Having maintained a reputation for success since 1919, we speak with Bill Mazzetti, Senior Vice President of Rosendin Electric, about the company’s knowledge, ability to scale, and ongoing dedication to quality electric services.
ELECTRIC EMPIRE
Electricity is one of the most formative and foundational inventions in human history. In the past 300 years, electricity led the industrial revolution and transformed much of the planet. Water, commerce, communications, industry, transportation, and all of modern society are based on the consistent and reliable delivery of electricity.
Microgrids supply electricity to remote villages in Africa, supporting e-commerce and water purification. On the opposite end of the spectrum, electricity supports the ongoing development of industry, people, data, and communications in the developed world.
Rosendin Electric (Rosendin) has been at the forefront of power and facility delivery for over a century.
AN ELECTRIFYING HISTORY
Like many industry-defining and renowned companies, Rosendin began in a modest garage, powered by one family’s American dream to not only make a name for themselves but create an electric empire to be passed down through generations.
Now in its fifth generation of leadership and its third generation removed from the Rosendin family’s ownership, the company has transitioned from a family-owned business to a proudly employee-owned business that stands as one of the industry leaders for electrical solutions in the US; it has been an incredible 104 years.
Looking back to where it started as a typical American story – a family comes to the US to make their lives better for themselves and their
future.
Moses and Bertha Rosendin immigrated to California (CA) from Mexico in the early 20th century, determined to carve out a successful life for themselves. After serving in the First World War, Moses established Rosendin – then called Rosendin Electric Motor Works – in 1919, with the initial project consisting of wiring the first irrigation pumps in the ‘Valley of Heart’s Delight’, now known as Silicon Valley.
Despite the immediate devastation inflicted by the Great Depression that terminated many long-lasting and seemingly unmovable businesses, Rosendin continued to steadily grow, eventually opening its first office in San Jose, CA, in 1938, with eight full-time employees. While sustaining the business through the Great Depression, Moses was able to expand it during World War II when he accepted shipyard contracts that sprung up in the San Francisco Bay Area (Bay Area).
The end of the Second World War and the reignition of the US economy brought rapid commercial and industrial growth to the Santa Clara Valley, thus enormously increasing and diversifying Rosendin’s work. By the 1950s, the company had grown from its initial eight employees to a strong 90, and Rosendin was officially incorporated as an electrical contractor in the state of CA. The work in the shipbuilding industry and the roots in the Bay Area led Rosendin into the technology boom that was about to emerge in the 1960s in Santa Clara County.
In 1950, Moses and Bertha’s sons, Raymond and Louis, entered the business in an official capacity. During this transition of leadership, the firm further committed itself to working hard and building on its experience and business acumen. This dedication paid off, as in 1955, Rosendin won its first $1 million project at Fresno State College, signaling a new level for the company.
Immediately following this award, Rosendin went on to secure its first multi-million-dollar project in 1958 with none other than Lockheed Martin, one of the world’s largest companies in the aerospace, military support, security, and technologies industry. Raymond and Louis were off to the races.
By this time, Rosendin’s experience had grown into dozens of key industries. The company started out supporting the agricultural industry in Santa Clara County long before it was Silicon Valley. It was called to deliver the foundation projects that built Silicon Valley, such as some of the first wafer fabrication facilities for Intel, and built in scores of industries in California.
During the 1970s and 1980s, Rosendin served both private and public work in Northern California, specifically in the military complex based on the Bay Area that was critical to the US winning the Cold War. As the Bay Area evolved, so did Rosendin, working on the airports, public infrastructure, industrial, commercial, biotechnology (BioTech), data centers, and all the facilities critical to both life and business. That experience was retained and multiplied throughout the US.
While Rosendin’s business grew, change was on the horizon.
For most of its history, the company lived in the low-bid world typical of project delivery in those days. That rough-and-tumble and often adversarial approach gave way in the late 1990s to a more collaborative and partnership-based approach to clients and work. This effort was led by Tom Sorley and Larry Beltramo, who took over the firm from the Rosendin family and set the company on the course for the next 30 years until their retirement in 2020.
“To hear Tom tell the story, it was change or die. This existential and intentional pivot was difficult but tectonically transformative to Rosendin both operationally and culturally. It set us on the path we enjoy today. Tom and Larry serve on Rosendin’s board of directors today, and we are happy to have their counsel available to us while we now run the shop,” details Mazzetti.
As one of the largest electrical contractors in the US with annual revenues nearing $4 billion, the company is proud of its 100+ year history of building quality electrical and communications installations and value for its clients – and, most critically, building people within the company and local communities in a safe, inclusive environment. Rosendin’s values are the basis of this.
Eventually, the company opened offices across the continental US and Hawaii, expanding its team to more than 8,000 worldwide, winning awards for construction safety excellence, and establishing The Rosendin Foundation in 2020 to serve the communities that helped to support and build it.
EMPLOYEE-OWNED AND DRIVEN
Being the largest employee-owned electrical contractor in the US is one of Rosendin’s most distinctive and proud attributes.
In 1992, the Rosendin family buyout began via an Employee Stock Ownership Program (ESOP), which was paid off in 2000.
“Some will say we used the fruits of the dot-com boom to launch the next several decades of our growth and success. I will certainly agree with that observation – employee ownership bound all of the dedicated workers to the collective success of the firm,” expands Mazzetti.
Like many generational firms, Rosendin’s history is part of its present-day definition. The company is very proud of its history, clients, industries, and communities it serves and continues to participate in.
“But what has really taken us forward in the past 20 years has been employee ownership. The ESOP is a direct and tangible vehicle for shared success. Unlike many firms in this space that are closely held or publicly owned, our employees own the company. It’s a foundational piece of the culture at Rosendin, where everyone shares success, including some of our field leadership,” he continues.
“We have produced over 150 millionaires in the process, with more to come. As an ESOP trustee, nothing makes me happier than when an employee comes into my office and is astounded at their ESOP account balance. One person thought it was a math mistake in their favor! That shared wealth is life-changing and allows our people to redirect their income to other key life needs such as housing, education, elderly care, or life emergencies. Retirement becomes one less thing to worry about and we see the results in how our folks work, care, and execute.”
ESOP retirement contributions stem solely from the company, making it completely free for employees to become fully invested in the business. The ESOP trust receives contributions annually from Rosendin’s parent company – Rosendin Holdings – with the amount dependent on several factors such as salary and time spent at the company.
It takes six years for an employee to become completely vested and thus eligible to receive their share after retirement. As a result of the ESOP, Rosendin’s employee-owners are incentivized to increase productivity, profits, and efficiency as they are ultimately contributing to growing their own value in the company.
“Ownership and its rewards don’t just roll up to a handful of people – everyone gets their share. The ESOP gives people something to work toward and be proud of at Rosendin. If the company is succeeding, everyone is succeeding. It creates an environment that is so much more than just clocking in and out,” prides Mazzetti.
This gradual change to being owned by employees also resulted in a company culture shift, leading to collective excitement and pride in what the business accomplishes on a daily basis. Employee-owned companies have been shown to grow and flourish over time, and as the teams within them expand, so too does the value of the ESOP.
As reported by the National Center for Employee Ownership, the average ESOP account balance more than doubles compared to that of the average 401(k) balance, allowing employees to engage in wealth-building for the future.
Since its employees took ownership of Rosendin, technology has also advanced rapidly within the company, and project sizes have grown exponentially, demanding a more advanced approach.
“It’s fantastic to hear from people within the company who have dedicated their careers to Rosendin because they know they’re getting the benefits of an ESOP once they’re fully vested and retire at no cost to them,” expands Mazzetti.
ROSENDIN ELECTRIC PARTNERS
