YOUR BUSINESS AUTHORITY

Springfield, MO

Log in Subscribe

SBJ interviews the third-generation CEO

Posted online

When Louis Griesemer says agreement between business and government is the worst thing in his world, it gets people’s attention.

The third-generation Griesemer to lead Springfield Underground Inc. addresses that prickly relationship and other topics – from his work with billionaire political contributor Rex Sinquefield to his exit strategy at Springfield Underground – in these excerpts from Springfield Business Journal’s 12 People You Need to Know interview this month:

On ceasing mining after 70 years and 31 million tons of limestone …
“Since the recession started in 2007, our aggregates business has been off by about 50 percent, like most people in the construction and materials business. Our staff reductions occurred in 2007 and 2008. That probably extended the life of our reserves. When you’re out of rock, you’re out of rock. But when we finally ceased operations it was not that big of an impact on our employment.”

On the underground real estate …
“It’s a room and pillar mine. You’ve got 50-foot wide openings and 30-foot pillars. It looks like a checkerboard. It’s pretty much like a small city.”

On the current industrial/warehouse market …
“We’re seeing that core market tighten up, where some of the vacant space is starting to fill. With increased demand, there will be more opportunity for us.

“We’re happy to compete with any aboveground developer. Our space is somewhat unique and not appropriate for all. There is still a lot of folks filling up old buildings around the metropolitan area, so I’m not sure there’s demand for a new industrial park or anything like that.”

On only 3 percent of family businesses getting passed to the fourth generation …
“It’s hard enough to run a business, and it’s hard enough to run a family. You start combining those two, and there are a lot of challenges.

“We tend to think family businesses allow you to retain some talent you might not otherwise get. Ours is a tough industry, not very attractive for somebody you’re sending off into the world for a college degree and unlimited opportunities and, ‘Oh, by the way, you can come back and be a miner in Springfield.’”

On the family makeup …
“My nephew, John, runs the business as chief operations officer. My daughter is coming into the business next month. I’ve had other nephews in the business and a niece on the board. We’re not creating positions for family; we’re offering opportunities for qualified family candidates.”

On his exit strategy …
“My exit strategy is sitting right in front of me [points to nephew and COO John Griesemer]. I’m 61 years old and I’d like to reduce my role by 65.”

On the family’s ownership in Willow Brook Foods …
“At one point, we were part owners of Willow Brook Foods. We got involved because when they were Hudson Foods, they were tenants in the Underground and it was a management buyout we participated in.”

On his board role for the Show-Me Institute …
“With Willow Brook Foods, we were impacted pretty negatively by the ethanol mandate that drove corn prices up – doubled one year – and ultimately ended in our selling that business to Cargill Foods. Cargill also owned the corn, so they were not as negatively impacted. The result of that left me knowing what impact government policy can have on business, the unintended consequences of mandates by the government. The only people talking about that at the time, the only studies I could find was by the Show-Me Institute. They were lobbying against the ethanol mandate, kind of a voice crying out in the wilderness. There weren’t many people saying ethanol was a bad thing. That got my attention.

“(We) hit it off on a whole lot of free-market topics. After a while, they were looking for a representative in southwest Missouri, and I joined up.

“I bring issues that might impact us. We did a study on the police and fire pension fund a few years ago. We’re looking at education issues and jail overcrowding and public policy and tax policy related to those.”

On Show-Me Institute’s co-founder Rex Sinquefield …
“Rex is one of those higher level thinkers. I’m the lowly businessman that sees the practical impact of what these economic theories really mean. He’s a chess master and has brought world chess to St. Louis. He impresses me as being very considered, highly intelligent but always five moves ahead of you. I don’t think he’s comfortable in the spotlight.”

On the millions Sinquefield spends on political candidates …
“I don’t always agree with the influence – I think it’s a waste of money. I don’t think money always buys votes. You can’t sell people what they don’t want.”

On the St. Louis Rams stadium incentives …
“I’m a football fan, but I don’t expect everybody else to pay for my ticket. Sorry to see the Rams go for you Rams fans – I’m a Chiefs fan. Any time you’re using public monies to pay for something, there needs to be a cost-benefit analysis. A lot of times we vote for things and build things, and there’s no follow-up. Considering we’re still paying something like $150 million on the old Rams stadium and were talking about a $1 billion new stadium, the numbers didn’t add up.”

On saying “The worst thing in my world is when business and government agree.”
“This is not a partisan issue. The idea of economic development seems to favor one business over another or one industry over another. Missouri ranks, I think, ninth in states that give out tax incentives, credits, and we’re 49th in economic growth. A lot of the things that are being tried sound good and feel good, but they don’t make economic sense. When you put the litmus test to it, you show these things are not really helping the economy.

“I’ve got to be careful because I know there is stuff in front of City Council right now that favor particular businesses in Springfield. We feel like we have to do this because other cities are doing it and we’re not going to compete. I recommend we take a second look and do some real economic analysis. And also make sure if we are passing those kinds of public policies that there is follow-up, actual cost-benefit analysis done after the fact. Were the jobs really created, or was this a short-term thing?

“I’ve seen you can wipe out 800 jobs in Springfield, Mo., with bad public policy pretty quickly. Willow Brook Foods.”

On saying “The best people on my team are the people who disagree with me.”
“A well rounded organization has to have perspectives from everybody. We tend to surround ourselves with ‘yes’ men that tell us we’re on the right track and go-go-go. I always love that guy who may be on a piece of machinery, maybe a laborer, but he totally disagrees with you. He’s always that thorn in your side. Those are the folks you need to pay attention to. They’re not always right, but they represent a perspective that they’re at least telling you. Most folks think they’ll get in trouble by disagreeing with you. I like to cultivate that and make sure they know their viewpoint is appreciated. It at least sensitizes you and your organization to dissent.”

On the Affordable Care Act …
“We’re always better off with choices. Anything that limits choices – whether it’s big business or big government, it creates a monopoly.

“We’ve reduced our employment down below 50, so we’re not impacted as heavily.

“It’s been a real challenge to keep things affordable. Despite the promises, we still see our rates going up, we see deductibles going up for employees. Health care is still in crisis.”

On his favorite to win the presidential nominations …
“I like businesspeople. One of the interesting things, it seems to me you have both Bernie Sanders and Donald Trump railing against the same things with different solutions to the same problems. My early favorites are pretty much already out. I like Ben Carson and Carly Fiorina. From tax policy, I’m not big on the social issues; I think a more robust economy would fix a lot of the social issues.”

Comments

No comments on this story |
Please log in to add your comment
Editors' Pick
Business Spotlight: The Right Focus

Helping people is the foremost purpose in business for Angela Stephens. The idea for Re-Focus the Creative Office was born to help her son, Drake Stephens, who had started struggling in school in fifth grade.

Most Read
Update cookies preferences