Dirt Talk by BuildWitt: Episode Summary - "75 Years of Building Georgia w/ Jonathan Strack – DT 314"

Release Date: February 20, 2025

In this compelling episode of "Dirt Talk by BuildWitt," host Aaron engages in an in-depth conversation with Jonathan Strack, a third-generation leader in the construction industry. Celebrating 75 years of building in Georgia, Strack shares his insights on maintaining a multi-generational business, navigating economic challenges, fostering a strong company culture, and envisioning the future of the construction sector.

1. Introduction to Jonathan Strack and His Legacy

Aaron kicks off the conversation by delving into Jonathan Strack's early aspirations and the foundational logic that led him to start a construction company at 18. Strack reflects on his personal journey and the seamless integration of his family's legacy into the business.

[01:14] Jonathan Strack: "When I wanted to start a construction company when I was 18. Because if I started a construction company, I could put my name on the company."

2. Multi-Generational Business: Upholding Family Values

Strack emphasizes the significance of family in sustaining a multi-generational business. He recounts the transition of leadership from his grandfather to his father, and finally to himself, highlighting the mentorship and values imparted throughout.

[04:10] Strack: "My grandfather started the company, and now I'm the third generation. We've been around the business my entire life."

He details the ceremonial recognition within the company, such as years of service awards, which reinforce loyalty and honor long-standing employees.

3. Navigating Economic Downturns: The Great Financial Crisis

A pivotal moment in Strack's career was the Great Financial Crisis, which forced the company to downsize drastically from 355 to 45 employees between 2008 and 2011. Strack discusses the emotional and financial toll of laying off workers, including tragic outcomes like the loss of an employee to suicide.

[16:03] Strack: "We were bidding 80 to 100 jobs to get one job... It destroyed about 40 years worth of equity."

Despite the adversity, Strack recounts how a significant sewer line project with Phillips and Jordan in Memphis helped the company gradually recover, underscoring the importance of perseverance and strategic project selection.

4. Leadership and Company Culture: Building Through Relationships

Strack attributes much of the company's resilience to strong leadership and a culture centered on relationships and mutual respect. He shares anecdotes about learning from seasoned professionals and the importance of treating employees with dignity and support.

[09:31] Strack: "I'm going to try as hard as I can every day. I'm not perfect and I won't treat you like a human being and not holler at you."

He underscores the necessity of empowering team members, allowing them to take ownership, and creating a supportive environment that prioritizes both individual and company growth.

5. Workforce Development and the Role of Immigration

Addressing the critical issue of workforce shortages, Strack advocates for streamlined immigration processes to bolster the labor pool. He highlights the invaluable contributions of Hispanic workers to the construction sector, sharing personal experiences of camaraderie and cultural exchange.

[46:34] Strack: "It's huge. I mean, it's not just for our industry, for our entire country and society."

Strack emphasizes the need for inclusive hiring practices and the positive impact of diverse teams on company dynamics and productivity.

6. Future of the Construction Industry: Adapting to Change

Strack shares his perspectives on the future challenges facing the construction industry, such as economic instability, declining birth rates, and the necessity for infrastructure development. He stresses the importance of adaptability and strategic diversification to ensure long-term success.

[33:31] Strack: "We're going to deal with a lot of change. Tumultuous is the best way to say it."

He discusses initiatives like workforce exposure days and partnerships with educational institutions to attract and train the next generation of construction professionals.

7. Community Engagement and Company Initiatives

Strack highlights the company's commitment to community involvement through service days, scholarships, and partnerships with nonprofits. These efforts not only give back to the community but also strengthen employee morale and company reputation.

[76:01] Strack: "We give everybody a set of safety-toed boots every year... We shut the entire company down into the service day."

He shares touching stories of employees connecting with their roots and the profound impact of these community-focused initiatives.

8. Balancing Profitability with Ethical Practices

A recurring theme in the conversation is the delicate balance between maintaining profitability and upholding ethical standards. Strack advocates for transparent communication, fair treatment of employees, and sustainable business practices that prioritize long-term stability over short-term gains.

[74:20] Strack: "It's a constant tension... You have to make money, but you also want to pay people as well as you can."

He argues that true success lies in building something of value that benefits both the company and the broader community.

9. The Importance of Building Strong Relationships

Strack and Aaron discuss the pivotal role of relationships in the construction industry. From client interactions to employee relations, fostering strong, genuine connections is essential for business growth and reputation.

[28:50] Strack: "If you sit down. I found when I'm in front of new clients and we're pitching them... we're going to interview them just as much as they're interviewing me."

He emphasizes the mutual respect and understanding required to cultivate lasting professional relationships.

10. Conclusion: Vision for the Future

As the episode draws to a close, Strack shares his vision for the future of his company and the construction industry. He underscores the importance of continuous learning, adaptability, and maintaining core values amidst evolving challenges.

[86:05] Strack: "It's an effort... we need a standard across the industry."

Strack reiterates his commitment to excellence, community engagement, and fostering a supportive environment for current and future employees.

Notable Quotes:

• [17:37] Aaron: "Was weathering the storm always the intention, or was it like, this is just too much at any point in time?"

• [22:38] Strack: "Well, as I ran around all over the Southeast, I made a couple promises to myself. I don't want to ever go through this ever again. And I wanted to understand why it happened."

• [36:57] Strack: "I told our guys, really, almost 18 months ago, we sat down and laid out revision in our plan to 2030. And I said one of them was growth through partnership."

• [62:57] Aaron: "But it really is this industry. Like, it proves how essential what a... you can’t afford to be at the whim of the economy."

• [82:14] Strack: "If you're going to go do it and be genuine, the hard thing to go replicate is the care and the values."

Key Takeaways:

• Legacy and Leadership: Maintaining a multi-generational business requires strong leadership, mentorship, and adherence to core values.

• Resilience in Adversity: Navigating economic downturns demands strategic project selection, diversification, and unwavering commitment.

• Workforce Importance: A diverse and empowered workforce is crucial for company success, with immigration playing a significant role in addressing labor shortages.

• Ethical Practices: Balancing profitability with ethical treatment of employees fosters long-term stability and positive company reputation.

• Community Engagement: Active involvement in community initiatives strengthens both employee morale and public perception.

• Future Preparedness: Adaptability, continuous learning, and strategic partnerships are essential for navigating the ever-evolving construction landscape.

This episode offers a profound exploration of the intricacies involved in sustaining a long-standing construction business, emphasizing the harmonious blend of tradition, innovation, and ethical leadership. Listeners gain valuable insights into the challenges and triumphs of building a legacy in the construction industry, making it a must-listen for professionals and enthusiasts alike.