CEO Josh Hendryx explains why Phoenix Builders is more than just a construction company
Today a leading general contracting construction management firm, Phoenix Builders has grown and evolved since its foundation in the early 1980s. Now specializing in commercial spaces, restaurants, healthcare and industrial construction, it offers a full range of services to large clients and local businesses. The company excels in construction management and design-build services, delivering integrated solutions from concept to completion.
To learn more about the business, Construction Today sat down with CEO and Owner Josh Hendryx, who has been with Phoenix Builders since 2007 and became full owner in 2022. “We were able to provide immediate value with the introduction of standard operating procedures and increased sales and marketing activities. We also reacted quickly to the 2008 recession. Our experience in retail helped us pivot to serve discount stores like Dollar General and auto stores that were handling increased demand from customers starting to do their own car maintenance,” he opens.
“Alongside retail, we partnered with national senior living and dementia facility organizations such as Bria Health Services, HCR ManorCare and Brookdale Senior Living. Using our existing experience in senior independent living communities, we transitioned to skilled nursing facilities (SNFs) as the baby boomer generation began needing additional levels of care. The relationship with Brookdale continued for a decade.”
Josh also highlights two other businesses under his ownership that fall under the umbrella of Phoenix Builders – Kodiak Building Solutions, a commercial carpentry and demolition company, and Teschner Painting, a commercial finishes, coatings, and painting company. “These two self-performing divisions originally operated under the Phoenix Builders name, but we rebranded and separated them, letting them fly their own flags. This gave them higher visibility, rather than being overshadowed by Phoenix Builders, and has led to tremendous growth in those revenue streams. It allows us to serve multiple markets as opposed to just Phoenix Builders working as a general contractor.
“Today Phoenix Builders has a backlog of almost $100 million in work and about $60 million in the pipeline. This growth is a testament to our strategic initiatives, such as expanding our client base and enhancing our service offerings, which have significantly increased our project volume from $8 million 18 years ago.”
Building relationships
Phoenix Builders’ diverse portfolio ranges from boutique cafes to medical centers and includes the notable restoration of the 130-year-old Keefer House Hotel in Hillsdale, MI, into a 38-room hotel. This challenging project involves modernizing the historic building by transforming the basement, adjusting floor and ceiling heights, while preserving its character through salvaged hardware, ceiling tiles, and refinished antique wood stairs.
The superintendent supervising the Keefer House project is a US Navy veteran, and reflecting their close ties to the military, Josh and Phoenix Builders support several military-focused nonprofits, such as their work on a barndominium project in Englewood, FL, with Operation Healing Heroes. This is a Discovery Channel documentary series now in its tenth season that follows veterans discussing their healing journeys from post-traumatic stress (PTS). Phoenix Builders also partners with the Oscar Mike Foundation and Take A Vet Fishing, which provides eligible veterans with professional fishing guides, honor ceremonies, flag presentations, and lunch as a way of giving back, while the SPARTA project offers week-long healing programs for veterans and first responders that address moral and spiritual injuries through equine therapy, meditation, and other mindful activities often missing from traditional PTS treatment.
Experience, trust and learning
Beyond supporting veteran-focused nonprofits, Josh also works closely with the SkillBridge program with the Department of Defense, and the Hiring our Heroes program with the US Chamber of Commerce Foundation, to help soldiers find employment when they leave the armed forces. “I’m a firm believer in employing our veterans when and where we can. Their work ethic and management style fits very well with our structure and culture,” he notes.
This structure includes project teams that are dedicated to different project values and market sectors – institutional, retail, industrial and straight commercial. “This keeps them continuously learning from each project and we’re continually perfecting our standard operating procedures for those markets. Furthermore, as most of our work is repeat business, clients develop relationships with project teams and get to know their communication style and become more confident of a successful delivery.”
In fact, Josh states these close working relationships are crucial to the success of Phoenix Builders and are a prime consideration when approaching projects. “We like to get involved with our clients and know where they want to grow, what their pricing targets are, what their desires are aesthetically, and how they want to set themselves apart from their competition. Then our experienced real estate and design teams and capital investment groups can put together an entire development program for them.
“That means we’re bringing a lot more to the table. By focusing on the growth of our customers and bringing additional information, they can make informed and educated decisions to make their business more successful. I always start with being more focused on my clients’ success than my own, as I know that will help us grow as well. That differentiates us from the competition.”
Josh’s descriptions of the operations at Phoenix Builders build a picture of experience, trust, learning and overall dedication to the customer. “I attribute our growth to the amazing team that we have here,” he says. “We have roughly 53 employees and we have won Chicago’s Best and Brightest Places to Work the last four years in a row. I’m extremely humbled and proud of the team. Our people are a big part of what makes us so successful.”
Strategic growth
Looking to the future, Josh has growth plans to take Phoenix Builders to new heights. However, as he is relationship driven rather than revenue driven, he tries not to set financial objectives. “Of course, we can provide more opportunity and better service our clients as our profitability and revenue stream grows, but that’s not the driving factor. For us, it’s how can we be the team that provides more value to help our customers grow.”
Nevertheless, expanding the team is a priority, as well as servicing new areas further afield from its Chicago base. For example, Josh and the team are in the process of opening a new office in Sarasota, FL that should be open in Q2 or Q3 of next year. “Other strategic methods we’re going to use for growth include company acquisition and development acquisition. We are in discussions right now with a company we may bring in-house. They have great resources and skilled tradesmen but are lacking in sales and marketing and standard operating procedures. We can provide immediate value there, making it a more effective business – it reminds me of the early days of Phoenix Builders.
“We are totally focused on servicing our clients, and as a result have been blessed with over 75 percent of our pipeline being generated from repeat clients and customers. Publicizing the great work we do at Phoenix Builders has historically not been a top priority. But finding clients that match with our ideals, goals and objectives and developing brand new relationships will only help Phoenix Builders continue to grow and provide better service,” Josh concludes.