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Anderson Engineering Inc., 2005 Small Business of the Year Finalist

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In 1998, Anderson Engineering’s majority stockholder, James Anderson, came close to selling his share of the company to a national engineering firm. Company employees – and the other two stockholders, Bruce Rhodes and Steve Brady – decided to band together and purchase Anderson’s portion of the company, creating in the process an employee stock ownership plan.

Brady, who now serves as company president, said Anderson Engineering has evolved greatly since it opened 51 years ago, moving from construction and engineering to a business that strictly focuses on civil engineering, land surveying, materials testing and drilling services.

That evolution has included growth: 2004 gross revenue was nearly $4 million, up 15 percent from 2003 and up 65 percent since 2000.

The company employed about 35 seven years ago. Now there are 50 employees, spread among offices in Springfield, Joplin, Crocker and Bentonville, Ark.

One of the company’s challenges as a small business, Brady said, is employee retention.

“We try to provide a place where they can enjoy working but also where they can meet their goals,” he said. “There is absolutely no way that we can compete with government agencies and the like with the retirement systems that they have. So we have to provide something that employees can feel a part of and grow with.”

That’s where the ESOP program comes in. The program, Brady said, allows for a sense of personal accomplishment among the employees.

“As the company grows, their share grows as well, and it’s exciting to them,” he added. “It’s been a blessing to us; our turnover has decreased dramatically because people feel a sense of ownership, and they have it. They are part owner of the company.”

The ESOP has led to opportunities to add more people; Brady said employment could increase by five to 10 part-time workers and interns during the busy summer construction season.

Company growth led to the firm’s October move from its 32-year home at 730 N. Benton Ave. to their new location, 2045 W. Woodland Ave.

“We had half an acre there and it just wasn’t enough,” Brady said. “Here we have about an acre and a half. It allows us the opportunity for growth, both in staff as well as equipment.”

Anderson is licensed to do work in 18 states, due mostly to its engineering work for new O’Reilly Auto Parts stores across the country.

O’Reilly Construction Design Manager Steve Peterie said the company continues to use Anderson’s services because of the firm’s attention to detail.

“I would say we’ve got a very good relationship with them because they care about our business,” Peterie said. “They are very thorough and they are very conscious about making sure that designs are cost effective for the owners.”

Anderson began working with O’Reilly in 1998.

To date, the company has helped with site grading for approximately 400 O’Reilly locations, going as far east as North Carolina, as far north as Iowa and as far south as Texas.

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