Download the complete 2009 CC100 list.
After poring over the numbers for months, one expression that could be used to describe the companies that comprise our CC100 list may be: Survival of the fittest.
Following up on the decrease in revenue last year, which reported on the applicants' 2008 revenue totals, the majority of this year's CC100 applicants reported even deeper losses for 2009. Only a handful of companies reflected positive revenue compared to their revenue recorded in last year's CC100. As such, CC100 companies had to dig deep to find new and improved ways to create and secure revenue. “We recognized the potential of joint-venture and teaming partnerships. We have forged strategic alliances with top-notch organizations, contributing to our success,” says Tim Penick, president of T.B. Penick & Sons Inc., San Diego.
Meanwhile, the variables that hold the industry in a stranglehold appeared stronger than ever. Economic confidence, increased competition for a shrinking number of jobs, and a lack of financing were the heart of the woes impacting the construction industry.
However, time does heal all wounds. One bit of evidence is that economists are starting to utter the word “recovery” in reference to both the economy and the residential construction market. Alas, last year was a bumpy ride, and one that we will not soon forget.
- Total revenue for the CC100 companies decreased a whopping 18% in 2009 due to losses nearly across the board from concrete subcontractors and general contractors.
- Concrete-related revenue for the entire CC100 list was -26%, compared to -6% for the 20 largest commercial contractors. On a positive note, Baker Concrete Construction (+18%), Monroe, Ohio; Gulf Shores C&A (+155.5%), Taylorsville, Utah; Blair Concrete Services (+219%), Wilmington, N.C.; and T.B. Penick & Sons Inc. (+24.5%) all experienced growth over the previous year in regards to commercial concrete revenue. “Innovation, diversification, and agility have been key elements in our business model,” says Penick. “We embraced innovative approaches to design, construction, safety, and management. We are constantly exploring new opportunities and new markets, and developing business models to serve them. Another key factor is geographical diversification. We recently expanded our national footprint to include New York, Utah, Hawaii, and Guam.”
- Growth in 2009 was extremely difficult for companies to achieve. Only 11 companies noted significant growth from 2008; eight stayed flat (±5%); and 81 reported revenue declines. Obviously, the latter provides the most telling evidence of an industry in turmoil; a figure that is double the number of companies reporting revenue declines from 2008 (see Growing or Declining?).
- Maintaining growth in 2009 was especially difficult. Again this year only three companies on last year's list showed positive growth from the revenue reported for 2008—Gulf Shores C&A, Taylorsville, Utah; D&F Construction Services, Taylorsville, Utah; and Baker Concrete Construction, Monroe, Ohio. This is Baker's fourth consecutive year of double-digit growth.
- The 20 largest commercial contractors recorded a -6% change in revenue from 2008 to 2009. Of the 20 companies, only five reported positive revenue in 2009.
- For the second year in a row, Gulf Shores C&A ranks among the top fastest-growing companies along with D&F Construction Services and Baker Concrete Construction. Relationships are at the center of the formula for continued success, according to Steve D. Stone, CEO of Gulf Shores C&A. “We focused our energy in 2009 on maintaining loyal customers, doing repeat business, and targeting bigger projects,” says Stone. “We built solid relationships with general contractors such as Zwick Construction, Salt Lake City. Both firms are growing at a similar rate. We go above and beyond to ensure that we take care of our clients regardless of the cost.” Stone expects this business philosophy to result in even more profits in 2010. “Gulf Shores has already signed more than $90 million in work for this year, and we are still aggressively pursuing more work. We anticipate blowing last year's revenue out of the water.”