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In the NAM’s new “Forge Your Path” series, which aims to provide exclusive insights and inspirational leadership perspectives for small and medium-sized manufacturers, HORST Engineering President and CEO Scott Livingston shares what makes his leadership style successful, the accomplishments he’s the most proud of, where he see his company in the next five years and more.

Q: What is one lesson or insight you’ve gained in leadership that you haven’t widely shared before but that has been a key part of your and/or your company’s success? How did you come to this realization, and how has it impacted your leadership?

Livingston: “My leadership approach is borne out of my experience with family business. It’s hard to explain how much knowledge you absorb when you grow up in an entrepreneurial family. You soak in the knowledge without even realizing it. When people ask me why our family is high functioning and harmonious, I cite the humility of my father as one of the keys. He was fortunate to experience the transition from Generation 1 to Generation 2 as the successor and that informed him when it came time for our transition from Generation 2 to Generation 3.

My leadership approach is a blend of styles learned from my grandfather, father, uncle and mother. I worked with all of them, plus many fantastic nonfamily team members and was able to develop my own approach. Twenty-four years ago, our family business consultants helped me understand an important lesson. My grandfather put business in front of family and then ranked his personal well-being last. My parents and uncle put family first, then the business and their personal well-being last. These are generational differences, but I learned early on that if I focused on my personal success, that would translate to family success, which would result in business success. In my opinion, that is a better order.”

Q: Can you share a quote or mantra that defines your approach to leadership? How has this mantra influenced your decision-making and leadership?

Livingston: “‘Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.’― Dr. Seuss, ‘The Lorax.’ I keep several copies of ‘The Lorax’ in my office and around the factory. I believe that any business, including manufacturing, has the potential to create unintended environmental side effects, making it challenging to achieve true sustainability. However, you can lead a responsible business. This ethic was espoused by Yvon Chouinard of Patagonia, but Dr. Seuss summed it up. I apply the mantra to my conservation- and environmental-oriented mindset, but also to my broader philosophy about business and leadership. The idea is embedded in HORST Engineering’s core purpose that includes the phrase ‘we help people fly safely,’ as well as in our core values.”

Q: What accomplishments at your organization are you the most proud of and why?

Livingston: “I’m proud of our family business ownership model that has lasted three generations. Our values are built into the DNA of the culture. I’m proud of the people who have been promoted to positions with more responsibility because they are making an impact. I’m most proud of our incredibly high quality. We are constantly striving for zero defects. That is a lot harder to achieve than most realize. We manufacture some of the most precise small parts from the most difficult materials, in quantities so low that it would seem impossible to succeed. We still find a way.”

Q: Where do you see your company in the next five years, and what are you hoping to achieve?

Livingston: “We have much to accomplish. We emerged from the COVID-19 pandemic with a renewed focus on process improvement and diversification. We were booming in 2019, launched a factory expansion and then the aerospace industry got hammered by the pandemic-induced recession, inflation and supply chain challenges. Thankfully, we are well-positioned with a new factory completed in 2021 that has room for growth. We are investing heavily in people development, innovation and industry diversification. Aerospace and defense will remain the mainstay of our part offerings, but success will be achieved when we balance that with business from other mission-critical industries. Even though our product portfolio is a crazy mix of low-volume parts, we will find ways to automate and streamline. Also, in five years, we will be doing career pathing while graduating people from our own training programs. This includes critical roles like CNC machinists and quality inspectors. We will build a company that is more resilient to future down cycles, which are sure to come.”

Q: What are the past three books that you’ve read or podcasts that you’ve listened to that you would recommend to your peers and why?

Livingston: “I absorb a lot of content from all angles on a variety of topics. Books I’ve read or listened to recently are ‘Titan,’ ‘The Boys in the Boat’ and ‘Unreasonable Hospitality.’ ‘Titan’ is the fascinating life history of John D. Rockefeller and Standard Oil. My brother-in-law, who is a rower, lent his copy of ‘The Boys in the Boat’ to me. It’s about the 1936 Olympic gold medal–winning crew from the University of Washington. The Great Depression–era history was fascinating, and the human story was amazing. I’ve had a long endurance sports career and draw inspiration from stories like this. ‘Unreasonable Hospitality’ taught me some wonderful business lessons related to people management and customer service.

I listen to a lot of podcasts, mostly on my commutes (by bike) to work. Three highlights include ‘The Rich Roll Podcast,’ the ‘Consummate Athlete Podcast’ and the ‘Check 6 Podcast.’ The first is about many things, but you could generally refer to it as ‘personal development.’ The second is specific to endurance sports, particularly running and cycling. The third is one of my favorite aerospace industry shows. Oh, and I just listened to a multi-podcast series on Freakonomics Radio about the insane cost of higher education and the college admissions process. Our oldest child is a high school senior and in the middle of this process, and I found the topic to be super-interesting.”