Last month, Anthony Wilder Design/Build of Cabin John, Md. was named one of 15 small businesses with winning workplaces by the Wall Street Journal. The business newspaper teamed up with the workplace consultancy, Winning Workplaces in Evanston, Ill. to determine which small businesses were creating the best overall work environment.
So, what made a design/build remodeling firm stand apart from the thousands of other small business considered for this honor? According to the Wall Street Journal, it had to do with the proactive way the company dealt with last fall’s financial crisis and an anticipated major reduction in revenue. The firm, which had long since opened its books to its employees, was quickly able to show its team that cutbacks were needed. This went a long way to getting everyone onboard with temporary pay cuts, which reduced the company’s overhead enough to give it the breathing room to keep the team together for the time when business improved.
In the spring of 2009, when business and profitability returned, the company did right by their employees, restored their full pay, and repaid half of their lost back pay during the cutback period. The firm is aiming to repay the rest by the end of this year.
With this innovative response to a challenge, one that most remodeling firms faced during the past 12 months, we thought it useful to share the top challenges and opportunities cited by some of the companies who were listed in the 2009 QR Top 500 Remodelers list. We used only full-service, design-build, and kitchen and bath specialist firms for this article. Insurance restoration and exterior firms experienced similar challenges and opportunities, but those will be the basis of an article in a future edition of the magazine.
Rank |
Company Name |
2008 Remodeling Gross Sales |
Firm Description |
Business Top Challenge |
Business Top Opportunity |
4 |
Bath Fitter, Lewisberry, PA |
$58,126,804 |
Kitchens/Baths |
Acquiring adequate customer financing during this difficult economic climate |
Revisit existing customers |
9 |
Case Design/Remodeling, Inc., Bethesda, MD |
$45,972,392 |
Full-service |
We’ve seen builders in the D.C. market become remodelers and even many remodelers offer handyman services. Concurrently we’ve seen a decline in response rates from traditional marketing and advertising media (print, direct mail, radio, etc.). |
Our top priority in 2008 was maintaining our long-term vision of achieving excellence at every level. This focus of excellence includes high standards of excellence in design, craftsmanship, communication and overall client experience. |
10 |
Alure Home Improvements, East Meadow, NY |
$44,974,616 |
Full-service |
Lead generation during tough economic period |
New product offering — new territories |
13 |
De Mattei Construction Inc., San Jose, CA |
$40,493,381 |
Full-service |
The economy and the lack of financing for construction loans |
A couple of very large whole-house jobs for senior executives of public companies |
17 |
Gardner/Fox Assoc., Inc., Bryn Mawr, PA |
$29,939,386 |
Design/Build |
Finding new opportunities; driving new business from clients ready to get work done |
Two larger residential whole-house renovations |
19 |
Kitchen Magic, Inc., Phillipsburg, NJ |
$27,882,427 |
Kitchens/Baths |
Adjusting to severe market decline |
Improving business process system |
20 |
BOWA Builders,
McLean, VA |
$26,477,000 |
Full-service |
Clients and potential clients are taking longer to commit to projects due to the turbulent economy. |
Marketing our expertise/leadership position in green construction; people taking advantage of real estate market and remodeling their newly purchased homes |
23 |
Neil Kelly Co., Inc., Portland, OR |
$25,644,155 |
Design/Build |
The economic conditions and generating leads |
Build market share and brand loyalty in a tough economy |
28 |
Normandy Builders, Hinsdale, IL |
$23,000,029 |
Design/Build |
Right-sizing the company to remain fiscally strong; reacting to the market to be sure that we had the right overhead for the level of work we were selling |
As a result of right-sizing, we were fortunate to keep the best of our people busy. Therefore the staff we have in place now is the best we've ever assembled. |
40 |
Marrokal Design & Remodeling, San Diego, CA |
$17,712,596 |
Design/Build |
The economy shift in the fall of 2008 was our biggest challenge. Clients still wanted to remodel but it was no longer so simple to get financing for their projects. |
Our trade contractors really had to step up as the market cooled. It forced them to improve performance and sharpen their pencils. |
45 |
Crawford Renovation Group, Inc., Houston, TX |
$16,557,365 |
Design/Build |
Opening our new 10,000-sq.-ft. Experience Center |
Using our new Experience Center as the emotional tipping point to lure the prospect into engaging our company |
57 |
New Face Kitchen Systems, Inc., Bellevue, WA |
$13,105,192 |
Kitchens/Baths |
Economic slowdown and related challenges |
Enhanced quality control and systems development |
60 |
Reborn Cabinets Inc., Anaheim, CA |
$12,524,392 |
Kitchens/Baths |
Sharp decline in incoming leads/sales, and as a result, we were forced to act quickly to turn the business around and right size it for the new market. This was very difficult as we run our business like a family. |
We were able to be consistent in our marketing despite the decrease in sales. This has made us be more stable in the consumers eyes despite the fact that many of the small competitors are closing. |
64 |
Lars Construction Co., La Mesa, CA |
$11,589,296 |
Design/Build |
Falling home values, economic slowdown and changes in bank lending practices |
The reputation that we built over the years helped us stay busy much longer than many of our competitors. |
68 |
Allen Associates, Santa Barbara, CA |
$11,200,000 |
Full-service |
Responding to the national financial crisis and the downturn in the construction industry was definitely a challenge – one that continues into 2009. |
Hiring someone to oversee all aspects of our production process |
70 |
Platinum Remodeling, Long Beach, CA |
$11,158,902 |
Full-service |
Adjusting to the distressed economy |
Due to the distressed economy, there were slow points where we were able to look at how to improve our services and research new and improved products. |
74 |
Mosby Building Arts, Kirkwood, MO |
$10,551,015 |
Full-service |
Improving internal communications during a period of 43% sales growth |
Shared reporting systems to support and connect multiple decision makers |
84 |
Moroso Construction, San Francisco, CA |
$9,621,925 |
Full-service |
Moving into our new offices in SF; keeping up with the flood of work and hiring new employees |
Hiring new salespeople with extensive contacts within the architect community |
90 |
Repairs Unlimited, Inc., Kansas City, KS |
$9,268,885 |
Full-service |
Dwindling economy keeping average homeowners out of the remodeling market |
Replacing lost revenue |
96 |
FBN Construction, Co., Boston, MA |
$8,946,486 |
Full-service |
Our biggest challenge was to stay focused on the continuous improvement process that we had all committed to in 2007 and maintaining revenue growth at the margin standards we established. |
Recognizing our marketplace and our customers through networking with the design associations and trade partners |
97 |
Galaxie Construction, Lincolnwood, IL |
$8,895,762 |
Full-service |
Financing. It was difficult to find customers that could get the financing needed to commit. |
One very large remodeling project |
99 |
Ulrich Inc.,
Ridgewood, NJ |
$8,741,650 |
Kitchens/Baths |
Maintaining a profitable sales level and controlling costs |
Expanding our Design/Build initiative |
101 |
Westhill Inc. Design/Build, Woodinville, WA |
$8,504,989 |
Design/Build |
Closing sales with a downturn in the economy the last quarter |
Promoting our small jobs/handyman division |
103 |
Landis Construction Corp., Washington, D.C. |
$8,488,000 |
Design/Build |
Dealing with the economy |
Perfecting our company best practices |
104 |
Bennett Contracting, Inc., Albany, NY |
$8,465,791 |
Full-service |
Out-of-control government spending |
Adding electrical contracting to our services |
106 |
Chermak Construction, Inc., Edmonds, WA |
$8,300,260 |
Full-service |
Finding qualified customers |
Using new marketing strategy |
107 |
Howell Construction Group, Inc., Sarasota, FL |
$8,290,000 |
Full-service |
Contracting new work; more competition for less jobs |
Expanding our reach; making new contacts that may turn into work when the economy gets better |
111 |
Sun Design Remodeling Specialists, Inc., Burke, VA |
$8,110,562 |
Design/Build |
Generating leads to meet projections and sales goals |
New lead generating activities — home tours |
114 |
VanDam & Krusinga Building, Kalamazoo, MI |
$7,980,949 |
Full-service |
Maintaining volume of work/jobs/referrals |
Maintaining volume of work/jobs/referrals |
115 |
American Design And Build, Ltd., Bel Air, MD |
$7,959,276 |
Full-service |
Adjusting to volatile economy |
Having our previous customers for projects and referrals |
117 |
Sea Pointe Construction, Irvine, CA |
$7,890,100 |
Full-service |
The economy and the housing bubble burst fallout |
Edit staff to keep only the cream of the crop |
120 |
Woodbridge Builders, Kenilworth, NJ |
$7,800,000 |
Full-service |
Economic uncertainty |
Diversifying by introducing a Handyman Division |
122 |
Karp Associates, New Canaan, CT |
$7,640,000 |
Full-service |
New projects, continued work |
Green building |
124 |
Callen Construction, Inc., Muskego, WI |
$7,555,000 |
Full-service |
Consistent lead generation throughout the entire year |
Expansion of window business |
130 |
Great Lakes Window & Siding, Apple Valley, MN |
$7,372,344 |
Full-service |
Rising costs of everything: marketing, health care, materials, gas, etc. |
Rethinking the marketing strategy to get back into more window and siding business and expanding the marketing and our territory for those products |
133 |
Tri-State Renovations, Columbus, OH |
$7,056,129 |
Full-service |
Planning for 2009 as the recession took hold in late 2008, including cutting back on overhead expenses |
Getting into state government work in addition to public housing work |
142 |
Magee Construction Co., Cedar Falls, IA |
$6,757,304 |
Design/Build |
Floods and a tornado caused major damage in the area; influx of that much work at once caused organization challenges |
Opportunity to showcase diversity and depth of our organization during last year’s natural disasters |
145 |
Monmouth Custom Builders, Deal, NJ |
$6,662,810 |
Full-service |
Our biggest challenge last year was dealing with the slowdown in sales. We knew we needed to reduce payroll but did not want the customer to lose the relationship they started with the managers. |
Find better talent. The unemployment pool is very large and we plan to hire the best. |
148 |
Sunrooms & More, Lexington, KY |
$6,600,032 |
Full-service |
It was definitely the change in financing last year. We lost several financing companies that we had done business with for several years. |
We expanded our SFI program with more large retail stores and increased our lead flow. |
150 |
Tom Trout, Inc., Jacksonville, FL |
$6,507,000 |
Design/Build |
Creating new business to carry us into 2009 |
Diversify into custom home construction, light commercial work and insurance opportunities. |
154 |
Your Home Improvement, St. Cloud, MN |
$6,360,558 |
Full-service |
Staffing — finding hard-working, reliable, competent help. |
The company’s ability to carry an exclusive window and siding product line |
155 |
Southwestern Remodeling, Wichita, KS |
$6,337,815 |
Full-service |
Managing budget and material costs in a rapidly fluctuating materials market. It seemed as if every material, including gasoline, rose significantly in price. |
A good remodeling market in our area. New housing seemed to flatten and remodeling as a whole increased in the area. |
164 |
Home Town Restyling Inc., Hiawatha, IA |
$6,162,370 |
Full-service |
Providing leads and suppliers going out of business. Our main window manufacturer went out of business. |
We are a strong company and made adjustments to weather the downturn. |
165 |
CG&S Design-Build, Austin, TX |
$6,150,708 |
Design/Build |
Staffing up just enough to serve clients in a growth period, then keeping everyone late in the year |
Achieving record sales and number of jobs with high client satisfaction |
166 |
Francis Harvey & Sons, Inc., Worcester, MA |
$6,136,507 |
Design/Build |
Recruiting and hiring sales professionals |
Capitalizing on sales opportunities |
169 |
Kaz Brothers Construction, West Seneca, NY |
$6,086,536 |
Full-service |
Developing the new members of the sales team and company wide communication |
No opportunities in 2008 other than we kept proactive in a difficult market. We are fortunate to have produced the amount of work. Margins declined. |
178 |
BACK Construction, Lexington, KY |
$5,892,152 |
Full-service |
Increasing cost of goods |
Product innovation through window and door distributorship |
180 |
JRC Construction, Inc., Arlington Heights, IL |
$5,800,000 |
Design/Build |
Selling profitable jobs |
Breaking into the commercial field with some small commercial projects |
188 |
North Star Bath Remodeling, Southlake, TX |
$5,600,000 |
Kitchens/Baths |
Keeping afloat with the downturn in the economy; kept a close eye on the profit margin |
The competition fell back and we were able to gain market share. |
189 |
Platt Builders, Inc., Groton, MA |
$5,523,982 |
Full-service |
Marketing in a down economy |
Aging in place; green construction |
193 |
Deblasio Capo Design Builders, Saint James, NY |
$5,410,866 |
Design/Build |
Our most challenging element for our business this year was changing our structure to meet our workload. |
Our top opportunity of 2008 was expanding to include commercial construction work. |
199 |
Hubert Whitlock Builders, Inc., Charlotte, NC |
$5,353,380 |
Full-service |
Gaining market share in an unstable economy;
focusing and marketing to existing client base |
To gain market share as some competitors have struggled |
200 |
American Home Improvements, LLC, Knoxville, TN |
$5,348,427 |
Full-service |
Credit rejection for customers/credit conversion from gross to net (credit rejects) |
Being a survivor when things are down gives us less competition. |
201 |
Weidmann & Assoc., Inc., Roswell, GA |
$5,334,918 |
Design/Build |
The Great Recession and resulting drop in both leads and average job size |
Weaker competitors starting to fall off the map |
203 |
TreHus Architects + Interior Designers + Builders, Minneapolis, MN |
$5,323,416 |
Design/Build |
Handling the increased growth |
Developing a Leadership Team through the use of an outside consultant has improved communication within the office and in the field. |
204 |
Critchfield Construction, Inc., Campbell, CA |
$5,300,000 |
Design/Build |
Our reputation as an industry has suffered locally as a result of a few scandalous contractors being convicted of some outrageous crimes against their customers. |
Having all of our employees trained and certified in building sciences has had an enormous impact on the conversations between us and our potential clients. |
205 |
Anthony Home Improv. DBA Housecrafters, Elkins Park, PA |
$5,279,994 |
Kitchens/Baths |
Trying to survive the economy’s downside |
Looking for different services and businesses to supplement our downsizing |
206 |
Creative Design Construction, Northvale, NJ |
$5,268,000 |
Design/Build |
Bringing in quality leads |
Purchasing properties |
208 |
Remodel Works Bath & Kitchen, Poway, CA |
$5,265,289 |
Kitchens/Baths |
The reduction of staff and overhead while still maintaining morale |
Developing new marketing and advertising programs that we never had or needed in the past |
209 |
Classic Remodeling & Construction, Inc., Johns Island, SC |
$5,245,747 |
Design/Build |
Finding the right opportunities |
To restructure our company to be more effective |
214 |
NVS Kitchen & Bath, Inc., Manassas, VA |
$5,176,317 |
Full-service |
Trying to get our piece of the remodeling pie which keeps shrinking throughout the year |
Hiring several new kitchen & bath designers from companies who either cut back or didn’t make it due to the downturn in the economy |