Sheehan Pipeline Construction Co.: A Century of Success
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By Kate Burrows   
Wednesday, 23 January 2008
smc Sheehan Pipeline Construction, Tulsa, OK
Sheehan Pipeline is unique in a number of ways: It’s more than a century old and has been continuously family run. With its strong reputation, an investment in technology, safety and skilled labor, the company plans for its next 100-plus years.








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"We have been on the biggest thrill ride of our lives during these past few years,” President Rob Riess declares. As one of the longest-running pipeline construction companies in the nation, Sheehan Pipeline has persevered through the ups and downs of this volatile industry for more than 100 years. Riess says experiencing these challenges has helped the company achieve a leading position in the industry, and “become stronger than ever before.”

Riess attributes much of the company’s success to its history in the industry but, more than anything else, to the family ownership that continues today. Although the firm operates as a partnership between five executives, the Sheehan family has been the majority owner since the firm’s inception. “They treat everyone at this company like they were part of the family,” Riess says. “Everyone is accepted not only as an employee, but as a member of the family.”

In the past 15 years, the firm has constructed more than 3,000 miles of natural gas pipeline throughout 12 states coast-to-coast. The company is capable of constructing any sized pipeline – from four-inch to 48-inch – but the majority of its work in recent years has focused on 42-inch pipeline, Riess notes.

Good Reputation
Although the cyclic nature of the industry has forced the company to lay off workers during downtimes, its reputation in the market has allowed it to secure much work. “I think our reputation is our biggest attribute, and it’s helped us get through the downtimes and come back even stronger,” Riess asserts.

Although competition can be fierce, Sheehan Pipeline is one of the few contractors that focuses solely on pipeline construction. “You can’t really find any other companies who have the focus that we do,” Riess explains. This expertise allows the firm to competitively bid work and deliver projects on time and within budget.

“We know the limitations and the attributes of our people,” Riess adds. “We have always prided ourselves on surrounding ourselves with good people, and providing them the tools and resources they need to be successful.”

Some employees have even been with the firm for more than 40 years. In addition, several workers are second-generation employees. “We even have a third-generation pipeliner on staff today,” Riess declares. “We are always trying to take care of our people, because we believe they are the greatest asset that we have. Our people are the backbone of this organization.”

Technology Trends
Because of the company’s prominent position in the industry, Sheehan Pipeline is among the first pipeline construction companies to learn of new developments and trends in technology. The company is proactive about seeking the most-innovative equipment on the market, but vendors usually approach the company first.

“We are always trying to stay ahead of the trends,” Riess says. “But because most people know who we are, as technology changes, vendors usually come to us when they develop new equipment.”

Operating with the right equipment is imperative in today’s busy market. In the early 2000s, the firm “didn’t know how to spell backlog,” Riess asserts. “We would get a call from a customer on Friday afternoon, and we’d go to work on Monday. But, in 2006, we basically backlogged projects through 2007. Today, we’re booked through 2008 and into ’09. This really demonstrates the upswing in the industry right now.”

But even in this booming market, the company wants to stay grounded. Organic growth is the name of the game, and Riess is confident the firm will continue on its path. “We are going to keep doing what we do best, which is building pipelines,” he remarks. “We are a fairly small partnership today, but we’re comfortable with where we are.”

Safety Matters
For years, Sheehan Pipeline has operated with one of the strongest safety records in the industry. Its longtime customers recognize and appreciate this focus. One of its biggest clients, El Paso Natural Gas, presented an award to the company for being its top safety performer of 2006. “This is probably one of our single-biggest highlights,” Riess says.

The company employs full-time safety officers, and tailors its program to each individual project. “You can’t just go out and buy a canned safety program for the pipeline industry,” Riess says. “We develop our programs based on the specific work our crew performs. No employee goes to work in the field without having gone through a safety orientation and training.”

In addition, safety personnel are on the job sites on a daily basis. “Our safety crew is always out there monitoring the site and trying to improve the program in any way they can,” Riess adds.

Recruiting Labor
Recruiting skilled labor has been a significant challenge for the firm, like many other construction companies. But Riess says offering an attractive training program and opportunities to climb the corporate ladder has helped alleviate the problem. “Finding qualified people who can operate side booms is difficult,” he says. “The resource bank has been depleted, but we’re doing our best to train people on the job as much as possible.”

The majority of its workers are skilled union employees. “We try to work closely with union affiliates to enhance their training programs and make sure they can bring new people in,” he says. “We also try to encourage our foremen and management team to bring people up through the ranks whenever possible.”

What’s Next
Although the firm is enjoying an upswing in the market, the roller coaster ride will continue in the future. However, the company is prepared to fight through the downturns. “We all know this explosion in the market will not last forever,” Riess remarks. “The challenge will be to continue to provide security for our work force and have the ability to compete in the marketplace. When the slump in work occurs, we need to be able to provide work for [the people] who have gotten us through these busy years.”

The company will remain devoted to its work force, which it calls “Team Sheehan.” Its history of success and strong reputation will be the key tools that will get it through the hard times. “We have been around for 105 years,” Riess says. “Our goal and aspiration is to be able to take this company into the next 100 years.” 

 
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