Wilhelm Special Section.indd 1
17/01/15 15:47
F.A. Wilhelm C Constant Improvement Leads to Better
Better Life for Employee The WILHELM WAY F.A. Wilhelm was a man with a dream to build better buildings and a better life for his family and community. This is still the Wilhelm way. Our enduring reputation for honesty, integrity and industryleading quality has been built by generations of employees driven to do everything it takes to get the job done right.
T
hroughout the last 90 years, F.A. Wilhelm Construction Company has completed more than 8,000 projects in the Midwest ranging from parking structures to museums, higher education learning facilities to research laboratories, manufacturing facilities to hospitals and hotels to water and wastewater treatment plants. Headquartered in Indianapolis with one of the state’s largest construction
field forces—the equivalent of 1,500 employees working an excess of 3 million hours annually—Wilhelm Construction self-performs concrete, masonry, steel, earthwork, demolition, miscellaneous and structural steel, and carpentry. Through its affiliate companies, Wilhelm Construction also provides specialty metal fabrication, HVAC system installation, process piping and fabrication, plumbing, electrical, and equipment installa-
tion. Backed by a breadth of expertise, the company specializes in construction management and general contracting. “We take a pride in honoring our commitments regardless of contract method,” said Mike Kerr, Vice President. The company’s long, healthy lifetime is a result of attitude, ongoing efforts to improve, and most of all a belief that people form the foundation for everything Wilhelm Construction does.
Lessons Learned
Through the years, the company weathered many economic downturns. “After having been around 90-plus years, you learn to diversify your business,” Kenney said. “We’re a construction manager and a general contractor. We perform trade work. When one type of work is down, another type of work picks up and gets us through. The peaks and valleys aren’t nearly as bad as the contractors who only operate in one niche. We learned that the hard way.” The company strives to continue learn-
ing and improving. “One way we do this is through our involvement with peertype organizations,” Kenney commented. For instance, Wilhelm joined the Construction Industry Institute (CII), a national consortium of 130 owner, engineering-contractor, and supplier firms working together to enhance business effectiveness and sustainability through research and industry alliances. “We are likely one of the smaller contractors in the group,” Kenney said. “But as we attend CII’s conferences and partic-
Francis A. Wilhelm founded the company in 1923 with a commitment to quality work. He passed stewardship of that vision to his son, James “Tippy” Wilhelm, in 1974 when Tippy assumed presidency. Since 2001, the firm has been pushed to perform beyond industry standards by the third generation of the Wilhelm family, with grandsons Phil Kenney, President, and Chris Wilhelm, Vice President, supported by a strong management team.
N2 April 2014 Wilhelm Special Section.indd 2
17/01/15 15:47
Construction
ter Projects and a
ees and the Community By Julie Devine
ipate in several research committees, we are learning the larger companies experience the same struggles as anyone else.” Wilhelm Construction learned about drawing manpower in remote locations. “For example, as we do more construction management and travel further, we found in North Dakota there are very few people, subcontractors, or vendors there. We asked ourselves, how do we apply some of the lessons from CII?” Kenney explained. “Because the workload around central Indiana is dropping off rather quickly, some subcontractors are willing to travel. This helps us because we are familiar with their quality of work. Additionally, we ask other firms we know around the country about contractors who work in the upper Midwest.”
Eliminating Rework, Increasing Productivity Discussions within CII also led Wilhelm Construction to focus on the effect of rework. “Rework slows productivity,” Ken-
ney said. This benefits clients as well as the company. “Clients want to work with a firm that is most efficient with the least amount of rework, meaning when the work is done, it’s done the first time,” Chris Wilhelm said. Within the company, “We have already begun changing the culture,” he added. “We started in early 2014 and now it’s gaining momentum. It’s working.” The management team started the process by setting up cost codes for rework. “We capture the cost, but more importantly we can identify trends so we can look at how to fix them,” said Jay Watson, Vice President. “If we eliminate some of the unnecessary cost, the next time we bid an opportunity, we may be able to bid it cheaper.” To build momentum, “We started with one job, then two,” Kenney said. “We just keep preaching it, and employees see they aren’t going to be prosecuted because they made a mistake. We’re here
to get better and learn. We capture the cause of rework, the dollars associated with it, and the type of work. Then, we take those lessons and develop tutorials—here’s what the problem is and here’s how to fix it.” For example, Wilhelm Construction frequently went back to fix the concrete infill at pan stairs in multi-story structures. “They are tremendously hard to pour and finish properly,” Watson said. “We brought together Ryan Decker, our Corporate Quality Control Manager; our concrete finishing superintendent; and some of our key superintendents and layout personnel. The team brainstormed until they figured out how to do it the right way every time. For the last year or so, we have not experienced a problem on a single job with the quality of those stairs.”
Translating Productivity into Profits
“Having been around 90-plus years, you learn to diversify your business. When one type of work is down, another type of work picks up and gets us through.” Phil Kenney, President
Wilhelm Construction’s rework initiative leads to greater productivity, which
April 2014 N3 Wilhelm Special Section.indd 3
17/01/15 15:48
then translates into bottom-line benefits. “At the end of the day we want a finished product the owner is happy with. We hope to get there as efficiently as possible,” Kerr said. Throughout the company, “We’re trying to eliminate lost time, during the course of the day,” Watson said. “It’s about staging material, getting the correct amount of material there—not too much so you spend labor to move it out of the way two days later—but the right amount in the right place at the right time. Foremen need to have the answers and the information to efficiently build
N4 April 2014 Wilhelm Special Section.indd 4
17/01/15 15:48
WILHELM Construction
today’s task and tomorrow’s task and the next day’s task. It’s never as simple as picking up two pieces and putting them together; there are several pieces and you better pay attention to how it all fits together. Information is critical to being productive.” Other strategies also drive improvement. “With the assistance of representatives of Purdue University, for the past eight years we conducted studies on how to increase the actual productive time
during a day,” Kenney said. “On certain projects, we have doubled our productivity because we figured out how to get the information and the tools to people— where to set the toolbox, how to stage materials, those kinds of things.” The company also joined the Lean Construction Institute. “This is another investment piece,” Kenney said. “We have been through training sessions with the Institute representatives to streamline our processes. We are implementing this in our fabrication shops and out in the field.” To maximize bottom-line results, “We look at all the steps in our processes for construction, not just in the field but on the administrative side as well,” Watson said. For instance, “We get our corporate controllers together on a periodic basis to go over best practices,” explained Joe Cathcart, Chief Financial Officer. “We’re trying to be more efficient and eliminate redundant, non-value-added processes.” Many years ago, Wilhelm Construction implemented Viewpoint Construction Software, a fully integrated collaboration system, to increase productivity. “We’re getting as many of our daily processes as possible, from beginning to end—project management, accounting, estimating, job costs—integrated into Viewpoint to build on efficiencies and reduce redundancy,” Cathcart added.
Why Self-Perform? Wilhelm Construction remains one of the few firms to self-perform the majority of its work, which allows better control over site safety, productivity, as well as schedule and quality. “That’s how we started as a builder
and we’ll continue that process,” Kenney said. “We take a lot of pride in being able to build things and actually know how the pieces and parts go together. There’s very little we can’t do, that someone on our payroll doesn’t know how to do with their hands.” This efficiency provides resources whenever needed for a job. “We have carpenters, finishers, ironworkers, laborers, welders, sheet metal workers, and electricians all within a 100- to 150-mile radius of Indianapolis,” Chris Wilhelm said. “We can do just about anything for any customer at any time.” In addition, “As a construction manager, it helps we have people in the building who know how to build,” Kenney said. “This knowledge makes a project better when our teams can say, ‘Here’s a way to do it’ or ‘This is one idea to fix it.’” The ability to self-perform also provides assurance. “We had a project where
Morse Reservoir Water Treatment Plant
Construction Management:
“Through the Lens of the Owner” Though often viewed as a general contractor, Wilhelm Construction also leverages its experience and resources to provide construction management for a growing list of projects. As construction manager for the $6.5 million, 18,500-square-foot Alumni Hall on the Marian University campus in Indianapolis, “Wilhelm always looked at it through the lens of the owner—not only when it came to money and change orders, but in the product, the quality, and our expectations across the board for the building,” said Audra Blasdel, Marian University’s Executive Director of Facilities and Procurement. “No issue was too small. They treated this like it was their building and walked side-byside with me as the owner.”
Photo: Terry Wieckert
When last year’s wicked winter threw the project off schedule, “They made
sure we worked through every possible way to squeeze time out of that schedule,” Blasdel said. “They made sure everyone played a role in helping to get this building back on track. They made sure every subcontractor operated as a part of the team—and if they didn’t, Wilhelm corrected that behavior.”
Photo: Josh Humble
After the schedule setbacks, Alumni Hall opened in phases. “It was really important to us that when students came back to campus for that first day of class, they could come into the building,” Blasdel explained. “Wilhelm worked with us on some creative ways to achieve that goal. I always knew what was going on and I always received timely updates and progress reports. When I wasn’t around, I knew the project was in good hands. That level of trust is invaluable.”
Huntington Wastewater Treatment Plant – Photo: Steve Standifer
April 2014 N5 Wilhelm Special Section.indd 5
17/01/15 15:48
The Harmon Group of Companies
ON TIME. ON BUDGET. HIGHEST QUALITY. SINCE 1955
OVER 75 YEARS OF TOP QUALITY CONSTRUCTION.
FULL STEEL ERECTION COMPANY WITH OVER 25 YEARS EXPERIENCE.
Rich History. Positive Future. www.harmongroup.com
For bid opportunities, please visit “Project Links” on our website and fill out the Subcontractor Pre-Qualification Online Form.
N6 April 2014 Wilhelm Special Section.indd 6
17/01/15 15:48
WILHELM Construction flourished in the last few years with new customers and long-term clients calling us back again and again. Oftentimes those decisions aren’t based solely on the lowest number. People care about safety, quality, how quick it can be done, and as a company we’re known for getting things done on time.”
the owner wanted us to subcontract all of the work, but he appreciated the fact we could bring in our own employees if needed because it was in a remote area where labor might become scarce,” Kerr said. The company continues to diversify and expand its self-perform capabilities. “We recently purchased a collection of excavation equipment,” Kenney said. “This complements the other scopes of work we perform. Additionally, in the economic downturn, several excavation companies went out of business so there are not as many available to do work.” Five years ago, Wilhelm Construction began work in the public works sector with water and wastewater treatment facilities. “In one of our annual strategic planning meetings, we looked at the economic forecast for Indianapolis,” Watson said. “We came to the conclusion we needed to look outside our normal work activities as the pipeline was becoming very lean.” Wilhelm Construction doesn’t just tackle “big” projects. For more than 30 years it has provided maintenance services and small project construction for large pharmaceutical clients, power companies, and others. “These clients typically ask us to take a hand sketch or verbal communication and put a price to it,” Watson said. “Once funds are approved, then we perform the work as a general contractor. We have carpenters, laborers, brick masons, and ironworkers there continuously to perform the work.” In addition, the company offers a special Resource Group led by Brian Keith, Operations Manager. “The group’s complete focus is on projects from $500 to $5 million,” Watson said. “It has really
done that time and time again,” Cathcart said. According to Kenney, those companies now perform more work for other contractors than for Wilhelm Construction. Still, having those resources available reassures clients. “They like that they can call one contractor and have all these
“We take pride in being able to build things and actually know how the pieces and parts go together. There’s very little someone on our payroll doesn’t know how to do.” Phil Kenney, President
Branching Out In addition to construction management, general contracting services, and the in-house capabilities, Wilhelm Construction developed four affiliates: Freitag-Weinhardt, Inc., in Terre Haute, Indiana; Poynter Sheet Metal, Inc., in Greenwood, Indiana; Midwest Balance + Service in Indianapolis; and Industrial Electric, Inc., in Indianapolis. “Any time we start a new entity we have to prove that we use the best price—not necessarily our own price—and we have
April 2014 N7 Wilhelm Special Section.indd 7
17/01/15 15:48
2014 Awards • ENR Top 400 Contractor (ranked #116, up from #122 in 2013)
• Top Notch Indiana Contractor of the Year
• Indiana Subcontractors Association General Contractor of the Year
The company’s concern for employees began with its roots as a family business.
www.sexsonmechanical.com
Thank You, F. A. Wilhelm, For Making Us and Our Industry Better We are grateful to F. A. Wilhelm Construction Company for the support and guidance provided to us for over three years as our mentor in the Indiana Construction Roundtable Mentor-Protege Program. F. A. Wilhelm’s professional assistance improved all of our operational areas and made a significant difference in our growth.
SEXSON MECHANICAL CORPORATION
1001 Commerce Parkway S Drive - Greenwood, IN 46143 Phone: 317-884-0010 N8 April 2014 Wilhelm Special Section.indd 8
17/01/15 15:48
WILHELM Construction and piping; we have our own steel fabrication shop in Indianapolis,” Kenney said. “When you do it in-house, you can better control quality, delivery, and safety. If necessary, we keep the fabrication shop open overnight fabricating something we need in the morning. Controlling the process makes it more efficient.”
A Culture of Safety In all parts of the business, Wilhelm Construction focuses on safety. As a charter member of the Metro Indianapolis Coalition for Construction Safety (MICCS), “We are committed to doing whatever it takes; we wanted to lead the pack on safety,” Chris Wilhelm said. “It’s not a new way around here—it’s the way. When I arrive on a jobsite, the first thing I look at is safety. Are the hard hats on? Are the glasses on? Are the ladders upright?”
services under one contract rather than having to worry about nonperforming subcontractors,” Kenney said. “Clients also know that if we have a subcontractor that is not performing, we can bring
“By reducing inefficiency, we save our clients money and make our services more affordable.” Jay Watson, Vice President of Operations
in our own personnel. They get the best of both worlds.” The affiliate companies often help with fabrication. “We have fabrication shops for electrical systems, sheet metal,
We Salute F. A. Wilhelm Construction and Thank Them for Letting Us Earn Their Business
2925 N. Mitthoeffer Place • Indianapolis, IN 46229 • Tel. 317-898-1172 • Fax 317-898-1185 • www.jamesbabcockinc.com April 2014 N9 Wilhelm Special Section.indd 9
17/01/15 15:48
Parking Garages:
Improving Function and Budget
As part of their diversified offerings, Wilhelm Construction continues to build parking garages. “There are not many contractors around the country that build cast-in-place garages,” Kenney said. According to Jim Crossin, Vice President of Development for Indianapolis-based Flaherty & Collins Properties, “They’re the best at providing input into the function and how to build the parking garage within budget. We’ve never built a garage locally that Wilhelm didn’t do.”
Most recently, Wilhelm Construction worked with Flaherty & Collins at the Axis building in downtown Indianapolis and The Depot at Nickel Plate in Fishers. “I find every aspect of working with Wilhelm to be very rewarding and professional,” Crossin said. “Their people have great experience and they always deliver the project on time and on budget.” During the pre-construction stage, “They help us review the design team’s drawings and steer the design in a fashion that the project can get built within budget,” Crossin said. “Their ability to drive a schedule when we’re under construction and consistently come up with good value engineering ideas throughout the whole process makes them a critical member of our team.” For the OneAmerica parking garage and pedestrian bridge developed by
Flaherty & Collins in downtown Indianapolis, Wilhelm’s value engineering included a revised façade system that saved money and time.
During the quality review process for that structure, Wilhelm worked closely with Walker Parking Consultants in Indianapolis, the firm providing functional design and consulting. “Larry Arthur, [Wilhelm’s Assistant Quality Assurance Manager] was very helpful,” said David Wilken, P.E., Walker’s Project Engineer. “We got a better quality job because of that process and Wilhelm’s attentiveness to that.”
N10 April 2014 Wilhelm Special Section.indd 10
17/01/15 15:48
WILHELM Construction The company provides any needed support. “We never tell anyone, ‘We can’t afford to buy you a harness; bring your own,’” Wilhelm said. “If a job requires steel-toed boots and someone doesn’t have the money, we pay for the boots.” Safety became part of every person’s job. “We spend a lot of time emphasizing a safety culture in our office, on our jobsites, and at home,” Kenney said. “This isn’t something that stops at 4:00.” With Kenney setting the focus at the top, safety trickles down to all levels. “Management watches our leading indicators and safety record stringently and
Many spend their
entire career
at Wilhelm Construction.
April 2014 N11 Wilhelm Special Section.indd 11
17/01/15 15:48
“We are committed to doing whatever it takes; we wanted to lead the pack on safety. It’s not a new way around here—it’s the way.” Chris Wilhelm, General Superintendent
Carmel Water Treatment Plant
N12 April 2014 Wilhelm Special Section.indd 12
17/01/15 15:48
WILHELM Construction In addition to the family atmosphere, the company maintains
a legacy of helping others.
we communicate to our field staff how we’re doing throughout the company,” Kerr said. “We employ several specially trained safety managers. Superintendents know it’s important and it goes into how they are evaluated. It affects their bottom line and it affects our bottom line.” Why? “First of all, it’s the right thing to do,” Kerr said. “We want people to go home safely. Having a safe, clean jobsite helps with productivity, too.”
We Thank
Together making Indiana a safer place to work.
April 2014 N13 Wilhelm Special Section.indd 13
17/01/15 15:48
N14  April 2014 Wilhelm Special Section.indd 14
17/01/15 15:48
WILHELM Construction Still a Family The company’s concern for employees began with its roots as a family business. “As you grow, it can be hard to keep the family atmosphere, but we still try to hold onto that,” Kenney said. “We support our employees because we’re only as good as our people. That’s a carry-over from my uncle who ran the business before me, as he always took good care of the employees. Whether it is an incident where a spouse gets sick or the employee needs time off due to their own illness, we help them through that period. If there’s an economic downturn, instead of layoffs we try to keep workers doing something just to retain good people. This is how we have kept so many employees here 20, 30, even 40 years.” Many spend their entire career at Wilhelm Construction. “There are several people who have been at Wilhelm since they started in construction,” Wilhelm said. “We’re really one big family. We lean on each other like we do brothers and sisters.” Turnover rates remain low, “And it’s typically through retirement,” Cathcart said. He attributes that to a number of factors. In addition to the family atmosphere, “We have the ability and opportunity to build landmark projects, which is satisfying to our employees.” The company also provides a solid benefits package and keeps working to improve it. For example, last summer they offered office employees an option to work four nine-hour days and four hours on Fridays. “If you wanted to, you could leave at noon on Friday to get an early start to your weekend,” Kenney said. Treating people like family extends beyond employees. “We set the bar high on our interactions with subcontractors and trades, so they want to do business with us,” Kerr said. “We treat them fairly. We’re open and honest. We take pride in making our projects successful for everyone—the owner, Wilhelm, our subcontractor, and the people working on them. If they’re successful, we’re successful.”
Repaying Community In addition to the family atmosphere, the company maintains a legacy of helping others. “We emphasize community support because many of these organizations touch employees or their family,” Kenney said. Wilhelm Construction regularly supports United Way, Wheeler Mission Ministries, Race for the Cure, BackPack
Attack, Habitat for Humanity, the Rebuilding Together neighborhood program, and many other organizations. The company’s own initiative, Wilhelm ACTS (Actively Contributing Through
Service), provides home modification services for wounded service men and women returning home. The annual Wilhelm Construction Volunteer Day, employees are permitted time off work to give back to an organization of their choice. “We really support our employees getting involved in the community,” Kenney said. “If they need to leave a little early to be a coach or volunteer, that’s fine.” After more than 90 years doing business in Indiana, “It’s about being a good steward to our community because the community has been good to us,” Kenney said.
“We honor our commitments regardless of circumstances.” Mike Kerr, Operations Manager and General Counsel
April 2014 N15 Wilhelm Special Section.indd 15
17/01/15 15:48
Wilhelm page
N16  April 2014 Wilhelm Special Section.indd 16
17/01/15 15:48