In the latest episode of North State Rocks, host Perry Thompson sat down with Paul Reuter, President and Managing Engineer of Pace Engineering, based in Redding, California. Paul, a true leader in our community and a driving force behind an incredible 100% employee-owned firm, shared his remarkable journey and profound insights into building a thriving business, nurturing a unique culture, and prioritizing what truly matters.
Listen to the podcast at northstaterocks.com or on Apple, Spotify, Amazon, IHeartRadio, and Pandora.
Paul's journey at the helm of Pace Engineering began in 2008, a period he candidly described as immensely challenging for the economy. He recalled that “the first full year after I took over was the worst financial performance in the history of Pace.”
Despite this backdrop of widespread project cancellations, Paul and his team demonstrated incredible resilience. Pace Engineering not only maintained profitability but also continued to pay out dividends to its shareholders, a testament to their robust foundation and adaptability during adversity. This early experience forged a leadership style focused on steady guidance and unwavering commitment, qualities that proved vital in subsequent years.
The Power of Collective Ownership and a Team-Oriented Culture
A cornerstone of Pace Engineering's success, as Paul explained, is its unique 100% employee-owned structure. He detailed an innovative program where “there's no financial obligation by the individual to become a shareholder. They're essentially acquiring their ownership through the profits of the company each year.”
This approach cultivates a deep sense of shared purpose and loyalty, ensuring that approximately half of Pace's 85 team members are invested shareholders. Paul emphasized that the bedrock of this success was its unwavering “teamwork-oriented culture,” where “no individual is more important or bigger than the team.”
This philosophy, rooted in family values, integrity, and work-life balance since the company's founding in 1976, fostered an environment where everyone felt valued and supported.
Paul and Perry also thoughtfully explored the delicate task of protecting this culture, especially when difficult decisions arose regarding team member alignment. Paul shared that while these moments were challenging, the company chose to “stick with what got you here and what you believe in,” always striving to offer individuals an “opportunity to succeed, maybe in a different venue that's better suited for them.”
A Bold Vision: Building During Uncertainty
The conversation also touched upon Pace Engineering's remarkable decision to construct a new, larger office building during the unprecedented times of the COVID-19 pandemic.
This “leap of faith,” as Paul described it, was a forward-thinking move driven by the anticipation of key retirements and the need to create space for mentorship and growth, securing the company's future. It was a powerful example of leading with strategic vision and faith in their team, even when faced with widespread fear and uncertainty. The growth in employees and revenue over the past 17 years stands as a testament to these courageous decisions and the enduring strength of their business model.
North State Roots and the Heart of Family
Beyond the professional insights, listeners gained a beautiful understanding of Paul's deep personal connection to the North State. A native of Weed, California, he expressed a profound love for the region, cherishing activities like hunting and fishing on Shasta Lake and exploring its diverse landscapes.
“There's not a better place on earth for the things that I like to do than this hub in Northern California,” Paul affirmed. Both he and Perry shared heartfelt reflections on the paramount importance of family, with Paul offering poignant advice to younger team members: “there's nothing more important in these four walls of work that takes the place of what you have at home.”
This North State Rocks episode truly celebrated the enduring spirit of our community, offering listeners a rich tapestry of wisdom on purposeful leadership, collective resilience, and the profound values that shape both successful organizations and fulfilling lives.
and bring energy, experience and expertise to complete the simplest jobs efficiently, and overcome the largest obstacles with enthusiasm.
