Tactics: Hoffman Construction's work in progress

| Print |  Email
Archives - February 2009
Sunday, February 01, 2009

HOFFMAN CONSTRUCTION

Founded: 1922

Employees: 500

Headquarters: Portland

Annual revenue: $1.2 billion

WayneDrinkward.jpg
Wayne Drinkward above the Park Avenue Tower West site in Portland.

PHOTO BY ADAM BACHER

“If anyone in business is under 40, they haven’t been through this stuff. When you’re an old guy, you have a model of how to get through it.”

That “stuff” would be one of the worst economies since the Great Depression, led by the utter implosion of the housing market. And the old guy? At 57, Wayne Drinkward isn’t really that old, although his company is 87, but he makes the point. Hoffman Construction has been through bad times before and survived, and this down cycle, which counts the construction industry among its biggest victims, will be no different.

On a rainy early winter day, as the freefall began in earnest, Drinkward seems nonplussed by the question of how the region’s biggest construction firm and one of Oregon’s largest private companies (around $1.2 billion in revenue for 2008) would weather the storm.

“In good times or bad, the way is about the same,” he says. “We develop from within; we take on only what we can do; in good times, we don’t add a lot of people at the top; and when there is less construction, we are loyal to the people we have.”

Drinkward says there hasn’t been a large layoff since the 1980s when the company had to cut itself in half to survive. Hoffman came back from that brink in the early 1990s, when it grew in three years from $150 million to $1 billion in revenue, spurred by the company’s relationship with a large microprocessor manufacturer (they won’t say who) that hired Hoffman to build semiconductor manufacturing facilities around the country.

Stability also comes from Hoffman’s depth and breadth. It builds a wide range of projects nationally and internationally, including schools, condos, prisons and hospitals. Some of its signature buildings include the Fox Tower in Portland (also home to Hoffman’s headquarters), the Portland Building, the Seattle Library, and that city’s Experience Music Project. Drinkward says there are large projects in the pipeline that are fully funded and will carry them through the near future. They include the University of Oregon’s stadium, ZGF headquarters in downtown Portland, two large airport projects, Legacy Pediatric Tower, and Oregon State Hospital.

What gets built inside the employee-owned company is just as important to Drinkward. The average tenure of its 500 employees is 15 years and many have 30 years in. It’s also a company with great personal history: He has two sons and a brother working for Hoffman and he took over the top spot from his father, Cecil, in 1992. His father, now 80, still has an office next to his.

“When my father ran the company, it was CEO to CEO. Now it’s done between the teams,” says Drinkward. “That’s very powerful. They own it.”

By design, there is no mission statement, no posters on the wall, no huge HR operation. “We don’t have a book on anything here. We just say, ‘You’re smart. Figure it out.’”

Despite the downturn, he says the company is expected to still post more than $1 billion in revenue for this year, even though he knows “we’re going into a period with more challenges.” Drinkward predicts there is at least a five-year slowdown ahead.

“There’s a gap [in work] coming regardless of whether they fix the credit issue. It’s hit the architecture community first. Projects are stalling. Both private and public works are stuck. It’s like a glacier has slid across the river and the money has stopped flowing,” says Drinkward. “But we’re still fishing.”

ROBIN DOUSSARD



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

 

More Articles

Marijuana law ushers in new business age

The Latest
Tuesday, June 23, 2015
062315panelthumbBY KIM MOORE | RESEARCH EDITOR

Oregon’s new marijuana law is expected to lead to a bevy of new business opportunities for the state. And not just for growers. Law firms, HR consultants, energy efficiency companies and many others are expected to benefit from the decriminalization of pot, according to panelists at an Oregon Business breakfast meeting on Tuesday.


Read more...

Apartment Mania

Guest Blog
Thursday, June 18, 2015
4805983977 11466ce1d6 zBY BRAD HOULE | CFA

While most categories of commercial real estate have performed well, one of the most robust has been apartment buildings.


Read more...

The 5 highest revenue-generating parks in Oregon

The Latest
Thursday, June 11, 2015
parksthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

In 2014, total revenue for camping and day use in Oregon State Parks was a little more than $17 million. That figure may even higher this year "because we've had exceptionally nice weather," Hughes says.


Read more...

Eco Zoned

June 2015
Friday, May 22, 2015
BY HANNAH WALLACE

Travelers have always come to Oregon for its natural beauty. But will the increasing popularity of agritourism, European-style hiking getaways and forest resorts relax Oregon's notoriously strict land-use laws?


Read more...

Undersea Power

June 2015
Friday, May 22, 2015
BY JACOB PALMER

Mike Morrow and Mike Delos-Reyes first came up with the idea of an ocean power device 23 years ago, when they were students at Oregon State University. They realized a long-held vision last summer, when their startup, M3 Wave, successfully launched the first ocean power device that works underwater.


Read more...

6 key things to know about summer baseball in Oregon

The Latest
Friday, June 05, 2015
basedthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

As temperatures in Oregon creep into the 90s this weekend, Oregonians' thoughts are turning to — summer baseball.


Read more...

The Backstory: Portland Youth Builders

The Latest
Wednesday, June 03, 2015
blog002 1BY JASON E. KAPLAN | STAFF PHOTOGRAPHER

As part of our green workplaces story, Oregon Business checked out a community service project undertaken by Portland Youth Builders, a nonprofit alternative high school. In partnership with Whole Foods, PYB built garden boxes for a Home Forward  housing site. Home Forward is a government agency that provides housing for low income residents and people with disabilities.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS