Sky's the limit for Sparks' D&D Roofing

Ken Dillon is an avid golfer, as adept at driving a ball down the fairway as he is at growing a successful company.

As president of D&D Roofing and Sheet Metal, Inc.

headquartered in Sparks, he has overseen the explosive growth of a local, four-man company in 1977 to a 120- employee, three-state operation today.

Sales have rocketed from $100,000 his first year to $13.6 million today.

D&D is one of the 100 biggest roofing companies in America, completing jobs in Nevada, California and Utah and maintaining offices in Sparks, Carson City and Elko.

"I was driven to be more than a hometown roofer," explains Dillon.

"I've always run this more as a business as opposed to just a roofing company."

Dillon learned the business the old fashioned way, loading trucks for his father-in-law while completing an education degree at University of Nevada, Reno.

He was contemplating becoming a teacher, but a partnership with Michael Dermody, the other "D" in the company name, led to the creation of a small roofing company called D&D Contractors.

Initially, Dillon did it all for his company: running crews, estimating jobs, processing payroll.

Then he began a series of acquisitions of other roofing companies.

Dillon bought Gallagher Sheet Metal in 1986, and in 1993 merged the two companies to created D&D Roofing and Sheet Metal.

In 1995, he bought Van Dyne & Sons Roofing, one of the area's largest residential contractors.

Other acquisitions included the purchase in 1998 of Porter Roofing in Elko, and, in 2002, Don James Roofing in Carson City.

"What we've done is take small roofing companies, most of them sole proprietors, and fold them into our business," said Dillon.

"We make sure the acquisition goes smoothly by keeping the original owner on staff for at least a year after the purchase."

Some of the original owners are still with Dillon.

"Dean Van Dyne still works for us," said Dillon.

"He's our 'residential liaison' working with many of his former customers."

D&D sends crews to Utah and California to work on projects there, and they've completed some very high profile jobs.

"The Sharks hockey arena in San Jose, Calif.

and the Ford/Toyota truck plant in Fremont, Calif.

were two of our biggest jobs," said Dillon.

"Each was in the $2 million range."

Dillon is getting lots of business in the Bay Area, thanks in part to a connection through his partner Dermody.

"His company, DP Partners, is one of the largest property developers in northern Nevada," said Dillon.

"One of his asset managers, AMB Properties, is one of the largest developers in the country.

Through them, we've accumulated over $1.5 million in business in the Bay last year."

D&D's business mix is currently running 25 percent residential and 75 percent commercial.

Dillon relies on word of mouth and radio, TV and print ads.

The TV ads star Dillon himself.

"I enjoy doing them," said Dillon, "But I don't write them.

That's done by Sam Shad Productions of Reno."

As with any service company, D&D relies on its employees to be their ambassadors to the public.

To keep employees happy and productive, D&D provides an in-depth benefits package.

"We're into employee benefits big time," said Dillon.

"We offer health insurance for all employees, profit sharing, 401(k), and we recently began an ESOP, or employee stock ownership plan.

Everyone down to the roofer can own a piece of the company."

The ESOP is proving to be a draw for new employees.

"Everyone wants to work for us, because we're one of the few contractors who offer it," said Dillon.

He and his partner own 80 percent of the company, with the other 20 percent in employee hands.

Born and raised in Reno, Dillon is married, with three daughters in college and a son who works for him.

A recreational golfer who's been on the links since he was 7, Dillon is a member of the Hidden Valley Country Club, and cites two California courses, Pebble Beach and Cyprus Point as among his favorites.

As for the future, Dillon predicts a slower growth rate for D&D to about 4 to 5 percent a year.

He envisions achieving more market share, and more acquisitions in the current three state radius.

"We like to go after small, established companies that fit with us," he said.

"And we're staying with smaller towns.We won't be looking in Sacramento or San Francisco," he said.

Just as he does on the fairway, Dillon is sticking with the slow, steady approach that has worked so well for D&D.