The Oscar W. Larson Company

From the trenches to PEI Presidency: Meet Bruce Larson

The Oscar W. Larson Company—with sales of over $50 million in 2007, five branches and 200 employees offering service in everything from gas dispensers, POS systems, environmental clean-ups and general contracting—hasn’t always been the petroleum service giant that Bruce Larson, 2008 PEI president and company president, runs. The company traces its beginnings to a much humbler existence.

Company Evolution
In 1946, Oscar Larson, founder of the company, discovered his niche that would fuel a petroleum servicing company for the next six decades. “My grandfather was a night watchman for Shell Oil in Detroit,” says Bruce Larson. “When he was bored, he took pumps apart and put them back together.”

Bruce Larson (center) with partners Charlie Burns (left), vice president of construction, and Jim Lintol, vice president of finance.

Oscar Larson decided to explore the financial possibilities his nighttime hobby could bring in the world of pump servicing. He approached his boss to ask if there would be an opportunity for Shell Oil to be in need of someone to fix its gas pumps. With a positive response, Larson found himself in business. Now, with a demand for his services established, he needed a place to work.

The company’s first home was literally a large home in Milford, Michigan. Larson worked downstairs with one other employee, and resided upstairs.

Up until the early 1970s, the company was primarily a service company that did some remanufacturing of gasoline dispensers. During this period, company owners Bob and Jim Larson, who purchased the company from their father Oscar in 1952, transitioned the company into selling petroleum equipment and doing installation work. In 1972, Bruce Larson came to work for the family business full time after graduating from Western Michigan University with a degree in business administration.

As a 23-year-old, Larson stepped up to run the company with his uncle, Jim Larson, after his father, Bob, moved to Florida, due to the poor health of Bruce’s mother. Although Bruce was young at the time, he had amassed plenty of “trench” experience during his formative years. During his early teens, he spent summers working in the shop and when he turned 15 was put on the road doing construction. He continued working construction during school breaks while in college.

With Larson and his uncle at the helm, the mid-1970s proved to be a time for the company to begin expanding. Oscar W. Larson established its first branch after buying out a competitor in Grand Rapids, Michigan.

Larson, along with his cousin Kim Larson, purchased the company in 1985 from Bob and Jim Larson. Within a year, the company home in Milford, which at the time served as its headquarters, burnt down. The Larsons built a new command center at the same location, but by the early 1990s needed more space and moved the company’s headquarters to its present 70,400 sq. ft. location in Clarkston, Michigan.

COMPANY SNAPSHOT President: Bruce Larson Year Founded: 1946 Year Joined PEI: 1973 Headquarters: Clarkston, Michigan Employees: 200 2007 Sales: $50+ million Web Site: www.larsonco.com

By 1992, Larson felt the time was right to expand again. “The company’s expansion was primarily spurned on by a need for a quality service organization in strategic areas where we chose to set up branches,” explains Larson. After buying out his cousin, he went on to open offices in Gaylord, Michigan; Toledo, Ohio; and Fort Wayne and Indianapolis, Indiana. All of the branches, with the exception of the Grand Rapids location, are start-ups.

Continuing to expand the company’s reach remained on the agenda for Larson. As a 10-Group member, he became friends with fellow PEI member Gordon Duncan, managing partner of RNG. After years of friendship, Duncan offered Larson an opportunity to take The Oscar W. Larson Company international, via Canada. Larson agreed to sell his company to RNG. As part of the sale, RNG gave Larson a five-year contract to continue running The Oscar W. Larson Company.

“The first three years with RNG were eye-opening. Being exposed to a large international company that was quite diversified taught me a lot,” Larson says. However, during the fourth year of his contract, RNG became financially unstable. In the end, RNG went into receivership.

“There was a lot of uncertainty during that time. I wasn’t sure if they were just going to lock the doors one day,” says Larson. “I didn’t know if I would have an opportunity to buy The Oscar W. Larson Company back, or if I would have to start a new company.”

Larson hired bankruptcy attorneys and reorganization specialists to formulate plans of action dependent on which scenario would play out. Due to Larson’s preparation, when an opportunity to purchase The Oscar W. Larson Company arose, he was able to seize it. Larson took on two partners, Charlie Burns, vice president of construction, and Jim Lintol, vice president of finance, when he purchased his company back in 2002.

Electrical Technician Lance Ash wears full arc flash personal protective equipment while servicing a live panel.

Serving Employees
Oscar W. Larson’s workforce has expanded from 2 to 200 employees since its inception. The company relies on long-time employees to provide continuity. “We probably have 40 people here who have been with us more than 20 years,” Larson says.

The company’s exceptional retention statistics go hand-in-hand with Larson’s emphasis on taking care of his employees. “A decision was made a long time ago to treat our employees as the company’s most important asset instead of worrying about what trucks and equipment look like.”

The ability to understand employee needs is the result of having started his career from the bottom, according to Larson. “This is a tough, demanding business. Most of our management staff came up from the trenches, so we know what people are going through on a daily basis, and we can empathize.”

Throughout the petroleum equipment industry, finding qualified service technicians and retaining them is becoming an increasingly arduous chore. Larson has developed a formula to meet his company’s personnel needs. “New hires are given a 90-day trial period to figure out if they are looking for a job or if they are looking for work,” says Larson about company hiring practices. “If it turns out an employee is looking for work, they will be retained; if they are looking for a job, we usually let them go during their probationary period.”

For those who prove their dedication and worth, Larson will invest in them via training. The majority of training is on-the-job, manufacturer programs and various levels of safety training depending on the need, including PEI Standards and safety publications.

Thriving Where Others Balk
Throughout the history of The Oscar W. Larson Company, the foundation of its business relied on operating a service organization. Although the current scope of the company is 30 percent service, 15 percent sales, 10 percent electrical contracting, 10 percent general contracting and 35 percent mechanical contracting, the service side of the house has set it apart from the competition. “Service is still the backbone of our business,” Larson says. “We’ve always felt that when we do a good job servicing customers, if they need to have something replaced or need a new product, they are going to ask us to sell it to them and install it for them.”

OWL did the site work, building construction and petroleum installation at this CMS Oil Marathon location in Lapeer, Michigan. Completed in December 2007, the site includes retail petroleum, truck stop, bulk rack, coffee beanery and future fast food space, as well as CMS Oil’s corporate office.

Over 80 employees are dedicated to service, which is available 24/7. All trucks are equipped with GPS vehicle tracking so that the closest truck is dispatched.

Oscar W. Larson’s dedication to service has suited the company well over the years. Many competitors choose not to focus on the service side of the industry. “A great number of petroleum contractors started limiting their businesses to only large installation and sales contracts,” states Larson. Taking advantage of the gaps competitors have left in the area of service represents more than $15 million for Larson’s company in just this past year.

Larson’s plans for the future of his company include increasing the size of his general contracting and electrical departments. Additionally, he envisions the company maintaining its position and market share in the petroleum business.

PEI Presidential Focus
Larson brings his experience from the past 35 years in the industry that early in his career involved running a small business out of his grandfather’s house to currently running a six-location servicing giant. His ability to relate to companies of various sizes enables him to understand the different challenges PEI members face.

Stepping into the role of PEI’s 58th president, Larson recognizes the success his predecessors have had in the position and hopes his approach to solving PEI’s issues will continue to build on their accomplishments. An increased emphasis on seeing that PEI members have more visibility within a changing marketplace is at the top of his agenda. “I think every PEI member needs to be recognized in such a fashion that if a customer has a choice of doing business with a PEI member or a non-PEI member, they would choose the PEI member,” says PEI’s new president. “They should choose the PEI member because of the advantages a PEI membership brings in terms of education and being well informed about industry issues on a national and international basis.”

One emerging issue Larson sees affecting many PEI members stems from changes in the ownership of stations and identifying who is the actual customer. “This creates a challenge in terms of credit and collections issues.”

Tackling issues PEI members are experiencing and increasing visibility will need some out-of-the-box thinking, which Larson continually has demonstrated throughout his three decades in the industry. “The status quo approach is not good enough. I will look at things and ask why have we been doing something a certain way for so many years and look for a fresh approach when it comes to investing in our membership.”

Combining an inquisitive approach to problem solving with tons of experience servicing customers, PEI members can rest assured that their new president understands what it takes to serve them, “the customer.

   Current Issue   |   Past Issues   |   Search   |   Contact Us   |   Send Files    |   Advertising   |   www.pei.org

The PEI Journal • First Quarter 2008 • Volume 2, No. 1 • Contents are Copyright © Data Key Communications, Inc.
All rights reserved. • Nothing may be reproduced in whole or part without written permission of the publisher.