ABM V27N4 FINAL.indd - Atlantic Business Magazine

Atlantic Business Magazine’s
2016 CEO of the Year
Larry Puddister
Co-chair, Pennecon Ltd.
CEO, Newcrete Investments
Partnership Inc.
St. John’s, N.L.
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Atlantic Business Magazine | July/August 2016
CEO OF THE YEAR
1% engineering
99% everything else
By Wade Kearley
240
It’s mid-summer 2005, on the
construction site for the bridge
across the Churchill River. Despite
the heat and black flies, work
is under way on the approach
causeway for this critical
$25-million link in the TransLabrador Highway near Happy
Valley-Goose Bay. But the crew of
Pennecon Heavy Civil Construction
has a problem. The Bailey-style,
cantilever bridge includes three
spans of 120 metres. In order for
these to be pulled into place over the
river, concrete piles must be securely
driven deep into the sandy riverbed.
The problem is, no one on the crew
has the experience to do that. When
Larry Puddister, the newly appointed
head of this division of Pennecon
Ltd. arrives on site from St. John’s,
he’s dressed in coveralls and boots.
He has assessed the situation and
has the solution.
“I drove the piles myself over
six weeks; 240 of them, some
down to a depth of 100 metres,”
recalls Puddister. “I went from
vice-president to pile-driving
superintendent in order to get it
done.”
We’re seated on swivel chairs at
a round table shoved into the corner
of Puddister’s unassuming first floor
office in Pennecon headquarters.
Just the other side of the narrow
parking lot outside his window,
four lanes of traffic on Topsail
Road bustle between Paradise
and the provincial capital of St.
John’s. Puddister is dressed neatly
in a plaid shirt and jeans. He sits
upright, occasionally leaning back,
or bending forward to fidget with his
interview notes. His voice is quiet
and his direct gaze can be slightly
unsettling.
“That’s one of the things Ches
Penney told me he was most proud
of… when I did that,” says Puddister
with a reassuring grin. “He many
times said, ‘that was the biggest
project we had taken on at that point
and we would have gone bankrupt
if you hadn’t gone and driven those
piles.’” In the intervening 10 years,
atlanticbusinessmagazine.com | Atlantic Business Magazine
39
remote Buchans Plateau, high in
a wry grin, he took a job with a local
Larry Puddister and Pennecon have
central Newfoundland.
construction company. “It was better
come a long way.
“Tell him about Saskatchewan,”
than working in the fish plant.” For
Joining us at the table in
urges Constantine.
the next two years he trained on the
Puddister’s office, with her
“I hunt goose and duck in
job as an operator for loaders and
own sheaf of notes is Sarah
Saskatchewan every year with my
excavators, but he wanted more.
Constantine, communications
buddies,” he says.
“Not that there’s anything wrong
manager. Impeccable in a green
The ring tone for his mobile
with running an excavator,” says
suit, she maintains a professionally
phone is a duck call. “Last year
Constantine.
silent presence except to nod
there were 10 of us and we shot
Puddister’s father wanted him
encouragingly or to suggest
almost a thousand geese.” He also
to study navigation but he wasn’t
additional information as Puddister
keen on spending his
negotiates his way through
life at sea. “My mother
the interview.
wanted me to be a
Puddister is co-chair of
doctor,” he laughs.
the Board of Directors and
“Engineering was her
co-owner of Pennecon Ltd.
second choice.” In the
among other titles. The
mid-1980s Puddister
company has become an
was accepted to
industry leader with 1,100
both engineering at
professionals and skilled
Memorial University
tradespeople working
and navigation at the
across Canada, earning
Marine Institute.
accolades such as Canada’s
The summer
Best Managed Companies
before he began his
designation, and winning
studies, he had a
coveted service contracts
fateful meeting with
for megaprojects in
John Mulcahy whose
Newfoundland and
wife had taught
Labrador such as the Lower
Puddister in high
Churchill, Hebron, White
school. An engineer
Rose Extension, and the
with McNamara
Long Harbour Processing
May 12, 2016: Atlantic Business Magazine publisher Hubert Hutton
presenting Larry Puddister with the CEO of the Year award, in front
Construction, Mulcahy
Plant.
of a capacity crowd at the Delta Beausejour in Moncton, N.B.
told the young man,
“As soon as you finish
your first term let me
hunts pheasants, turkey and deer
know. I’ll make sure you get a work
three times a year on an exclusive
term.” That clinched the deal.
940-hectare hunting reserve called
Griffith Island in Owen Sound. “It’s
my golf course.”
The only obvious luxury in
Puddister’s office are two original
paintings that depict bird-hunting
scenes. The one he sees every time
he looks up from his desk shows a
German short-haired pointer, tail
Despite what may have been
straight out and nose in the air. “I
underperformance in high school,
have one of those,” he says and then
Puddister’s engineering studies
Puddister, now separated
indicates the other painting, “and a
exhibited his trademark ability to
with two grown children, spent
wire-haired pointer, and a Brittany
focus: he graduated with an award
his childhood in Bay Bulls on
spaniel.” He leans back in his swivel
for the highest average. “I worked
Newfoundland’s southeast coast. His
chair and smiles. “I like dogs,” he
hard for my grades. Whether I had to
father Lar, who is a fisherman, and
says and laughs, “…enough to have
or not, I couldn’t say.”
his mother Isabelle, both worked in
two puppies at the same time.”
Mulcahy proved good on his offer.
the local fish plant. And, when he
But the dogs have a practical
Puddister spent every work term
was 13, Puddister joined them on
purpose too. “I like hunting. I hunt
with McNamara and was well paid,
the line eventually working his way
all over, for everything. But I am
partly because of his experience in
up from “cutting cod tongues” to
mostly a small game hunter,” he
construction. He graduated debt free
one of the lucrative jobs “behind the
says. He used to hunt big game
and immediately went to work as
freezers.”
but has switched to the hunt that
project manager for McNamara on
After graduating from Mobile
requires more finesse. One of his
the fixed link to P.E.I. from October of
Central High where, “I didn’t win
favourite annual trips is hunting
1993 until the winter of 1996.
any scholarships and was a little bit
ptarmigan with his dogs on the
Puddister believes the engineering
troublesome,” admits Puddister with
1,000
13
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Atlantic Business Magazine | July/August 2016
400
One of the most informative and entertaining highlights of Atlantic Business Magazine’s
2016 Top 50 CEO awards gala was celebrity emcee Mark Critch’s unscripted Q&A with
CEO of the Year, Larry Puddister.
degree is a rite of passage for
the role of heavy civil engineer
in industry. “It may be different
for pure engineers who work on
design in engineering firms, but
for those of us in construction, it’s
one per cent engineering and 99
per cent everything else,” he says.
“Once my managers reach a certain
level, I expect them to become
businessmen and their income
statement and balance sheet
become more important than their
slide rule,” he says.
Work on the fixed link continued
24 hours a day, seven days a week,
with 400 people labouring on the
main excavation project and several
other large contracts. Puddister was
27 but took his authority in stride.
“It seemed natural to me. But I had a
lot of help.”
Every
strong build
needs a solid
foundation.
As Atlantic Business Magazine’s 2016 CEO of the Year, Memorial University
engineering alum Larry Puddister B.Eng (Hons) ’93, P. Eng knows a thing or two
about construction. During his time at Pennecon he has led the way to
significant growth while positioning the company for a prosperous future.
Memorial University has North America’s top ocean and naval architectural
engineering program and the only co-operative program in this discipline
in the world. We offer programs in civil, computer, electrical, mechanical,
ocean and naval architectural and process engineering. Through a
fully-accredited co-operative education program, our students are
building a foundation to become the next generation of innovators
and leaders. Like Larry Puddister.
www.mun.ca/engineering
42
Atlantic Business Magazine | July/August 2016
25
Near completion of the fixed
link, Puddister bid on a hydro
project for McNamara with Nicholls
Radtke Ltd., a large mechanical
construction company in Ontario.
They won it. Bill Nicholls, the
project proponent, and a successful
entrepreneur, was impressed by
Puddister and they developed a
strong business relationship.
Fred Taylor says such a friendship
is predictable. At 80 years of age,
he is today one of Puddister’s two
“go-to guys” with Pennecon Ltd.
A director on the board of the
company, he worked with founder
Ches Penney when he entered the
entrepreneurial arena in 1963.
During a brief telephone
conversation, Taylor says that
Puddister has the kind of personality
that builds business relations
naturally. “Larry is a good negotiator
and he makes friends with anyone
he does business with.”
Back at the interview, Puddister
explains that he began to see
eye-to-eye with Nicholls during
contract negotiations. “Then as we
started construction and met some
challenging targets, I got to know
him as a friend.”
“I was moose hunting with Bill
one weekend, and during the trip
he said, ‘You know, Larry, you
should be working for yourself. You
shouldn’t be working for somebody
else,’” recalls Puddister. “And I said,
‘Well I’m a poor boy from Bay Bulls.
I don’t have any money. How would
I possibly start?’ and he said, ‘Why
don’t you tell me how much money
you need.’”
Puddister knew that one of his
strengths was his fearlessness and
he needed it then. “I had a good job.
I was racing up the organizational
chart. So when I decided I was going
to quit and start my own company,
people thought I was nuts,” he says.
But Puddister knew what he wanted.
“I always intended to work for
myself. So I took a deep breath and
took the plunge.”
A few months later, Bill Nicholls’
seed capital in hand, Puddister
returned to Bay Bulls and started
Northland Contracting. “With
nothing but a pick-up and a shovel,”
he bid on a contract to construct 25
kilometres of the Trans Labrador
Highway. And he won it.
“Just like anything, the more you
practise calculated risk the more
capable you get at it,” says Puddister.
“I don’t know where that urge for
risk comes from. Maybe stupidity?”
he says laughing as he leans back in
his squeaky chair.
But Puddister admits that,
after taking a few hard knocks
in business, he’s become more of
an accountant than an engineer.
“Northland won some big projects
early on and I made a lot of money,”
he says. “I had a bit of a Midas
complex. I thought I’d make money
at anything.” He then proceeded to
lose money on two ventures in his
home town because he didn’t study
them well enough. “I bought a boat
tour company because I liked to go
on boat tours. That was a mistake.
I bought a restaurant and it was
a miserable failure. It wasn’t all
success,” he admits.
Between 1997 and 2005, despite
occasional setbacks, Northland
employed up to 200 people. As
president and general manager,
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43
of Canada’s 50 top companies,” says
White.
Puddister understands what it
takes to lead for growth. In his
nomination for Atlantic Business
Magazine’s Top 50 CEO award
he wrote, “As a leader you must
empower the people around you
to perform to their best ability,
keep yourself open to new ideas
and avenues for growth and
diversification… and never let fear
get in your way.”
In less than two years, Puddister’s
ability to motivate the team was
showing results. His division had
expanded into Alberta, British
Columbia, and Manitoba. In 2006 he
was invited to the boardroom table
and appointed Pennecon Ltd.’s COO.
That same year he led the buy-out
of Pennecon’s partners and, when
the dust settled, two shareholders
remained: founder Ches Penney with
51 per cent and the new CEO Larry
Puddister with 49 per cent.
Even over the telephone, Fred
Taylor’s respect for the Pennecon
co-chair is audible. He says the
company is advancing even
Puddister incorporated Northland
Holdings for land development and
Northland Industries for welding
and fabrication. His success was
attracting attention.
2
In 2005 Puddister took
another plunge when he merged
Northland with Pennecon Ltd.
to become a shareholder and
managing director of their heavy
civil division.
His other “go-to guy” at
Pennecon is CFO Jerry White.
A chartered accountant, White
joined Pennecon in 2000 after
serving as auditor for a decade.
Contacted by telephone, White
summarizes Puddister’s impact:
“We used to bid on $5-to-10
million jobs in the province. After
Larry came, we started bidding
on the monster projects across
Canada. He helped us become one
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Atlantic Business Magazine | July/August 2016
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though Ches Penney is no longer
active. Puddister has stepped up
to run the business along with
the board of directors. “He has a
strong personality but he’s liked
by everyone,” says Taylor. He
believes Puddister has the ability to
make Pennecon one of the biggest
construction companies in Canada,
employing 5,000 or more across the
country. “You have to have street
smarts in this industry. But more
than that, to last, you must have
integrity. Larry has that. His word is
his bond.”
and not in it.
“I needed to look at the company
from 50,000 feet.”
In 2014, Puddister led the
management buy-out of Pennecon’s
concrete division to form Newcrete
— of which he is a major shareholder
and CEO. Puddister also became an
equal shareholder of the remaining
divisions of Pennecon, and co-chair
of the board. The company then
embarked on a strategic planning
process.
The CEO of the Year is chosen in
conjunction with Atlantic Business
Magazine’s Top 50 CEO awards. The
award is presented to the individual
who, in the opinion of the judges, is
truly exceptional across all judging
categories: corporate growth,
industry leadership and community
building.
Contacted via email, Paul Antle,
one of seven judges for the 2016
Top 50 CEO awards, is enthusiastic
about Puddister’s win. The president
and CEO of Pluto Investments and
a five-time Top 50 CEO award
50,000
For eight years, as CEO, Puddister
continued to grow and diversify the
company by adopting the “platinum
rule” of management. He describes
this rule in his nomination form as
treating others not as you would
like to be treated but as they want
to be treated. “That’s what is most
important — recognizing that
everyone on your team is different,
and will work best with a leadership
style that is tailored to them.”
However, Puddister admits, “I am
not patient.” But, having worked
with an impatient supervisor early in
his career and observing the flaws
of that style he writes, “I learned to
be sensitive to people’s needs when
it comes to direction, to fully and
adequately explain my intentions
and expectations, and answer
questions openly.”
Among the mantras Puddister
repeats to his team is this one: “If
you want to advance, make sure
your replacement is ready.” And in
2014 he demonstrated that he could
take his own advice. The move was
dictated by a long-held recognition
that 2017 will bring a downturn
in the provincial construction
industry. All the major projects such
as Muskrat Falls, Hebron and Long
Harbour would be completed with
nothing on the horizon.
“We rode that swell in business
since 2008,” Puddister says, “all
the time aware that to continue we
would have to take what we were
building and export it.” For Puddister
that meant working on the business
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45
winner himself, Antle writes that
Puddister came out on top in a fierce
competition that began with more
than 200 high calibre nominations.
“The CEO of the Year was
obvious,” writes Antle. “Larry
Puddister stood out. He scored
extremely high in all CEO
categories… being focused on
growth while showing dedication to
community service.”
The judges were also impressed
with Puddister’s frank admission
of his own short-comings and his
willingness to compensate “by
adding executive team members
with those particular skill sets.”
When Puddister recognized that
it was time to transition to “big
picture” management, he admits
he found it difficult personally and
professionally to step back. He had
to loosen his hold on the reins. But
after two years he’s confident they
have the right person.
“Dave Mitchell, my CEO, sits right
there,” says Puddister pointing left,
“on the other side of that wall.” They
graduated together and Puddister
was best man at his wedding. “We
46
Atlantic Business Magazine | July/August 2016
both have great strengths, and we
make up for each other’s gaps,”
admits Puddister who manages by
walking about or picking up the
phone to see how a project is going.
Mitchell takes a more by-the-book
approach. “With Dave at my side,
I believe we can do a better job
together than either of us could
apart.”
49
“What bores me? A lot of things,”
says Puddister. He hesitates. Repeats
the question. “What is the right
thing to say?” Then he sits forward.
“Having nothing to do. I’m not much
good at lazing around. Anyone who
knows me knows I’m not much of a
beach person.”
Constantine chimes in, “Allinclusive vacations? Boring. TV?
Boring.”
“All true,” says Puddister and then
glances at her, “You’re getting to
know me pretty good.”
And what gets him excited? He
doesn’t have to think. “Winning.” He
laughs heartily. “Winning gets me
excited. It is nice when you have a
coordinated effort, you assess risks
properly and at the end of the day
you win a project. There are a lot of
high fives and chest pumping around
here when we win,” says Puddister.
He’s also grateful, at age 49, that
success has provided him with an
opportunity to give back. “I feel
a need to give back as much as
possible. A smart old lady said to me
one time, ‘To whom much is given,
much will be required.’”
According to Harold Mullowney,
deputy mayor of Bay Bull’s and former
three-time mayor, Larry Puddister
personifies that axiom. Over the
phone he enthuses about the CEO of
the Year award. “He deserves it. Larry
is an extremely deserving individual
who never forgot his roots,” says
Mullowney who identifies Puddister
as a major force behind the Bay Bulls
Regional Lifestyle Center. “The fact
that Larry continues to give back
speaks volumes about his character.”
He’s also respected by his
industry peers. Robert Cadigan,
president and CEO of Noia, says they
invited Puddister to a small group
of business leaders exploring deepwater prospects and strategies for
local participation in the oil and
gas supply chain. Pennecon’s cochair demonstrated foresight in his
contributions writes Cadigan. “Larry
always looks to the future.”
500
“I couldn’t tell you where this
is going, but it’s gonna keep on
going,”
That’s what Puddister says in
response to the question of what
success looks like for him. “We are
going to build this into a national
company. We’re diversifying
across the country and have a new
strategic plan that sees us with
50 per cent growth in five years,
which will put us at $500 million
in annual sales,” says Puddister.
They recently opened an Edmonton
office.
“Everybody else was moving
out and we moved in.” They
have projects in Ontario and are
shortlisted in Saskatchewan and
Manitoba.
“I don’t think the company will
ever be sold,” says Puddister.
“Ideally, I think, it will be employee
owned. That would be a good
thing because building something
for themselves is what motivates
people.”
We’ve been chatting for less than
40 minutes but Puddister is sitting
on the edge of his chair. With the
interview complete he’s on his
feet and pulling on a waist-length
leather jacket. “One of our guys is
retiring today after 50 years. He is
a good friend and I’ve known him
a long time. Doug Tipton’s been
managing Concrete Products and
his father managed it before him.
He went to work there when he was
18. I’m headed there now.”
We shake hands and he is gone. •
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Congratulations to Larry Puddister,
Co-Chairman Pennecon Limited, CEO
Newcrete Investments Partnership Inc.,
for being named Atlantic Business
Magazine’s CEO of the
Year.
We wish to congratulate
all the other Top 50 CEOs
for 2016.
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