Top Contractors Survey

Bright
Spots in a
T
he Big Bad Wolf huffed and he puffed but he
just could not blow the house down. The ma-

Struggling
sonry industry can take away a lesson from
the Three Little Pigs fairy tail, and not just be-
cause the third little pig outsmarted the wolf by build-

Market
ing his house with brick.
If there ever was a Big Bad Wolf, it would be the trouble-
some U.S. economy. As its winds blow, the industry may
be battered and beaten, but it still stands tall.
As the construction industry tries to rebound from one

Masonry contractors look to
exploit niche markets.
By Josh Krol
B.W. Dexter
of the worst economic downturns since the Great Depres-
sion of the 1930s, Masonry Construction's Annual Top
Contractors survey shows masonry contractors are finding
ways to overcome the hardships through building schools,
public works construction, and repair/restoration. They are
being forced to expand their markets in an attempt to stay
afloat. “Diversification is key in this economy,” says Robert
Gladu, president of Artisan Masonry in Garland, Texas.
Our survey respondents' revenue dropped 26.2% from
2008 to 2009. This is not surprising, considering nonresi-
dential construction remains stuck in neutral and overall
construction has fallen for the fifth consecutive year.
“The economy has forced us to downsize approximately
50%,” says Bruce Dexter, president of B.W.

B.W. Dexter worked Dexter II Inc. in Danielson, Conn. “We

on the C.B. Jennings
Elementary School in
have been forced to lay off employees that
New London, Conn. have been working with us for 20 years.”

www.masonryconstruction.com Masonry Construction • September 2010 25

Masonry was a major component of the new
Charles D. Duckworth building in Garland, Texas.
Artisan Masonry was the mason contractor.

Artisan Masonry
Despite the hard times, mason con- that 6000 new schools will be built. public that it is paying for a quality
tractors can take advantage of niches At a 90% market share, masonry con- building. Masonry’s long-term ben-
in the marketplace. While these will struction will account for over 5400 of efits of durability, affordability, low
not bring the industry back to the hey- those new schools, the PCA says. maintenance, and pleasing physical
day of the last decade, they will keep “Schools have been keeping us appearance is just what the princi-
business alive and allow money to busy,” Gladu says. “This market is now pal ordered.
flow through the balance sheets. 70% to 80% of our business, compared “The deteriorating physical condi-
to the past where it was only 20%.” tion of the nation’s public schools
Education Similarly, Terry Burgess Sr., president actually presents an opportunity for
As the nation's population continues of Burgess & Burgess Masonry Con- federal spending that is targeted to
to expand, school attendance will also struction Inc. of Clifton Springs, N.Y., near-term growth, by creating high-
increase. Many see masonry as the says his company's most important quality jobs. That also provides long-
sensible building choice. projects last year was for the Fairport term benefits by building a better
In 1999, $18 billion was spent on and Red Creek school districts. learning environment,” says Mary Fi-
new school construction, according Tight school budgets necessi- lardo, a member of the Advisory Board
to the Portland Cement Association. tate quality construction that lasts. of the National Clearinghouse for Edu-
The total for the next three years is School districts rely on voters to pass cational Facilities.
projected to be $74.5 billion. Look- tax levies for new school construc-
ing ahead eight years, it is estimated tion, so officials must persuade the Public construction
A little more than one-third of our
Top Contractors are involved in public
[WEB EXTRA ] For a closer look at the masonry contractors who participated in our Top
Contractors survey, visit www.masonryconstruction.com. Here, you will also find an update on works projects such as courthouses,
current brick production from the major manufacturers. military facilities, jails and prisons,
and tourist centers.

26 September 2010 • Masonry Construction www.masonryconstruction.com

 Artisan Masonry
“Public works is an important part
of our business,” says Lindon, Utah-
based IMS Masonry Inc. “Most of our
work comes from government proj-
ects.” While IMS entered 2010 with a
backlog of work, the contractor is con-
cerned about a lack of business go-
ing into 2011. Similarly, public works
projects account for 90% of Burgess &
Burgess' business.
The military is also providing a
slight boost for the construction
industry, and masonry contractors
are looking to build on this trend.
The Department of Defense Mili-
tary Construction Program's spend-
ing plans include $2.18 billion for
new barracks and hospitals for the
armed services. Artisan Masonry worked on the new Harry McKillop Elementary School in Melissa, Texas. Masonry con-
“The MCAA is looking to educate tractors are counting on new school construction for additional business in the upcoming year.
the military and talk to senators
about using masonry,” says Damian
Lang, marketing committee chair-
man for the Mason Contractors As-
sociation of America, and president
of Lang Masonry Contractors in Wa-
terford, Ohio.
One such project was awarded
to Barnhart Inc. in San Diego. Forty
masons worked on the $24.6 million
Wounded Warrior barracks at the
U.S. Marine Corps' Camp Pendleton
near San Diego.
Steve Ross, office manager for
Thameside Masonry in San Francisco,

Lang Masonry Contractors

agrees with what many other con-
tractors are saying. The market is
“very competitive, but jobs are still
available,” he explains.

Restoration
While new construction has declined,
the masonry restoration business has
been solid. “The restoration business
has done extremely well,” says Karen
Forrer, president of Masonry Restora-
tion Inc. in Milwaukee. "Things have
been very steady for us.”
Some contractors have reversed
their business ventures in favor of
restoration. “Whereas 5 to 10% was re-
modeling and restoration in the past,
now it is 90 to 95% of my business,”
says John Frisch, president of Western
Huntington Park is home to the Columbus Clippers minor league baseball team in Columbus, Ohio. Lang
Masonry Contractors of Waterford, Ohio, worked on the stadium which seats 10,000 fans.
Masonry Inc. in Woodinville, Wash. Lang agrees, saying, "Masons con-
Despite niches like schools, military, tinue to lose market share." Promotion
and restoration, some feel the mason- must be increased to educate the pub-
ry industry must do a better job put- lic about masonry's long-term benefits
ting its foot forward. Frisch, who also is rather than short-term costs.
president of the Residential Masonry “The future is bright but we can’t
Contractors Association, says the in- control the market,” says Pat McLaugh-
dustry should improve its marketing lin, executive director of the Masonry
and promotion efforts. "We have not Association of Florida. “You can’t con-
been stepping up and taking care of trol the size of the pie, just the size of
business," he says. the slice.” MC

www.masonryconstruction.com Masonry Construction • September 2010 27