BIRDIES; BOGEYS & BACKHOES: Golf plays a strategic role in helping brothers Mark and Eddie Vannoy keep their half-billion-dollar construction business growing.

• Author: Pomeranz, Jim
• Position: NC GOLF

Mark Vannoy was itching to get out of the Jefferson Landing clubhouse restaurant on a chilly January afternoon and get out on the golf course at his gated community in mountainous Ashe County. Though the temperature was in the low 40s, he and his guest loaded into a golf cart and headed for the 10th tee.

But playing golf was not on the agenda, with the course, owned by Vannoy, 66, and his brother, Eddie, 70, closed for the winter. Instead, the owners of Jefferson-based James R. Vannoy & Sons Construction Co. were excited to show off the multimillion-dollar renovations at the 28-year-old layout in northwest North Carolina, 90 miles west of Winston-Salem.

Just as if he were discussing a new construction project, Mark enthusiastically described changes to the golf course--led by Greensboro designer Kris Spence--which has been instrumental to the success of his family's business. Vannoy Construction is No. 18 on the 2018 list of North Carolina's Top 100 Private Companies, compiled annually by Grant Thornton LLP for Business North Carolina. Meanwhile, Jefferson Landing ranks No.

65 on the North Carolina Golf Panel's list of the state's top 100 golf courses (Page 46). The business, though, came long before the golf expansion.

In 1952, the brothers' parents, Jim and Wilma, started an Ashe County roofing business, which morphed a decade later into general contracting. Their sons joined the family business in the 1970s after studying business administration at East Carolina University, which was as far away as they could get from Jefferson while remaining in North Carolina, Mark jokes. An early landmark project was a Northwestern Bank branch in West Jefferson, which led to more exposure for the Vannoys and contracts to build more offices for the North Wilkesboro-based bank that was later acquired by Wells Fargo predecessor First Union Corp.

Since then, Vannoy Construction has grown its annual revenue to as much as $550 million, with clients in the health care, retail, higher-education, highway and other sectors. A key client has been home-improvement retailer Lowe's Cos., which started in nearby North Wilkesboro and is now based in Mooresville. The Vannoys have built more than 200 Lowe's stores, most recently at an estimated $20 million a pop.

The Vannoys had to be nimble and renovate their business in the 2007-09 recession, taking on more health care projects as retail and banking slid. "We hustled more during that time," says Mark, who is the company president while Eddie is CEO. "Regular retail work quit coming to us, so we jumped into repair services, roofs, flooring and parking lots. We made a lot of repairs for Bank of America. We had to change our approach overnight, it seems."

A rebounding economy helped the business return to expansion mode. The contractor now employs more than 300 at offices in Jefferson, Asheville, Charlotte, Winston-Salem and Anderson, S.C. Having a headquarters in a county of fewer than 30,000 hasn't inhibited growth, with projects completed in 40 states and now underway in 15. General building makes up about 80% of construction revenue, with the balance from highways and site work. "About 75% to 80% of our work is repeat business," Mark says.

The Vannoys have built more Lowe's than any other contractor, according to Larry Stone, who joined the retailer in 1970 and rose to president before retiring in 2011. "Vannoy did a fantastic job for Lowe's, always on budget or under budget," says Stone, a Wilkesboro resident who also has a home at Jefferson Landing. "While they're good builders, the most important thing in construction is the relationship, and Vannoy and Lowe's have a very good relationship."

The Vannoy brothers credit their success to a company philosophy based on what they call the 4 Hs: honor, humility, hospitality and hustle. "We treat our employees like they are part of our family," Mark says. "It's been the reason we've been able to retain so many employees for so long." Executive Vice Presidents John Montgomery, a 27-year employee, and Bill Blank, along with Asheville manager Brian Walker, both of whom joined nine years ago, "are part of the discussion of company leadership when Eddie and I are no longer active," Mark says. The succession planning also involves family, including six children or their spouses who work for the company in roles ranging from finance to project management. Asked if they ever plan to relocate from the community of about 1,400, Mark Vannoy replies, "I don't see the headquarters moving in my lifetime. But...