South Coast Inc.: capturing the construction market.

• Author: Allen, June
• Position: Company Profile

When the State of Alaska was just six months old, South Coast Inc. (SCI) was a spanking new construction company in virtually roadless southeastern Alaska. Founded by Bob and Delores Day of Petersburg, the company's assets included a little experience, some road building equipment, 10 eager employees and a freshly inked contract with Ketchikan Pulp Co. to build logging roads on Prince of Wales Island.

Today, SCI, now a Klukwan subsidiary, has 34 years of experience, one of the largest fleets of construction equipment in the state, an annual average of 275 employees and long lists of heavy construction contracts the length and breadth of Alaska.

A recently published list of Alaska's largest construction companies, ranked by revenue, places Ketchikan-based SCI as No. 2, with $38 million in total 1992 revenues. It is also the only one listed with headquarters in Southeast.

South Coast's president, Edwin Johnson, attributes part of the wholly Alaskan-owned company's growth and success to its aggressive posture in bidding and its preferences in project locations.

"The work doesn't come to you," Johnson says. "You have to go out and get it. You have to deal with the competition and the competition gets stiffer every year. Then you have to get the job done. And you have to make money at it.

"We don't key on any jobs in Anchorage and Fairbanks, because there are contractors already there who have the advantage of site proximity and access to sand and gravel sources. We like unique bush jobs with complex logistics, the kind that often require barge and air transport," Johnson adds.

Another key to South Coast's business success is its outstanding roster of qualified, experienced workers, says Johnson. More than 30 of the company's key people have been with SCI for more than 12 years. Several have been with the company for more than 20 years. South Coast even employs a few father-son teams.

Building Diversity

Diversity is another aspect of SCI's forward movement. What began as a company to carve roads to logging sites has evolved into a corporation specializing in every area of heavy construction, from planning and logistics to operations. South Coast also specializes in on-the-job maintenance of equipment on projects including highways, airports, bridges, bulkheads, docks and dry dock facilities, a U.S. Navy acoustical measuring station, and underground jobs in mines and on power projects.

Recognizing the time for change has also been crucial to...