Most Contractors Report Increased Revenue During 2007

by George Waldon  on Monday, Sep. 22, 2008 12:00 am  

(To see the list of the top commercial contractors, click here. A spreadsheet version is also available.)

Construction activity held its own among the leading commercial contractors in Arkansas during 2007. Combined revenue for the top 21 firms increased more than 12 percent compared with 2006, growing from nearly $2.28 billion to more than $2.61 billion.

Revenue increased a whopping 39 percent at Little Rock's CDI Contractors LLC, hitting $575 million last year and ranking the company No. 2 among Arkansas commercial contractors.

The year 2007 "was a record year for us," said William Clark, company CEO. "Our volume is off somewhat in 2008 because the retail market has slowed down, but we're still expecting to have one of our best years this year."

The next list of largest commercial contractors based in Arkansas could be CDI's last, depending on what its new owner decides to do.

Last month, Dillard's Inc. of Little Rock acquired sole ownership of the general contracting firm, buying the 50 percent stake owned by a trust established by CDI founder Bill Clark, who died in May 2007, and Braggs Electric Construction Co., which is controlled by the Clark family.

Terms of the deal weren't disclosed. Dillard's exercised its contractual right to purchase Clark's interest in CDI in the event of his death.

Some industry watchers believe the transaction is a precursor to a CDI sale to another contracting firm. Dillard's will have to weigh the benefits of the earnings boost from ongoing CDI profits versus the one-time gain from a sale.

Dillard's officials are testing the market for a would-be sale of CDI but could reconsider given the current economic climate.

EMJ Corp. of Chattanooga, Tenn., the largest general contractor in Tennessee, is interested in acquiring CDI.

"We received some information on the company, but beyond that ...," said Jim Sattler, EMJ's chairman and CEO. "It's a tough market out there, and we're carefully looking at the situation. They've been a good company, and you would at least like to take a good, hard look."

Founded in 1968, EMJ ranked No. 59 in the nation among general contractors with 2007 revenue of $777.7 million, according to Engineering News-Record. CDI was formed in 1987 as a 50-50 partnership between Bill Clark and Dillard's Inc.

 

 

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