At L&S Construction, employee ownership means every success is truly shared
Founded in 1974 by Bill Larkin and Ron Scott, L&S Construction is one of California’s leading underground specialists. With roots in pipeline installation and sewer system infrastructure, the company maintains decades of success thanks to its dedicated workforce and unflinching focus on quality.
The company found its feet as a two-man operation, based in the founder’s garage. In the 51 years since, it’s risen to statewide success. As Vice President, Mike Kinney, begins: “They began by offering basic infrastructure and water system maintenance – mostly working on raising manholes and valves for local municipalities. The company grew into a pipeline specialist from there. 
“We now work primarily on below ground infrastructure. We install all the pipelines and associated structures that keep sewer, water, and storm drain systems running. One element that really sets us apart is our long-term relationships with some of the most talented and dedicated employees. The company’s first employee, Paul Sengir, was with the business for over 35 years.”
Enhanced capabilities
Like many at L&S Construction, Mike’s own connection to the business runs deep. His father joined the team in 1987 and introduced him to the industry early on. Now, he’s an integral part of the leadership team, steering the business through thick and thin. “I’ve been around the company my entire life. I worked with them as a young man, and I was there when the going got tough. During the 2008 recession, we, like a lot of businesses, had to be strategic if we were going to survive.
“Right before the economy crashed, we’d taken on two major jobs. One was the Terranea Resort in Palos Verdes, and another was El Camino College in Torrance. They were both big opportunities for us and the work we did on those projects really helped the company make it through some very hard times.
“It was a very challenging period in our industry. But we worked harder than we ever had before, and it helped us get through the first few years of the recession. We didn’t survive without losses, and we did shrink. To adapt, we rapidly diversified our offering to reach a broader client base. It was a difficult time, but we came out the other side with enhanced capabilities and a lot of important lessons. We now work in a range of different sectors, from public works to commercial property and homebuilding. A lot of our projects involve installing and maintaining infrastructure for big land developers.
“A growing portion of our work is what we call in-fills. This work is usually about revitalizing old spaces. From old churches and schools to abandoned commercial lots, these projects help to alleviate the housing shortage in Southern California. These projects are often a lot more challenging than traditional tract housing because the infrastructure for the existing use does not meet the needs of the new housing development,” Mike reveals.
Prioritizing people
Once again, it is the people behind L&S Construction that continue to play a vital role in overcoming these challenges. “The decades of experience found in our employees helps our clients to overcome the many challenges of updating old infrastructure into something useable for new projects. From Lance Uva and Thomas Shackford in Estimating overcoming constructability issues to Jake Hogue, Dibon Epp and Brian Kinney in Project Management helping resolve the unforeseeable problems that inevitably come with underground construction, our customers depend on us to get the job done,” Mike continues. “With dozens of years of experience, Superintendents Jerry Neeley, Luis Diaz and Cody Diaz are there for both the clients and crews helping solve challenges. Foremen like Gumaro Ramirez, Roberto Miranda and Abel Guevara have been responsible for installing pipelines in notable developments like Rancho Mission Viejo, The Great Park, Newport Coast and many others throughout Southern California.
“Our employees have had a huge impact in building L&S, so in 2006 that effort was rewarded. The employee ownership plan started when one of the founders, Bill Larkin, sold a piece of the company back to the staff through ESOP. It started out as 30 percent, but by 2012, L&S Construction was 100 percent employee owned.
“It’s been beneficial in a lot of ways. Everyone has a vested interest in the company’s success, so we invest a lot back into our operations. We have top-of-the-range equipment and deliver the highest possible quality service. After all, if we must go back and fix something, it’s money out of our pocket.
“With shared profits and accountability, everyone is at the top of their game. A lot of the employees who were around when the ESOP started are now retired, and reaping the rewards of their hard work. It’s a strong motivator for everyone involved.”
Successful legacy
Alongside elevating quality, the employee ownership plan also helps keep everyone united. Their shared values give the company a clear vision for the future, as Mike details: “We’ve always stressed fairness in everything we do. A lot of clients like to work with us because we’re fair to them, and in return, they’re fair to us. It’s open, honest, and transparent. We benefit from a lot of repeat business, and that’s in part because we can build mutually beneficial, long-lasting partnerships.
“That sense of fairness has been built between the company and clients as well as between the company and employees. Loyalty has been a huge factor in our success. Our employees stay with us for a long time; some of the people on our team have been here over 30 years and a lot more have been with us for over a decade. I think that carries through to our interactions with clients and other people in the industry.”
“We’re at a great size right now, so growth isn’t our top priority. As part of our strategy going forward, we’re focused on continuing to train and develop our employees for the future. We have many young, smart, skilled, hardworking employees that are up for the challenge of continuing on the successful legacy built by their predecessors here at L&S.
“We have the resources to deliver quality services and support our people at the same time. It’s the perfect balance and it means everyone benefits from the work we do. Looking to the future, our primary goal is to simply stay on track and protect the culture we’ve created,” Mike concludes.