The new number one contractor in the CC100 is SelectBuild, led by (from left) Bruce Willard, Jim Cleven, Michael Mahre, Gary Burleson, and Robert Mellor.
Blackstar The new number one contractor in the CC100 is SelectBuild, led by (from left) Bruce Willard, Jim Cleven, Michael Mahre, Gary Burleson, and Robert Mellor.

The National Association of Home Builders predicts that by 2013 the top 10 U.S. homebuilders will build 40% of the market. Building materials such as portland cement and ready-mixed concrete have been slowly consolidating for the past several years. More recently, there has been a reduction in the number of construction suppliers as companies like Home Depot purchase supply houses with numerous outlets. And finally, a 2004 Hanley Wood report predicts consolidation in the subcontractor ranks, as some companies grow larger and more efficient.

A recent development in the residential concrete construction industry would seem to bear this out. On June 21, BMC Construction, San Francisco, whose concrete service partners accounted for approximately 30 percent of the company's revenue in 2005, announced it's rebranding as SelectBuild. SelectBuild is a wholly owned subsidiary of Building Materials Holding Corporation (NASDEQ:BMHC), whose mission is to help its customers build the highest quality homes with the most efficient processes. SelectBuild is intent on becoming the nation's number one provider of integrated construction services to high-volume production home-builders in key growth markets across the country.

Over the last few years, BMC Construction purchased several building trades subcontractors, starting with an investment in Phoenix-based framing contractor KBI Construction in 1999. The acquisition enabled BMHC to take the first step towards its vision of launching a single-source construction company servicing high-volume production home-builders.

To that end, the company has purchased several leaders in the concrete industry, including Campbell Concrete and Total Concrete operating in Las Vegas and Southern California, WBC Construction in Sunrise, Florida, and BBP Concrete in the Phoenix area. Campbell and BBP ranked number 1 and 2, respectively, on Concrete Construction magazine's 2005 list of the top U.S. residential concrete contractors.

“I decided to become part of SelectBuild because the industry is changing,” said Jim Cleven, Vice President of SelectBuild's operations in the west and formerly president of Campbell Concrete. “Builders and contractors are getting larger and are buying out smaller companies. As they get bigger they want to partner with larger subcontractors that bring more trades to the table. You will see more consolidation among the trades as time goes on. SelectBuild will be in the forefront, finding better ways to help our customers build homes.”

SelectBuild is pioneering a new business model that assembles the best in class service partners in several construction disciplines to create an integrated construction process from start to finish. This improved and streamlined process provides builders with superior efficiency, reduced risk and the highest level of quality control, all with a single point of management.

“SelectBuild consolidates all the member companies under one name, said Bruce Willard, president of SelectBuild's southeast region and former president of Willard Brothers Construction, Florida's leading shell contractor. “This will clear up any confusion in the minds of our customers, will give us national recognition, and we will achieve better purchasing power. We will be a great big small company, maintaining our family-owned mentality.”

SelectBuild's concept is simple: combine national strength with regional job-site experience to deliver best-in-class service to its customers.

Gary Burleson, president of BBP Concrete, said, “We decided to become a part of the SelectBuild team to increase the services we provide to our builder customers. Now, in addition to complete concrete installations, we offer both framing and plumbing services. We have learned how to cut down our cycle time and increase the quality of our work too. I have a strong feeling of partnership with the other SelectBuild companies. Concrete housing has been one of my passions for a long time. Several years ago we worked closely with a couple of builders in our area who were interested in the concept. But they were unwilling to change from wood construction because they were under the pressure of too much work, building homes the way they understood. But the current situation is much brighter for concrete housing and I think it has a promising future in our region.”

SelectBuild's parent company, BMHC, is a publicly held company listed on the NASDAQ national market under the symbol BMHC. In 2006, SelectBuild expects to purchase 1 million cubic yards of concrete with expected gross sales of nearly 600 million dollars in concrete services alone, generating revenue on a current annualized run rate approaching $2 billion.