Hensel Phelps Company Profile

Background

Founded in 1937 by Abel Hensel Phelps in Greeley, Colorado, Hensel Phelps has evolved from a local builder into a leading national general contractor and construction manager. The company's mission is to deliver excellence in all aspects of construction, real estate development, and facility management. With a steadfast commitment to its core values—Ownership, Integrity, Builder, Diversity, and Community—Hensel Phelps has established itself as a significant player in the construction industry.

Key Strategic Focus

Hensel Phelps emphasizes a comprehensive approach encapsulated in "The Hensel Phelps Way," which integrates People, Process, Partnership, and Technology. This strategy ensures efficient project execution and client satisfaction. The company specializes in diverse sectors, including aviation, commercial, education, healthcare, hospitality, and justice. Utilizing advanced technologies such as Building Information Modeling (BIM) and Virtual Design and Construction (VDC), Hensel Phelps targets both public and private markets, delivering projects that meet the highest standards of quality and innovation.

Financials and Funding

As of 2024, Hensel Phelps reported annual revenues of approximately $7.1 billion, reflecting its robust financial health and industry prominence. The company operates as an employee-owned entity, fostering a culture of shared responsibility and success. Notably, in 2021, Hensel Phelps expanded its capabilities by acquiring Hydro Construction, a firm specializing in water and wastewater treatment facilities, thereby enhancing its service offerings and market reach.

Pipeline Development

Hensel Phelps maintains a dynamic project pipeline across various sectors. In October 2024, the company secured a $274.7 million contract from the General Services Administration to build and expand a border station in Douglas, Arizona. This project underscores Hensel Phelps' ability to manage large-scale, complex endeavors and its ongoing commitment to infrastructure development.

Technological Platform and Innovation

Innovation is a cornerstone of Hensel Phelps' operations. The company employs proprietary technologies and methodologies, including:

Virtual Design and Construction (VDC): Established in 2007, the VDC department integrates building models with data on manpower, cost sequencing, schedules, and field technology, enhancing precision and fostering a culture of safety.

Building Information Modeling (BIM): Utilized to create detailed digital representations of physical and functional characteristics of facilities, facilitating improved decision-making throughout the project lifecycle.

Diverge: Launched in 2023, Diverge is Hensel Phelps' innovation arm dedicated to reshaping the construction industry by investing in and deploying new technologies and methodologies.

Leadership Team

Hensel Phelps boasts a seasoned leadership team with extensive industry experience:

Michael J. Choutka: Chairman & Chief Executive Officer. Joined the company in 1991, holding various positions before becoming CEO in 2019. He holds a Bachelor of Science in Construction Management Engineering from the University of Nebraska-Lincoln.

Bradley A. Jeanneret: President & Chief Operating Officer. With Hensel Phelps since 1996, he has progressed through multiple roles, culminating in his current position. He earned a Bachelor of Science in Construction Science and Management from Kansas State University.

Jennifer K. Scholz: Vice President and Chief Financial Officer. A licensed CPA, she joined Hensel Phelps in 2011 after serving as the company's external auditor. She holds a Bachelor of Science in Accounting and a Master of Accountancy from the University of Denver.

Robert P. Majerus: Vice President and General Counsel. Joined in 2006, overseeing all contractual and legal matters. He holds a Bachelor of Arts from Georgetown University and a J.D. from the University of Notre Dame.

Laird B. Heikens: Vice President, Hensel Phelps Real Estate Development. With the company since 1989, he leads the Real Estate Development group nationwide. He holds a Bachelor of Science in Construction Management from Colorado State University.

Leadership Changes

In 2019, Michael J. Choutka was appointed as President and Chief Executive Officer, succeeding Jeffrey K. Wenaas. Choutka's extensive tenure with the company and his progression through various roles positioned him well for this leadership transition.

Competitor Profile

Market Insights and Dynamics

The U.S. construction industry is a significant contributor to the economy, with a market size exceeding $1.3 trillion. The sector is characterized by steady growth, driven by infrastructure development, urbanization, and technological advancements. Key trends include the adoption of sustainable building practices, increased use of prefabrication, and integration of digital technologies.

Competitor Analysis

Hensel Phelps operates in a competitive landscape alongside several prominent firms:

Turner Construction Company: Specializes in large-scale commercial projects, with a focus on sustainability and innovation.

Bechtel Corporation: A global leader in engineering and construction, known for infrastructure and energy projects.

Fluor Corporation: Provides engineering, procurement, and construction services across various sectors, including industrial and infrastructure.

Skanska USA: Focuses on construction and development, emphasizing green building and safety.

These competitors share a commitment to quality and innovation, making the construction industry highly dynamic and client-focused.

Strategic Collaborations and Partnerships

Hensel Phelps has established significant partnerships to enhance its market position and innovation capacity:

Hydro Construction Acquisition: In 2021, the acquisition of Hydro Construction expanded Hensel Phelps' capabilities in water and wastewater treatment facilities, allowing the company to offer comprehensive solutions in this critical infrastructure sector.

Diverge Initiative: Launched in 2023, Diverge is an investment company specializing in construction innovation and technology, working directly with partners and startups to source, evaluate, invest in, and deploy new construction innovations.

Operational Insights

Hensel Phelps' strategic approach, encapsulated in "The Hensel Phelps Way," differentiates it from competitors. The company's emphasis on employee ownership fosters a culture of accountability and excellence. Its comprehensive service offerings—from development to construction to facility management—provide clients with seamless project execution. The integration of advanced technologies and a commitment to sustainability further enhance its competitive edge.

Strategic Opportunities and Future Directions

Looking ahead, Hensel Phelps is poised to capitalize on several strategic opportunities:

Technological Advancement: Continued investment in technologies like BIM, VDC, and the Diverge initiative positions the company at the forefront of construction innovation.

Market Expansion: The acquisition of Hydro Construction and the establishment of new regional offices, such as the Pacific Northwest office in Bellevue, Washington, in 2023, indicate a strategic focus on expanding service offerings and geographic reach.

Sustainability Initiatives: With over 200 LEED-certified projects, Hensel Phelps is committed to sustainable building practices, aligning with increasing client demand for environmentally responsible construction.

By leveraging its strengths in innovation, comprehensive service delivery, and a strong corporate culture, Hensel Phelps is well-positioned to achieve its future objectives and maintain its leadership in the construction industry.