Spending was up on a monthly basis in 8 of 16 nonresidential subcategories. Both public and private nonresidential spending were up 0.1% in June. Private nonresidential construction spending was down nearly 5% from a year ago.

“Through April 2025, private nonresidential construction spending ascended to $806.1 billion on a seasonally adjusted annual rate basis, an all-time high,” said ABC Chief Economist Anirban Basu. “Since then, that figure has expanded only three times over the past 14 months.

“Despite an ongoing data center construction boom, private nonresidential construction spending has declined to a seasonally adjusted annual rate of $745.3 billion since the April 2025 peak, which translates into a decline exceeding 7%,” said Basu. “Tellingly, private nonresidential construction spending excluding data centers fell 0.6% in June 2026 and is down 7.9% year over year.

“Meanwhile, data center construction was up 7% in June and up 46% from a year ago. Contractors working on data centers continue to benefit from this momentum. According to ABC’s latest Construction Backlog Indicator, the 13% of ABC members under contract to work on data centers have significantly higher backlog (11.0 months) than the 87% that are not (8.5 months).”

Visit abc.org/economics for the Construction Backlog Indicator and Construction Confidence Index, plus analysis of spending, employment, job openings and the Producer Price Index.

Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and 24,000 members. Founded on the merit shop philosophy, ABC helps members offer a robust employee value proposition, develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work. Visit us at abc.org. 

The post June Nonresidential Construction Spending Up on Strength of Data Centers first appeared on Construction Executive.

This resiliency is evident from the actions and best practices of a specific group of contractors: ABC’s 2026 Top Performers. These contractors, which build the nation’s most enduring, innovative, high-quality construction projects, create smart strategies that define a clear path for success, regardless of the circumstances.

Seven of those top-performing contractors share what gives them confidence in their successes, even in the midst of uncertainty. From those conversations, nine clear themes emerged.

FIND OPPORTUNITY IN UNCERTAINITY

“We must embrace uncertainty and understand that we have to do work in this environment,” says Travis Mead, safety director for Bobbitt, a design-build-service general contractor headquartered in Cary, North Carolina, that does work on data centers, fire stations, police stations, airports and churches. “We do that by coming together in the community that ABC offers. Contractors must embrace change, and when we do, we become more resilient.”

Federal contractors Paradigm Mechanical Corp., San Diego, and Wondra Construction Inc., Iron Ridge, Wisconsin, attribute uncertainty to the nation’s longest-ever government shutdown, which spanned Oct. 1 to Nov. 12, 2025.

“Be aware, be conservative, do not drop your margins and do not spend more than you need to,” says Melinda Dicharry, president of Paradigm Mechanical, a mechanical contractor that conducts HVAC and refrigeration work for military bases.

“Every year something impacts you and you have to be flexible and adaptable,” says Roger Thimm, chief financial officer for Wondra Construction, a heavy civil contractor involved in wetland restoration, large manufacturing projects and road construction. “In uncertainty, there are opportunities. You have to look at different markets and work in different sandboxes by diversifying your portfolio. The Trump administration is creating a new environment with new rules so you cannot be afraid to look for new opportunities.”

Matt Lewellen, president of Steinberger Construction, a north Indiana-based general contractor with offices in Logansport and Lafayette that self-performs concrete and steel construction work, says 2025’s uncertainties were no different than other years: “Our industry is always shaken by change, so we must be willing to remain nimble and adjust to grow our team and achieve our goals.”

A commercial roofing and waterproofing contractor headquartered in Houston, Chamberlin Roofing & Waterproofing performs work on hospitals, airports and high-rises. Joe Cotten, Chamberlin’s director of procurement, says that, while there was “certainly uncertainty” in 2025, it did not come as a surprise. His team prepared by buying materials like sheet metal in advance. Thanks to that preparation, Chamberlin is not facing stagnation.

D.J. Wagner Heating & Air Conditioning Inc., headquartered in Westville, New Jersey, also saw a big uptick in 2025 materials prices—but was prepared. The mechanical contractor’s strategy has been to “continuously monitor the materials pricing by leaning on vendors for up-to-date information on upcoming increases,” says Jack Wagner, director of marketing and sales. “We are planning for a forecasted upswing in business in 2026.”

Dennis Patterson, president of Bi-Con Services Inc., a 67-year-old firm based in Derwent, Ohio, points to challenges for the construction industry as “all just part of the business.” Bi-Con has primary target markets in the natural gas industry, sustainable energy industries and commercial/industrial facilities.

NAVIGATE CONFIDENTLY TO ACHIEVE SUCCESS

The path to hitting goals varies among ABC Top Performers and depends on their long-term goals and market segments.

“Our roadmap for success always starts with the Steinberger team,” says Lewellen, who explains the 51-year ABC member company grew its team in numbers, strength and experience in 2025. “This has allowed us to continue to maintain our existing client relationships and grow new ones that we hope to service for generations to come.”

Wagner attributes project success to continuous conversation between the company’s operations and sales departments to define real-time goals. Reflecting on the strong completion of a challenging renovation project in 2025, Wagner explains how his team hit all milestones, maintained the project schedule and received very positive feedback from the customer.

“This allowed us to have a roundtable with all team members on the project to discuss lessons learned, while knowing we successfully completed another project for a repeat customer,” says Wagner.

Paradigm’s roadmap is to stick with what they are good at, maintain their budget and be mindful of investments, Dicharry explains. This has enabled the more than 10-year member of ABC to build on a strong reputation among military bases on the West Coast, securing multiyear HVAC contracts with its biggest customer.

“Every year we create a strategic vision,” says Patterson, who says Bi-Con offers clients project planning, scheduling, designing, fabricating, constructing and safety services. “It creates the roadmap for where we are headed, and we can adjust as we go. Some paths are fast and smooth like the interstate and some paths are slow and bumpy. Sometimes we have a detour. But ultimately, we know where we are going.”

The roadmap for Bobbitt—a member of ABC for decades—is its variety of work, consistency in communication among all divisions and an open mind among its leadership team.

“Bobbitt’s leadership team is not full of micromanagers,” says Mead. “We use the Culture Index tool to make sure every employee is in the right role.”

RISE ABOVE THE COMPETITION WITH SMART STRATEGIES

ABC Top Performers fully embrace fair and open competition as a best practice that is vital to the bottom line.

“Competition allows us to create the long-term vision by changing the here and now processes,” says Thimm of Wondra, a member of ABC since 1988. “Competition ensures we have a strong future.”

Chamberlin had a record year in 2025 and is projecting another for 2026. Cotten credits that to taking on the monster jobs and tackling challenges head-on.

“Everything we do starts with integrity; you’re doing, not just saying it,” says Cotten. “The goal is to make our clients long-term partners by bringing them bid experience. We help the general contractor spend less money by covering scope gaps and coming up with solutions that work for all.”

Paradigm is another Top Performer that does not back down from challenging jobs. Dicharry says they take on jobs with tight timelines that require extra technical expertise, which sets them apart.

“We constantly focus on how we can live out our core values,” says Dicharry. “Those include work hard, play hard; leave a positive impact on the client, community and staff; and follow the fine print.”

The keys to competitiveness for D.J. Wagner? A diverse portfolio, a deep understanding of its markets and strong talent.

“We work in all types of market sectors both private and public,” says Wagner. “Keeping a close eye on current trends in the marketplace and focusing on those opportunities allows us to succeed within the changing market. Another key strategy is our team. We have great talent and believe in always training and sharpening the stone of knowledge. Having strong leaders willing to teach and mentor the younger mechanics is a good formula for success.”

PRIORITIZE SAFETY AND TOTAL HUMAN HEALTH

It’s no surprise that safety and total human health are top priorities for Top Performers: All deploy ABC’s STEP® Health and Safety Management System, an industry-leading program founded in 1989 that dramatically improves health and safety performance among participants, regardless of company size or type of work.

Bobbitt employees replace “safety” with “care,” and the company has systems in place that allow its employees to optimize care.

“Safety is not a department here—it’s spread throughout the entire company,” says Mead. “All Bobbitt employees are ambassadors of protecting our people and our business. Care is everyone’s responsibility.”

“Safety and total human health are one in the same at Steinberger Construction,” says Lewellen. “We have a full-time safety director, wellness director and chief development officer because we believe it is important for each of these areas to have their individual attention. Our team is our number one priority and that cannot be represented well if we are not providing all the education, information and resources for employees to go home happy, healthy and excited about their future here.”

Bi-Con has developed a “Take 5” safety culture, which empowers every employee to stop and take five minutes to assess, address and communicate regarding the safety or quality of circumstances around them.

“Every Bi-Con employee has stop-work authority and every employee has the authority to recognize positive safe work practices,” says Patterson. “We also invest heavily in health and wellness programs for our employees and families.”

At Chamberlin, each employee is also authorized to stop work if they see a safety infraction. And because they look to excel at safety every chance they get, Chamberlin will ask former clients for blueprints for safety.

“The roadmap begins and ends with safety,” Cotten says. “We can talk about culture and revenue, but it’s all for nothing without safety. We have a safety reputation so high that general contractors will say, ‘That’s why you want Chamberlin on your job.’”

Due to the nature of Wondra Construction’s heavy civil work, they have sent their entire workforce to GPS training and many through ABC Wisconsin’s heavy equipment apprenticeship program. Those investments are paying off.

“We train from the bottom up, not the top down,” Thimm says. “Everyone sits in the same safety classes, so everyone sees the entire gamut of it.”

Paradigm has a multitier incentive plan that includes no incidents or accidents, because safety and goals go hand in hand.

“Everyone needs to go home put together mentally and physically, so investing in safety training is huge for us,” says Dicharry. “Everyone is CPR- and first-aid certified, and we put our employees through lift and fall protection training, as well as forklift, boom lift and scissor lift certifications.”

INVEST IN YOUR PEOPLE

The construction industry has long faced labor challenges, so a few years ago, Paradigm began in-house training with the long-term focus of developing people with potential who want to learn. Upskilling from within, Dicharry says, is huge, because the team is always trying to learn and improve. “Top to bottom at Paradigm, anyone who wants to learn and grow can.”

Chamberlin created Chamberlin University, which offers the obvious courses like roofing and waterproofing to all of its employees, but also personal success courses such as financial awareness and English as a second language. This improves employees’ standard of living outside of the office.

“We educate our people with skills that are transferrable that they will use for the rest of their careers,” says Cotten. “Chamberlin is developing citizens, not workers.”

D.J. Wagner’s management team meets monthly to bring new ideas to the table, discuss personnel updates and present topics for growth.

“We analyze opportunities for growth within each department, providing individuals with a means to develop their role within the company,” said Wagner.

Before investing in their people, Bobbitt takes the time to make sure they hire the right people that are a fit for the culture.

“We highly invest in our people because if people are healthy and happy, they are the best employees they can be,” says Mead. “Bobbitt has a committee for each of the passions we have here, and a member of leadership team is on each committee. We voice our passions. We have an employee resource program that is exceptional. We even have personal nurses to proactively reach out and check on us.”

Bi-Con also believes strongly in employee training and education, both personal and professional.

“We tell employees to load their toolbox,” Patterson says. “Knowledge and experience are things that belong to them. I hope they will stay at Bi-Con for a long successful career, but if they leave, they get to take everything they have learned.”

CHART CONSTRUCTION’S PATH FORWARD THROUGH TECHNOLOGY AND INNOVATION

As construction technology and innovation continues to rapidly evolve, ABC Top Performers are at the forefront of those changes and embracing them in daily business practices.

“Artificial intelligence is at the top of Bobbitt’s business,” says Mead. “It’s not replacing people but giving them a superpower to have more capacity and be mentally healthier in their positions. Ironically, thanks to AI, our employees have greater capacity to do more in-person work.”

Wondra is also embracing AI and GPS machine control equipment. “We are not afraid or shy to invest in the equipment that Wondra’s employees need to be successful,” Thimm says. “The technology gets better every year.”

“Any innovation that could lead to better efficiency and a positive effect on our finished product is openly discussed among our team and evaluated as an option for implementation,” says Wagner, who explains the 30-year ABC member works to remain up to date on new equipment and tool offerings, as the industry is constantly changing.

“Steinberger stays on the leading edge of this where possible to provide efficiencies for our team to do their best work,” says Lewellen. “From use of computer tech, robotics and wearables to emerging AI, we constantly try to learn new ways to improve our operations.”

UNDERSTAND POLITICS’ IMPACT ON BUSINESS

“Get involved” is the resounding theme from ABC Top Performers when it comes to the role politics plays in their business.

“An overwhelming portion of this involvement comes from supporting ABC in its efforts to work toward a fair and competitive marketplace for safe and reputable construction companies,” explains Lewellen.

The D.J. Wagner team is involved in ABC local and national committees and boards, which has greatly raised awareness of the ever-changing political environment and influenced their commitment to advocacy.

“Being informed of upcoming policy changes is vitally important to every business and being involved in change is everyone’s responsibility,” Wagner says. “Focusing on fair and open competition and promoting the merit shop philosophy has always been our main goal.”

Thimm reiterates that business leaders and employees must be aware of what is going on in the political world. Wondra does federal work at the state, county and local level, so each of their projects must be approved by a local board.

Chamberlin believes in letting the free market dictate which contractor gets work by removing artificial restrictions.

“That involves electing business-friendly lawmakers at every level,” says Cotten. “ABC is not right or left—ABC is business.”
Bi-Con stands by ABC’s time-tested motto of “Get Into Politics or Get Out of Business.”

“Our top priorities are labor issues and regulatory barriers for construction permitting,” says Patterson. “The playing field must be level. Let the market—not one-sided, unfair labor agreements—determine which contractor is best for the project.”

CULTIVATE YOUR COMPANY CULTURE

“Culture trumps everything,” says Patterson. “It’s important to have a purpose and a common mission. We call ours ‘One Bi-Con: a collaborative effort across the organization executing great projects, with great people, for great customers.’”

Mead credits Bobbitt’s phenomenal culture with keeping people at the company. Care is in the culture and evaluated in strategy meetings.

D.J. Wagner’s culture allows employees to voice their opinions and grow and develop through an open-door policy. They also emphasize respecting each other’s roles and responsibilities.

“Redefining our culture has been a goal of ours over the past couple of years,” says Wagner. “Whether they are looking for more responsibility, a more challenging role or simply want to ask a question, we want everyone to feel more than comfortable with approaching a member of the management team for a discussion. A critical part of our culture is understanding the importance of everybody’s role and how every task affects the rest of the team.”

Reflecting on Paradigm Mechanical’s culture, Dicharry says “We Got This” is a motto her employees live by, after years of hearing one of her superintendents say the phrase.

“Now we have it on our hats and T-shirts,” Dicharry says. “We come together to do what it takes. It’s a tough industry for ego, but our team has no ego involved.”

RECOGNIZE ABC AS AN EXSTENSION OF SUCCESS

The final theme evident from these Top Performers that bolsters their confidence in the midst of uncertainty? ABC.

“ABC is a resource for success for Paradigm Mechanical,” says Dicharry. “For us in San Diego, it’s about apprenticeship, networking, continuing education and advocacy in the political arena.”

“Essentially, 23,000 merit shop members are working together to safely deliver high-quality construction projects throughout the United States and beyond,” says Patterson.

“This association exists to collect best practices for the contractor community,” says Mead. “ABC is a liaison and provides local guidance for Bobbitt.”

“ABC helps our company and people grow,” says Thimm. “[It] is a knowledge base for Wondra’s daily needs. A fellow member can give us advice, mentorship and help. I learn more at ABC networking events than anywhere else.”

“ABC welcomes all players: the general contractor, subcontractors, associates and vendors,” says Cotten. “This is where Chamberlin builds relationships with people on the project team. ABC members are vetted members; we always start with ABC STEP participants because those are high quality.”

“To Steinberger, ABC is a partner in the construction industry that helps maintain a competitive marketplace and resources for its members to continue to improve their business,” Lewellen says.

“ABC is an incredibly valuable network with endless resources for providing its members with opportunities to develop their workforce, focus on safety and connect with a wide variety of nationwide assets,” Wagner says. “The association is a toolbox for contractors to utilize continuously to strengthen their team.”

SEE ALSO: CAPITALIZING ON COMPETITION: ABC 2025 TOP PERFORMERS ANSWER COMPELLING QUESTIONS

The post Confidence in a Clear Path: ABC’s 2026 Top Performing Contractors first appeared on Construction Executive.

So, how are winners in the contracting community utilizing competition to their advantage, both in their day-to-day operations and in their drive to be the best in their market segments? A group of Associated Builders and Contractors 2025 Top Performer contractors—members which build the most enduring, innovative, high-quality construction projects in the country—answer that very question.

“We set ourselves apart from the competition because of price and values, like safety, quality, personalization and our hands-on approach to projects,” said Sam Craig, vice president and owner of Craig & Heidt, a civil contractor in Houston that performs earthwork, paving and drainage in the public works, petrochemical and refining industries. “Our clients know the value in choosing us over a competitor.”

Jonathan Wolf, president of Tecta America Zero, says he takes a calculated approach to competition as he runs his commercial roofing and steel metal company out of Cincinnati. Tecta is a wholly owned subsidiary of Tecta America Corp., which owns approximately 50 other similar companies nationwide.

“Improvement is continual,” Wolf said. “When competing, it is important to focus a significant portion of your energy on just a few major changes at a time.”

Shane Kirkpatrick, president of GROUP Contractors in Baton Rouge, Louisiana, says competition in the industrial segment is about embracing changes in the market, in technology and in the workforce. “If you bury your head and refuse to accept the changing environment, you will be left behind.” The full-service civil contractor does work along the Gulf Coast.

Dina Kimble, president and CEO of Royal Electric Company in Sacramento, California, says she focuses on ways to continuously improve her company’s culture, strategy, structure and systems to execute work in a way that positively impacts the project, client, team and the other trades. Royal is the sixth largest certified woman-owned specialty contractor in the nation, installing electrical systems in education, medical and commercial buildings.

What do all of these Top Performers have in common? They all agree ABC has increased their competitiveness and adaptability in the marketplace with tools like ABC’s STEP Safety Management System®, ABC’s Accredited Quality Contractor recognition, workforce development, upskilling programs, leadership courses, technology updates, networking, economic outlook data and more.

Chris Carter, safety director for veteran-owned Sevan Multi-Site Solutions Inc. in St. Petersburg, Florida, says his commercial and institutional construction company has “utilized STEP since becoming a member, leveraging it to shape and enhance our safety program.”

In all of these conversations, five key topics emerged that threaded the needle of competition and how these companies’ strategies are putting them ahead of the curve—both today and in the years to come.

Long-term strategies are just as important to competition as the short-term ones.

Royal’s strategy is to build people who are inspired to grow in their careers, as well as build relationships that add value to clients, the company and community—which in turn provides Royal with opportunities to build projects they are proud of.

“This people-first approach to our strategy is what builds our capability to scale across multiple regions,” Kimble says. “Ensuring current and future leaders all understand the importance of our strong culture to the success of our strategy will result in a company that lasts several generations from now. Construction will always be a people business.”

Relationships, agreed Wolf, are key to both long and short-term successes in construction. “Profitable work is driven by relationships and not low bid,” he says, pointing to Tecta’s approach to hiring. “People enjoy working with people they like and trust. My life motto: always hire good people.”

GROUP is also intentionally investing in new employees so they can gain the experience necessary to lead into the future, Kirkpatrick says. “We need to keep our organization nimble enough to embrace the new workforce and work environment.”

In the long term, Sevan focuses on its core strengths, proactively supporting its clients’ evolving needs, continuously upskilling its workforce and prioritizing technology. According to Carter, short-term strategies for Sevan focus on continuing to strengthen what will remain constant about the industry: safety and employee protections, upskilling the workforce, collaboration and teamwork.

The Craig & Heidt team is currently transitioning from third to fourth generation as Craig’s two sons take over. This long-term strategy will propel the 40-year ABC member into the future and his sons will create even more successes, says Craig.

The importance of health and safety will continue to grow for competitive firms.

“Safety will always be at the forefront of construction and will continue to expand and improve,” Craig says.

Health and safety are engrained in GROUP’s culture, planning and execution, placed at the forefront of everything the nearly 30-year ABC member does. Kirkpatrick says his company is creating and implementing more solutions that better employees’ mental health.

Carter agrees. “There will also be a greater focus on mental health, with regulations expanding to address stress, fatigue and overall wellbeing, acknowledging their crucial impact on workplace safety,” said the Sevan safety director. “On-demand education platforms will provide instant access to safety guidelines and training, empowering workers to stay informed and compliant. These advancements will collectively make construction sites safer, more efficient and better equipped to handle the challenges of the future.”

Carter also anticipates significant advancements in construction health and safety, driven by technology and evolving regulations. AI will play a key role in analyzing data from past incidents to predict and prevent potential risks, allowing for proactive safety measures. He predicts that wearables like smart helmets and vests will become as commonplace as hard hats, offering real-time monitoring of worker health and safety.

The way you upskill and invest in your people goes hand in hand with competitiveness.

“We want and hire people who want to excel,” Wolf says, pointing to workforce development as a major player in shaping the workforce. “Tecta upskills the people with the right motivation and attitude.”

Per Kimble, a diverse workforce is key to Royal, and the industry must adapt to focus on the whole being of its employees. She went on to say that increasing the percentage of women and diverse individuals in construction could easily fill all open positions, and the growing influence of Gen Z in the workforce also mandates a different approach to leadership in the industry.

“Royal’s company culture values unique experiences and perspectives—where people of all backgrounds feel like they belong—and creates environments that allow people to live and work authentically,” she says.

Kirkpatrick said the industry cannot rely on higher education or other institutions to grow the industry and that companies know what the needs are. “It is imperative to get our next generation of workers upskilled and ready.”

“We’ve got to rework our thinking on workforce, and it starts in the schools and with the parents,” said Craig. “We’ve got to get young people to want to go into construction, to realize their career dreams. Construction is a good career, not just a job, and shifting that mindset is a long-term project requiring calculated steps.”

Technology and innovation are nonnegotiable when it comes to staying in front of the competition and keeping employees safe.

Wolf points to wearable technologies like smart helmets and vests as innovative ways to monitor vital signs, alerting managers of potential risks in real time. Tecta, an ABC member since 2008, deploys these technologies on its jobsites. Wolf points to the ‘trust but verify’ motto when considering a new piece of technology.

“Remember, the newest is not always best; tried and true is sometimes the better option,” Wolf says. “While an open mind is important, it is easy to get enamored by the shiny object, so be cautious and selective.”

Craig and Carter both say the advancement of innovative tools such as artificial intelligence, robotics, drones and micro-mechanics makes construction jobs safer, more efficient and more productive. And the bonus? They create a better experience for the workforce.

Kimble agrees. “Technology will be the way we multiply the impact each worker has on building our projects through greater efficiency in how we execute our work,” she says. “Firms that embrace technology and innovation will better attract Gen Z workers who believe it’s critical to their success at work.”

“Get into politics or get out of business” is an accurate motto for competition and the future of the industry.

Wolf says the political climate in the United States requires legislative and regulatory support for merit shop contractors, which make up the overwhelming majority of the industry.

Craig points to political awareness, both at the local and national level, as vital to competitiveness in the marketplace. One priority for his team—and his political involvement as an ABC member—is legislation that promotes fair and open competition at the local and national level.

“GROUP is engaged in local and national politics to ensure the construction industry is supported by our elected officials,” Kirkpatrick says. “Thanks to ABC, free enterprise and the merit shop philosophy are continually defended.”

The post Capitalizing on Competition: ABC 2025 Top Performers Answer Compelling Questions first appeared on Construction Executive.

To find out what that means in 2024, we asked a group of Associated Builders and Contractors 2024 Top Performer member companies—which build the nation’s most enduring, innovative, high-quality construction projects, ranked by work hours—how they pursue and nurture business growth. Their perspectives reflect a diverse array of both construction segments—including procurement, electrical, industrial services, concrete, HVAC and plumbing—and locations, such as Maryland, Colorado, Ohio, California and Texas.

As it turns out, the success and vitality of construction companies nationwide depends on a mindset, strategic plan and goals that are the opposite of complacency. In our interviews, that boiled down to seven key takeaways:

1. THE APPROACH TO GROWTH OPPORTUNITIES IS CALCULATED AND INTENTIONAL.

“We need to clearly understand our capabilities and the opportunities the market is making available and then aggressively seek out and win those projects,” says Dan Freese, CEO of United Group Services Inc., headquartered in Cincinnati. “We find opportunities that meet our existing skill sets and competencies.”

According to Freese, constantly challenging itself is part of the 40-year-old industrial-services contractor’s DNA, making growth opportunities easy to identify. “That’s how we best understand what the future holds” he says, “so we can position ourselves to win the opportunities.”

Darlene East, president and CEO of Holes Incorporated, a specialty concrete contractor founded in 1972 and headquartered in Houston, agrees. Her company’s approach is to seek opportunities that complement its current portfolio of services.

“Our executive-team leaders are on the forefront of client communications, consistently working with our clients to identify jobsite challenges and concrete-removal needs,” East says. “Our extensive involvement with industry associations, like ABC, also allows us to have more candid conversations with industry leaders and gain valuable feedback that we can implement in our business practices.”

Cultivating trust with customers is essential to identifying growth opportunities, says Brent Greiner, president of Greiner Electric, a commercial electrical contractor based in Littleton, Colorado. The 27-year-old business has intentionally diversified its portfolio based on customer needs. “We want to make sure we have the foundation to handle our growth,” Greiner says.

Foundation and capabilities go hand in hand, according to San Diego–based Alpha Mechanical LLC, a mechanical and plumbing specialty contractor founded more than 20 years ago by Ukrainian immigrant Boris Barshak. More than 80% of the company’s customers are repeat clients. “Alpha approaches growth based on our resources first and foremost,” says President Renee Moore. “We ask how we can service our clients efficiently and effectively with the limitation we all face in business.

“Those limits can include a skilled workforce, talented management, equipment availability and financial strength,” Moore says. “Once those are answered, we strategically approach growth opportunities.”

Indeed, growth requires a thorough review of your strategic plan and market analysis—and targeting of new niches, says Robert “Buddy” Henley, president of Henley Construction Co. Inc. The 60-year-old commercial contractor, located in Gaithersburg, Maryland, relies on business partners, subcontractors and clients in identifying growth opportunities.

“We listen to what they need,” Henley says. “When there is potential to do work with a good team, the stars can align.”

2. HEALTH AND SAFETY GO HAND-IN-HAND WITH GROWTH…

Health and safety are a core value for ABC Top Performer companies, deeply integrated into their decision-making process because it’s the right thing do to. But it’s also directly tied to growth. “In order to grow your business, you have to have a great safety record,” says Brent Dugan, Greiner’s safety director. “Our safety program is key, and Greiner has a strong reputation as a safe contractor to work for, and we have grown our workforce through that reputation.”

East describes safety as a teamwide commitment at Holes. “Each decision we make as a company, individual leader or team member is based on health and safety,” East says. “Although we are a small company, we make large investments in safety. Our field personnel are trained to be competent in safety and possess 30-hour OSHA and basic-plus certifications, plus they receive excavation training and silica training—just to name a few.”

Safety is likewise a current and future investment for Henley Construction. “Our most important assets are our people,” Henley says. “We want to keep our team members safe and healthy, and that includes their mental health. We equip managers with the tools they need to accomplish this.”

Mental health and total human health are also directly tied to the growth of United Group Services. “We are focused on all aspects of what is best for the craft professional,” Freese says. “That focus has brought us to a concentration on total human health, not just safety. I am a big supporter of counseling and suicide-prevention programs, and we even offer this to our subs. Everyone should have the opportunity to understand how important mental health is.”

3. …AND SO DO TECHNOLOGY AND INNOVATION.

Technology and innovation are integral to increasing safety, productivity and profitability in the industry—so much so that their correlation to growth is undeniable. Moore attributes the quality of Alpha Mechanical’s projects to her leadership team’s innovative mindset. “It takes out-of-box thinking to engineer creative solutions and employ cutting-edge technologies,” she says.

“While continuous improvements bring change, quality must remain constant, and I’m proud that Alpha Mechanical adheres to the highest standards of quality in everything we do,” Moore continues. “We were one of the first regional specialty contractors to embrace design-build as a delivery method.”

Henley adds: “Tech and innovation help Henley Construction recruit the next generation of talent, and we make investments in the newest technologies. Because of our membership with ABC, we have access to new, cutting-edge technology that puts us ahead of the competition and helps us find better ways to do things more efficiently.”

East credits Holes’ solid relationships with manufacturers and industry leaders to help the company stay in front of safety and equipment technologies. Along those lines, United Group Services grows with technology that enables improving accuracy and quality through preconstruction design and planning—such as lasers—by expanding its fabrication capabilities. “Tech and innovation allow us to understand our productivity, improve our estimates, predict project outcomes and avoid change orders,” Freese says.

4. NEW GEOGRAPHIES AND MARKET SEGMENTS GROW COMPANIES.

Henley Construction continues to expand its commercial contracting services in the Mid-Atlantic region through strong partnerships and promising opportunities. Similarly, United Group Services performs work in 48 states, choosing trusted clients that have growth opportunities for the services it provides. “We don’t have geographical boundary limitations, so we can focus on great clients,” Freese says. “Where there is a need and a challenge, we will step into it. We do the job well, then seek other opportunities.”

In its 27 years, Greiner Electric has grown from one location in Denver to five locations across Colorado and Wyoming. Holes has also branched out since it was founded in 1972, opening offices in Texas and allowing the company to mobilize and meet greater market demand. “The challenge to growth, however, is maintaining the level of exceptional service that our clients expect,” East notes. “To provide superior service, we implement extensive personnel recruitment processes that ensure that the right person is hired for any Holes job, and that they will uphold our values, mission and vision.”

Other Top Performer companies make that connection as well. “Alpha has always serviced Southern California and will occasionally travel for the right client and the right project,” Moore says. “Bringing on the right talent opens the doors for growth geographically and in new markets.”

5. GROWTH RESULTS FROM A MIX OF ORGANIC AND INORGANIC STRATEGIES.

Does business growth just happen—or is it something that requires deliberate effort? When we asked these Top Performer companies if they are contemplating organic growth strategies, such as leveraging existing resources and hiring talent in specific areas, or inorganic growth strategies, such as acquisitions and joint ventures, the answer was a resounding “both.” “At Greiner Electric,” Greiner says, “it’s a nice mix, because we don’t try to be all things to all people.”

But the mix of organic and inorganic growth ebbs and flows. “Historically, we have grown organically,” East says. “However, in the past three years, we have implemented inorganic methods of growth—for example, the purchase of new office space outside of Houston. We are looking at additional inorganic growth strategies in the future.”

The all-of-the-above focus at United Group Services means exceeding clients’ needs and meeting internal expectations. “All options are on the table when it comes to fulfilling those objectives,” Freese says. “We spend time understanding which industries will have work in the near future, and we are currently looking at another acquisition and new markets right now.”

Henley hat-tips ABC’s networking opportunities for his company’s organic and inorganic growth strategies. “We utilize organic strategies by bringing on new team members who have skills and competencies required to fit the market need,” Henley says. “Our inorganic strategies include acquisitions of companies that complement our suite of services in a different geographic area.”

6. RISKS ARE INEVITABLE BUT ESSENTIAL TO GROWTH.

While the business of construction can be risky, East and her leadership team at Holes plan for and stay in front of those risks. “To avoid hiring pitfalls, we implement a hiring strategy to ensure that the prospective employee aligns with our values, and we then invest in new hires, providing them with the training, resources and mentorship needed to be successful,” East says. “To avoid planning pitfalls, our executive team meets monthly and evaluates current goals, adjusting as needed and creating future goals to ensure continued growth.”

Alpha Mechanical and Henley Construction both anticipate economic and business environment volatility and adapt to it, with Moore noting: “You must evolve to customer needs and market demands.”

Henley adds: “General contractors are experiencing a lot of risks in the sub community because of the tight market. GCs must be so vigilant in vetting their subs. Payment and schedule systems are key to mitigating risks, as are getting the work completed and paid as quickly as possible.”
United Group Services challenges itself on a consistent basis to seek what is best, even in the midst of risk. “Losing what got you here and change can create fear,” Freese says. “You must weight those fears against what is needed to improve for sustainable growth. You must step out of that comfort zone, but the fine line comes with not overstepping. It’s important to maintain the consistency while still growing.”

Greiner agrees that overstepping what you’re ready to do as a company can create risks, but that’s part of growth. “It’s easy to overstep and take on a project that could cost you,” Greiner says. “It’s important to be conservative and calculated in your growth.”

7. CULTURE FEEDS AND MAKES GROWTH POSSIBLE.

The individual matters to top-performing contractors, which is why it’s no coincidence that their business cultures are centered around their people. “The United leadership team does the hard work of making it easy—easy for our clients to build their projects, easy for our students to learn their craft and easy for our employees to choose United,” Freese says. “We hire those who are aligned with our values, and we are a group of competitive professionals who refuse to fail each other and our clients. It is that belief that attracts top talent.”

Henley offers continual training at all levels, from teaching and training in Spanish to safety training, maintaining certifications and project-management academies, so its people can grow in their careers. “It helps us grow,” Henley says. “I want to be there to help people. Every individual is different, so no one-size-fits-all answer addresses everyone’s challenges.”

Moore is also adamant that Alpha Mechanical’s people are what sets the company apart. “We recruit, retain and promote the best field and support personnel for each position—from design to project closeout,” Moore says. “As ultimate professionals, in addition to fostering our personnel’s development, we are continually reviewing and optimizing our internal processes to assure both employee and customer satisfaction, as well as steady growth for our business.”

That mindset feeds directly into Alpha Mechanical’s organizational culture. “A firm’s culture is the expression of core values—a set of beliefs held by the individuals at the top of the organization, flowing through all levels of the corporate environment,” Moore says. “Culture is what happens in the Alpha Mechanical universe every day, a rich fabric woven of the threads of conversations, tasks, projects involving staff, clients and the professionals of various disciplines who support us.”

The culture and mindset of Holes’ employees is one of respect and dignity, allowing its team to take measured and carefully analyzed steps toward new endeavors and opportunities for growth. “Because of our culture, many of our employees have been a part of the organization for decades,” East says. “We leverage our senior employees in terms of mentorship, client relationships and industry knowledge. We actively recruit from local colleges and universities to build the pipeline of talent. We provide excellent benefits and career paths.”

CONCLUSION: CHOICE AND GROWTH

“Between stimulus and response, there is a space,” legendary management and leadership author Stephen R. Covey once wrote. “In that space lies our freedom and our power to choose our response. In our response lies our growth and our happiness.”

In other words, freedom of choice and growth operate in tandem. The freedom to make strategic decisions, to build a culture of trust, to navigate risks, to set boundaries and to upskill a workforce—it all creates limitless potential for a construction company to grow. When you look at it that way, who has time for complacency?

The post Steady as They Grow: How Top-Performing Construction Companies Approach Business Growth first appeared on Construction Executive.

In the construction industry, culture is essential to fostering a thriving and vibrant workplace, creating safe and healthy jobsites and building better communities. That’s to say nothing of retaining top talent at a time when the industry needs to attract more than a half million additional workers on top of the normal pace of annual hiring to meet demand. Where does that type of culture come from? We asked a group of Associated Builders and Contractors’ 2023 Top Performer companies, who are recognized for being the best of the best in merit-shop construction. Based on their answers, it turns out that the secret sauce has six ingredients.

1. FAMILY ORIENTED

Instilling a family-oriented culture is a common theme for three woman-owned Top Performer contractors: Durr Heavy Construction in Harahan, Louisiana; JD James Inc., doing business as Nature Bridges, in Monticello, Florida; and Stronghold Engineering Inc. in Perris, California. “Our people often say that they are not just a number, and that is our No. 1 value proposition,” says Dana Stumpf, chief executive officer of Durr, a civil contractor that specializes in site preparation, demolition, utilities and concrete paving. “To be a functional family, we actively develop Durr’s culture through continuous improvements to who we are in all facets of life: contractors, professionals and humans.”

A 31-year-old general contracting, electrical, civil, renewable energy, design-build-design and construction firm, Stronghold Engineering has worked on high-profile, ground-up facilities; technically challenging repair and renovations for historic structures; significant seismic upgrades; and large civil, infrastructure and electrical projects exceeding $2.5 billion in cost. “We create the family atmosphere through our core values of quality, safety, teamwork, integrity and commitment,” says Beverly Bailey, president and chief executive officer of Stronghold. “In the marketplace, Stronghold is known for construction excellence, an eager team and a quality work product.”

Nature Bridges comprises two divisions: Nature Bridges, working on top-down construction bridges and boardwalks, and JD James Inc., specializing in architectural millwork installations. The company’s leadership thinks it’s important to give back to something that is bigger than yourself. “Because we are a family-oriented business, our culture allows us to offer competitive pay, benefits and flexibility,” says J.D. James, president of Nature Bridges. “We believe in giving people a second chance and helping them get back into society to be successful in the workforce.”

2. SALARY AND BENEFITS

Impressive compensation and benefits as well as open lines of communication are common threads for a strong culture. Brown & Root Industrial Services in Baton Rouge, Louisiana, which performs more than 30 types of industrial services in nearly 30 states and five countries, is a $1-billion company that employs approximately 9,000 people. “We pay well, offer great benefits, create nice work environments and invest in our people through development programs, upskilling and creating career paths,” says President and CEO Andy Dupuy. “Each employee has a succession plan, and they know where they are heading in their careers.

“We are a favored employer and believe diversity of thought is of vital importance to Brown & Root,” Dupuy says. “All of these factors contribute to our dynamic culture.”

The same goes for Mountain States Fence, which offers a range of commercial and industrial fencing products in Colorado, Idaho, Montana, Nevada, Utah and Wyoming. Headquartered in Salt Lake City, the 60-year-old small business employs 40 people. “When you look at our culture, the levels of trust and loyalty are high, we compensate well and we win quality work,” says President and CEO Rick Higgins. “We all believe in this company, and we are fair and honest with our employees.” Another culturally outstanding company is SDV Construction, a service-disabled, veteran-owned small business in Albuquerque that is a full-service general contractor for clients such as the U.S. Department of Energy, local school systems, the Catholic Church and the space industry. The diverse contractor has a workforce made up of nearly 25% veterans and revenues of around $25 million annually.

SDV’s culture centers around its core theme of “OTOG”—one team, one goal. “OTOG is everywhere; it’s on our jackets, hardhats and backpacks,” says President and CEO Paul Farless. “Our employee value proposition is to keep compassion and humanity in the organization. We care for our team and the contracting teams we work alongside. We treat people like humans, knowing our work is not always the priority; our families are the priority.”

3. LEADERSHIP

Another ingredient in the secret sauce of organizational culture are leaders who create and embody the culture, with strong recruitment and retention programs in tandem with a commitment to employee health, safety and innovation. SDV’s leaders, for example, believe it’s important for their team to operate holistically, both mentally and physically. Benefits and perks include a wellness program that offers a $250 check for completing an annual physical and bloodwork; an insurance program that requires minimal copays; remote work options; a 4% match to employee 401(k) contributions; tickets and parking passes to sporting and entertainment events; and bonuses.

“We call it life–work, not work–life, because we want to make our teams’ lives better,” Farless says. “We believe in promoting from within by utilizing ABC’s apprenticeships programs.” Adds Stronghold’s Bailey: “Our leadership team and structure are very intentional. Our leadership team radiates our core values in everything that they do. We meet regularly to remain aligned on our initiatives and try to improve as a team.”

For Brown & Root, leadership is about empowering people to lead themselves. “The leadership team sets the priorities, outlines expectations, gives direction and then allows our people to innovate and execute,” Dupuy says. “We don’t tell people how to do their jobs; instead, we give them a vision and goals.”

That’s the case at Durr Heavy Construction as well. “Culture is one of my primary responsibilities, and it is my job to set the direction and the tone,” Stumpf says. “However, as it relates to our culture, leaders are at every level of our organization.”

4. TALENT RECRUITMENT AND RETENTION

“We invest in our people,” says Mountain States Fence’s Higgins. “We are involved in ABC, and we upskill our workforce through craft, safety and leadership courses.”

After conducting an employee survey, SDV moved to a permanent four-day workweek, at 10 hours per day. “The 4/10 workweek has been one of the major components of success in recruitment and retention,” says Farless, who is quick to say that SDV leaders are selective about who they hire. “We look for character over capability,” he says. “We try not to hire arrogance or attitude. The craft-skills part is trainable, but it’s hard to teach the soft skills. We don’t hire to fire; we hire to retire. Our intent is to hire someone who will work for SDV until they decide they don’t want to work anymore.”

Bailey points back to culture as an essential recruitment and retention tool. “Our culture of family creates a space that cares for our team,” she says. “We work hard to relay this to our team, and it shows by the level of talent that we recruit and retain.”

Given Brown & Root’s large workforce, the contractor invests heavily in recruitment. “We want the right talent and right person on the right project; it is important to match the craft strengths to the needs in the marketplace,” Dupuy says. “Right now, we have about 800 entry-level workers. We set up training classes at jobsites for these workers, and we put them through NCCER and ABC craft courses. We recognize that people want to know where they are going and want to advance in their careers. We want them to know they have opportunities in this industry.”

5. HEALTH AND SAFETY

Safety is a pillar of importance and a core value for the Top Performers we spoke with. “We think of safety first and foremost,” Nature Bridges’ James says. “No one wants to work in an unsafe environment.”

A culture of both physical and mental health and safety cannot exist without leadership taking a stand that includes an unwillingness to compromise safety—and modeling this belief in their every action. “Safety is the most important,” Higgins says, “and it is our biggest priority.” Adds Stumpf: “Safety first. Period.” All Top Performers participate in ABC’s STEP Safety Management System, which measures how leading indicators—proactive injury and hazard elimination tools on the jobsite—improve safety performance. The construction industry has long evaluated safety performance based on lagging indicators, which measure performance based on past incidents or conditions. Lagging indicators rate companies not on the steps taken to prevent jobsite injuries and fatalities, but rather on the number of past safety failures. Having a culture-defining commitment to safety means being more proactive. Challenging and transforming the status quo to create a belief that all incidents are preventable creates a culture where safety is considered a moral obligation—not just for leadership, but for all employees. “Safety is paramount,” Farless says. “It’s ingrained in our culture.”

6. INNOVATION

“Innovation is a good thing and a true necessity,” Higgins says. “We look for efficiencies through innovation to help with labor shortages.”
Similarly, Dupuy calls innovation a must to remain competitive. “We are consistently upgrading systems, services, software and procedures,” he says. “We are using predictive analytics, project-control systems and materials-handling systems. We are embracing VR and wearable technology.”

Stumpf defines innovation as new ways of thinking, processes and technologies, while James notes that the ingenuity her crews use in the field to get things done is incredible. And for Stronghold Engineering, “If there is a better way to get to the finished product,” Bailey says, “we will not hesitate to provide our thoughts to our client on the best innovative tools that will provide for a great quality project.”

PUTTING IT ALL TOGETHER

How do these ingredients combine into an outstanding organizational culture that is reflected in a company’s work in the field and onsite? We asked our Top Performers to share a recent project that exemplifies their culture.

• Brown & Root Industrial Services: “We recently completed a 14-month project at Louisiana’s Clean Diesel Plant three months ahead of schedule with zero safety incidents,” Dupuy says. “Quality, productivity, thoughtful planning and innovation were all essential to success.”
• Mountain States Fence: “We are in the middle of building 16,000 feet of permanent and temporary fencing at the Salt Lake City International Airport,” Higgins says. “We are working alongside multiple contractors and securing materials with competitive pricing through carefully coordinated efforts. This $550,000 job speaks to our stellar reputation, because the clients and contractors trust us and view us as a company that does what we say we will do.”
• Durr Heavy Construction: “Durr recently completed the expansion of a cold storage facility in New Orleans,” Stumpf says. “We had no safety incidents and brought in respected local subcontractors and vendors to assist in reaching the client’s goals. We were the first on call to address challenges or changes in scope. The client had complete trust in our abilities.”
• Nature Bridges: “Executing a project at Bonnet Springs Park in Lakeland, Florida, Nature Bridges worked diligently with all the team entities from the owners, engineers and designers to bring the owner’s vision to life,” James says. “We worked hard to design on budget, and we took into consideration everyone’s opinion to make the project come together.”
• Stronghold Engineering: “Stronghold is in the process of completing our largest project to date at Ironwood State Prison in Blythe, California, and this exemplary project hits every mark,” Bailey says. “Our team excels at finding niche, technically challenging projects in remote locations. Our employees are hungry, humble, smart and ready to build a quality project done safely. This project was difficult to navigate, but we are happy with the result.”
• SDV Construction: “SDV approaches every project the same way,” Farless says. “We are currently executing a $9-million upgrade to a historic courthouse in eastern New Mexico. We hire local and become part of the community. We pay per diem and keep the project on a four-day workweek, so employees can go home to their families.”

It seems that the secret sauce of organizational culture isn’t so surprising, or even all that secret. By offering an employee value proposition that is rooted in basic principles of fairness, opportunity and recognition, these companies develop their people, win quality work—and deliver that work safely, ethically and profitably for the betterment of their communities.

The post The Secret Sauce: ABC’s 2023 Top Performers first appeared on Construction Executive.