Business Spotlight: The Bales Bros. Blueprint

When a company has been around for 71 years in any industry, people tend to recognize the name.

Jim Bales doesn't credit all of his company's success to recognition, but he says it's played a key part, especially in this challenging economy.

Bales, president and CEO of Waynesville-based Bales Construction Co. Inc., co-owns the commercial contracting firm with his vice president brother, Richard.

"We've been around a long time and we've stood the test of time," says Jim Bales, who is 67 and has worked for the company for 48 years. "Any time you're in business that long, you meet a lot of people."

Bales Construction might be best known for building on hospital campuses such as St. John's, university campuses such as Drury and Missouri State, and religious centers such as the unique Washington Avenue Baptist Church relocation project.

The company operates three commercial divisions - Waynesville, Springfield and Rolla, which opened in November - and a governmental division at its headquarters that does work primarily for Fort Leonard Wood. Bales says the government jobs have surged in recent years and now account for roughly a third of revenues.

Last year, Bales Construction recorded more than $24 million in revenues, just off the $27 million in 2008. It was the first time in 15 years that revenues did not grow, Bales adds. "With so many people in the field hurting, we're satisfied with where we're at," he says, noting that revenues have doubled since 2004.

Foundation for growth

Founder Leslie Bales was a homebuilder in the Waynesville area until 1976 when he retired and his sons, Jim and Richard, took charge. In 1995, the brothers transformed the company into a commercial general contractor. "The first year, we did $2 million worth of business in Springfield," Jim Bales says.

Although Bales Construction has worked on various multimillion-dollar projects in the Springfield area, Bales says the $1 million Washington Avenue Baptist Church project stands out in his mind. The 118-year-old historic church was moved by Drury University in 2001. "We catalogued and cleaned every item from the church in a warehouse, including more than 90,000 bricks," Bales says. "It was just a very neat and rewarding experience for us."

Recently completed projects include the Lebanon First Assembly of God, and a state veterans cemetery and career center in Waynesville. Among the firm's 45 current projects is a $2 million, three-phase renovation to Hammons House, a residence hall at Missouri State University.

Bales oversees all of the projects but says he gives division managers autonomy to run them as if they were running their own businesses.

"He doesn't micromanage," says Tracey Bradshaw, who's managed the Springfield office, 2601 N. LeCompte Road, since 2005. "We have freedom to run the division, but we also know he's always there to consult."

Bales considers Bradshaw a key component to the company's success, along with quality work and the ability to choose subcontractors that are qualified for the job. The company uses subcontractors for 75 percent of its work.

"We can usually pick subs we know and who have been around for years," Bales says. "In a hard bid market, though, we get some subs who are cheaper, but we maybe don't want to use. We've lost jobs because we wanted subs we knew that could do the job."

That doesn't necessarily mean that Bales Construction isn't thrifty when it comes to spending its customers' money, says Stephanie Ireland, owner of Ireland Architects in Springfield.

"Bales Construction is very good at what they do. If we run into an unexpected problem, they are really good at finding solutions that don't cost the owners extra money," says Ireland, who has teamed with Bales Construction on more than 100 projects, including St. John's clinic buildings and shopping centers.

Bales Construction is currently bidding on an aqua park in St. Robert that Ireland designed.

Bradshaw says having multiple divisions also helps during economic downturns. "If we have one division very strong and another having a slowdown, we can draw off each other," says Bradshaw, whose Springfield division was responsible for about $9 million in revenues last year.

Family business and beyond

Jim Bales says he is semiretired, which means that although he is still in the office by 6 a.m. six days a week, he usually leaves by early afternoon.

"It's more like he is working a regular schedule now," Bradshaw notes.

Going forward, it appears that the Bales name will remain firmly planted on the business.

Richard Bales' son, Brandon, is chief operations officer. Jim Bales' son, J.D., is a civil engineer and consultant, and his daughter-in-law, June, is the office manager.

"It really is a family atmosphere with the same family values and a work ethic they've held to all of these years in business," Bradshaw adds.