Spring 2013 Built for Good Newsletter by Walbridge

Spring 2013

BUILT FOR GOOD

Our Automotive History 5 Keeping Metals in Play 7 Benefits of ISO

BUILT FOR GOOD FROM ‘A’ TO ‘ZF’ DURING THE PAST CENTURY, FEW COMPANIES have constructed as many auto manufacturing facilities as Walbridge. BMW, Chrysler, Ford, GM, Mercedes-Benz, Nissan, Toyota and Volkswagen design, test and/or craft their newest motorized creations in facilities we built. Our latest achievement is ZF Group’s shiny new transmission plant in South Carolina. When car makers and tier-one suppliers demand quality construction and on-time delivery, the choice is as simple as a, b, c.

WE ARE WALBRIDGE

AND WHAT WE BUILD STANDS FOR SOMETHING.

ZF Group’s new transmission plant in Gray Court, S.C.

walbridge.com 2 I Built For Good

BUILT FOR GOOD SM

builtforgood.com

This Issue

From our leadership

Enabling sophistication at home

Choosing the right path

Heavy metal at Ford Dearborn

Still driving the auto industry

Re-charging Detroit

A sense of order

What we’re building

Cover: Cars parked inside the Hudson Motor Car Company’s Showroom, built in 1929 Built For Good is a publication of the Walbridge Group, Inc. Forward any comments or questions to Mark Marymee at mmarymee@walbridge.com © 2013 SM

Built For Good I 3

From our

leadership

s Walbridge prepares to celebrate its centennial in 2016, we are compiling a list of key projects completed during our first 100 years and its long term impact on our company. It’s a long list filled with work performed on behalf of automakers and tier-one auto suppliers. We were founded by George Walbridge and Albert Aldinger in 1916 in Detroit, but neither one had any auto experience. Earlier in the decade, Walbridge oversaw construction of the Michigan Central Station for the George B. Fuller Company, and Aldinger had ties to bankers and financiers and pursued bank and office projects. However, these two experienced engineers were also savvy businessmen and they quickly changed gears and realized the opportunity in the fledgling auto industry. As you’ll read later in this issue, they started constructing for Fisher Body in 1917. Over the next 96 years, Walbridge remained steadily engaged in building multiple facilities for BMW, Chrysler, Ford, General Motors, Honda, MercedesBenz, Nissan, Toyota and Volkswagen. We’ve helped our auto clients expand internationally, building for Ford in India, Toyota in Canada, Chrysler and GM in Mexico, and various customers in Brazil. We thrived on the complexity of these large projects. We pushed ourselves and others for world class delivery, cost and quality so automakers and suppliers could in turn bring their products to market as quickly as possible, thus gaining tremendous marketing and ROE advantages. One auto project that caused pause for introspection was our very first engine plant for Toyota in 1986. By all metrics, safety, cost, schedule and quality we considered it to be a success. Rick Haller, our president, and I looked forward to receiving high praise from the Toyota executives when we met for a post-project review. Wow, were we surprised when they told us that while we did a very good job, we could have done better in six key areas. Driving back to Detroit together we were concerned, even upset. Didn’t Toyota understand the level of our effort? After internalizing the review over the weekend, my attitude began to change. I realized there was great value and opportunity in what Toyota shared about continuous improvement, quality and process control. That feedback resulted in many positive changes, including how we valued honest feedback as an opportunity for improvement. Working in the auto industry has been critical to Walbridge’s overall success. It raised the bar. We’ve developed and fine-tuned processes that have helped us deliver exemplary results time and time again. It has also helped set our high standards for customers in highereducation, health care, government, aviation, industrial process and commercial sectors. This process of internalizing feedback has significantly contributed to our growth into a world-class provider of construction and facility services. John Rakolta, Jr. Chairman and CEO Walbridge | Detroit, Michigan

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Exterior of new TEMF at Fort Bliss Interior training facilities

Interior TEMF maintenance bays

Interior training facilities

Enhancing defense at home Facilitation is good.

Military vehicles parked outside new TEMF

ith a design-build portfolio containing three dozen tactical equipment maintenance facilities (TEMFs), government clients know Walbridge has what it takes to construct failsafe structures – especially those used to maintain machinery that can save lives. While simple in appearance, TEMFs enable some of the world’s most sophisticated engineering. Walbridge recently built three for the U.S. Army Corps of Engineers at Fort Bliss in west Texas, one of which is facilitating development of a defense system that can thwart enemy artillery with pinpoint accuracy. At a time when demand for such systems is elevated, timely completion of the installation’s new Terminal High-Altitude Area Defense (THAAD) TEMF was imperative. We take that type of request very seriously. For the $52.5 million Fort Bliss project, Walbridge and Michael Baker, Inc. design-built three medium TEMFs totaling roughly 106,000 square feet. The completion of THAAD was of primary importance, as it supports a long-range missile defense system designed to launch from military vehicles and destroy identified targets. As construction of THAAD began wrapping up, Walbridge began constructing the Joint Land-Attack Cruise Missile Defense Elevated Netted Sensor System (JLENS) TEMF and then the Sustainment Facility. All three TEMFs are relatively identical in size and boast a dozen maintenance bays each.

In addition to building the three new facilities, Walbridge also laid roads, installed lighting and signage, and built support facilities. The THAAD-JLENS-Sustainment TEMFs required more than 1 million square feet of hardstand placement and 230,725 hours of labor. The entire project was completed in December 2012 with zero recordable safety incidents. A requirement to use the Fort Bliss utility provider for installation of the sites’ utilities meant the project team had to build each TEMF individually, as opposed to constructing all three simultaneously. Walbridge and its team developed good rapport with the installation’s provider up front, allowing for efficient correspondence and quick site turnovers. The synergy contributed to a smooth and seamless completion. Walbridge built the three new TEMFs at Fort Bliss to meet LEED® Silver certification through the U.S. Green Building Council’s Leadership in Energy and Environmental Design Program. Built For Good I 5

Tops of Ash Stevens’ three new reactors

Choosing the right path Precision is good.

sh Stevens, a privately-held active pharmaceutical ingredient (API) manufacturing company, celebrated 50 years in the industry in 2012. That’s the same year the company expanded operations at its headquarters in Riverview, Mich. The expansion not only doubled Ash Stevens’ capacity for developing oncology drug APIs, but it also allowed the company to increase staffing by 10 percent. Walbridge served as construction manager of the 4,000-square-foot, $12 million expansion project. It required fitting out a wing of Ash Stevens’ existing facility, removing a 600-square-foot piece of concrete roof, installing specialized (and extremely expensive) equipment, lengthening existing structural steel framing so everything would fit, and then replacing the section of roof – all while allowing Ash Stevens to continue day-to-day operations. To accommodate the company’s increased capacity, Walbridge installed three, multi-ton reaction vessels with capacities of 2,000, 3,000 and 4,000 liters, respectively. The team also installed a 1.5-square-meter filter dryer, as well as several pieces of other process equipment. Doing such installations within such a small footprint is what’s most remarkable about the project. 6 I Built For Good

Crane lifts portion of roof to place on wooden cribbing

Portions of platforms were built prior to equipment installation and assembled in a way that allowed for seamless placement. In addition, a 1,000-pound material lift was installed near the new reactors to ergonomically transport material between the second-floor platform and the facility’s ground level. More than a mile of piping was installed to inter-connect Ash Stevens’ new equipment.

Underside of new platform and reactors

New filter dryer

New reactor

The ceiling over the reactor platform area had to be raised six feet to accommodate the new equipment, and removing a 26-ton portion of the structure’s roof was the best solution to get the work done. While the roof section was removed, steel workers increased the height of the wing’s existing structural frame; as planned, the opening created a direct path for lifting the new reactors into the building. When the reactor installation was completed, Walbridge put the roof section back in its place. Before the roof section was removed, a massive wooden cribbing was built onsite to hold it using 16-foot-long, 12-by-12 pieces of timber. Because the cribbing took up so much space, Walbridge had to calculate down-to-theminute, just-in-time delivery of all the new equipment, materials and cranes. The reactors were taken directly from delivery truck beds and safely put into place just as trucks delivering the heat exchangers were pulling into to the jobsite. In just 13 months, Ash Stevens’ capacity went from producing API batch sizes of 1,600 gallons to batches of 3,800 gallons – a substantial increase yet within the same, tiny footprint. Walbridge completed the job in January, just in time for Ash Stevens to begin commissioning and preparing for the production of a new cancer therapy medication. Reactor being lifted into renovated wing Built For Good I 7

Heavy metal reuse is good.

8 Stamping I Built For Good Dearborn Plant renovation jobsite

arge sections of Ford Motor Company’s massive Dearborn Stamping Plant were demolished for its recent renovation, requiring the removal of heavy equipment, steel plating and trusses, and pieces of the structure’s roof and floor. Years ago, that stuff was considered construction waste. Now it’s worth something. By the end of 2012, Walbridge had recycled more than 9,400 tons of steel and nearly 60 tons of copper from the jobsite. And by recycled, we mean hauled those materials to facilities that stripped it of paint and debris, processed it, and then sold it to mills to be rolled into sheets of steel for use in new automobile manufacturing.

recycled 9,400 tons of Steel 60 tons of Copper

“

Crews work to salvage metal at Dearborn Stamping

If you’re getting a vehicle built in Dearborn in 2013, you’d see some of that steel came from our recycling program.

- Todd Harris, Ford Land Senior Project Manager

Walbridge is serving as construction manager on the renovation of Dearborn Stamping, a premier production facility at Ford’s Rouge Complex in southeast Michigan. It’s been in operation since 1939. Ford’s corporate blueprint for sustainability promotes environmental stewardship at jobsites. So before renovation work began at Dearborn Stamping, Walbridge developed

a system for separating materials, and then integrated recycling activities into construction operations. When the 632,000-square-foot renovation is complete (November 2013), the modernized plant will again produce vehicle parts for Ford. “On a project like this, it’s important that we bring in a partner like Walbridge early on,” said Ford Land Senior Project Manager Todd Harris, who spoke of the project during a WJRAM radio interview with Dr. Kirk Heinze. “We’ve taken over 114 million pounds of steel out of the building, including structural members and old production equipment, and put them back into the recycle stream,” Harris said. Valuable copper and aluminum have also been recycled, some of which will end up in wiring and other parts to be used in Ford products. As Henry Ford watched the steel frame of his new Dearborn Stamping Plant go up in the late 1930s, it’s probably safe to assume he didn’t imagine that same steel would end up in his company’s vehicles one day. We like to think he’d be proud. Built For Good I 9

Still driving the auto industry evolution is good.

Walbridge built facilities that helped revolutionize the automobile industry in America and in countries around the world. We’re proud of that history, and of the relationships we’ve built along the way. Making history

George Walbridge and Albert Aldinger combined forces and founded Walbridge-Aldinger (now Walbridge) in Detroit in 1916. It wasn’t long afterwards the company began constructing some of the automobile industry’s greatest manufacturing houses. Fisher Body Corporation was the company’s first major automotive manufacturing job – project No. 17, according to Walbridge’s historical project list. Construction began in 1916 on what became a 40-building, 3.7 million-squarefoot complex that, in part, made up what’s now known as the Piquette Avenue Industrial Historic District in Detroit. By 1919, Fisher Body had a production capacity of 370,000 bodies a year. Its customers included several of today’s most well-known auto brands – Ford, Chevrolet, Cadillac – as well as Packard and Studebaker. Though originally constructed to manufacture airplane engines, the Lincoln Motor Company plant on Warren Avenue

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Lincoln Motor Company, Detroit, Michigan

in Detroit came next – project No. 31. Construction began on the 600,000-square-foot manufacturing facility in 1917. It produced World War I Liberty fighter engines until the war ended and was eventually converted to produce luxury automobile engines. In 1922, Walbridge was hired again (this time by Henry Ford) to expand the plant by 300,000 squarefeet. The Lincoln Zephyr and Continental were manufactured there until 1952.

High profile

The automotive sector is what spring-boarded Walbridge from an 80-person company into what it is today. It happened in the ’70s and ’80s, toward the end of which

nearly a decade

as top Auto-plant Contractor

$5.6 billion In Automotive Contracts

from 2002-12

ENR’s No. 3

GLOBAL

Automotive Contractor

dozens of

$100 million Automotive Projects

Coming full circle

Over the years, Walbridge has built an impressive resume in the automotive market with power train and stamping facilities, axle plants, paint shops, research and development centers and test tracks, as well as with conversions and expansions of existing facilities – many of which we originally built.

CTC Center, Auburn Hills, MI

Ford Kentucky Truck Plant

Ford Heritage Program, Green Roof

Chrysler Phoenix Engine Plant

Walbridge began construction on its most notable automotive project yet: Chrysler Group’s World Headquarters and Technology Center (CTC) in Auburn Hills, Mich.

international opportunity for our growing company. For that, the Chennai Assembly Plant is Walbridge’s most significant international automotive project to date.

In fact, CTC was a game changer for Walbridge. The fourphase, $900 million program began in 1986. And during the 12 years it took to complete, the program literally funded everything Walbridge did. Building our experience, portfolio and staff, it allowed us to continue pursing high-profile automotive projects, such as the Ford Heritage Program. Beginning in 1999, Walbridge brought more than 2 million square feet of new facilities, sustainable upgrades and new infrastructure to the historic Ford Rouge Complex in Dearborn, Mich. After that came the General Motors’ Bundled Paint Shops program in 2005, which was the single largest order placed by GM Worldwide Purchasing for paint shop capital investment. The $870 million program brought new paint shops to the auto giant’s manufacturing complexes in Oshawa, Ontario; Lordstown, Ohio; and Delta Township, Mich.

Evolving in responsibility

Across the pond

In the late ’90s, Walbridge proved to a major client that it could build the same quality manufacturing facilities overseas. Working through cultural challenges, Walbridge brought to an area starved for work the 720,000-square-foot Mahindra Ford India Chennai Assembly Plant. The project put local labor to work, allowed an American company to manufacturer a new product (the Ford IKON, designed and engineered especially for India), and it opened up a world of

Just like the vehicles they produce, manufacturing facilities have evolved – and so has the way we build them. In 2009, the 850,000-square-foot Chrysler Phoenix Engine Plant we built in Trenton, Mich., became the first of its kind to be LEED® certified. Today, it’s among few automotive manufacturing facilities to hold the certification of LEED® Gold, which is the second-highest certification issued through the U.S. Green Building Council’s Leadership in Energy and Environmental Design program. At the time of the Ford Heritage Program, Walbridge was responsible for building the world’s largest green roof – stretching 454,000 square feet – and the world’s largest porous pavement storage basin at 10 acres. These are among a laundry list of Ford Heritage project features that helped the automaker meet long-term sustainability goals. Among our portfolio of 24 LEED®-certified projects, 11 have been built for automotive clients and four of those are LEED® Platinum certifications for Walbridge projects at Volkswagen’s Assembly Plant in Chattanooga, Tenn. Read more about our automotive experience >

Built For Good I 11

Re-charging Detroit renewal is good.

he city of Detroit is abuzz with resurgence, and we’re excited to be a part of the action.

Roxbury Group recently hired Walbridge to renovate and restore the 98-year-old David Whitney Building. Blocks up the street from our world headquarters, at the gateway to downtown Detroit, efforts are underway to bring a 130-room boutique hotel, 100-unit apartment complex and modern retail space to the historic, 19-story building. The Whitney Building opened to an emerging, wealthy Detroit in 1915 as a retail and professional building characterized in part by its stunning, four-story atrium lobby. It was one of the city’s first major mixed-use facilities. The building’s last tenants moved out in 2000 and it sat empty until this year. Whitney Partners, LLC – made up of Detroit-based Roxbury Group and hotel group Trans Inns Management – and Walbridge were lauded by the Detroit Economic Growth Corporation, Bank of America Michigan, the Downtown Detroit Partnership and Michigan Gov. Rick Snyder during a construction kickoff event in March. The $82 million project is being touted as an important piece of the effort to energize downtown Detroit. Not far away, along Detroit’s east riverfront, Walbridge is also renovating the historic Globe Building – another Roxbury Group redevelopment. Built in 1860 to house the Dry Dock Engine Works, the Globe was formerly utilized as a maintenance center for Great Lakes Shipping. The $12.8 million redevelopment will transform the Globe into the Michigan State Department of Natural Resources’ Milliken State Park Adventure and Education Center. The project supports initiatives to remake the Detroit Riverfront as a yearround place to live, work and play.

Atrium covered lobby inside the Whitney

Michigan Gov. Rick Snyder

Lobby of the Whitney

The new center will feature a climbing wall, kayaking simulator and a variety of other hands-on activities, including archery and ziplining. The hope is for the center to become a fun-and-fitness destination for families and visitors of Detroit.

Rendering of future Milliken State Park Adventure Center

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Walbridge is taking measures to restore certain historic elements at both buildings. For example, the 150-year-old Globe is an example of early structural steel construction, so Walbridge is working to preserve the majority of its original steel framing. For the Whitney redevelopment, Walbridge will restore marble floors, corridors and walls, elevator fronts, some existing windows and most of the existing doors.

Romania

Walbridge

ISO 9001

among top three countries for

Growth in 4 different ISO certifications

certified since 1998

ISO 9001

certifications issued in

180

countries

Italy

top country for

Growth in iso 9001 More than

1.1million ISO 9001 certifications issued worldwide

A sense of order Quality is good.

t would seem to be a huge challenge for a company to guarantee the same level of quality to each customer when the finished product is rarely one and the same. But, with a system that provides structure to consistent practices while allowing for flexibility to address changes dictated by the nature of a client’s needs, it’s really no challenge at all. Walbridge’s Quality Management System was created following guidelines provided by ISO (the International Organization for Standardization), a non-governmental publisher of international standards. This means our idea of quality is in line with more than 1 million other certified organizations across the globe, regardless of whether we’re constructing a medical school in Michigan or a manufacturing plant in Mexico. ISO certification is voluntary. It’s based on the compiled standards of various industry bodies in the form of guidelines that reinforce procedures for quality and efficiency. Each year, audits conducted by ISO professionals make sure products are living up to procedures pledged by a certified company. This provides discipline and structure, promotes good business practices, and it means something to our customers, which means something to us.

china Issued the most ISO 9001 certifications

“

certifications

ISO means you say what you do, you do what you say, and you prove it.

- Susan Pogrmich, Walbridge Senior Manager of Lean, Quality and Sustainability

“International customers might not know Walbridge, but they do know ISO. It’s an international language that speaks volumes to our expectation of quality,” said Susan Pogrmich, Walbridge’s Sr. Manager of Lean, Quality and Sustainability. It was an automotive client that prompted Walbridge to pursue ISO certification back in 1998. At the time, Walbridge was the first North American construction company of its size to achieve the designation. This year the company celebrates its 15th consecutive year of maintaining ISO certification. Walbridge employees appreciate the sense of order offered through the company’s Quality Management System, which offers nearly 100 years of best construction practices in one manual. It allows our project teams to focus on a customer’s needs instead of on creating a separate set of quality standards for each new jobsite. Truth is: Walbridge would have its Quality Management System in place regardless of having the ISO certification, and our clients would still receive the highest-quality services available. But to us, even if that certification means something to just one customer, it’s worth having.

Top: Stats based on a 2012 ISO survey of certifications issued in 2011 (www.iso.org) Built For Good I 13

What we’re building Recently Awarded

Getting Started

Underway

Wrapping up

Ford Kansas City Assembly Plant (KCAP)

Boeing Fuselage Paint Building

Ghayathi Community Hospital

Mercedes-Benz U.S. International

Walbridge was awarded construction of the Material Sequencing Center (MSC) at Ford Motor Company’s Kansas City Assembly Plant (KCAP) in March. For the project, Walbridge is design-building the new 347,500-square-foot MSC, as well as constructing a new 500,000-gallon firewater storage tank and pump house, a new trash facility, 250,000-squarefoot finish vehicle parking area, and a six-bay (15,000-square-foot) addition at the recently construction Kansas City Integrated Stamping Plant.

Walbridge is expanding and renovating the Boeing Fuselage Paint Building in Charleston, S.C. The project includes adding a new paint line with two new booths, bringing upgrades to the facility’s existing booths, and new water wash down and improved HVAC systems for all booths. Work is being done around Boeing’s existing day-to-day operations of painting 85-foot-long midbodies, 40-foot aft sections, wings and fins. Walbridge broke ground in February 2013. Completion is on track for March 2014.

The Amana | Walbridge Joint Venture is approaching its first major milestone of placing all concrete structures for the five multi-story buildings that make up the new 468,230-squarefeet Ghayathi Community Hospital in Abu Dhabi, UAE. To date, more than 18,385 cubic yards of concrete have been placed and more than 399,000 cubic yards of earth have been moved for the job. Mechanical, electrical and plumbing installations began May 5. Project completion is slated for September 2014.

As construction managerat-risk, the Walbridge | Amason Joint Venture (WAJV) was tasked with 490,500 square feet of body shop, assembly plant, paint shop and supporting facility expansions and additions; and 823,000 square feet of body shop and assembly plant retrofitting at MercedesBenz U.S. International in Vance, Ala. The WAJV turned over the body shop for process occupation first with final completion expected May 31. Turnover of the entire project is scheduled for October.

People Executive Promotions

albridge recently announced the promotions of four of the company’s most influential people. Combined, these executives possess more than 120 years of construction industry experience.

Mike Haller, President of Walbridge’s Industrial Group Haller began as an intern at Walbridge in 1973. He is involved with virtually every aspect of the construction process.

Vince DeAngelis, Executive Vice President/CFO DeAngelis has been with Walbridge for 25 years. He oversees all corporate support functions and manages all non-direct construction services for Walbridge.

Randy Abdallah, Executive Vice President Abdallah has been with Walbridge for 15 years. He oversees more than $1 billion in new domestic and international construction contracts annually.

Tom Dyze, Group Vice President/General Counsel Dyze has been with Walbridge for 17 years. He oversees the company’s corporate legal counsel.

Special Acknowledgements John Rakolta III Michigan Gov. Rick Snyder appointed John “JR” Rakolta III, business development director for Walbridge, to the State of Michigan Economic Development Corporation’s Talent Investment Board.

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Ronald Hausmann, P.E. The Associated General Contractors of America reappointed Ron Hausmann, executive vice president at Walbridge, to its Corps of Engineers and Naval Facilities Engineering Command committees.

Kent DeRusha The Project Management Institute formally certified Kent DeRusha, senior project manager for Walbridge, as a Project Management Professional (PMP). He attained certification in March.

Awards

Walbridge has consistently received recognition from local, regional and national organizations for its projects, safety performance, employment and diversity practices. We see these awards as a testimony to the quality and integrity of our work. Build Michigan Awards Of the 14 companies that submitted in this year’s competition, Walbridge was the only organization to receive two 2012 Build Michigan Awards from the AGC of Michigan. Walbridge was presented the 2012 Build Michigan Award for New Construction for its work on the BAE Systems Land & Armaments Complex in Sterling Heights, Mich., and a 2012 Build Michigan Special Recognition Award for the Walbridge Joint Venture’s work as program manager on the $500.5 million Detroit Public Schools Capital Improvement Program.

AGC 2013 Willis Construction Safety Excellence Award

Michigan Outstanding Safety Performance Award

Walbridge took second place in the Associated General Contractors (AGC) national 2013 Willis Construction Safety Excellence Award competition in the Construction Management Division for more than 500,000 hours worked. This year’s ceremony was held March 9 in Palm Springs, Calif.

Walbridge was presented a Michigan Outstanding Safety Performance Award from the AGC of Michigan Feb. 22. It’s the fifth consecutive Outstanding Safety Performance Award the company has received from AGC of Michigan. The event was held in Battle Creek, Mich.

Connect with us:

Randy Abdallah, Executive Vice President 866.331.6585 | rabdallah@walbridge.com

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