E&V
STAKEHOLDERS
This document and the information contained herein have been provided for informational purposes only in confidence to the households of those employed by any company under Elzinga & Volkers, Inc. This information may not be disclosed to any third party or used for any other purpose without the express written permission of the disclosing party.
U N M I S T A K A B L E B E C O M E
G R O U P E V
E L Z I N G A
2018 - 2019
&
V O L K E R S
ANNUAL REPORT
welco m e For the past five years, we have held an annual “Stakeholder’s Meeting” event to create the opportunity to communicate a big picture update of our companies to members of the E&V family (our “stakeholders”). In reviewing the attendance over the past couple years and taking a closer look at our evolving/growing businesses, we decided it would be difficult to continually expect everyone to be physically present in one place on any particular date/time for a meeting. Our team has grown to include people who live throughout the country or work various schedules. The conflict with family obligations has also been a contributor to attendance. As much as we enjoyed the meeting and found it of great value, too many were unable to attend, so it is necessary to take a new approach. The Stakeholders Annual Report you have in front of you is our best attempt at replacing the physical Stakeholder’s Meeting. We hope that EVERYONE can now get the very same information as to where the company has been in 2018 and where it is heading in 2019! If upon reading this you have any questions or concerns, please reach out to any member of the Executive Committee (Mike, Tony, Joe, John or Grace). Enjoy!
TABLE OF CONTENTS W E L C O M E 0 2 A M E S S A G E F R O M M I K E 04 A L O O K A H E A D 0 5 2 0 1 9 B U S I N E S S P L A N M A P S 06 S A F E T Y L E A D E R S H I P T E A M 10 FIELD AND OFFICE LEADERSHIP TEAMS 12 P R O J E C T H I G H L I G H T S 1 5 S E L F - P E R F O R M D I V I S I O N S 1 6 E V G R O U P & C O L D W A T E R O P E R A T I O N S 20 B E C O M E U N M I S T A K A B L E 2 2
A MESSAGE FROM MIKE NOVAKOSKI
What a fantastic year all of you were a part of creating! It was such a blessing to have an abundance of opportunity. We should be proud to know that much of this opportunity came from loyal clients who experienced our exceptional performance in the past and continue to reward us year after year. We broke records in almost every area of our business. Here are a few notable ones that I am incredibly proud to share: •
In 2018, we surpassed $100M in volume for the first time!
•
We broke our “100 talented individuals” goal for total field personnel.
•
We won “Best of the Best”, the #1 honor for the Best and Brightest Companies to Work For program for the first time in the 11 years we’ve been in it. This means we placed #1 out of 1000+ companies who applied.
•
We retained a “Top 3” position as one of Michigan’s best contractors as determined by the American Subcontractors Association of Michigan (ASAM).
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•
We released our first book, Become Unmistakable: Start Your Journey from Commodity to Oddity, to share our incredible story with the world. Based on this book and a growing demand to help others mirror our journey, we also started a new consulting company called Become Unmistakable, LLC (BU). We already have companies across the globe seeking us out.
•
Our record with safety (over 11 years without a lost time incident) put us on the stage in sunny California to receive a top award in our 21,000-member trade organization (ABC).
•
Our Coldwater office had another fantastic year of growth and our plans to physically expand the facility have begun.
•
Our Smart365 program yielded great results. The creativeness of so many people looking to discover ways to do things better was inspiring. The program was relatively short, but the resulting change in how we approach everything will surely live on in perpetuity.
•
EV Group, our professional services company, was blessed to find more great talent and is being led onto a strong growth path. This company has never had such an incredible team in the office or such talented resources to deploy to the many companies in need of our services.
27% GROWTH i n r evenu e year over year fr o m 2017 to 2018
48 n ew h i r es
E&V / EV GROUP / BU
2019
VISION
In 2019, I envision a continuation of growth and prosperity! In my 30+ years, I have never seen Elzinga & Volkers or EV Group in such a strong position of abundant opportunity in the very beginning of the year. Below are a few notable items that should make us all very excited!
A LOOK AHEAD BACKLOG As of January 1 st, we had over $123M in backlog to execute in 2019. This an extremely strong position to start the year with and we will no doubt exceed our 20% growth plan again in 2019. N AT I O N A L C O N S T R U C T I O N We have a growing number of significant clients who are counting on us to help them with their national construction programs. Grifols, MedMen and Tommy’s Car Washes alone will provide us with tens of millions of dollars in projects and will have us working in more than a dozen states. SAFETY We are heading toward a new safety milestone of 4,500 days of no lost time and, God-willing, we will reach that milestone on September 11, 2019. AWARDS Our drive to be the very best company in the world to work for will continue! EV GROUP & BU EV Group is expected to have double-digit growth and the growth of Become Unmistakable is looking to be exponential.
ANNUAL REPORT / 2018 - 2019
TALENT Talent continues to be developed and heavily invested in by the company. Our E&V Youniversity program, outside training and a myriad of other offerings are being planned to allow each of us the opportunity to continue growing both personally and professionally, no matter what age or position we are each in.
& CONSTRUCTION PROFESSIONALS
uMap™ We are rolling out the new uMap™ software created by BU. It is much more robust than the OG version (created by Elzinga & Volkers in 2014) and now contains tools to manage conversations, expectations and peek into performance on a granular level. The uMap™ software is already being used by a wide variety of industries/companies locally, as well as across the country, and international sales are expected to occur in the first quarter of 2019!
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2019 BUSINESS PLAN MAPS GENERAL BUSINESS MIKE NOVAKOSKI
As we grow in headcount, client mix, geographical footprint and our service offerings, it will be increasingly important to foster strong leadership in all areas. The uMap™ will be one of the major tools we use to monitor and manage this. Leaders will need to develop systems and processes that allow us to continue to deliver “unmistakable” service and operational excellence. We will continue on a 20% growth path and look for ways to use technology to improve many different elements of our business. Everyone will have a specified set of responsibilities and goals.
BUSINESS DEVELOPMENT JOHN PARKER
Elzinga & Volkers, and its family of companies, had a great 2018 sales year. The company surpassed sales and growth goals, as well as significantly increased its “pipeline” of new work opportunities. We were able to beat our 2018 revenue goals by over 20%! As many of you are aware, we operate without a dedicated sales force and we plan to continue doing so. We believe our team of construction professionals is our best sales force. You are all the front line of our business and your work planning and executing projects is our best sales tool. We all collectively have a responsibility to help grow the business through cultivating long term relationships
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and making new connections. Thank you for all your hard work in 2018! Looking forward, the Michigan and national economic outlook is positive. We are confident in both our local and national markets and we are hearing positive messages from our clients about their future plans. In response, Elzinga & Volkers is structuring itself for continued growth. For the business development team, this means continuing to increase the size and number of projects in our pipeline. Last year, we rolled out Hubspot® as our new customer relationship management tool and changed the way we meet to review our top prospects. In 2019, the focus will be on individual accountability for all our operational teams. As we expand, leaders throughout the company will have opportunities to grow and take on more responsibility, including new business development. Some focus areas for our 2019 business plan include rolling out a signage storefront to streamline and optimize the ordering process for all our project related signage. We have also assigned sales goals to each department in order to increase individual and departmental accountability to new business growth. Additionally, as a goal from our 2020 vision, we will take the time in 2019 to determine if a refresh of our logo and brand identity materials is an opportunity we want to pursue in conjunction with our upcoming 75th anniversary. Lastly, in 2019, we will be closely tracking the relationship between our overall sales goals and the amount of new business in our pipeline. At any time throughout the year we are striving to maintain two times our sales goal in new business prospects. Thank you again for your continued efforts in expanding our footprint, strengthening our brand and creating new opportunities to grow the EV family! E&V / EV GROUP / BU
EMPLOYEE CARE
365
TONY ROUSSEY
2018 was a fantastic year that presented us with many opportunities to enhance our focus on our employees, both locally and around the country, as projects were executed in multiple states. These opportunities required the addition of 48 new employees during the year! That just might be a company record!? New hires came primarily as local individuals, but people from several other states joined us as well. We look forward to expanding our offerings for all employees in 2019. In the past year, we were fortunate to find and hire individuals who fit the E&V culture. If anything, we raised the bar a little more with the quality of people who joined our team. A big part of that hiring success was due to the efforts of many people. From recruitment to employee and trade contractor referrals, we were one of the few employers able to say we are not having problems finding good people. To the right, is just a small sampling of our unique programs that attracted new employees and kept current ones happy, engaged and “bleeding blue”! Along with hiring new team members, we will continue to support all our “rising stars” through new educational and training opportunities. The Executive Team met with all tradespeople for breakfast at local restaurants throughout the year to promote our culture and ask them, “How do you think we’re doing?” to gather their feedback and, hopefully, make their jobs and lives better. We can all be truly excited for what is in store for us in 2019. We will continue to see new faces join our team, increase our focus on employee centric programs and focus on increased educational opportunities. We will continue to raise the bar and challenge ourselves to make E&V the best in all we do!
ANNUAL REPORT / 2018 - 2019
days with o ut a lost ti m e i nju ry
32
employees have chosen to participate in the Community Safety Fund we implemented in 2018, paying it forward to non-profits and others to help cover costs and promote safety throughout our community. In 2018, the Community Safety Fund benefited Bethany Christian Services by raising over $2,000 to pay for First Aid and CPR training for foster parents. We are on track to raise over $5,000 in 2019! If you would like to participate, please contact Kelly Bosma at kellyb@elzinga-volkers.com.
$1,600
awar d ed to em ployees wh o r efer r ed a n ew h i r e
$2,400
pai d o ut to safety tr ivia wi n n ers
26
em ployees enj oyed an extra day o ff to spen d with fam i ly th r o ug h o u r hall pass pr o g ram
For questions on using a hall pass, contact Kelly Bosma.
WE CONVERTED ALL EMPLOYEE BENEFITS TO AN ONLINE, STREAMLINED BENEFIT TOOL
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2019 BUSINESS PLAN MAPS FINANCIAL GRACE SILVA
Financially, 2018 was a fantastic year! We significantly surpassed our revenue goal which is an exciting accomplishment. Even with the increased revenue and billings, we were able to keep our accounts receivable at a very manageable level by following up more timely with clients and working closely with project managers to make sure we were paid for our work. During 2018, we were able to purchase our Coldwater building instead of continuing to lease it. We were also able to create divisional income statements for reporting purposes. This is something we have been wanting for some time and it was exciting to see it come to fruition. Our self-performed divisions are crucial to our business success and this allows us to see potential growth and investment opportunities. We also enrolled in Employee Navigator in 2018 through our benefits broker, Advantage Benefits Group. This new portal allows a completely electronic benefit enrollment system which employees can access from any electronic device. It allows employees to make changes to their information during the year, keeping our records more up-to-date and accurate. One section of the financial business plan is department operations. The accounting department has chosen some words that describe what we want to focus on in 2019. The words surround a brain lightbulb because we are looking for ways where we can be “right brain focused”. The words we chose are education, collaboration, innovation, integration and automation. We are constantly looking for things that we can do in a Smart365 way to make daily processes easier and more efficient.
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Another section of the business plan map is performance. We used an icon showing a relay race. The different components of the race are revenue, margin, collections (cash) and meaningful reporting. A winner of a race gets a medal, so we used the tagline “Gold Medal Accounting” because we are looking to strive for the best in all we do. The relay race shows how dependent each of these areas are on one another. If we don’t bill timely, then our collections are late, trade contractors are not paid on time and we are not able to produce meaningful reports. The accounting department has various goals for 2019 that we are passionate about. First, we are looking at purchasing a more robust HR program that can serve many needs. This would include still accessing paychecks electronically as well as being able to more easily track vacation time, safety training and being fully integrated with our accounting software. We are also looking to continue improving our invoice routing and approval system. A second goal relates to the collaboration piece in the financial business plan map. The accounting department works closely with our project managers and as we make changes to our processes, we want to make sure we are communicating in the best way to project managers and others in the company to create a seamless workflow. We are also passionate about minimizing the risk of a cyber-attack on the company. We continue to partner with a 3rd party vendor (KnowBe4) and are pleased with the information they send, as well as the training they provide. This allows us to disseminate potential problem areas to the company and helps employees be more vigilant about what comes through their email and what warning signs to look for.
E&V / EV GROUP / BU
OPERATIONS JOE NOVAKOSKI
In 2018, we focused on the theme of “fine tuning” our programs and services to remain safe on our project sites, support our company growth, grow leadership in each division, win awards and further education and training for our employees.
Another highlight for 2019 will continue to be our unwavering focus on safety. We will drive toward our next milestone of 4,500 days without a lost time accident on 9/11/19. Lastly, we will also fully implement JobPointe, which is an online software to manage our field employees’ current and future placements and skills. In addition, it will be used for needs tying into business development, hiring and recruitment. ANNUAL REPORT / 2018 - 2019
2,216
j o bs started i n 2018
9,964
acco unts payab le i nvo i c es pr o c essed
2,744 bi lli n gs sent
A COLLECTION OF DIVERSE SERVICES, UNMISTAKABLE IN THEIR OWN MARKET.
CMYK: 0/0/0/50 Pantone: Metallic Silver
E UR ULT AL • C CAPIT LE • EOP •P
Future so Bright...
FOSTER AND GROW LEADERSHIP IN EACH DIVISION
HOLLAND EST. 1945
LEADERSHIP
GRAND RAPIDS EST. 2018
REGIONAL SELF CONSTRUCTION PERFORMED OPERATIONS TRADES
NATIONAL EV GROUP CONSTRUCTION OPERATIONS
NEW VENTURES FSD
GROWTH
EQUITY
SAFETY
CONSULTING
EMPLOYEECARE
NEW ENDEAVORS KEY PERFORMANCE INDICATORS
Give Each Employee an Opportunity to Grow
ACCOUNTING
MARGIN %
REVENUE
FIELD STAFF
20% GROWTH
Traveling Self-Performed
BU
OVERALL VISION
CULTURE
OPERATION EXCELLENCE
COLDWATER EST. 2017
Trust Margin Sales/Growth
4,500
OPERATIONS
D AY S
INJURY-FREE
Closer Despite Distance
BUSINESS DEVELOPMENT
Technology
FSD
As stated, a specific goal we accomplished in 2018 was to land back in the top three general contractors in the Michigan Contractor of the Year (MCOY) awards. In 2019, we will continue to focus on MCOY grading criteria. The 10 categories that our trade partners judge us on drive improvements in all operational areas and are influenced by each and every member of our team. The categories are bid ethics, safety, jobsite supervision, communication, schedule coordination, project relations, lien process, administrative procedures, payment terms and quality workmanship.
pr evi ew o f j o bpo i nte so ftwar e to b e i m plem ented i n 2019
BP MAP: GENERAL OVERVIEW
The preconstruction team, led by Cory Loomans, worked hard last year to offer more services and expand their team to support the growing operations and business development goals. Max Schmidt was promoted to preconstruction manager and Eric Lammers was hired as a preconstruction manager in July. The additional manpower allowed our preconstruction team to take a big step toward becoming “world class”, as outlined in the 2020 Painted Picture. In 2018 the team completed goals to outline processes and upgrade systems to increase productivity, coordination and communication. The preconstruction team will be focused on building database information, implementing updated software and setting projects up for success in 2019.
SAFETY
Leadership
4,500 0
NURTURE GROWTH THROUGHOUT THE ORGANIZATION.
NO
LGE
Use Traction Tools to Oversee All Areas of the Business
RECORDABLES
EVERYONE HAS A NUMBER.
FULL VERSIONS OF THE 2019 BUSINESS PLAN MAPS CAN BE FOUND ON EVINSITE BY LOGGING IN, CLICKING EMPLOYEE CARE AND CLICKING FORMS. PRINTED COPIES ARE ALSO POSTED THROUGHOUT THE HOLLAND OFFICE.
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N O T E: If you have suggestions on how to improve our safety standards, update safety processes or general comments about how we’re doing, please email any member of the Safety Leadership Team.
SAFETY LEADERSHIP TEAM TONY ROUSSEY, MACKY LYNN, SCOTT WONDERGEM AND SETH WEHNER
THANK YOU 2018 was another safe and successful year. We accomplished many of our goals and we continue to find new ways to improve our systems and processes. S A F E T Y C O O R D I N AT O R We brought Mackenzie (Macky) Lynn on board as our full-time corporate safety coordinator. She has a degree in Occupational Safety and Health Management from Grand Valley State University. In her new role, Macky works with our safety director, assistant safety director and third-party consultant to organize project site audits, ensure the integrity of the safety manual and host all safety related meetings. She also manages safety records and ensures all employees comply with our standards. 4 , 0 0 0 D AY S On April 30 th, 2018 we reached 4,000 days without a single lost-time injury; a truly incredible accomplishment! A huge
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thanks to our tradesmen with their boots on the ground, working safely each day. To commemorate the occasion, we hosted a party at Johnson Park for all employees, their spouses and families. Over 200 people attended the event. A highlight of the event was a “progress in safety” inspired photobooth created by our team that allowed people to sit on a steel beam after “tying off” over a backdrop of the city. This showed where we are now with safety compared to the age-old Rockefeller ironworkers photo. AWARD WINNING SAFETY We won the 2017 ABC National Excellence in Safety award and were recognized in April, 2018, in Long Beach, CA. We were also an ABC STEP Platinum award recipient, Michigan Contractor of the Year finalist and ranked highest in the Michigan Contractor of the Year safety category. We were just informed we have now won the 2018 ABC National Pinnacle Safety award, which will be officially announced in March, 2019! Shh!
E&V / EV GROUP / BU
2019 GOALS ZERO DEATHS ZERO LOST TIME INJURIES ZERO AMBUL ANCES ZERO OSHA VIOL ATIONS/FINES INCREASE GOOD CATCH REPORTING BY 50%
“Even though we added 47 new employees in 2018, which increased the risk for safety incidents as we onboarded new people and trained them on our safety requirements, we continued to have great success in sending our employees home safely every night. I can assure you that every effort will be made in 2019 to continually improve our systems and processes to further our success. Thank you to each and every employee who is leading from the heart when it comes to safety!” — Tony Roussey
LEADING FROM THE HEART
meet the minimum standard of four feet. This initiative will be important to the safety of our employees as we progress.
2019 looks to be another promising year. We have a great team and many great improvements on the horizon. On September 11, 2019 we hope to reach 4,500 days without a lost time injury! This will be another exciting milestone for E&V and, once again, we wouldn’t have been able to do it without our dedicated employees in the field following safety standards and raising the bar on safety.
2019 will also have a heavy focus on improving safety systems. While we continue to make beautiful buildings, we want to also keep improving the safety related processes that come into play when we’re working. Engaging and more effective toolbox talks will be introduced, E&V lift operator permits will be issued to improve consistency and remove any gray areas and our tracking and training systems will be improved to better ensure compliance.
One of the efforts of the SLT for 2019 will be implementing the “Safety by Design” initiative. Personal protective equipment is typically our first line of defense when it comes to safety on the job. However, eliminating the hazard should be the first option. We are working with our preconstruction department to work safety into the design of the building. For example, things such as permanent anchor points on the roof for tying off or parapet walls that
Our team keeps growing, locally and nationally. The increase of national work and projects across the state of Michigan pose a risk; there can be a disconnect between the E&V culture on our national project sites and even with our team in Coldwater. It is a major focus of 2019 to spread our safety culture to those who are not working locally. The SLT will aim to improve communication, so we can connect and spread our culture to every project location.
ANNUAL REPORT / 2018 - 2019
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FIELD AND OFFICE LEADERSHIP TEAMS 2018 FLT REVIEW
2019 FLT VISION
2018 was another busy, yet exciting, year for the Field Leadership Team. We continued our Trade Contractor Roundtables and discussed topics like dealing with heavy workloads, increased stress and trade contractor likes and dislikes of general contractors. 2018 also brought an increased awareness of project cost and hours tracking. A review of carpenter hand tools was done late in the year followed by bags of tools being distributed…thanks Santa! E&V Youniversity continued bringing about the arrival of the monthly Quality Standards Manual review. These classes were taught mainly by our staff and attended by all departments of the office and field alike.
This coming year we look forward to continuing the FLT Connection and have plans to review the quantity and quality of the meetings our guys are hosting and attending. We hope to bring about more “touches” from the FLT to our out-of-town field managers and staff in an effort to provide them with a support system to foster a strong connection with those working locally. We also plan to continue monitoring and evaluating tool and equipment needs in the field. Lastly we’re discussing what role we can play in training and developing the next generation of construction workers. As always, we are open to suggestions and feedback.
This year also saw the beginning of the FLT Connection. This is an email sent to Field Managers and Foremen once or twice a month that covers a variety of topics including use of EVinsite, Smart365, quality and safety. It has been a great way to share unmistakable things our guys are doing everyday on our project sites. Through the FLT Connection we also discussed the need for time away from the project site to get a mental break from work and focus on yourself and your family.
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DOUG EDDY, JOE SHASHAGUAY, SCOTT WONDERGEM, DAN JENEMA AND BRIAN WHITE
280,790 man h o u rs wo r ked by all fi eld perso n n el i n 2018
E&V / EV GROUP / BU
strive365 excellence in quality
smart365
OLT UPDATE You may have seen the above image over the course of the year, describing the “makeup” of a project. The classic version of this diagram suggests that there are three pillars creating project success; it is on schedule, on budget and high quality. While this old adage remains true, at E&V we would also include that the project is safe, thus, the three pillars in the center are all contained within a circle of safety. When perfectly balanced, the aim would be to achieve the highest level in each of the four categories. The unfortunate part is that, too often, real world conditions only allows us to pick three, leaving one or more to suffer. At the end of 2017, the leadership council reviewed this concept and asked, “So what does this mean for E&V? Which three will we choose? Is it possible to achieve all four?” From this discussion, two truths came out: one, we do not waiver on safety and, two, we do not waiver on quality. These were the obvious categories in which we excel, but why is that? Our answer was that both safety and quality are supported by robust company programs. For safety, we have the Alive365 brand, which includes a manual, safety meetings, trainings, third party consultants, a committee, community events
ANNUAL REPORT / 2018 - 2019
and more. For quality, we have the Strive365 brand, which also includes a manual, E&V Youniversities, lunch and learns and more. These two pillars have programs, dedicated focus and company buy-in. So we asked ourselves, “what platform does E&V have for excelling in schedule/time efficiency and value/ budget control?” The answer was that we didn’t have one, but we should. At the beginning of 2018, we launched our Smart365 program, which focused on developing a culture of improvement. As a company, we initiated over 350 Youtube videos highlighting new ideas and helpful hints. Although full of great content, the goal of making videos was less about creating a library of “life hacks”, and more about encouraging people to ask questions, challenge the “this is how we’ve always done it” mentality and move towards the habit of thinking “there must be a better way”. We started to see the lightbulbs turning on, sparking a new system or concept, which ultimately led us to change and maintain things in better ways. Over the course of 2018, we introduced the project success graphic above, showing that Smart365 and our culture of improvement actually lives as a “brand” which helps support operations and grab hold of the remaining two pillars of project success, schedule and value. We continued to build upon this concept, dialing in and creating a variety of systems to keep things on track. And guess what, it’s working! 2018 was a year of setting up the Smart365 brand and, in 2019, Smart365 will continue to evolve through a spirit of improvement in an effort to create a culture of operational excellence. We are excited for our safety efforts and the Alive365 program, we will continue to be a company of talented craftsmen, eager learners and skilled builders with our Strive365 program, and we will dialin operational excellence by leaning into the challenges, finding the facts and encouraging improvements brought on by Smart365. RACHEL AUSTIN, BRETT LESIEWICZ, BRAD GIHA, CORY LOOMANS, TONY SZAFRANSKI AND DAN BEHLER
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e &v wou ld n ’ t b e ab le to co m plete proj ects o f th is cali b er at th is level o f q uality an d c raftsmansh i p with out ou r fi eld perso n n el .
Than k
you fo r
you r co m m itm ent to bui ld i n g th ese i m pr essive proj ects !
E&V PROJECT DETAILS
For project updates, follow us on Facebook @elzingavolkers or check out our Youtube channel.
68 %
$107M
OF OUR PROJECTS COME FROM PREVIOUS CLIENTS AND REFERRALS THANKS TO THE HARD WORK OF OUR ENTIRE TEAM
IN 2018 REVENUE, EXCEEDING $100M FOR THE FIRST TIME IN RECENT COMPANY HISTORY
2018 pr oj ect h i g h li g hts
We’ve had an extremely busy and successful year and put more work in place than ever before! With so much that has happened, it’s hard to limit highlights to just one page. Please know that for each of the highlights below, there are many more not listed. Western Seminary: We completed an extremely complicated project involving almost all of our self-performed divisions, including a lot of high-end finish carpentry and our largest interiors division project to date. MedMen: We broke ground on the first four sites in Florida - Key West, Orlando, Miami Beach and West Palm Beach. Tyson Bowls II: This project was so successful that corporate leaders were brought in to learn how it was done! Munson Healthcare: We completed our first project for this health system, a beautiful medical office building in Manistee, MI. Mercy Health Muskegon: Our team continued the largest general trades contract in our history, building our crew to close to 20 highly skilled carpenters. Siliconature: We erected our largest building by area in many years with this 187,000-SF manufacturing and warehouse project. ANNUAL REPORT / 2018 - 2019
2019 lo o k ah ead
As you can see, in 2018, we set a lot of records. However, there was also a strong foundation being built. Think of 2018 as building a launch pad and 2019 as building the rocket. Here are some highlights for what’s coming up this year: We will be starting our first three projects for the Trinity Health system, the parent organization for Mercy Health Saint Mary’s and Muskegon (projects Greenleaf, McAuley, and Park). These projects have a total budget of around $17M. We will break ground on at least seven new Tommy’s Car Washes in Michigan and out West. The Clark Retirement Keller Lake project will break ground in late summer or early fall. It is estimated to take a year and a half to complete the $30M senior living facility. The design/build project for the Bronson Healthcare replacement hospital in South Haven, MI, will break ground in the fall and be complete by the end of 2020. MedMen will continue to ramp up with many more projects in Florida and opportunities in other states as well. Hold on tight because 2019 is going to be a wild ride!
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SELF-PERFORM TRADE DIVISION UPDATE “WE ARE EXTREMELY PROUD OF THE E&V SELFPERFORM TEAMS AS THEY HAVE TAKEN ON ENORMOUS GROWTH AND COMPLETED MANY MILESTONE PROJECTS IN 2018. WE’RE EXCITED TO SEE WHERE 2019 TAKES US.” — RACHEL AUSTIN & BRIAN WHITE
In 2018, we had a very successful hiring trend with higher than 90% retention of those hired. The company has been able to recruit people, despite the lack of skilled labor available in the general market. We purchased new tools to better equip our people to do great work. We started tracking divisional margin and are pleased to report that all self-perform divisions were profitable in 2018! We started the implementation of JobPointe and plan to continue investing in the self-perform trades. Here is an update on what each of our divisions accomplished in 2018 and their upcoming work in 2019.
SITEWORK JOB HIGHLIGHTS Just shy of $1M in work booked in 2018 Clark Sales Office: With some great planning, a lot of hard work, and an alignment of the stars with Mother Nature this team kicked butt at Clark Sales Office. LifeChange Community Church: This is the largest sitework project to
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date and the team did not disappoint. They kept the project on schedule, came in better than budgeted and Tom DeJonge got to spend a lot of time doing his favorite thing… running equipment! Tyson Lagoons ODL Loading Dock NEW HIRES N/A UPCOMING WORK City of Grand Rapids Waste Water Treatment Plant, Vertellus Phase 5
E&V / EV GROUP / BU
CONCRETE The concrete crew completed more work in 2018 than in any prior year on record. In positioning the team to stay true to our values of safety and quality, we made an organizational change and Christian Skinner stepped up to the plate. The direction of this division is “getting back to basics” and positioning it for controlled growth. JOB HIGHLIGHTS Five jobs over $100,000 Siliconature Tank Farm LifeChange Community Church ODL Loading Dock Clark Franklin Vertellus Retaining Wall NEW HIRES Micah Reynhout, Jacob Verga and the promotion of Christian Skinner to Concrete Division Manager UPCOMING WORK Vertellus Phase 5, Clark Franklin, City of Grand Rapids Waste Water Treatment Plant, and many FSD projects (thank you Tom Sass and Eric Gordon!)
STEEL The steel crew continues to tackle very technical and complicated work. JOB HIGHLIGHTS Hope Steeple, Clark Franklin Shoring NEW HIRES Tyler Dokter UPCOMING WORK Vertellus Phase 5, Trinity Greenleaf, City of Grand Rapids Waste Water Treatment Plant, Clark Franklin
ANNUAL REPORT / 2018 - 2019
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CARPENTRY/GENERAL TRADES
PAINTING
JOB HIGHLIGHTS Mercy Muskegon: Largest general trades job in the company’s history by 10 fold with record man hours.
Through the leadership of Matt Harburn, this team has grown by 80% and has been incredibly successful. The quality of work that this team has produced is second to none.
Holland Hospital Boven Birth Center, LifeChange Community Church, Clark Sales Office, Wells Fargo, MHSM 9 th Floor and Holland Museum Spark Lab NEW HIRES Mark DeGraaf, Juan Chavarria, Caleb Benedict, Ben Frederick, Jake Melendez, Bryson Davis, Travis Baldwin, Nick Everson, Julius Pamer, Ron Johnson and Todd Hacker UPCOMING WORK Clark Franklin, multiple Tommy’s Car Washes and Spectrum Biplane
JOB HIGHLIGHTS Western Theological Seminary Mercy Muskegon LifeChange Community Church Clark Franklin NEW HIRES Noah Espinoza, George Martinez, Xavier Martinez and Paul O’Brien UPCOMING WORK Trinity Greenleaf
INTERIORS
FIRESTOP
This department has really taken shape in 2018. They pursued a lot of work, won a lot of work and executed at a very high level.
Firestop maintained UL and FM certifications, positioning this division for continued growth. The team is doing work for other contractors in the area, specifically, general contractors and MEP trade contractors.
JOB HIGHLIGHTS Holland Hospital Boven Western Theological Seminary: Largest interiors job we’ve done to date with beautiful work, highly complicated ellipse framing and a finished product that looks fantastic. Tommy’s Car Washes Mercy Health St. Mary’s 9 th Floor NEW HIRES Rob DeHaan, Lucas Kleyn, Steve Morgan, Zach Galle, Collin Curtiss, Ron Mourer and the promotion of Chad Kiester to Interiors Foreman UPCOMING WORK Trinity Greenleaf, Holland Hospital MHED and Holland Hospital Boven Birth Center PAGE NO: 18
JOB HIGHLIGHTS Spectrum South Pavilion 911 Rescue Call: We were called in on very short notice to correct some work so that this facility could keep their funding and accreditation. The CEO of Rockford Construction personally thanked us for our efforts. NEW HIRES Bernard Geisler, Ethan VanRees and Robert Young UPCOMING WORK Clark Franklin, Holland Hospital Boven Birth Center and Bronson South Haven
E&V / EV GROUP / BU
N O T E: EV Group has some lofty goals for 2019, we can’t do this without the continued support of Elzinga & Volkers and Become Unmistakable. If you have any ideas, contacts or expertise in the food and beverage industry please let us know.
EV GROUP, COLDWATER & NATIONAL FACILITIES SERVICES EV GROUP 2018 REVIEW EV Group initiatives for 2018 consisted of growing our client base, increasing the number of consultants placed at our existing clients and streamlining our safety, operations and onboarding processes. We are happy to report that throughout 2018 we signed agreements with Nestle, Kellogg’s and Campbell’s in an effort to supply construction management, project management and research and development consultants. We were able to place 17 new consultants in the field across five clients. In addition, we added two new employees to the office for business development positions. These additions in the field and office increased our gross profit by 40% from January 2018 to December 2018. 2018 prospecting goals were reached for both clients and consultants, as we were able to make connections with over 1,000 new client contacts and 250 potential new employees. EV Group created specific marketing material for the food and beverage industry to speak to our niche service offerings, as well as updated our website, safety manual and standard operating procedures.
40% i n c r ease i n g r oss pr o fit i n 2018 PAGE NO: 20
EV GROUP 2019 DIRECTION & GOALS EV Group continues to focus on prospecting and growing our client base. We look forward to building on the success of 2018 for a great 2019. Our goal is to work with five new food manufacturing companies, expand into new locations with existing clients, hire one additional business development office employee and increase our gross profit by an additional 40% over 2018. We hope to place an additional 20 field consultants and end 2019 working with 9 of the 12 largest food manufacturing companies in the country. Our top target clients for 2019 include Pepsi Co, CocaCola, Unilever, General Mills and Dannon. COLDWATER & FSD 2018 REVIEW 2018 was an exciting year for both the Coldwater operations and our National Facilities Services Division. We experienced growth in our national footprint as well as our newly established territory in Coldwater, MI. We celebrated our second full year with a branch office and the local support was unbelievable. Elzinga & Volkers has quickly become the local contractor of choice when recommendations are sought. As we all know, with the blessing of opportunities so came the challenges of change. Fortunately, all of the challenges we faced created opportunities for current employees to grow and new employees to be welcomed in. E&V / EV GROUP / BU
FSD SNAPSHOT
2,300
service jobs completed in 13 states
$400,000
exceeded in Coldwater FSD revenue
$1M
exceeded in national FSD revenue
At the beginning of 2018, the Executive Committee, along with Tony Szafranski, set goals for the first quarter, and throughout the year we continue to challenge ourselves and the team to accomplish the goals that were set. We call these items rocks! Both Facilities Services and the Coldwater operations accomplished 99% of the rocks that where set in 2018. The stats above give a small glimpse into what 2018 looked like for our team in Coldwater.
Proposed Coldwater Office Expansion
COLDWATER & FSD 2019 DIRECTION As great as 2018 was, 2019 is trending to be even better. We did not hesitate to set the bar high for our 2019 goals (rocks) and are already on track to blow them out of the water. Again, with this growth we will be creating jobs and advancement for current employees. Like 2018, our clients and trade partners are looking for us to be unmistakable and we intend to deliver! 2019 will have a heavy focus on industrial facilities service work and new national clients. The Coldwater construction management division will look to grow our reach with new clients and trade partner relationships. A common question asked is “Why Coldwater, and will it work?” At first this was a question that was answered with a little wonder. Now we can say, “Because we are needed here.” The Coldwater branch not only helps the surrounding
ANNUAL REPORT / 2018 - 2019
territory, but it has been a great benefit to many of our regional and national accounts. 2019 will be a very exciting year internally as well. The Executive Committee has committed to a Coldwater office expansion or new property acquisition in 2019, as our team has quickly outgrown the current space! This will be a great next step in the success of the first Elzinga & Volkers branch office. It will allow us to continue growing and being Unmistakably E&V. T H E C O L D WAT E R T E A M L O O K S F O R WA R D T O C O N T I N U I N G O U R I M PA C T O N T H E C O R P O R AT E A G E N D A B Y H AV I N G R E P R E S E N TAT I V E S O N THE OFFICE LEADERSHIP TEAM, SAFETY C O M M I T T E E A N D H E A LT H C A R E C O M M I T T E E .
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F A S T F A C T: This business was based on Mike Novakoski and John Parker’s book “Become Unmistakable: Start the Journey from Commodity to Oddity”
BECOME UNMISTAKABLE “I AM PERSONALLY VERY PROUD OF THE ACCOMPLISHMENTS OUR TEAM MADE IN 2018 AND LOOK FORWARD TO CONTINUED LEARNING AND GROWING IN 2019.” — ROB DWORTZ
In 2018, Elzinga & Volkers partnered with former Bank of Holland President and CEO, Rob Dwortz, to launch Become Unmistakable, LLC. The business was launched in conjunction with publishing the book in order to share the award-winning, employee-centric approach pioneered by E&V with organizations around the world!
2018 r ecap
In addition to forming the business in 2018, many milestones were achieved during the year. BU developed four distinct lines of business:
1) Unmistakable LEADER - An 8-month intensive workshop designed to develop inspirational leaders who employ rightbrain approaches to drive connection and innovation. The Unmistakable LEADER program launched successfully with an initial cohort of 11 leaders from diverse organizations in West Michigan. 2) The TEAM Program - Executive teams from single organizations gather for offsite retreats designed to help them use vulnerability and trust to grow high-performing teams and enhance organizational performance.
uMap™ Software
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3) The Software - BU launched its flagship software product, the uMap™. Through the software, organizations around the world are now able to experience the connection enabled by the uMap™, the gateway tool to creating unmistakable culture. Training
E&V / EV GROUP / BU
lo o ki n g ah ead 2 0 1 9
BU Office in Grand Rapids
programs have been built and several clients have started the journey that E&V has proven to create connection and JOY in the workplace! 4) The Speaking Platform – The partners (especially Mike) deliver keynote speeches and break-out sessions at events around the globe where the vision developed at E&V and BU are shared with audiences seeking inspiration and a better way to connect with people.
th e team BU has attracted incredibly talented people to the family along the way. Joining the team in the past year are Leslie, Danielle, Breana, Jodi and Brittni! BU plans to continue adding to the team in 2019, so in late 2018, they decided to move their operations to a new location in downtown Grand Rapids. Beginning in Q1 2019, BU/E&V/EV Group will be able to host clients and other stakeholders for meetings and trainings in the 6,000-SF space at 100 Grandville Avenue SW. Please visit soon if you can!
h ow we ’ r e d i ffer ent BU no longer refers to itself as simply a leadership firm, a training firm or a software firm. BU is an experience company driving a movement to create meaningful connections among people! First stop is a connected workplace, next stop…a connected world!
ANNUAL REPORT / 2018 - 2019
The coming year offers many challenges and opportunities for BU. As programs and products have been built (and continue to evolve), our focus has turned to creating unmistakable experiences for our growing roster of clients. The uMap™ has expanded our markets from coast to coast and beyond. We will be on stages in our backyard and as far as Cape Town, South Africa, in 2019 sharing our message of connection. If anyone has a potential client from your personal network, we’re eager to meet them. All hands on deck!
Visiting Burj Khalifa, the tallest building in the world located in Dubai, UAE, wearing the right brain/left brain jacket!
13 SPEAKING ENGAGEMENTS AROUND THE WORLD IN 2018
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than k you , fo r b ei n g part o f th e e &v fam i ly .
HOLLAND OFFICE 86 East 6 th Street, Holland, MI 616.392.2383
C O L D WAT E R O F F I C E 285 Division Street, Coldwater, MI 517.435.4404
BU OFFICE & THE HUB 100 Grandville Avenue SW, Grand Rapids, MI 800.632.7734
WEBSITES www.elzinga-volkers.com www.theevgroup.com www.becomeunmistakable.com www.evinsite.com
& CONSTRUCTION PROFESSIONALS All rights reserved to Elzinga & Volkers, Inc.