When Sundra L. Ryce finished college, she planned to join the family contracting business. But her parents had other plans: They cut her a check and told Ryce to start her own. Over the next 15 years, Ryce and her team would consistently grow that company. By 2011 it would join the ranks of the largest black-owned businesses in the nation.
Although Buffalo, New York-based SLR Contracting & Service Co. Inc. (No. 87 on the BE Industrial/Service companies list with $28.8 million in revenues) is a newcomer to the be 100s, the company and its 36-year-old president and CEO have graced the pages of black enterprise magazine in the past. In 2003, SLR was featured in our small business section, where Ryce addressed her company’s first contract–a $20,000 job to repair the heating system at the local YWCA. At the time, Ryce discussed updating her business plan to focus on management and administration.
Ryce has come a long way from running a startup that produced gross revenues of $177,926 in 1996, its first year in business. Today, SLR’s projects include the $8.2 million construction of a dental clinic at Fort Drum for the U.S. Army Corps of Engineers, and nearly $26 million in construction for the Buffalo Public Schools. And Ryce has her eye on continued growth.
Second-Generation Entrepreneur
Some say entrepreneurship is in the blood–and Ryce’s story lends some credence to that observation. Upon receiving a bachelor’s degree from the Buffalo State College, the daughter of Willie C. and Noma Roberson initially considered joining the family business, W.C. Roberson Plumbing & Construction Corp. “However, my parents actually sat down with me the summer after I graduated and my dad said, ‘There are a lot of opportunities for women-owned businesses and minority-owned companies. You are a leader and you need to start your own company.’ â€
To that end, Ryce’s parents gifted her $10,000 to launch her venture, and in September 1996 at the age of 21, she started SLR. “My dad actually pushed me out of the nest, but it’s been a great journey,†Ryce attests. “I had to learn how to fly and he’s been there to support me every step of the way.†In fact, Ryce initially rented two rooms in her father’s office building to keep costs down. Meanwhile, she worked to earn her master’s degree from Medaille College in Buffalo.
While Ryce says her entrepreneurial experience has been positive, it’s not to say that she hasn’t made a number of missteps along the way. Ryce admits that while investing in the business she did not use her money wisely. “Early on I worked with a consultant company.
They came into the business, looked at it, assessed everything that was wrong, and wrote procedures to advance the company,†she says. “In retrospect, it was not beneficial at the time; I should have invested the dollars [about $40,000] back into the business. I believe in working with consultants, but I also believe the timing has to be right.†Despite that, the company has achieved significant growth–when be profiled SLR in 2003, revenues totaled $1.8 million.
Growth During Lean Times
As is the case in most industries, the business climate for construction companies has been brutal to say the least. For example, total revenues for Engineer
But unlike many in the construction industry, SLR continued to grow through the recession, as government agencies–which make up 50% of its revenues–kept spending through the downturn. However, that doesn’t mean the company remained unscathed.
Parts of SLR’s supply chain–contractors and other vendors–were not so fortunate. Ryce recalls one of its subcontractors, a masonry company, going out of business in the middle of a project for the Navy, leaving SLR high and dry. Fortunately, the subcontractor was only paid for completed work. “At the end of the day when customers hire our company, we are responsible, so we put another contractor on the project to complete the work.†SLR was able to bring in a new team and complete the project on time and within budget. “It was not a loss financially for us, which was great.â€
Eyeing Continued Growth
Among SLR’s more recent contracts is a $17.4 million new office and warehouse project with the New York Power Authority. The project, which began in February 2010 and is scheduled for completion this month, consists of building a new warehouse and includes all the necessary site and construction work as well as the installation of utilities for
While the challenges of the recession linger, the industry outlook is brighter. Financial services information provider S&P is positive on the construction and engineering sub-industry on gradually increased bidding during 2011. The firm also says demand for delayed or postponed projects should drive backlog growth, particularly later in the year.
Meanwhile, Ryce looks to add more geographical diversity to SLR’s projects (most are in New York and the surrounding states). But growth without profitability doesn’t make for a sustainable business–and Ryce is well aware of that. “For us it’s important that we’re profitable. So, when we look at growth, growth is important as well, but our ultimate goal is profitability and productivity.â€