Podcast Title: Dirt Talk by BuildWitt
Host: Aaron (BuildWitt)
Episode: From Near-Business Death to Prospering with Ryan Schmitt – DT 350
Release Date: June 26, 2025

Introduction

In episode DT 350 of Dirt Talk by BuildWitt, host Aaron engages in a profound conversation with Ryan Schmitt, the CEO of a construction company that successfully navigated through a perilous financial crisis to emerge stronger and employee-owned. The discussion delves into the transformative journey of Ryan’s company, emphasizing themes such as transparency, Employee Stock Ownership Plans (ESOPs), lean methodologies, and leadership.

The Brink of Business Collapse

Ryan begins by sharing the harrowing experience his company faced around 2018, highlighting the dire circumstances that nearly led to the business's downfall.

Ryan [50:00]: "That was the toughest part of my life... just trying to stay positive every day and that. Just every day I'd put my feet on the floor, getting out of bed and just walk into the punch."

During this period, the company grappled with multiple large projects that went awry due to differing site conditions and terrible project designs, resulting in substantial financial losses and the loss of bonding capabilities.

Embracing Transparency and ESOPs

A pivotal moment in the company's turnaround was Ryan’s decision to adopt an ESOP and implement transparency in sharing financials with the entire workforce.

Ryan [03:53]: "Companies don't talk about it. For her to actually become employed and not really know... I'm like, no, ours is gonna be face forward, robust part of our culture. We're talking about it all the time."

Ryan emphasizes that transparency was not merely about sharing numbers but educating employees on what those numbers meant and how their actions directly impacted the company's financial health.

Ryan [60:22]: "Transparency is super powerful... it's, you know, I've spoken last year at the summit and to what our transparency looks like."

He describes the implementation of profit sharing alongside the ESOP, where every 30 cents of every dollar beyond the base profit is allocated to profit sharing, thereby aligning employees’ interests with the company’s financial success.

Ryan [69:12]: "It's called win the year and it's... Everything that we do, good or bad, whether it's... it's going to help the entire company."

Implementing Lean Methodologies for Efficiency

The conversation shifts to how Ryan’s company incorporated lean methodologies to streamline operations and eliminate waste.

Ryan [06:12]: "The share allocation is basically your percent of your salary to the aggregate of salaries... every year you have a stock price."

Ryan draws parallels between lean practices in manufacturing and their applicability in construction, highlighting reductions in standby and waste time through time studies and efficiency departments.

Aaron [33:06]: "I love it. And from a business owner's perspective, when I go out on a job site and a crew is just still humming."

Ryan [37:23]: "We first started doing that. They were like, oh my gosh, it's a big brother."

By conducting video-based time studies, the company identified inefficiencies and collaboratively developed solutions, resulting in significant improvements in productivity.

Leadership Presence and Company Culture

Ryan underscores the importance of leadership presence in fostering a positive company culture and driving the company’s success.

Aaron [12:25]: "One of the biggest, most important factors is that leadership is present... and you can get so caught up in all that."

Ryan recounts his personal transformation from a secluded CEO to a visible, empathetic leader, actively engaging with employees through feedback sessions and morning huddles.

Ryan [08:21]: "I do these, what I call them, feedback sessions... I love doing it."

This proactive leadership approach not only boosted morale but also enhanced operational efficiency by encouraging open communication and continuous improvement among teams.

Overcoming Adversity Through Collective Effort

The episode delves into how the company’s adversity served as a catalyst for organizational change and employee loyalty.

Ryan [54:36]: "That was the toughest part of my life... And she [his wife] said, well, doesn't matter, as long as we're still together."

Faced with severe financial strain, Ryan's transparent communication and unwavering commitment to people-first principles galvanized the workforce, fostering a sense of shared responsibility and collective ownership.

Ryan [57:26]: "But I was like, all right, guys, but this is what we're doing. Here's the plan."

This solidarity was crucial in not only navigating through the crisis but also in setting the foundation for a sustainable, employee-owned future.

Profit Sharing and Financial Transparency

A significant portion of their turnaround strategy involved profit sharing and maintaining financial transparency.

Ryan [69:12]: "We call it win the year worth 30 cents of the dollar... it goes right to the bottom line."

By making profit metrics visible and tying them directly to employees' efforts, Ryan ensured that every member of the organization understood their role in the company's financial health.

Ryan [70:13]: "It's being done for a system where everyone participates... We share profits in real-time."

This approach not only motivated employees to contribute to the company's success but also reinforced a culture of accountability and mutual benefit.

Recruiting, Training, and Internal Development

Ryan discusses the importance of internal promotion and continuous training in building a resilient and skilled workforce.

Ryan [85:41]: "We got a training yard called the Forge... We've got booklets on every position in the company listing all the skill sets."

The company invests heavily in training programs, including simulators, booklets, and micro-learning sessions like Micro Mondays, fostering a culture of continuous improvement and skill development.

Ryan [89:21]: "They are eligibility for promotion... they've mastered it... they're eligible for promotion."

Such initiatives have led to higher employee engagement and lower turnover rates, as employees feel valued and see tangible pathways for career advancement.

Leveraging Technology and Innovation

The discussion also touches upon the company's embrace of advanced technologies like Artificial Intelligence (AI) to further enhance operational efficiency.

Ryan [20:09]: "We came up with AI solutions to like scan specs for RFIs... multiple projects."

By partnering with academic institutions and leveraging AI, Ryan's company has been able to streamline processes, improve accuracy, and reduce manual workloads, positioning itself at the forefront of innovation in the construction industry.

Conclusion: A Model of Success and Inspiration

Ryan Schmitt's journey from the brink of business collapse to establishing a thriving, employee-owned company serves as an inspiring blueprint for other businesses facing similar challenges. Through transparency, lean methodologies, proactive leadership, and a strong focus on employee development, his company not only survived but flourished.

Ryan [95:37]: "Now it's getting more fun. It's a real exciting place to be."

The episode concludes with Ryan expressing his enthusiasm for continuing to share his story and help the industry embrace similar transformative practices.

Notable Quotes

• Ryan [00:00]: "The optics of things are huge."
• Ryan [06:30]: "The share allocation is basically your percent of your salary to the aggregate of salaries."
• Aaron [12:25]: "Leadership is present. There's no way around that."
• Ryan [37:23]: "What's something that's so important... I could be the least value to the company."
• Ryan [54:36]: "That was the toughest part of my life."
• Ryan [69:12]: "Everything that we do, good or bad... it's going to help the entire company."
• Ryan [85:41]: "We've got booklets on every position in the company listing all the skill sets."

Final Thoughts

This episode of Dirt Talk by BuildWitt offers a deep dive into the transformational strategies that can rescue a company from the brink of collapse. Ryan Schmitt's candid insights and actionable strategies provide valuable lessons for leaders in the construction industry and beyond, demonstrating the power of transparency, employee empowerment, and innovative leadership in building resilient and prosperous businesses.

For those interested in implementing similar practices, learning from Ryan's experience could be instrumental in fostering a culture of ownership, continuous improvement, and sustainable growth within their own organizations.

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