1974-1984

Having observed our 50th year in 1974, a reception was held at the Detroit Athletic Club to toast this golden anniversary and some amazing achievements. The first 50 years produced in excess of $1 billion of projects.

Robert C. Mair, who had served very ably as a Director and Treasurer of the Company, tenured his resignation in June of 1975. Ben C. Maibach III was named Executive Vice President and elected a Director; here was planted another seed to promote and insure the continued growth and stability of the Company. I was elected Chairman of the Board, and Rollie Wilkening was appointed President.

Another milestone was reached when revenues exceeded $108 million and the return on equity was over 30%. To handle this increased volume, in August of 1976, Floyd Wieland was elected Senior Vice President; William Dryburgh, the Project Manager on the Pontiac Silverdome, was named Vice President; and Thomas Brady was appointed Director of Marketing.

One objective that had been achieved was diversification of services. Industrial projects made up most of our volume and our health care division continued to grow. Contracts in hand included several office and high rise projects and a few water filtration and sewage treatment plants. A Special Projects Division was established for the construction of stadiums and arenas.

The position of Director of Community Relations was filled by Bernie Webb to further strengthen the Company’s policy of fair employment practices to all people, regardless of race, creed or sex.

An analysis of Mead & Mount of Denver revealed that it was not essential to our progress and the Board directed the phasing down of the operation and incorporating their endeavors into the parent company. This phase out was completed in 1977.

In recognition of our need for an in-house counsel, Eugene Twitchell was hired. Obviously we were living in a litigious society and it was wisely understood that "an ounce of prevention is worth more than a pound of cure."

Also in 1977, Thomas Madden, who had been with the Company since the early 1950’s, was elected Assistant Vice President to assist in field operations, and Mark Bahr was named Treasurer and elected a Barton Malow Director.

1979 was a banner year with revenues reaching $133 million. Floyd Wieland retired on May 31, 1979, and Tom Brady was elected to the office of Vice President in December of 1979.

Sadly, on October 19, 1979, Carl Barton, the father of our Company, died at the age of 82. During his lifetime he made outstanding contributions to the community and our Company. I will never forget his kindness, wisdom and consideration for me personally, and how it has impacted my life in unfathomed ways.

The Board of Directors determined that it was necessary to continue to pursue work beyond Michigan. The impact of foreign automobile competition impacted automotive work. We were grateful to see the Health Care Facility Group expanding to make up for the loss of volume. The firm continued to move forward as one of the leaders of our industry.

The subsidiary of Barton Malow Pontiac was established to allow us to be a partner in the Downtown Pontiac Development Company and the Phoenix Center project was a major part of that plan.

The Company has continued the practice of employment agreements between senior officers established by Mr. Barton and Mr. Malow. Rollie Wilkening and I established a buy and sell agreement to provide for an orderly transition of authority, direction and stock control of the Company when Rollie retired. This proved to be a very wise decision and we are grateful for the recommendation and advice of our legal and accounting firms.

During this time as Chief Executive Officer, I was required to consider a difficult decision — how could we provide continuity of operations, including how we might have the financing necessary to carry on a growing workload and the essential bonding of those projects.

Unsolicited, we received two inquiries for the possible purchase of my controlling interest. First was the Dumez Company from France, one of the largest international contractors. Their desire was to have an operation in the United States and to make a major investment. The other was the Parsons Corporation of California, who wanted to get a foothold in the industrial market, particularly the automotive industry. Both firms were impressed with our workload and profile of accounts. Both would have been willing to pay premium for controlling interest. Several meetings were held to investigate the possibilities that a sale might have, first on our employees and clients and then on my family and myself. After several family conferences, one chief factor came to the forefront. Our great concern was that change in ownership might drastically affect career opportunities for our dedicated and conscientious employees. The philosophy of C.O. Barton and Arnold Malow helped make the decision. In spite of the potential for my immediate personal gain, we decided to keep the management and ownership within the established structure and practice.

In the 1980’s, several factors were evident; many of the old line companies who had been our competitors, either closed their doors or merged with others and a few, unfortunately, had gone bankrupt. A worldwide recession loomed about us and the industry was suffering a decline and profits were dropping. There was a general degree of pessimism but, by the grace of God, Barton Malow continued to forge ahead. Barton Malow had another banner year in 1980. Revenues were over $165 million and return on equity was 25%.

Mark Bahr was appointed Vice President, Mike Ferber (who was the chief CM estimator) was appointed Assistant Vice President and Chief Estimator and Bruce Sinclair (a project administrator) was named Vice President. On June 1, 1980, Donna Hartzler, who had been my executive secretary for 15 years, was elected to the office of Assistant Secretary of the Company’s Board of Directors.

After having completed the General Motors Assembly Division World Headquarters, we were honored when GM awarded us a construction management contract for the Orion, Michigan, assembly plant. This 3.2 million square foot complex was possibly one of the largest private contracts awarded in the United States. The structure was for the production and assembly of a complete new line of restyled, short wheel base, front end drive automobiles designed to be state-of-the-art with all of the latest technology, including robotics. Time was extremely important and we were to build the project in concert with the GM Assembly Division, Plant Engineering and Construction.

Our mission was to schedule, analyze and determine bid packs, purchase and supervise the construction, as well as purchase and install the necessary equipment to bring this facility on line as expeditiously as possible — unquestionably the greatest challenge the firm ever had. To our amazement, General Motors awarded us the second mirror plant to be constructed in Wentzville, Missouri, just west of St. Louis. The total of these two awards was in excess of $1 billion. Most of our competitors were severely impacted by the recession; consequently there was a universal reduction of staff and we were able to bring on board very proven and capable individuals who played a beneficial part in this dramatic undertaking.

Both plants were brought on line in time for General Motors to produce their new line of vehicles. After 50 years of association with GM, we were very grateful for the confidence they placed in our firm. Obviously we were honored to be chosen for the second project and to be able to build the plants simultaneously. Rollie Wilkening consented to continue as President for another year which gave Ben III an opportunity to gain more experience.

In April of 1981, Ben Maibach III assumed the title of President; Rollie Wilkening advanced to Vice-Chairman and Secretary; Mark Bahr was promoted to Executive Vice President and Chief Financial Officer; Mike Ferber was appointed Vice President of Estimating/Engineering; and John Wieland (a project administrator) was named Vice President. John had been placed in charge of the GMAD projects and in spite of the depressed economy all around us, another huge milestone was reached as the ’81 year saw our volume almost doubled to over $262 million and profits rose another 5%.

Edward R. Jarchow, a C.P.A. in the auditing department at Ford joined the Company in January of 1981 and became Controller.

It is almost unbelievable that in 1982 in the midst of somewhat of a worldwide recession, our volume soared to $738 million and the stockholders were delighted with over a 37% increase in their holdings.

Recognizing the need for reorganization, we established several divisions with an officer heading each; Commercial/Institutional, Health Facilities and Special Projects.

In recognition of ongoing progress, General Motors very graciously awarded us a third identical plant — the GMBOC Detroit Hamtramck Assembly Center.

Dykema, Gossett, Spencer, Goodnow & Trigg had been our legal firm for many years. From inception, Collins, Buri & McConkey, or their predecessors, were our accountants and we appreciate their cooperation and partnership in our business.

As projects became harder to procure, a marketing plan and department were developed. Today we appreciate the contribution this division has made to our growth.

The day when the firm’s principals were the primary salespeople has dramatically changed. The clients are much more astute and the necessity to answer their questions during the selection of a contractor is essential.

Another amazing development is an almost complete change of operations. Early in my career, practically all general contractors employed most of the basic trades and did most of their work in-house. As technology has increased we see the development of specialty firms which allows closer supervision and better monitoring of work put in place.

Since 1924, probably no year stands out as much as 1983. The Company had attained national acclaim. According to Engineering News Record we were the only construction company among the top 25 which performed solely domestic work. Barton Malow was in the top ten in construction management and in the top 25 in overall volume, listed among the giants with revenues at $853 million with profits continuing to be very impressive. Two of the three GM plants had been successfully brought on line, and with this accomplishment of completing this portion of a gigantic opportunity was a completely new dimension to the ability and capacity of the Company.

Our operation in Florida was a merit shop and on September 1, 1983, David M. Thomas came on board and was elected to the office of Vice President at Barton Malow Southern. The name change was necessary because the area of control reached far beyond the borders of Florida.

Also that year Bill Dryburgh retired. He had served seven years as a Vice President and played a very active role and rightly received well deserved accolades for his personal direction in building two air inflated stadiums, the Silverdome and Metrodome. Bill continued as a consultant, particularly in relation to the special projects areas. Mike Ferber tendered his resignation to go into business for himself after 12 years of devoted service.

Space age technology has allowed for higher and stronger structures to be built with unique and novel designs. Research has developed lighter materials which are better able to endure the harshness of a changing environment. Dramatic changes have come not only in the type of construction but as well as the process, style and techniques of a broad scope of the industry. Time is money and there is no question that scheduling must reach far beyond the building proper and into areas such as the environmental impact, the availability of natural resources as well as equipment and materials. Value engineering recognizes not only the initial cost, but operation, maintenance and longevity. The net result is the development of many specialty firms not only in the construction phase but also in the architectural/engineering/design phases.

The whole process is vastly different from the days of our forefathers and to be successful, one must be progressive, considering the much broader aspect of the building or project alone.

1984-1994

Written by Ben Maibach, III, President

Over the last ten years, rapid change has taken place in the world. Barton Malow’s history since 1984 mirrors the expeditious events that have taken place around us.

In 1985, a dedication ceremony took place for the Mayo Clinic in Jacksonville, Florida, and a new door opened when Domino’s Farms in Ann Arbor, Michigan, awarded Barton Malow the first of what became a five-phase program to build their corporate headquarters.

In an effort to consolidate Detroit-based operations, in 1986 Barton Malow established a new headquarters in the American Center Building in Southfield, Michigan. We also made great strides to expand our geographic base and our services. The same year, an office opened in Atlanta and The Argos Group was established. In March of 1986, Shriners Hospitals for Crippled Children hired Barton Malow to build a hospital in Greenville, South Carolina, which proved to be another successful project. Our best marketing tool is still a job well done, which became evident in the years to come.

Three sizable projects started in 1987 — the nationally acclaimed Minneapolis Convention Center, a $200 million program at Beaumont Hospital in Royal Oak, Michigan, and the Wayne County Metropolitan Airport. We continue to work at Beaumont and the airport to this day.

Ben Maibach, Jr., Chairman of the Board, celebrated 50 years of service at Barton Malow in 1988. Ben started out as a laborer in 1938 and worked his way up through the company, eventually acquiring a majority ownership stake. The Company hosted an anniversary celebration in Detroit to honor his contributions to the firm and our industry.

After more than 20 years, a new corporate identity was established in 1988 and a new Barton Malow logo introduced. Corporate colors were changed from orange and black to blue and gray.

Annually, the Engineering Society of Detroit (ESD) selects seven Michigan projects for the state’s premiere design and construction awards. Award submittals are comprehensive and judging takes place out-of-state. Barton Malow won four of the seven awards in 1988 for the following projects: GMF Robotics, General Dynamics, Allen Park Pumping Station, and the Michigan Biotechnology Institute.

The Fall of 1988 stands out in my memory as one of the more difficult times I have experienced in my last 25 years at Barton Malow. The Company had a bad general contracting job in Pennsylvania, and operations at our Barton Malow Thatcher subsidiary in Atlanta were not going well. We were facing potentially costly lawsuits and had challenges to cleanup. Instead of blaming others for our problems, we stood accountable for our responsibilities and worked hard to bring project disputes to amicable conclusions. Due to the diligent efforts of committed employees, we were able to put our problems to bed and move forward. We discontinued the Barton Malow Thatcher operations and closed our Sarasota, Florida, office. The Pennsylvania job claim was settled out of court.

The east coast market offered opportunities and we opened a Mid-Atlantic office in 1989, just in time to pursue the Baltimore Orioles stadium, which we won in 1990. The new baseball field was hailed as a new standard for open-air stadiums. The year 1990 proved to be a banner year for sales. Other projects awarded to Barton Malow included the Troy High School, Sarasota Water Treatment Plant, Chrysler Jefferson North Assembly Plant, and an athletic complex for Carnegie Mellon University. In June 1990, Ford Motor Company gave us the contract for the Allen Park Test Lab, which has opened doors for us leading to additional Ford work.

An impressive team performance on the Baltimore Stadium and positive press were factors that helped Barton Malow win the Georgia Dome project in 1991. The Health Facilities Group continued their impressive track record for repeat work when McLaren Regional Medical Center and Shriners Hospitals for Crippled Children honored us with contracts. We are servicing these clients to this day.

The Education Group began to diversify by opening a Milwaukee, Wisconsin, office and offering facility audit and master planning services. The first major test of our capabilities came when the Milwaukee Public Schools selected Barton Malow to audit 154 schools, which was successfully completed. The Education Group won $240 million of K-12 school work in 1991, and earned a leadership position in the Michigan education market.

National publicity regarding the Baltimore stadium and the Georgia Dome led to another baseball stadium win in 1992. Denver received one of the new expansion teams, the Colorado Rockies, and Barton Malow was selected to build the new stadium. Repeat work for long term healthcare clients was also a theme in 1992. Munson Medical Center, Shriners, and Marquette General Hospital all presented Barton Malow with additional work.

The Mid-Atlantic office won the National Aquarium project in Baltimore and the Milwaukee office secured the contract for the Milwaukee County Children’s Court Center in 1992. It is doubtful we would have won either project without local offices, since politicians prefer to award contracts to local firms.

It is rare to build four or five major projects for a single healthcare client. In 1993, Shriners Hospitals for Crippled Children selected Barton Malow for three more projects in Salt Lake City, Houston, and Sacramento respectively. To date we have been awarded ten Shriners Hospitals in nine different states.

In 1994, we formally launched our TQM program. Barton Malow was named the 1994 Corporation of the Year by the Michigan Minority Business Development Council. In July of this year, Amerisure Company presented Barton Malow with a safety award for having 25% below the National AGC average for construction injuries.

In addition, we have made significant steps to further diversify our professional staff. In 1994, 46% of new hires were female and 24% minority.

It is rewarding to see investments we made in expanding our services pay off. Establishing Barton Malow Rigging Co. in 1984 and The Argos Group in 1986 were formidable tasks. Many people have worked hard to make our vision a reality. Both operations are profitable and busy.

It is reassuring to know that hard work and integrity still pays off. Over 65% of our work is from repeat clients who have learned we are dependable. We appreciate the trust our clients place in us and are committed to earning their continued support.

Ben Maibach Jr. 

For more information contact Sheryl Maibach, FSMPS.
 
 
updated: September 12, 2008