A Small, Niche Company
Specialty Trades
By Libby John   
Sunday, 01 April 2007
smc L.W. Matteson strives to adapt to the changing needs of the dredging industry.
L.W. Matteson strives to adapt to the changing needs of the dredging industry.

L.W. Matteson Inc. offered only dragline work and pile driving services on the Mississippi River when it was founded in 1974. Now, dredging is a major part of what it does, says Vice President Jon Nieman.

The president of the Iowa-based company, Lawrence Matteson, changed the businesses' focus in the late 1990s because there were more opportunities available for dredging work. Since then, the company has purchased dredges, upgraded its dredging equipment and added inventory for that sector. “For the most part, dredging is contained to a wide, flat navigation channel,” Nieman says. “But dredging today can involve more than just gathering bottom sediments from the water and transferring them to a disposal site via pipeline.

“Recently, dredging companies have helped create island habitats for wildlife that live in lakes and rivers.” In fall 2004, he says the company helped excavate a “tricky” fish habitat on the Mississippi River near Buffalo City, Wis. “We had to dig very shallow and irregular shapes in the river and create six island habitats from the dredged material,” Nieman says. “Those islands are now the home for wildlife indigenous to that area of the river, and the excavated areas are winter habitat for fish.

“This project definitely required more precision than L.W. Matteson's usual dredging projects, and turned out to be one of the company's most challenging projects to date,” Nieman continues.

As a result of its success, the Army Corps of Engineers' St. Paul, Minn., district recognized L.W. Matteson with the Contractor of the Year award in 2004 and 2006.

Across the Country
When the company began, its work was primarily limited to marine construction on the upper Mississippi River. Now, it works across the country and has performed a number of reservoir projects, according to Nieman. “There isn't that much marine construction in the upper Mississippi River anymore,” he explains.

Even though there are many reservoirs around the country, excavating them is not a top priority because of limited funding, Nieman says. “Reservoirs naturally silt up over time,” he says. “If you don't clean them out, they become useless.”

Major Project
In June 2006, the company excavated four million cubic yards from Lake Trafford, located in Immokalee, Fla., 30 miles east of Fort Myers. Nieman says the excavation “tremendously” improved the water quality of the lake, and local citizens were very happy with the result.

Shaw Environmental was awarded the project and subcontracted with L.W. Matteson Inc., he says. Shaw needed someone quickly and L.W. Matteson had all the tools necessary for the project.

The company has had to learn how to work with state environmental agencies and understand their perspective and goals. He says L.W. Matteson and the agencies have to be flexible because projects involving the environment do not always work out as planned. “Both sides can't be rigid,” Nieman says. “We have to learn to appreciate where the other agencies are coming from.” The company's main clientele are federal and state government agencies. It subcontracts with other construction companies, as well.

'Small, Niche Company'
Although the company has taken steps to expand, it does not plan on growing big enough to compete with companies that construct “bridges in the $100 million range,” Nieman says.

“We're a small niche company that likes what we do and want to improve our efficiency within our market segment,” he says. “Most people want to grow, but we would much rather be more profitable at a lower revenue rate.”

The company has 20 employees and about 150 trade employees during the summer, he says. Its revenues range between $10 million to $15 million, Nieman says. Nieman says there are few small- to medium-sized dredging companies, and only about five large companies that offer dredging services. People are not looking to build docks anymore and rivers are not being used as frequently for transportation, he explains. Although the company's headquarters are in Iowa, dredging is a “portable job,” and the company has to go where the jobs are, he says.

The company owns eight portable hydraulic dredges, most of which are around 2,000 to 3,000 HP. Nieman says L.W. Matteson is the only portable dredging company that owns such a large fleet of dredges.

Along with being small, the company prides itself on its reputation and professional manner, he says. “We do pride ourselves in treating people fairly and honestly,” Nieman says.  

 
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