As Vancouver-based MacKay and Sposito Inc. marks its 35th anniversary this year, a new president has taken over and leaders are making plans to keep busy – not just through the recession, but for decades ahead.
Tim Schauer was unanimously named the firm’s new president after serving as senior vice president for four years. The appointment was made by the firm’s six partner owners, including Tim Schauer and his father, Al Schauer, about 18 months ago but Tim Schauer assumed the duties of president Jan. 1.
The senior Schauer was the firm’s president and chief executive officer for six years and will remain as CEO while transitioning into retirement during the next few years. Upon his exit, his son will likely take on the CEO title.
About four years ago, Al Schauer began succession planning discussions with his board of directors.
“I would say this is the perfect time to transition,” said Al Schauer. “It brings a younger, more energetic focus to the leadership position, but you still have a back-up.”
With several client relationships lasting 10 to 20 years, MacKay and Sposito leaders tend to take the long view with company planning.
“We are already talking about those that might succeed me,” said Tim Schauer.
The company made its way to Vancouver in 1972 as a branch of California-based MacKay and Somps, owned by Don MacKay and Arch McDonald. In the 1960s and ’70s, the partners purchased much of the land that is now Fishers Landing and Cascade Park.
MacKay brought Dick Sposito on board and formed the current company in 1974. MacKay sold his ownership to Sposito and Al Schauer in the 1970s. Sposito retired in 2002 when Al Schauer became president and CEO.
Amidst the storm
Naming a new president while other companies hunker down in a slow economy may be unusual, but company leaders didn’t see reason to abandon its plans.
“You can’t change the economy, but we can change our strategy for how we deal with the economy,” said Al Schauer, who has worked through two housing market crashes. “If you stop planning for the future, you might as well close your doors.”
Because it is involved with development years before land purchases are complete, the company began to feel a slowdown about two years ago.
Growth slowed as funding for private and public work dried up and competition increased, making company leaders become more strategic about the jobs they pursue.
“We chase what we think we can win,” said Tim Schauer. “We have to spend more to get less work than ever before. … We’re not waiting out the storm – we’re getting ready for when the storm is over.”
Tightening belts
The firm cut 38 staff during the last two years in several departments at its Vancouver and Kennewick offices, and now has 60 employees total. Its Wilsonville office has been untouched by layoffs.
“We hung on to and really valued people, and didn’t make swift staffing cuts,” said Tim Schauer.
The company was not profitable in the last two years – Al Schauer declined to share specifics – but previous years were tremendously profitable, he said.
Deeper cuts could have made room for profit, but leaders opted not to cut more staff, close any offices or reduce services. Doing so could have crippled the company in the long-term, he said.
“We could become thinner, but when you start cutting off limbs, they don’t grow back,” said Al Schauer.
“You start to ask, ‘What is the economic reason this project exists?’ ” said Tim Schauer.
If funding for a project isn’t secured, it might not worth pursuing, he said
The firm worked on mostly private projects until 1983, when its leaders developed relationships with public agencies. When the economy was strong in recent years, the firm had a near-even balance of public and private work. Today about 80 percent is public.
Charity Thompson can be reached at cthompson@vbjusa.com.
