Poised for Growth

RUNNER-UP

Poised for Growth

Larry Kemick

Founder

Kemick Construction Co.

Bradenton

After graduating from high school in upstate New York, Larry Kemick worked as a truck driver and as a night manager for a gas station. When he joined the U.S. Air Force, he worked nights and attended college during the day, studying air conditioning, heating design technology, electrical engineering, drafting and design.

Kemick had no idea then that his early training would later shape his future as a homebuilder. He was just used to working hard to support himself.

The hard work continued after his discharge from the Air Force. Kemick joined the family construction company, Simon's, which had been founded by his mother. Kemick soon discovered the salary for family members was not quite enough.

In search of higher pay, he started a company that sold security systems to families buying homes from his family.

"I made a nice paycheck doing that," he says. The financial success of his alarm company allowed Kemick to bridge the financial gap of leaving Simon's and making it completely on his own as a homebuilder.

With the support of his family, and his wife, Melissa, then a fulltime banker with Coast Bank, Kemick struck out on his own in 1987.

Their office was in their bedroom. They sat on the bed to use the "office" computer. Their personal vehicle doubled as the company car. Their own home served as Kemick Construction Company's first model home.

Kemick's philosophy was simple.

"All I was doing was applying the knowledge I had to building the best homes possible," he says. "Since I had a background studying air conditioning and heating design technology, a lot of the decisions I made regarding how I would build homes were based on that information. Quite by accident, I realized we were building homes that were more energy efficient than what the community of builders were producing."

Seventeen years later, Kemick is firmly entrenched in the energy efficient-home niche. Kemick homes are typically 30% to 70% more energy efficient than code requirements.

Annual revenue for the Ellenton-based company has averaged 31% growth for the past three years. Annual revenues were $12 million in 2003, compared to $7 million in 2001. Kemick expects to build 100 homes this year to earn revenues of about $30 million.

He and Melissa are amazed at the company's success.

"Our initial goal was to have a construction company that built 12 houses a year, maybe 20 if we were really something," he says. "I definitely had some ideas in my head, like we'd never be a company that would build 50. That would be too much."

The only downside to success: he and his wife can't celebrate sales the way they used to, with trips to Bern's Steakhouse in Tampa.

"It used to be four times a year, then eight, then once a month," says Kemick, 40. "Quickly we realized we couldn't do that. There wasn't time to go to Bern's."

These days, company celebrations retain the flavor of those early days, but involve more people. The Kemick Construction team includes 10 office workers and three full-time sales people. Three or four times a year, Kemick invites staff and their spouses to pile into a limo for a trip to Bern's or Charlie's Steakhouse to celebrate sales.

Kemick doesn't mind the expense.

"It's fostering teamwork, sort of like you'd find in a combat unit," he says.

The company's success, Kemick says, starts with weekly staff meetings, held from 8:30 to 11:30 a.m. every Wednesday in a conference room. The Kemick gang discusses every job in progress, and any news of interest, from new procedures to new subcontractors.

"A friend in the publishing business told me that was a tool he used," Kemick says of the meetings. "Once I started doing that, I wondered how I ever didn't do it."

Last year, Kemick restructured his company from one that could build 30 houses a year to one that could build 100. He took on more office personnel, and renovated the office to include three times the space of the original.

"You can't have an engine that produces 200 horse power, and get 800 horse power out of it," he says.

To further manage growth, he hired Gina Debbs as director of operations. "I needed to bring in another me," Kemick says. "I needed someone with as much knowledge and ability. The feedback has all been positive."

Now, he says, the infrastructure of Kemick Construction Co. could handle up to 150 houses a year.

Off the job, the Kemicks enjoy their home in the River Wilderness subdivision of Parrish. Kemick coaches Little League baseball and spends time with the family. Kemick, a pilot, de-stresses by working at an aircraft leasing company he founded six years ago.

"The company is set up to make a profit according to IRS rules," says Kemick, laughing. "But it doesn't make one. Time away from my office and family is usually spent with the aircrafts. Probably five hours of maintenance hours are required per flight hour. That time is very therapeutic for me."

STATS

Employees: 2001: 4; 2002: 6; 2003: 7; 2004: 13.

Revenues: 2001: $7 million; 2002: $9 million; 2003: $12 million; 2004: Estimated $30 million.

Average annual growth: 31%