Masonry Construction's top contractors: McGee Brothers tops the list for the third straight year

Masonry Construction, Sept, 2004 by Ron Holzhauer

MASONRY CONSTRUCTION magazine's 3rd annual contractor listing based on 2003 masonry sales volume includes 77 companies that did a little more than $1 billion in work last year. This volume is down slightly compared to 2002 even though the list includes three more contractors.

The commercial/industrial/institutional (CII) market generated about 72% of this volume, which is a 2% decline from 2002. The repair/renovation/restoration (RRR) market accounted for a bit over 13% of the total, which was about the same as last year. The residential segment picked up the slack experienced by the CII portion with about 15% of the total. Site amenities and "other" work generated less than 1% of the total.

McGee Brothers led the rankings for the third straight year with a substantial dollar lead over No. 2, The Western Group. The Monroe, N.C., contractor did $78.4 million in masonry work, with 90% of that figure in the residential market. McGee Brothers accounted for nearly half of the total residential portion of the list's volume. Its leading masonry figure was down about 5% front 2002, but the contractor's total revenue was up about 15%.

The information presented in the table is based on survey forms completed by our readers. The form appeared in several issues of MASONRY CONSTRUCTION magazine. Mail, fax, and e-mail solicitation was also used to gather the data.

The list is not intended to be a definitive statement of the country's top revenue-producing masonry contractors. It only encompasses those firms that voluntarily participated in the project.

Interesting facts

The list includes two national contractors--The Western Group and Dee Brown. Seven companies did more than $100 million in total revenue in 2003, with J.E. Dunn Construction leading the way with nearly $1.5 billion.

There are 50 companies on the list that also appeared in 2002. Of these, 23 experienced a business upturn, 24 were down, and 3 remained the same. Of the 14 contractors appearing in the Top 20 this year and last, 11 had a lower volume in 2003. Many of the company's experiencing masonry dollar gains were lower in the ranking.

Casler Masonry realized the largest masonry gain on the list with an addition $6.7 million in revenue. The company also made the biggest jump in the ranking, moving from No. 26. to No. 13. F.A. Wilhelm Construction experienced a 50% revenue gain in 2003 over the previous year.

Slightly more than 90% of the company's on the list do CII work, 67% are in the RRR business, and 40% perform residential work. Seven companies work in all areas of the listing, while 15 do only CII, 2 are exclusively RRR (The Western Group and Masonry Preservation Services), and 2 do virtually all residential (Spencer Brickwork and Linwood Clark Masonry).

Economic outlook

Virtually all contractors believe that the short- and long-term outlook is steady at worst and strong at best. Few expect a down-turn, although several noted that margins are likely to suffer with increased competition from other construction alternatives and rising prices. Type of work specialties and region of the country are other factors affecting the contractor opinions.

In addition, numerous areas outside the control of the contractor can have a huge bearing on the amount of business the company will do. The country's economy, government rules and regulations, interest rates, terrorism threats, Iraq, and material and labor prices are among the factors affecting the economic well-being of the contractor.

Several contractors noted that the increasing cost and diminishing supply of steel should have a positive affect for masonry. As Brazos Masonry put it, "Steel's problems should inspire design experts and construction managers to look at CMU construction as an extremely viable option in building envelopes based on sustainable cost estimates and production schedules. Double-wythe masonry provides long-term value, short-term economic viability, and accurate construction schedules."

Another common theme echoed by contractors concerning the future dealt with the importance of educating architects and engineers about the specific features and design considerations for masonry. Many of our readers believe that these design individuals simply don't know how to apply masonry and don't realize the many benefits of the products.

The other major point expressed about the future dealt with fighting off the many competitive products facing masonry. Contractors, trade associations, suppliers, and other members of the industry must put up a common front in this battle.

Strengths and weaknesses

The labor force was mentioned numerous times on both the positive and negative side. Brick and stone masons are experienced, quality conscious, and true craftsmen, but they are also aging, in short supply, and have an escalating wage rate.

Other commonly mentioned attributes of masonry included beauty, durability, fire resistance, color and texture options, strength, mold resistance, low maintenance, and excellent life-cycle cost.