Bootheel contractor enters Springfield

As one major player in the Springfield commercial construction market leaves, a new company has stepped in - though the faces in the new office are likely familiar to those in the industry.

General contractor Denali Construction opened in mid-June in office space on Quail Creek Road. The company is a subsidiary of Cape Girardeau-based Edco Construction Specialties Inc., which also owns Cape Girardeau-based subcontractor Drury Co.

Edco President and CEO Tom Gammon, who also is Denali Construction's CEO, said the timing of the company's entrance to the Springfield market is not a coincidence. The firm is drawing on the opportunity made available when Flintco Inc. announced in April it was pulling the stakes on its 10-year-old Springfield office upon completion of two projects later this year.

With Flintco "leaving the area, we were able to pick up some highly qualified people," Gammon said. He added that two of the three employees at the new Springfield office - general superintendent Bill Gates and estimator Patty Porter - each have several years of Flintco experience.

Gates, who's worked 38 years in construction, said he was given the option to relocate to another Flintco office but decided to stay in his native Springfield.

"I have been a longtime friend of Tom Gammon's - I worked with him at (contracting firm) Meco Systems - and after a lot of thought and discussions, I decided it was the best move for me," Gates said, noting that additional employees will be added to the current three-person Springfield staff as business picks up.

Flintco officials have cited a lack of adequate commercial construction business as part of their reason for leaving Springfield, but Gates said he's not concerned.

"I think there's plenty of business here for qualified companies and qualified people," Gates said. "Hopefully, with our past experience in this area, that will give us opportunities to get some work."

Jerry Hackleman, president emeritus of commercial contractor DeWitt & Associates, said while Denali doesn't cover the same type of commercial projects as Flintco - which, he said, tends to work on large-scale projects - the Cape Girardeau company is entering a market that remains tough even for experienced companies.

"I wouldn't want to be in their shoes trying to compete against some of the things we're seeing, where people are taking work just to get a job and have little or no profit," he said, though he noted that Denali's experience puts them at an advantage over someone starting fresh. "It's a tough time, and it's going to continue that way through the rest of this year."

City of Springfield building permits show only 17 new commercial projects through June of this year, less than a third of the 58 permitted in the first half of 2008.

Denali Construction is not entirely new to the Springfield area; the company was general contractor for the Comfort Suites near James River Freeway and Campbell Avenue that opened in 2006. Gammon himself is also no stranger to the area; he's a Springfield native who spent 11 years with Bass Pro Shops, mostly as director of construction.

While he's aware that Denali Construction's decision to enter Springfield comes as the commercial construction market is strained, Gammon said the combination of available talent and a slower market made now the right time to start up a new office.

"It's a very tight market, but there are jobs out there to bid," he said, adding that the company doesn't currently have any bids out on local projects. "We feel that we have put together a very professional team in (the Springfield) office, and the team we have here in Cape Girardeau will let us compete, both in work experience and experience in the Springfield area specifically."

Architecture firm H Design Group worked with Denali on the Comfort Suites project, and H Design principal Rob Haik said he appreciates the company's willingness to draw on local knowledge rather than bringing people in from outside southwest Missouri.

"I think that's an absolutely positive move on their part to add some local leadership that's familiar with the market and the people that they'll be working with," Haik said, adding that the company's family values also will be a strong selling point.