BusinessTN

No one would have blamed Jim Campbell had he simply coasted to retirement.

As co-owner and operator of a group of successful family-owned businesses in Jackson--anchored by the steel fabricating company Williams Steel--he could have rested on his laurels.

But in late 2001, the then 52-year-old former Army Ranger and intelligence officer needed a new mission, a new purpose. And Jackson plan-design-build firm H+M Company needed a new leader.

Williams Steel had sold its products and services to H+M for years, and Campbell and his brothers had been friends with H+M owners Richard and David Fite since high school. Also, in recent years, Campbell and Richard Fite had worked closely on a committee to plan and build a $10.6 million high school campus for Jackson's largest private school, University School of Jackson.

"We put a lot of time into that, and it was a great opportunity to work together," Campbell says of the school project. H+M was the lead contractor on the job, finishing the high school in 1997.

So when H+M found itself without a chief operating officer, Campbell approached the Fites with the idea.

"I wanted to leave my comfort zone; I wanted a challenge," Campbell says.

And H+M CEO Richard Fite says the idea made perfect sense.

"We knew he would be extremely valuable to the company," Fite says. "It made it easier for my brother and me to do what we enjoy: the selling and the marketing."

H+M--founded in 1957 by Charles "Chicken" Fite and Frank Warmath--specializes in major construction projects in four main sectors--manufacturing, heavy industrial, distribution center and education. In fact, they are known across the state--as well as the nation--for their school construction work.

H+M has several other business units dedicated to engineering, architecture and industrial services, as well as various smaller groups that do sub-contractor work (electricity, plumbing, etc.).

A goal for the company is to bring even more construction-related companies under its umbrella--either through acquisitions or close relationships. This will allow H+M to perform more work itself and be less reliant on unfamiliar sub-contractors, Campbell and Fite say.

This push and other company-wide measures to reduce waste have been Campbell's major initiatives since he became COO in January 2002.

"The biggest waste in our business is when a subcontractor is ready to work, but the job site is not ready for him to begin or he can't proceed as he wants," Campbell says. "We need to eliminate that wasted effort. This is why we want to have a long-term team in place to operate in the most efficient manner."

Fite says the self-performing initiative has already cut 5% to 10 % of total project costs. H+M grossed $300 million in sales last year.

Another change Campbell is managing is a switch to more designing and planning in 3D. By helping clients see the finished project earlier in the process, decisions and plans can be made at the design phase to keep from making costly fixes later, Campbell says. The 3D imaging also can help designers and engineers spot problems early, Fite says.

Recent H+M projects include a $40 million West Coast distribution center (1.3 million square feet) for Ross Stores, a $30 million national headquarters and production facility (426,000 square feet) for Pirelli Tire North America in Rome, Ga.; and a $24 million e-commerce fulfillment facility (640,000 square feet) for Wal-Mart.com in Carrollton, Ga.

While steel fabrication and construction project management are two different businesses, Campbell says H+M and Williams are alike in one key way--both are small, closely held companies run by family members. H+M owners include only the Fites and Campbell.

"We focus on the clients and meet and exceed their expectations," Campbell says. "We have that luxury here. We don't have to balance the needs of a bunch of shareholders."

Campbell admits going from his family's company into another's has been a challenge. Holding his staff accountable to a new direction and a new leader means "you have to do some unpleasant things," he says.

But Campbell says the company's future depends more on the team--and not just on him.

"The old delivery method doesn't make any sense, and it's been a challenge working through the dynamics of changing the system," he says. "But I think we are on the right track."