Mississippi Business Journal
Publication Date: 28-APR-03
Author: Wally Northway

FALKNER -- In 1978, three men -- two brothers and their brother-in-law -- mortgaged their homes to start a construction company. Kenneth and Gerald Hill and Clyde Ray Robertson had mulled over the idea to go into business on their own for some time, and each had plenty of construction experience.

Today, Hill Brothers Construction & Engineering Company Inc. is a firm that bears little resemblance to the company founded 25 years ago. Then again, it is not completely different. More than 60 of the firm's employees are members of the Hill family.

While the men (Kenneth serves as CEO, Gerald as executive vice president and Clyde Ray as vice president) envisioned growth, the very first project brought expansion, wanted or not. The newly-formed company won a project to enlarge the Mississippi River levee in Delta, La., for the U.S. Army Corps of Engineers. A contract worth $940,000 that entailed moving approximately 1.5 million cubic feet of dirt, the number of Hill Brothers employees grew to approximately 40 workers.

But it was in 1980 when the young firm saw a real turning point. It was awarded the Tennessee Valley Authority Railroad Spur Project stretching from luka to the Yellow Creek Power Plant. It was then that another Hill -- John, now president of the company -- came on board as an estimator. John would prove a driving force in acquiring larger projects, pursuing work in surrounding states and broadening the types of work Hill Brothers performed.

It was John, accompanied by Kenneth, who traveled to Chattanooga to bid two contracts totaling $3.5 million. The projects consisted of constructing a new roadbed and sub-base for 10 miles of railroad. This grew the company from being exclusively an earthwork 'contractor to a heavy highway, road and bridge contractor. (Current specialties of the company include industrial and commercial buildings, landfills, railroad projects, sewer/sewer treatment, drainage, power plants as well as heavy highway, road and bridge work.)

Now, there is not a project too large for Hill Brothers, as evidenced by the $58.8-million "Stack III" project in Rankin County that is currently underway. What would have been a challenging project any way, the work on the major 1-55/120/U.S. 49 exchange is being done only at night and on the weekends to avoid traffic snarls and travel hazards.

Other current or ongoing projects are:

* Construction of Highway 301 from Eudora to Star Landing Road, a contract worth $8 million and managed by Hill Brothers' Walls office.

* A $24-million project, won in 2001, for the Medical Center Rail Extension, which consists of five miles of embedded rail for the Downtown Memphis Trolley and is managed by Hill Brothers' Memphis office.

* Construction of the Choctaw Gas Generation Plant in Ackerman for TIC Corporation.

* A $23-million Mississippi Department of Transportation award for a two-mile-plus section of Mississippi 25 between Starkville and Louisville.

* The $26-million Natchez Trace project in Adams County.

* A $21-million Tennessee Department of Transportation project for a two-mile-plus section of the Nonconnah Parkway east of Collierville, Tenn.

To handle this volume, Hill Brothers has established four subsidiaries: HB Concrete (founded in 1993 and consisting of five plants in North Mississippi), HB Leasing (founded in 1980 to provide equipment to Hill Brothers Construction. and HB Concrete), Ackerman Rock (an aggregate material supplier for Central Mississippi) and Worsham Brothers (founded in 1945 and bought by Hill Brothers in 1996, it pursues commercial and industrial building contracts). Hill Brothers employs as many as 500 during the peak building season.

The firm has enjoyed significant success in employee retention, as well. Of its employees, 58 have been with the company six to 15 years' while 11 more have been with Hill Brothers 16-19 years. In addition to the family atmosphere, the company points to its employee stock option plan (ESOP), which was established in the mid-1980s, for its retention record.

Currently, employees hold 49% of the company's stock. Since 1994, Hill Brothers has made distribution payments of more than $1.1 million to its retirees.

In lieu of its 25th anniversary, the company is making celebration plans. On May 24, Hill Brothers will host a barbecue at its Falkner headquarters, and is expecting approximately 600 attendees. There will also be door prizes and an awards presentation recognizing employees for their years of dedication and service.

While celebrating the past, the company also is looking to the future. Stated goals include continued growth; expansion into new geographical areas; and diversification of its project involvement. And it is committed to remaining family- and employee-owned.

"Hill Brothers has been and will continue to be a family operation," Kenneth Hill wrote. "I remember sharing many family Thanksgiving dinners on our earliest projects. Our children grew up with this business and are eagerly preparing to be the second generation of leadership for this company.

"Not only is this a family-owned business, it is also an employee-owned business, in that 49% of the company's stock belongs to our ESOP. Therefore, it does not matter if your dealings involve a corporate officer or a site foreman, you will be working with an owner of Hill Brothers Construction Company. We believe that our success 'is built on. good people and hard work, both of which we take great pride in."

Contact MBJ staff writer Wally Northway at northway@msbusiness.com.