By UC+D
•
September 30, 2023
It's been a fast and furious four years for Sandy-based Layton Construction since it merged December 23, 2019, with New-York based STO Building Group (formerly Structure Tone Organization), the impetus of which came about as a way for the firm to give every employee ownership opportunity via a stock program. That was ultimately important to David S. Layton, 61, President/CEO of Layton Construction since 2004—a way for him to show his genuine appreciation to the many loyal people that have helped grow the firm from a primarily western regional general contractor into an industry-leader nationally, with ongoing projects in 27 states and annual revenues pushing the once unthinkable $4 billion mark. Layton is a unique corporate leader with all the requisite traits and characteristics needed to oversee a steadily growing company of 1,500 employees. He has a jovial, upbeat, friendly-neighbor-next-door personality, which makes him easily approachable. He's a true visionary, and he expects those working with him to be self-starters, while simultaneously coaching up employees to maximize their potential. As the youngest of 10 children, Layton grew up in the family business aware of the possibility that he'd be tasked to lead the company one day, provided he proved his mettle along the way. Father Alan W. Layton founded Layton Construction in 1953 and was a true throwback from what is commonly referred to as the "Greatest Generation"—people born between 1900-1925, many of whom valiantly fought in World War II. He was a U.S. Army Captain during WWII and led his artillery battery during the legendary Battle of the Bulge. Brother Alan S. Layton was also a valuable mentor to Layton and served as President/CEO of the company from 1985 to 2004. When Layton took over the reins from Alan, Layton Construction enjoyed status as a perennial top three Utah-headquartered general contractor, often ranking first in total annual revenues. Since that point, firm revenues have exploded ten-fold—2021 revenues were a company record $3.86 billion; 2022 revenues were $3.51 billion—gaudy numbers that just a decade ago would have seemed incomprehensible for a Utah-based contractor to hit, and, if submitted independently, would be good enough to put the firm in the 30s in ENR’s Top 400 rankings. Layton’s revenue is included with STO Building Group’s ranking at No. 5. Layton earned a Bachelor of Civil Engineering from Brigham Young University in 1988 and a Harvard Business School executive management certificate in 2000 after completing an extensive three-year program with top executives from around the world. He has served in many community capacities, including on the boards of the Utah Sports Commission, the Hale Centre Theatre, and is a current board member of the Salt Lake City Committee for the Olympic Games. Layton has also contributed significant time and money to the University of Utah as a member of the U's National advisory council, National Athletics advisory board, the College of Engineering National advisory board, and the University Healthcare Board of Trustees. Two buildings at the U even bear his name: the David S. Layton Golf Academy (opened January 2021) and the Julie M. & David S. Layton Field Club within the Ken Garff Red Zone section. David and Julie are the parents of six children and 14 grandchildren. UC&D Publisher Brad Fullmer recently conducted an exclusive interview with Layton, to get his take on the company's past, present and future, and where he sees himself in ten years. UC&D: It's been a brave new world for Layton Construction, given the merger with STO Building Group nearly four years ago. What are some of your thoughts on where the company is now, as you celebrate 70 years of construction excellence? Layton: 70 years is a long time! I give my dad a lot of credit for being willing to quit his job at the Bureau of Reclamation, and with a small, growing family say, "I'm going to start a construction business". My father had a strong work ethic—he worked as a teenager in agricultural fields, worked for the railroad. Also the youngest of 10 children (born in 1917), he was helping support his family during the Depression. He taught us to work hard. And if you love hard work, start a construction business (laughs). He picked a hard one, but he leaned into it. He knew how to bring a team together and make things happen. He was an all-state athlete, played varsity basketball at the University of Utah in the late 30s, and was a captain in the Army. He led his men across France, into Belgium as they were engaged in the Battle of the Bulge. My dad was a real leader. Part of the reason for the success of our business is his ability to lead people to accomplish great things. He had a lot of sayings, including "Say what you do; do what you say". Construction was the end game, but work was the means that got us there. And I'm still working (laughs)! UC&D: Was it a given that you would work for the family business? Layton: Of course! Construction was the family business, much like a family farm is a family business—it's what we did. It was well understood that I would go into the family business because we're builders—this is what we do! At a very young age I pushed a broom, I picked up boards as a laborer, I got exposed to many aspects of our industry as a teenager and as a carpenter. We knew that we were contractors. UC&D: While you were earning a Bachelor of Civil Engineering from BYU in the late 80s, you had the opportunity to work as an Assistant Superintendent on a Layton Construction project—a combustion lab on the BYU campus. What do you recall about that project? Layton: I had to know that project inside and out—the scope of work, the details, the schedule, the expectations of our clients, and what was important to the subcontractors. I had to be a student of the project so I could provide some leadership. It was a bit of a laboratory for me, having the luxury of a project on campus where I was getting an education. It was a smaller remodel project, but it had all the elements of a bigger project on a scale I could get my arms around and understand. I also learned a lot of language I hadn't heard before (laughs)! UC&D: After graduating, you worked full-time for Layton Construction, which had transitioned at that point to being led by your brother, Alan. What do you recall about the 90s and your first decade as a professional? Layton: Dad was still around and still in charge, but he was smart enough to start that transition process with my brother letting him take the reins of the business. When I got out of college, I moved to Nevada to work on a state prison project in Ely, which evolved into a superintendent role. In 1990, I got a phone call from my brother who said, "move back to town, you're going to be the chief estimator." I didn't know anything about estimating, but it was a fresh opportunity. At the time, we were a family-owned general contracting firm, hard bidding projects, competing on price and trying to win with strategy and relationships. Through the early 90s, the emergence of construction management (CM) at-risk began to unfold in the State of Utah. I started going out and meeting with clients and working towards negotiating projects instead of bidding projects. Throughout the 90s, my role progressed from being an estimator to being the head of preconstruction and business development—bringing opportunities in the door, getting projects priced up and transitioned to a project team. In the late 90s, one of our board members suggested I be given the responsibility for the Phoenix office—that's where I got, really, the first independent leadership role [...] and became President of Layton Southwest in 1998. That opportunity really gave me the chance to expand my leadership skills in preparation for what ultimately was the opportunity in 2004 to lead of the whole company. It was very much a progression of one day you're going to be leading the company, so let’s get you prepared for that responsibility so that you have the skills to be able to successfully lead the organization. It wasn't a gift, wasn't an entitlement, just opportunity. UC&D: You thrived professionally during your six-plus years leading the Phoenix office (1998-04) and helped the company grow substantially. How was that experience? Layton: After my first full week, I came home and told Julie, “There’s a part of me saying it's going to be the easiest thing in the world, because I know what we needed to do, but I know it's going to be really hard, because there was so much to do." We needed to grow our business and over a five-year period we went from $15 million in annual revenue to $150 million, which put us more on the map, and in the minds of clients. The ability to lead the organization was founded primarily in the minds and hearts of the people you have to lead. I had demonstrated the necessary skills so when my brother departed the business, it was natural for the employees to say, "We're in good hands." And we've spent the last 20 years demonstrating that we could do it.