Ask the Construction Expert, May 2011

Q: Since recently expanding into new markets, my company is expanding faster than I anticipated. How can I grow my company the smart way?

A: Recently, I met Dino Vito, president of EBS Engineering and Construction Limited, and his management team at the annual CHANCE Alliance Network International Conference.

I was impressed with the incredible growth EBS propelled by their leadership strength, market share, commitment to quality and focus on people. Their positive growth rate over the last few years is a direct result of following proven business principles. 

Add More Value to Grow

EBS, headquartered in Breslau, Ontario, was founded in 1985 as a small residential home foundation repair and underpinning contracting company. Like most new contractors, the owners only had a few crew members and did most of the work themselves. They worked hard at producing quality work. In the early ’90s, the owners found out that helical piers and piles are an alternative, superior solution to their traditional concrete foundation specialty, and they began installing these in their jobs. 

After 12 years in business, they had grown to $600,000 in annual sales with their small staff. Then, some of their clients started asking if they could do commercial work as well. In 1998, they landed their first big commercial job—a large condominium project that needed underpinning. Once they completed that job successfully, they received more inquiries and referrals for engineered foundation repairs on many commercial buildings.

At that point, EBS realized the residential market was limited and had lots of competitors, while the commercial market presented a large, untapped opportunity. Traditional structural and geotechnical engineers had not considered helical piles or micropiles as a solution for buildings that were settling or needed stronger foundations in weak soil conditions. To build their business, EBS knew they needed to provide engineered solutions equal to or better than the traditional method of poured-in-place or driven pile foundations. They had to convince engineers that their system would not only work but would be a better alternative to the traditional methods used to support buildings and structures in poor soil conditions.

Hire the Best to Reach the Next Level

To grow their business in this new, exciting direction, EBS’s owners decided to look for a strong technical engineer who could be an integral part of their business growth. Dino Vito was hired right out of college where he had received a master’s degree in geotechnical engineering. With Vito’s education and drive and the mentoring from his senior partners Murray Gamble, Roy Frater and Cam Wood, EBS began growing at a faster pace. 

They continued their focus on providing great service and quality work. They also started an intense program that focused on staying in touch with clients before, during and after each project. They focused a good bit of their efforts on marketing their services and engineered solutions to a target client database of engineers, building owners, developers and customers. They continually met with and presented their story to potential clients and engineers through luncheons, presentations and case studies. This effort paid off, and they grew to more than $5 million in sales by 2005.

At that point, EBS was operating at maximum capacity and, therefore, could not continue to grow. Many companies reach a point when they cannot grow without adding more people. The owner and managers are overworked, and the business stalls out as a result. Many times, company owners are afraid to hire more people, so they remain stagnant. If you do not add more strong leaders to your management team, you cannot grow. EBS realized they could not grow without making a major investment in people and finally decided to promote from within the company and hire additional strong managers to reach the next level.

Divide and Conquer

Over a short period, EBS promoted and hired three excellent project managers and a quality control manager. This allowed them to continue growing. Later, they made an additional key strategic move and divided the company into three divisions. EBS is part of a larger association of engineering and construction companies called the C3 Group. The size and strength of the C3 Group has helped EBS to obtain and complete more complicated projects. 

To continue the company growth, they promoted two project managers into division managers and hired from outside the company for the third project manager. This allowed each division to operate as a separate business unit, developing a separate set of goals, customer targets, implementation programs and business plans. These management moves paid off. EBS grew steadily at 15 to 20 percent per year over the next five years and reached $15 million in sales by 2010. With division managers in charge of their own operations, each division could focus on penetrating its own market and providing unique solutions to clients. Combining an ongoing marketing strategy, exceptional project performance and the right people has created an ever-increasing momentum for EBS. The company’s sales are projected to surpass $17 million in 2011.

Build A Strong Foundation

Dino Vito, president of EBS, shares his seven business basics:

1. Create an annual strategic plan. Every November, key EBS employees meet at an off-site retreat center for a few days to craft our strategy. 

2. Treat people fairly. “Our first rule is to not micromanage our people.” We let them make good decisions to meet their division, project and job goals and targets. 

3. Maintain systems and controls. For example, we are implementing a new system in which every foreman uses a handheld PDA installed with electronic time sheets to accurately track payroll costs.

4. Set goals and track results. After our annual strategic planning session, all division managers break down their goals and create division action plans to achieve the targeted results. Then, the management team meets every two weeks to discuss upcoming strategic and tactical plans. 

5. Sell client solutions.  When a building is sinking, the customer does not care how the problem is fixed—the customer just wants it fixed in the fastest, least disruptive manner and at the lowest possible cost that will provide a long-term solution. 

6. Implement an ongoing marketing plan. We designate 1.5 to 2.5 percent of our sales revenue for marketing and building customer relationships. This budget is used for advertising, attending industry trade shows and regular “lunch and learns” for engineers and potential clients, creating customer presentations, participating in industry associations, creating professional brochures, maintaining a first-class website, providing case studies and developing an ongoing customer mailing program. 

7. Celebrate the wins. “We are our own toughest critic and are always pushing ourselves to get better.” However, we do not forget to have fun.

For more information on EBS, visit their website at www.ebseng.com.