A family affair

Our cover story in this issue, “A history of reinvention,” looks at the Lomangino family’s history in the waste and recycling industry. From Allied Sanitation, which was founded in 1954, to Mattituck Environmental and Maggio Environmental Services today, the family has spent more than 70 years in the industry, also owning and operating Southern Waste Systems and Southwest Waste Services in Florida.

The Lomanginos are among other notable families in the waste industry, including the Floods in Chicago and the Rumpkes in the Midwest, to name a few. In addition to operating businesses that are essential to the health and well-being of the communities they serve, family-owned businesses like theirs are the backbone of the U.S. economy.

According to the Conway Center for Family Business, family-owned businesses account for 54 percent of U.S. gross domestic product and generate 59 percent of the country’s employment, creating some 83.3 million jobs.

Family-owned companies comprise 90 percent of all businesses in North America, according to U.S. Census Bureau data, while research shows these companies are less likely to lay off employees regardless of financial performance, illustrating their dedication to their employees. Family businesses retain talent better than their competitors, with the Conway Center citing a Harvard Business Review study revealing 9 percent annual turnover compared with 11 percent at nonfamily firms. Family businesses do this in part by creating a culture that involves promoting from within and investing in people.

Anthony Lomangino is quick to credit his employees for the success he’s seen throughout his career and believes in treating them well.

“When I was in college in the 1970s, they taught us that the most valuable asset was your customers. They were wrong. It’s the employees,” he says.

“Take generous care of your people. Give them the best equipment and benefits possible,” Lomangino continues. “They are essential. Treat them that way.”

Despite the important role family businesses play in the economy and the waste industry, Millennials and Generation Z seem less interested in taking over their family businesses, and the waste industry struggles to attract new talent generally.

If you’ve had success engaging the next generation of your family in your business, I’d like to hear what has worked for you. Email me at dtoto@gie.net to share your story.

If, on the other hand, you’re struggling with succession planning and are considering selling your business as a result, join us for Waste Today’s Corporate Growth Conference in Chicago Nov. 11-12. You’re sure to make connections who can help you with your executive talent search or assist you with a company sale. Learn more at www.wastetodayevents.com.