in various other ways, and have about 30-40 different entities to which they donate, including youth activities, other charities, and other events. “I believe this points out our sense of community,” adds Bruce. “We all grew up in the Rockford area and feel very close to the Rockford and Belvidere communities.” Bruce explains that they also keep most of their business activities close to home and that many of their employees live in these areas, stating “that’s why we feel committed to support community activities and events.” Critical Dates & Highlights: 1968: Ernie and Shirley Schlichting founded the company. Startup date was October 25. Over the next 10 years their basic focus was on residential and subdivision improvements. 1978: Mike Knoebber joined the company. Schlichting & Sons started doing underground work, storm sewers, sanitary sewers, and water mains. They became more general contractors rather than specialty. 1980: Ernie Schlichting purchased the quarry, presumably one of his best business decisions. 1982: Schlichting & Sons did their first City of Rockford major street project on Central Avenue. City work became a major part of their work over the next 10-12 years. In 1982,
the community saw a 20% unemployment rate, but the company was small enough to grow through the difficult times. In 1982, they also became involved in the Forest Plaza development as site contractors. This was one of the largest projects they had undertaken so far. Site projects provided yet another avenue in which to display their skills. Late 80s to early 90s: 2003:
Schlichting & Sons became more involved with State of Illinois Department of Transportation works, both as subcontractors and general contractors. This year marks Schlichting & Sons’ 35th year in business. The company has grown from a two-person operation to one that employs nearly 100 this year.
The company established a new record for revenues last year, and they expect to meet or exceed that this year because of continued strength in the housing market. Their niche in the marketplace is tied to the residential housing boon because they install the entire infrastructure improvements. Bruce explains that they also do “large, commercial projects, and most referrals come from civil engineers or satisfied clients.” This helps the company stay competitive in a competitive market. “We also expend lots of money every year to upgrade equipment.” Bruce explains that there are advantages with new equipment, such as productivity, efficiency, and reliability compared to using equipment that is 5-10 years old. “Our capabilities have grown, and there is probably no job today that we wouldn’t consider doing,” he concludes. Bruce explains that Schlichting & Sons are proud to be a union company for all of their 35 years, providing quality jobs with benefits. The owners wish to express their gratitude towards their employees—current and retired, plus customers, engineers and general contractors that have given them a chance to serve them. “They have challenged us, partnered with us, and mentored us along the way,” adds Bruce. The owners also wish to express gratitude towards their support people in the equipment sales and service sector as well as banking, finance, and insurance. While celebrating 35 years of growth, the people at Schlichting & Sons Excavating, Inc. are looking forward to continued success and to meeting new challenges in the future. Contact Information: SCHLICHTING & SONS EXCAVATING, INC. 8966 E. State Street, Rockford, IL 61108 Phone: 332-3333 Fax: 332-5930