Case Studies

Brothers Paving & Concrete Corporation

Overcoming Odds for Continued Success

Brothers Development was founded in 1985 and operated as a single entity until 1998, when its two extremely successful divisions separated into Brothers Concrete Construction and Brothers Paving & Concrete Corporation. Brothers Concrete Construction grew into a successful large concrete frame contractor, and “in October 2009 it was purchased by Baker Concrete, one of the largest concrete contractors in the country,” says Paul Battista, who took over the Manassas, Va.-based Brothers Paving & Concrete Corporation when he bought out the original partners.

An independent operation for over a decade, Brothers Paving & Concrete “is a full-service asphalt concrete contractor. We do site work and maintenance work for both asphalt and concrete,” Battista says. “On the asphalt side we do all types of roadway milling, roadway paving, parking lot overlays, repairs, sealcoating, crack-fill and striping. On the concrete side we do a lot of site concrete work and concrete removal and replacement including bond release work.” Additional services include snow removal.

Working Toward a Common Goal

Battista now operates with two partners. “Mike Hummel – President of H2 Land, a local land development company – owns five percent, and Shawn Boyce, our vice president of sales and marketing, owns five percent,” he explains.

Battista got into the construction industry after graduating from college. “I started building high-end custom houses during the boom of the ’80s … it has basically been my life,” says Battista.

From his life-long experience in construction, Battista understands the importance of industry-wide legislative support and training. That is why Brothers Paving & Concrete is a member of the Heavy Construction Contractors Association of Northern Virginia (HCCA). Through this membership, Brother Paving and Concrete gets the networking opportunities, representation in Washington, and training opportunities it requires.

Thanks to its membership in the HCCA, Brothers Paving & Concrete successfully services a large area that stretches “from Baltimore, Md., to Frederick, Md., to Richmond, Va., to Charlottesville, Va.,” as Battista explains.

The company’s 120 employees work out of the Manassas location, which is a three-acre facility and includes a brick two-story main office building, a two-bay freebase shop and a 20,000-gallon fuel tank farm. From this location the company engages in highly successful endeavors. “Volume fluctuates, but our average [annual revenue] is close to the $20 million mark,” Battista shares.

Battista attributes the company’s success to “our attention to detail. We self-perform 98 percent of what we do. We may bring in the occasional site guy to do some grading, but we normally do everything. We have foreman that have been with us for 15-plus years. They understand ‘The Brothers Way’ of doing business.”

And to ensure the best possible products for its customers, Battista maintains communication and solid relationships with his vendors. “I work very hard to partner with our suppliers. I will meet with them four or five times a year to make sure they know how we’re doing and what improvements need to be made to help us meet our goals. I stress with them we’re all in this together,” he explains. “We have great relationships with suppliers and they’re key to what we do here.”

Local Partnerships

Even though Brothers Paving & Concrete has these great relationships, the company has been forced, like most companies, to overcome recent marketplace obstacles. “Most of the challenges we’ve had are on the commercial side. A few of the contractors have gone out of business, so we’ve taken a hit trying to collect receivables from companies that have gone out and/or filed bankruptcy,” Battista shares. “Cash is moving slower right now too. Instead of getting paid in 15 to 45 days, it’s 30 to 60 now. We had to react by staying even more alert and paying attention to the details. The year 2009 was decent, and this one looks like it’s going to be really good considering the current economic situation.”

One reason for Brothers Paving & Concrete’s success is its financial guidance. “There’s not a lot of money out there so you need to partner up with a good banker at times like this. Luckily, I’m with Virginia Commerce Bank and they’re absolutely phenomenal. They’re a local bank so they look at more than just numbers – they look at the company, people and our track record,” Battista shares. “I think it’s key to be with a good bank that understand your business. I talk to our competitors and a few are with larger institutional banks and they’re getting roasted.”

Compared to some of its competitors, things are looking good right now for Brothers Paving & Concrete. “I’m not really losing sleep about our backlog of work right now. The Lord has blessed the team over here with enough quality work to meet our goals,” Battista says.

Battista’s well-rested nights can also be contributed to some of the company’s recent projects. “Most of what we do is in the private sector. A few commercial jobs include Culpepper High School, Fauquier High School, the Minnieville Road expansion, and we’ve done some Defense Base Closure and Realignment [BRAC] work on Fort Belvoir in Virginia,” he shares. Other projects have taken place at retail centers, subdivisions, hotels and industrial complexes all over the D.C. Metro Area.

Looking toward the company’s future, Battista is preparing for “very strategic growth. We’re keeping our growth at eight- to 10-percent per year. A primary focus here is quality-of-life, well-managed systems, and being at an annual volume that is profitable,” he explains. “We don’t have more work than we can handle and our operation is running smoothly with the team we have in place. The short-term goal is to continue tightening up our systems. A little growth is good and will help add to the bottom line.”

With these specific growth goals in mind, Battista will confidently and aptly lead Brothers Paving & Concrete Corporation to continued success delivering professionalism throughout its large service area.

Published on: February 7, 2012


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