All in the family

Family comes first for these local contracting companies

From Ho'oku, First Quarter 2010

For thousands of Hawaii residents, going to work each day is a family affair. Mom and pop eateries, general stores and businesses grace street corners on every island. The names on the signs often remain unchanged throughout the years, as businesses pass from one generation to the next. Hawaii's construction industry is no different, with a rich history of local families that have poured decades of work into building successful companies.

But the risks that come with running your own construction business, especially in this depressed economy, can be daunting. It takes years of hard work, determination and dedication to lead a company through the ups and downs of our ever-changing industry.

We recently sat down with several local contractors, each of whom are experiencing first-hand the joys and trials of operating a family-owned, multi-generational business. They shared some insight into their successes, challenges and hopes for the future. Despite the many challenges, all agree that running your own business can be tremendously rewarding – and it always helps to have family by your side.

For Dale Sakamoto Yoneda, vice president of S & M Sakamoto, Inc., becoming part of the family business seemed almost like destiny. "I think deep down I always knew I wanted to work for (the family business)," she said. "Being a part of this company is truly something special."

Yoneda is the third generation of the Sakamoto family to work for S & M Sakamoto, Inc., a diversified construction firm located in downtown Honolulu. Originally founded as K & M Sakamoto for her grandfather's brothers, Katsuki and Minoru, in 1940, the company was incorporated under its current name once Yoneda's grandfather Shuichi joined the business after serving in World War II. Today, two generations of Sakamotos are involved in the company – Yoneda's father, Gerard, serves as president while her cousin Francis is a vice president.

"I love the family aspect of our company the most," said Yoneda. "Family comes first as it should. With this mindset, trust and dedication will always follow."

Marnie Koga Hursty, president of Mega Construction and daughter of the company's founder, echoes this sentiment. "I find pride in our company and its accomplishments, in part because my father founded it," she said. "Even when you have a tough year, it's that pride in what you do that gives you the passion and motivation to keep going."

Unlike Yoneda, Hursty didn't always envision working for her father, having begun her career in marketing. But she soon found herself unmotivated with her job, and when her father began experiencing health issues, Hursty decided it was time to sit down with him to discuss the business. "I wanted to alleviate my father's stress, so I joined the company to help him out in any way I could," she explained. Eight years later, Hursty remains at the helm, continuing to perpetuate her father's legacy.

"Even though I didn't really think this would be the career path I'd choose, I think my dad's influence and my desire to have my children grow up in Hawaii had a lot to do with my involvement in the family business," said Lance Inouye, president and CEO of Ralph S. Inouye Co., Ltd., the contracting company his father founded almost 50 years ago.

The second of three generations to work for the company, Inouye shares involvement in Ralph S. Inouye Co., Ltd. with his brother, cousin and his cousins' children. "The best part about working for your own family's company is the challenge of upholding and advancing the family reputation that has been built over the years," he said.

Inouye, like many of the contractors we spoke to, grew up around the family business, getting a feel for the industry at an early age. "When I came back home from college during the summers, I would work as a laborer to earn some spending money." The relationships and experiences gained, he explained, were invaluable. "As a result of my summer job, I was able to make lifelong relationships with many of our core field workers."

Yoneda also recalled getting her first taste of the business in high school, working in the company office during school breaks. But not all of her youthful memories of the company involved running errands and answering phones. "I have so many great memories of our company get-togethers, watching the employees enjoy themselves and running around the office with my sister and cousins," she said. "It was like a family dinner – just a lot of fun."

Maintaining that open family environment is a key element for all of the contractors we spoke to, including Russell Monma, president of Wahiawa-based H. Monma General Contractor, Inc.

Founded by his father Hiroshi, Monma has been involved in the family business for more than 30 years, working alongside his brothers Curtis and Daniel and wife Jean. He credits his company's success to the hard work and loyalty of his employee "ohana." "Our success is due to our employees. During times like these, their efforts are certainly appreciated," he said.

Though most of the contractors we spoke to are already the second or third generations to run their family businesses, a few are founders and first generation business owners, who are just now introducing their children to the industry. Alan Shintani, president and treasurer of Alan Shintani, Inc., a Waipahu-based general construction company, recently welcomed son Aran to the company as an expediter last year.

While he and his wife Jennifer, who serves as vice president, enjoy seeing their son express interest in the family business, they also understand that Aran has years of work ahead of him if he decides to pursue a career in construction. "He's gaining experience now but there's still so much he needs to learn about the industry," Shintani explained. "We'll have to wait and see if our son chooses to continue down this career path."

Similarly, brothers Lyle and Jimmy Hamasaki, president and vice president, respectively, of Lyle Hamasaki Construction, co-founded their full-service construction company in 1979. After decades of building their business, Jimmy's sons Brad and Brent, along with Lyle's son Bo, joined the company as estimators and project managers.

Although they take comfort in knowing that their sons are interested in continuing the business, both admit that they're not ready to retire anytime soon. "Hard work! Nothing beats working hard. But when you enjoy what you do, it can't really be called work," said Jimmy Hamasaki, when asked what he felt was the key to his company's success. "We enjoy the business, so there aren't any plans for retirement in the near future." But, Hamasaki admits, having their sons assume more responsibilities have given he and Lyle the enviable ability to take more time off. "After 30 years, we don't have to work 60 hours a week anymore!" he laughed.

With the joys of owning your own business, however, come the inevitable challenges. Like any other construction business during these tough economic times, most of these contractors have seen opportunities dwindle and jobs decrease, making it necessary to develop smart business strategies in order to survive.

"We avoided over-expansion and placed our focus more on core competencies and values," said Inouye, when asked what his company has done to weather the economic downturn. Yoneda agreed – "We've maintained a comfortable company size that enables us to provide efficient, quality service to our clients," she said. "We select projects that best suit our strengths, in terms of project size, location and scope."

While most of the contractors had similar responses, some, like Alan Shintani, tried a different strategy in 2009. "We normally hunker down, concentrating on keeping the company small and lean. But last year we took a different approach, increasing our manpower so we could take in more business," explained Shintani. "We've been extremely lucky – that's a fact."

But through it all, none of the contractors we spoke to regretted their decision to become involved in the family business. Their perseverance and commitment through the years is truly admirable, and provides a hopeful sign that these construction companies will remain a part of the local industry landscape for many years to come.

In fact, some are already looking forward to the day that their children may be groomed to increase their company's generational involvement. "You can always hope, but you never know," said Yoneda. "My daughter always says she wants to work for S & M Sakamoto, Inc. – so we just have to see. Fourth generation!"

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Lance Inouye – President and CEO, Ralph S. Inouye Co., Ltd.
Company Type: Building and general engineering work of all types, focusing on specialized work, such as hospitals, telecommunications, utilities, and airport facilities.
Founder:	Ralph S. Inouye (Lance's father)
Year:	1992
Number of generations in the business: Three
Business Philosophy: Make work fun for our employees, clients, consultants and subcontractors/suppliers to fulfill our mission of achieving construction excellence by building relationships as strong and enduring as our projects.
Dale Sakamoto Yoneda – Vice President, S & M Sakamoto, Inc.
Company Type: Diversified construction ranging from residential interior work to large-scale private sector or government facilities
Founder:	Katsuki and Minoru Sakamoto (Dale's grand-uncles)
Year:	1940
Number of generations in the business: Three
Business Philosophy: View each task/assignment/project as if it were your own. Treat your work with respect, commitment and dedication.
Lyle and Jimmy Hamasaki – President and Vice President, Lyle Hamasaki Construction, Inc.
Company type: Full-service construction, including commercial and residential building and renovation work
Founder:	Lyle and Jimmy Hamasaki
Year:	1979
Number of generations in the business: Two
Business Philosophy: Work hard! Be honest, be fair, treat other people as you want them to treat you.
Marnie Koga Hursty – President, Mega Construction
Company Description: Site work, including excavation, utilities and roadwork
Founder:	Marvin Koga (Marnie's father)
Year:	1984
Number of generations in the business: Two
Business Philosophy: Conduct all business with honesty and integrity. Treat your employees well, because without them you can't run your company.
Russell Monma – President, Monma Construction
Company Description: General construction including custom residential, repairs, renovation, additions, and interior commercial work
Founder:	Hiroshi Monma (Russell's father)
Year:	1960
Number of generations in the business: Two
Business Philosophy: Maintain honesty and trust. Give customers the peace of mind that they are getting the best service from their contractor.
Alan Shintani – President and Treasurer, Alan Shintani Inc.
Company Description: General construction including design build, vertical and horizontal construction, remodeling, and commercial and industrial tenant improvements
Founder:	Alan Shintani
Year:	1979
Number of generations in the business: Two
Business Philosophy: Maintain perseverance, determination and an "all-in" attitude, and you can achieve success.