June 2003
York Hill Trap Rock shows that even in a consolidating market the family business is far from being extinct.
By Therese Dunphy
Len, Scott, Cheryl, and Ric Suzio, (back row, left to right) followed in their father’s footsteps (Leonardo C. Suzio, front) as managers of York Hill Trap Rock Quarry Co.
After more than a decade of consolidation within the aggregates industry, the overall landscape of the market has changed considerably. Once the province of many family-owned “mom and pop” operations, the aggregates industry is — in many markets — dominated by a handful of U.S.- and foreign-owned players. But while the top five U.S. producers may account for approximately 25 percent of the aggregate production in 2002, it is far too soon to sound the death knell of the family business.
“Years ago, I was at a training seminar where the speaker said that family-owned quarries were dinosaurs and soon to be extinct,” says Ric Suzio, vice president of York Hill Trap Rock Quarry Co. “I was very insulted. It’s comments like that that sometimes drive you on.”
Suzio and his siblings comprise the management team of a group of construction materials companies based in Meriden, Conn. As with many other family-owned companies, the group’s aggregates arm operates a single quarry. Unlike other family operations, however, the Suzios also run a vertically integrated group of companies including: The L. Suzio Concrete Co., which operates five concrete plants at four locations; The L. Suzio Asphalt Co., which operates two asphalt plants at a single location; and The L. Suzio Construction Co., which serves primarily as a trucking company to support the other businesses.
Established in 1898 as a construction company by Italian immigrant Leonardo Suzio, the business is now run by his grandchildren.
His surviving son, Lorenzo, continues to serve as an advisor and sounding board to his nephews and nieces.
Growing up around the business, each sibling moved into an operational “void” and carved out an area of responsibility that corresponds to his or her own interests. For example, Scott, who has a “passion” for iron, oversees many of the operational responsibilities such as the equipment, plant, fleet, garage, and maintenance. Len handles many of the financial and legal areas, including collections, as well as environmental issues and human resources. Cheryl oversees safety, risk management, and insurance. Ric manages sales and distribution, marketing, purchasing, and drivers. Linda, a full-time mother, helps out in the front office and with dispatching.
While there is some crossover, each sibling is dedicated to a certain group of responsibilities. This may be one differentiating factor between their business and other family businesses where only one or two people have to handle all the responsibilities.
Lessons in responsibility
In a typical family business, problems usually arise when the third generation takes over. But while family bonds can strain many businesses, the Suzios have found strength in those same relationships.
“We are a close family,” says Ric. “When my father (Leonardo C. Suzio) was around, we joked that Sunday afternoon barbecues were ‘management meetings.’”
But while the company is very centered around family, the name Suzio has never served as an entitlement at the company.
“We all came over here and had summer jobs here,” says Ric, noting that they worked their way up through the business performing tasks such as cleaning, weeding, stocking, and working in the scale house.
“My father didn’t want anyone to start at the top. He wanted us to know how to do every job,” he says. “We had a very good role model, teacher, and coach in our father.”
“It was intimidating growing up,” adds Cheryl. “I ran from it, to be honest.” She left the state and worked in an alternative field until she decided to come back in the mid 80s and join the company while her maternal grandfather, Henry Altovello, was still active in the business. “At that point, I was comfortable with who I was, where I was at, and how I wanted to fit into the family business,” she says.
And while the Suzios have more than 100 years of family history invested in the business, they are not the only ones. Many of the company’s employees are children and grandchildren of earlier staff members as well.
“We try not to say that we’re family owned. We say that we’re a family company. That filters down through our employees,” says Ric. “There are people who currently work here who remember changing my diapers — it helps keep you in your place, that’s for sure.”
Trusted employees, who are equally committed to the business, provide the siblings — like generations before them — with the ability to actively participate in state and national associations.
“We’re very fortunate to have people who can mind the store as if it were their own,” says Ric. “They make it a little easier for us to do the things that we do.”
Ultimately, however, a family member is nearly always on hand to open up the shop, sign the paychecks, and lock the doors at the end of the day.
Business challenges
Despite being part of a group of construction companies, York Hill Trap Rock straddles an interesting balance between dealing with the challenges of being a “small” aggregates producer, while being one of the largest locally owned companies in its market.
“As you get surrounded by these larger conglomerates, it gets more difficult to operate,” says Ric. “You become a small fish in a big pond. They have resources such as lobbyists and national buying power that we don’t have. We have ourselves and our history.
“It’s difficult to stay our size and deal with the cost of doing business, whether it be environmental issues, permitting issues, or DOT regulations,” he adds.
Challenges such as dealing with an increasing amount of regulations and paperwork and difficulties in permitting new greenfield sites are the very reasons why many family businesses sold out during the consolidation boom of the 90s. That option, however, never entered into the equation for the Suzios.
“We have had many suitors, but we never considered it (selling the business),” says Ric. “I don’t think that consolidation has always been the best for the industry.”
A sense of stewardship also plays a strong factor in the Suzios’ decision to remain a family company. For example, Cheryl points out that there are already eight children in the family’s next generation who may want to take a role in the future management of the business. “You go through this all and hope that somebody in that fourth generation will take some interest,” she explains.
“It would be hard for me to turn my back on 100 years of family history. I’m just a steward of this place for my children or my nieces and nephews, however it works out,” adds Ric. “My father put over 50 years of his life into here and it would be hard for me to say I couldn’t do it any more. ”
Like most aggregate companies, large and small, the industry’s image within the general public can also be a factor for York Hill Trap Rock.
“One of the biggest challenges that we have as an industry is the perception that we’re not a good neighbor and, thus, the desire to see us not in business any more. That’s a general challenge that we all have,” says Len. “I think that so many people don’t make the connection between their need for the type of materials we provide and the fact that they’ve got to come from some place.”
He notes that the public seems to feel a sense of ownership of the land, particularly large plots of land, and sometimes want to dictate how it is used.
Community involvement
When it comes to its relationships with the communities in which the Suzio companies operate, its history plays a beneficial role.
For example, Cheryl says that — as with its employees — the company has long-term business relationships with service providers such as insurance agents and accountants as well as some customers. “A lot of our relationships are with businesses that are also on their third generation,” she notes.
Those relationships positively impact not only the business itself, but also how it is viewed within the community where both the business and the family have a strong reputation for community volunteerism.
For example, family members donate materials or volunteer time with numerous charitable organizations including a camp for the mentally handicapped, boys and girls clubs, community arts and theatre groups, AIDS organizations, Little Leagues, the American Cancer Society, the American Legion, and local schools.
“In the last couple of years, with the consolidation in the marketplace, we find ourselves getting asked more and more because a lot of the companies that used to do it are no longer doing it,” says Ric. “Now that they’re not locally owned and operated, (charitable organizations) might not get the response they were.
“Our father raised us to believe in giving back to the community,” he adds. “I like the fact that we’re family owned and an American company and have stakes in the community. There’s a certain amount of pride that comes with that.”
That sense of family pride, company stewardship, and community responsibility have served York Hill Trap Rock well. In its second century of existence, this “dinosaur” still has a strong bite.
The company’s 1993 Christmas card shows a 1934 Mack truck. The truck, which was restored by Scott Suzio, is often featured in area parades.
Therese Dunphy is editorial director for Aggregates Manager.
Compiled by Angie Moehlman
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Permitting Scoreboard
Montgomery, Ala.—According to the Associated Press, the Environmental Management Commission voted 6-1 against an appeal by a group of Lee County residents that was seeking to stop Florida Rock Industries from operating a quarry near Loachapoka. The appeal alleged eight wrongdoings by the Alabama Department of Environmental Management in granting Florida Rock the permit, but the appeal was denied by the commission.
Atlanta—According to The Atlanta Journal and Constitution, Vulcan Materials Co. won a lawsuit against Fulton County that allows the company to expand its mining operation at the Red Oak Quarry. Vulcan mines about 60 acres of a privately owned 180-acre site. Vulcan can now expand its mining operation by 21 acres.
Pierre, S.D.—According to the Associated Press, the South Dakota Board of Minerals and Environment recently voted to approve the use of $33,293 from the inactive state environmental reclamation fund and another $16,931 from forfeited bonds posted by former operators to reclaim up to 10 gravel pits that were not fixed up by their former operators.
Phoenix—According to the Associated Press, a resident of a north part of Phoenix, Gene Urban, is asking the city council to adopt a standard that requires mine operator Buffalo Ridge, owned by the Melluzzo family, to pay for home inspections within a half-mile radius. Buffalo Ridge has operated at the location since 1953, when the borders of Phoenix were miles to the south.
West Palm Beach, Fla.—According to the Palm Beach Post, Circuit Judge Jeffrey Winikoff recently ruled that Southern States Land & Timber LLC can not thwart a deal in which water managers agreed to pay $139 million for 900 acres of rock pits from Palm Beach Aggregates, Inc. Southern States owns mineral rights on the Loxahatchee tract and is arguing that the district paid more than the land’s fair market value.
Buffalo, N.Y.—According to the Buffalo News, residents and town officials of Cheektowaga requested the state to have a public hearing on the mining permit it granted to Buffalo Crushed Stone. The permit, which was to expire last month, was renewed in February, causing some to question whether the quarry company was trying to avoid public notice.
Titusville, Pa.—According to the Associated Press, the Titusville City Council is appealing a permit the state Department of Environmental Protection issued to Hasbrouch Sand & Gravel, Inc., allowing the company to mine almost 60 acres in Oil Creek Township. City officials say they are concerned that the mining operation will contaminate the municipality’s water supply.
Georgetown, Texas—According to the Austin American-Statesman, homeowners have agreed not to oppose J.C. Evans Construction Co.’s rock crushing enterprise if the company minimizes the quarry’s effect on the area. The conflict between the homeowners and the company began several months ago when Jesse Espinoza of Espinoza Stone opened a quarry on 170 acres across from homes along County Road 239. J.C. Evans has a temporary permit from the Texas Commission on Environmental Quality to use the quarry until November. The company applied for an expanded permit that would allow it to crush rock and would allow J.C. Evans to operate 24 hours every day for the next 10 years. The company is planning to limit quarry operational hours to mitigate the effect on homeowners in return for no opposition for the project.
State Funding Status
Honolulu—According to the Honolulu Advertiser, the Bush administration proposal unveiled last month would give the state of Hawaii more than $900 million in federal transportation money over the next six years. The funds would go toward building new roads, fixing old roads, and improving traffic safety.
Richmond, Va.—According to the Roanoke Times & World News, Transportation Secretary Whitt Clement recently announced that nearly all of the deficits have been removed from Virginia’s highway budget, creating room for new road construction projects.
Cheyenne, Wyo.—According to the Wyoming Tribune-Eagle, the Wyoming DOT was awarded $3 million in federal funds to upgrade its intelligent transportation system and make other changes to the state’s highway system. To receive the grant, Wyoming must match the funds.
Richmond, Ind.—According to the Palladium-Item, federal transportation funding for the state of Indiana would be reduced by as much as $16 million next year under the six-year funding plan unveiled last month by the Bush administration.
Madison, Wis.—According to the Capital Times, state budget experts recently reported that a stagnant economy has prompted a $43.7 million reduction in projected state transportation revenues.
Juneau, Alaska—According to the Associated Press, the Murkowski administration decided to remove $68 million from the state’s capital budget designated for high-speed ferries. Senator Robin Taylor of Wrangell, who introduced the amendment to the budget bill, states the administration wants to wait a year before building the ferries in order to decide if the federal money should be used on high-speed ferries, road projects, or a combination of the two.
Greensboro, N.C.—According to the News & Record, the state House of Representatives passed Governor Easley’s Moving Ahead Plan. If the Senate also passes the bill, the state will be allowed to borrow $700 million from the Highway Trust Fund for road maintenance and public transportation.
For complete coverage of state news and construction forecast, go to State by State.