Business Spotlight: Multiplying its Crafts

Most business owners would agree that a company with diverse services and products has a better chance of weathering an economic downturn.

Springdale, Ark.-based Multi-Craft Contractors Inc. was founded on the principle of diversification and was presented a chance to add yet another emphasis in 2008.

As a result, MCC relocated its Springfield operations in January to 2810 N. Le Compte Road, more than 20,000 square feet larger than its former site, 1860 E. Meadowmere St.

The industrial contractor offers electrical, mechanical, HVAC and crane services. The Springfield facility focuses on electrical, mechanical and fabrication services, and manufacturing equipment sold to the pharmaceutical industry.

“Manufacturing is new to us, we’ve been doing it for the past four years,” says Greg Herren, MCC’s director of business development. “That part of the business is growing and is a central reason for the need for a new building.”

MCC’s move followed an eight-month, $1 million renovation. The 50,000-square-foot structure previously housed Glazer’s Midwest wholesale liquor warehouse, and it required a complete remodel to accommodate MCC’s manufacturing work.

MCC acted as its own general contractor. “The most challenging part of the move was doing all of the work ourselves,” Herren says. “I think it showcases our capabilities that we were able to keep customers’ needs fulfilled while keeping on schedule for finishing the building.”  

MCC owns its former Meadowmere facility, and the 30,000-square-foot building is currently listed for sale for $665,000. Its current building appraised for $2 million in 2012, according to Greene County assessor records.

MCC’s new manufacturing focus has grown to 50 percent of the Springfield shop’s total revenue derived from fabrication in 2011, up from 20 percent of total revenue in 2010. Total revenue in Springfield last year was $7 million, a 16 percent decline compared to 2010. The slide followed the companywide trend with 2011 revenues of $53 million, against 2010 revenues of $58 million.

“We took a slight dip but have been able to maintain profitability companywide,” says Dennis Wiggins, MCC-Springfield’s operations manager. “Prior to the recession, we were trending up, and we are back on that track again.”

The company projects 2012 revenues of $8.5 million in Springfield, with total revenue projected at $56.5 million.

A history of business diversity
MCC owner Rick Barrows acquired ABC Plumbing in Springdale, Ark., in 1971. “We were a plumbing contractor doing quite a bit of work in the poultry industry and other industrial work,” says Wiggins.

Shortly after the acquisition, Barrows diversified the business model into electrical, mechanical, crane and HVAC services. In 1997, MCC was contracted for electrical projects for Kraft Foods in Springfield and decided to establish a permanent location in the city.

MCC performs industrial projects for local and global companies and organizations such as 3M, General Mills and Missouri State University.

Scott Bybee, president of ESC Inc. Consulting Engineers in Springfield, has collaborated on projects with MCC for more than a decade.

Bybee says both companies have two regular mutual clients that schedule their work during long holiday weekends. “We’re always able to come together and make the project happen, even sometimes when it is not practical,” Bybee says. “They always do quality work, even in a short time frame, and they know how to staff and project the results.”  

Pharmaceutical future
Herren says about 15 percent of the business in Springfield is mechanical, which includes pipe-fitting and millwright services for industrial plants. Another 25 percent of the business is on-site or field electrical fabrication, 55 percent is in manufacturing, and 5 percent is in-house fabrication.

A client approached MCC in 2008 to build prototypes for equipment used in the pharmaceutical industry. “We enjoyed success with the first product, and they shared more opportunities to build other products,” Herren says. “Prior to that, we only fabricated as needed, we didn’t really make products.”

Sartorius Stedim Biotech in Springfield is one of MCC’s customers in the pharmaceutical equipment industry. MCC manufactures equipment for Sartorius that stores and freezes pharmaceuticals, as well as components for use in pharmaceutical laboratories.

Gerald Wood, project engineer for Sartorius, says his work with MCC in fabrication developed into opportunities for the shop to do some of the biotechnology company’s manufacturing.

Wood says Germany-based Sartorius is working toward using MCC as its U.S.-based supplier for a certain type of storage tank. “The first thing we look for in a vendor is capability, and the next thing we look for is craftsmanship,” says Wood. “(MCC staff has) the capability and they’re good at everything they do. They’re a one-stop shop.”

Wiggins says most of what MCC manufactures stays in the U.S., but about 5 percent is shipped globally. He says the new site on six acres near Partnership Industrial Center enables continued expansion in manufacturing operations.[[In-content Ad]]