Lexington, KY - Paul Nesbitt has always had a place in his heart and mind for small Kentucky communities, like the one where he founded his engineering firm 33 years ago.
Nesbitt started the company that bears his name in Hazard in 1976. Originally, he focused on mining engineering, but a couple of years later, he expanded into water and sewer work and oil and natural gas. He opened another office in Prestonsburg, and one in Lexington too.
"We still have an office in Hazard that offers mining engineering and an office in Prestonsburg that handles natural gas engineering, pipelines and surveying," said Nesbitt. "In Lexington, we do environmental work, water and sewers, and landfills and subdivisions - more general engineering. We have a total staff of 45 people."
It is his commitment to people, small towns and his profession that recently earned Nesbitt (and his staff, which he credits mightily) the 2009 Excellence in Entrepreneurship Award in the category of for-profit businesses. The award, sponsored by the Center for Rural Development, Eastern Kentucky University's College of Business and Technology and Kentucky Highlands Investment Corporation, goes to the person who demonstrates outstanding achievement in entrepreneurship in a 55-county region of eastern and southern Kentucky.
The panel of judges noted Nesbitt's "engaging leadership style and skillful business acumen," among other attributes.
"Paul has done great work, which helps develop our region," said Stephen Taylor, development director for Highlands Investment Corporation, which provides financing and technical assistance to small or expanding businesses. "His offices employ a number of people with good paying salaries in small towns, and he is making a real difference in those communities. He is exemplary in the continuous growth in his business and for his staying power."
The Center for Rural Development acknowledges Nesbitt's contribution to his field. "Paul has been a great innovator in engineering in this region," said Michael Cornett, the center's marketing and public relations director. "That's one of the criteria that our judges and panel used for the finalists in this contest. It's not just about someone who is successful financially but also about someone who has given back to the community."
Nesbitt is also known for a rather unorthodox business practice in these times, what he calls "open book management," in which all of his employees "know whether we make or lose money and understand the financial condition of the company and what their impact makes on the bottom line," said Nesbitt.
"It has been the most successful program we've ever done in 33 years," Nesbitt said. "People buy into the process, and we also reward employees for the company's progress."
In addition, Nesbitt was lauded for historic preservation. Each of the company's offices in Hazard, Prestonsburg and Lexington has been a careful renovation project.
"We take old structures in downtown areas and rehab them for our offices," Nesbitt explained.
On the engineering front, Nesbitt's firm is back working in several small Kentucky towns trying to solve some of their massive infrastructure problems.
"There are three small towns, McKee, Beattyville and Jenkins, that we work for and that have failing water and sewer lines," said Nesbitt. "It is much more difficult to engineer a failing system and rehab it than it is to do a brand new system. We have failing infrastructure all over the United States. Some of the small Kentucky towns put in their water and sewer lines many years ago. A prime example is Lexington. A large bond issue and tax increases are needed to fix the combined sewer overflow problem. Small towns face some of the same issues Lexington does."
Nesbitt has identified small town projects as having great growth potential for his company and has patiently explained that to younger staff members.
"We anticipate the rehabilitation systems to be huge in the future. There are very few areas that do not have water or sewer service today," explained Nesbitt, who believes rehabbing systems, maximizing them, taking out old water lines and putting in new ones or doing some sort of lining process in sewer systems is "really the wave of the future in engineering."
And he added, "It is a much more difficult process to go into an existing downtown like Beattyville and rehabilitate water lines. Instead of going into the country somewhere, you're working right in town, worrying about other utilities, sidewalks and traffic. It's a big thing for the future."
Cornett said he believes Nesbitt Engineering is a company that creates a spark of employment in rural Kentucky.
"Those types of businesses are the engine that drives the economy in our region of Kentucky. Small businesses are the backbone that restore and regenerate the economy. The center sees that as a key mission of ours, to support that growth, innovation and entrepreneurship."
Nesbitt, however, chooses not to take full credit for the company's success and easily shares the spotlight with others.
"I'm very proud of all of the employees," he said. "This award should be more for them than for me."