For any woman, breaking into an industry dominated by men is tough. But when you’re a black woman with aspirations of becoming president and CEO of a construction business, it’s even tougher. Few know this better than Gail Warrior. The founder and CEO of DeSoto, Texas-based Warrior Group (No. 35 on the be Industrial/Service companies list with $124 million in revenues) says she initially felt she had to prove herself to her male counterparts. So she pushed herself to learn as much as she could about construction and took the lead on projects. “I didn’t feel I was getting the respect I deserved, so I took action,†she says.
While the economy remains in a state of closely monitored recovery, Warrior Group has managed to thrive. Revenues in 2008 were $124 million, up from $42 million in 2007. Warrior forecasts 2010 revenues of nearly $200 million. Warrior Group has come a long way from its beginnings in 1997, when revenues were about $31,000 at the end of its first year in operation. “I knew I had the ability to get my business off the ground,†Warrior says. A former accountant for Mobil, she is now in charge of one of the nation’s largest businesses owned by a black woman. Warrior, who is in her early 40s, has come out on top by hiring talented people, making well-planned moves, and following her heart.
Building a Solid Foundation
Warrior Group specializes in permanent modular construction, a process in which modules of a structure are built off-site and then transported to their destination and assembled there. This process, according to Phil Slingerland, the company’s chief operating officer, saves time and money because the modular process allows a building’s floors, walls, ceilings, rafters, and roofs to be built simultaneously. Modular constructions can be either leased or purchased through dealers or direct manufacturers. Warrior Group is a direct manufacturer whose projects include medical clinics, academic buildings, day care centers, and military barracks.
Warrior was introduced to the modular construction industry through her ex-husband Wayne Lawrence, Warrior Group’s vice president of business development. Lawrence previously worked as a sales representative and branch manager for Space Master Buildings, a company that provided modular structures. “I told Wayne that I saw a need that was not being met among government agencies and schools,†Warrior says. “I saw how permanent modular construction was faster, safer for the
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environment, and cost-effective. They weren’t taking advantage of this technology.†Modular construction became increasingly interesting to her, so she left her accounting job. “I started this company because I wanted to try something different.â€
Despite having no startup capital and using borrowed office space, Warrior made her move. With the help of friends and family to staff her venture, she launched Warrior Group.
One of the hurdles Warrior Group had to overcome was convincing potential clients of modular construction’s benefits. For example, the U.S. Army was leaning more toward renovating barracks rather than having new ones built. After several meetings, Warrior persuaded the Army to go modular.
Another trying time came a few years later in 2005, when a $1.8 million construction project in Chicago didn’t go as planned. “One of our senior project managers at the time was working with a major subcontractor and taking kickbacks from
him,†Warrior recalls. “In addition, the subcontractor was doing deficient work, which put us behind schedule. By the time we found out about it from the contracting officer, we were way behind schedule. So we had to fire our project manager and the subcontractor and hire a new subcontractor to finish the work. In order to finish on time, we had to work double time and correct what was done. We lost quite a bit of money on the project–a little more than $1 million.â€Warrior was forced to lay off half of her staff of 20. “We had to get really lean. We still had some projects we were working on, but cash flow was an issue after that.â€
A consultant recommended bankruptcy, but Warrior pushed through and contacted Texas Women Ventures Fund, an organization that invests in women-owned businesses. A $2 million loan from the fund allowed Warrior Group to hire a director of construction services as well as a chief operating officer and chief financial officer.
Feeling the Credit Crunch
It isn’t news that the recent troubles of the U.S. economy have affected the construction industry. Commercial starts have been hampered because some developers have had difficulty obtaining credit in a tumultuous market. Total starts for 2009 declined 18% for commercial buildings. However, there have been some signs of improvement. The total value of construction starts (excluding residential contracts) was $24.1 billion in January of this year, a 20.1% increase from January 2009. Consequently, Warrior Group saw an uptick in the amount of contracts secured.
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In 2009, Warrior Group won a $15 million contract with the University of
North Texas to renovate its law school building. Also in 2009, Warrior Group began working on a $15.3 million four-story barracks project at Fort Hood military base in Texas.Tapping into the Green Economy
A factor in Warrior Group’s success is the growing interest in “green†construction. As concerns increase about the environmental impact of building projects, more organizations are turning to modular as a solution. Modular structures have been found to reduce the amount of waste that often accompanies constructing a building on-site. “Since the buildings are produced off-site, you don’t have construction-related traffic at the site,†Slingerland says. “And having fewer vehicles at the construction area significantly reduces carbon emissions.†Warrior Group’s buildings, which are made of timber, can be certified under the U.S. Green Building Council’s Leadership in Energy and Environmental Design, or LEED, program.
Fighting to Win
Warrior’s entrepreneurial philosophy is grounded in believing that winning any battle is first about the condition of the mind. “Believe in your abilities,†she says. “If you know you can do something, do it.†Warrior says having faith in herself has helped her succeed and has come in handy when dealing with comparably sized competitors. “We keep on top of new developments in the industry,†she says. “It’s also about customer satisfaction and offering the customers what they want. So I’m just trying to stay competitive in terms of the different types of construction services we offer our customers.†Warrior Group stays diversified by offering construction management, which involves overseeing projects from beginning to end. Services include pre-planning, scheduling, subcontractor negotiations, and engineering.
The Warrior Group also stays competitive by hiring and retaining top talent. “Good salaries help. And recognizing good work,†says Warrior. “It’s also about the people you hire. We make sure we look for quality.â€
Warrior advises against intentionally hiring employees who know less than you. “I’m no architect and I’m no engineer, but I do know how to surround myself with people who know how to do things that I don’t know how to do. And so many managers are afraid to do that. They’re afraid to hire what I call nines and tens because they worry that their skills and knowledge will make them look incompetent or less knowledgeable. And so often, what they’ll do is hire fives and sixes.â€
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A Warrior’s Heart
Warrior says she stays grounded by engaging in philanthropic projects. In 2007, she founded Heart of a Warrior Charitable Foundation to provide educational programs for disadvantaged children in the Dallas-Fort Worth area. In October 2009, the foundation raised $20,000 for Girls Inc. of Metropolitan Dallas.
What’s next for Warrior Group? The outlook for the construction industry is positive. The construction market is predicted to experience an 11% jump in 2010 to $466.2 billion according to McGraw-Hill’s 2010 Construction Outlook. This is good news in light of the 25% decline that was forecast for 2009. Advances in housing and public works are expected to lead the way.
Warrior says she hopes to work on building modular structures all across the country, but for now, she’s comfortable with the success she’s experienced. “When I first started the company, I was set on taking it public, but not anymore,†Warrior says. “I’m satisfied with where it is now.