This Texas Contractor Went from Renting Out Equipment to Running It
A friend taught him how to run equipment to help customers at the rental shop where he worked – but the new skills put him on...
For several years, Jon Rosas had a front row seat in the equipment business, working in the rental division of Mustang Cat. It was there that he met contractor James Jayroe with Jayroe Construction. The two became fast friends.
“I asked him to let me work with him for free on weekends so that I could learn how to run the equipment,” Rosas says. “That way whenever a question came up with a customer maybe I could help them troubleshoot it.”
Eventually, Jayroe asked Rosas to join him as an estimator and provided lessons on estimating and plan reading. But the two couldn’t work out an agreement, so Rosas stayed put and the friendship continued.
A few years later, it was Rosas who asked Jayroe about a job. This time, though, Jayroe had a counter proposal: start your own business. “Here it is 24 years later, and I’m still doing what he taught me to do,” Rosas says with a grin.
Patch Work
“We started out doing what they call patch work, which is basically work that nobody else wanted to do,” Rosas says. “I thought it was an opportunity other guys were missing out on.”
Today, EMi Construction, with annual revenues in the $6 million to $8 million range, focuses on land clearing, excavation and development work.
Located in Tomball, Texas, EMi works throughout the greater Houston area.
Top-Notch People
“Our people make us unique,” Rosas says. “Without them, EMi wouldn't be who they are today. I consider ourselves a player in the industry, and I owe it all to them.”
“These guys work so well together," he adds. "It's like they almost know what they're thinking or what their next move is going to be. They're a diverse group of guys. They're top-notch.”
To ensure this top-notch crew stays safe, EMi has a “tailgate party” every morning going over the work planned for that day and what might go wrong. “We need to make sure that we know what we’re looking out for,” Rosas says. This safety standard helps the company maintain its 0.84 experience modification rate.
Rosas appreciates the younger generation coming into the field. “It's the hungry ones that are striving to do better for themselves that you have a pleasure of helping because you want to see them succeed,” he says. “There's enough work for everybody, from the smaller guys to the bigger guys. It doesn't matter.”
This willingness to be open has earned the respect of clients. “He could teach other contractors about communication,” says Greg Hawk with client Colina Homes. “Even if it’s bad news, he’s immediately on the phone to let you know what’s going on.”
90% to 95% Utilization
EMi ‘s earthmoving fleet includes excavators, dozers, scrapers, plus a compact track loader and a backhoe. Other machines include a reclaimer/stabilizer/mixer and a roller.
“I can honestly say that we get 90% to 95% utilization out of our machines,” Rosas says. He stays on top of maintenance by subscribing to a preventive maintenance program at Mustang Cat.
“They’ll monitor the machine and come out and service everything that’s required,” Rosas says. “That also is a key to the machine resale value, knowing we’re going to get the maximum out of the machine whether we sell it outright or we decide to trade it.”
Rosas monitors his rentals closely. If he finds that he’s renting a certain machine on a regular basis, he’ll opt to buy a replacement machine instead.
The EMi team uses a Procore construction management software platform and works on iPads to make sure everyone is in the loop, Rosas says.
Several machines are equipped with machine control. “It gives you so much accuracy, and with the time it can save, you can be more competitive and grow your margins,” Rosas says.
The dealbreaker for any equipment relationship is availability of parts, Rosas says. “Machines are going to break down, and downtime is critical. You increase your margins by being productive every day.”
He keeps close tabs with his dealer reps and industry sources to find out what’s new. “In order to be effective, out on some of these projects and taking on different challenges, you have to be up to date with what's going on,” Rosas says.
The Origin of EMi
Officially, EMi stands for Excavation Management Incorporated, but there’s a backstory to the name.
“It comes from Emily Michelle, my daughter’s initials,” he says with a smile. “My daughter was barely a month old; I also added the “i” for incorporated. About six months later my CPA says, ‘you’re going to have to come up something better than that,’ and it just came off the tip of my tongue Excavation Management Incorporated.”
Rosas takes construction’s inevitable ups and downs in stride. “Back in 2008, when the housing industry tanked is the only time I thought I wasn’t going to make it. Even though it was a bad time for everybody, I wouldn’t change it for the world. We were down to the last $100 in the company account.”
A family member helped Rosas fund a critical job. “It helped me stay alive. It humbled me, and I learned, and I grew from it. And I’ll never forget it.”
Gradual is the Best Kind of Growth
Rosas sees EMi continuing the path already forged. “To me gradual growth is the best growth,” he says.
“There comes a time in everybody's life that they figure out what works for them,” he says. “And we've figured it out. We almost have the perfect formula that makes it work for us.”
Becoming a Contractor of the Year finalist has given Rosas the chance to reflect on his career. “Never in a million years did I think that I would be doing what I'm doing,” he says, “even as a toddler pushing around Tonka toys. After I got into it, I figured out that this was my unforeseen calling.”
“I love coming to work every day working with the people that I work with,” he continues. “It's a new challenge every day. Is every day perfect? No. Can you try to make it perfect? You can try."