In today’s construction US news, read about how Douglas County is presently constructing a new wastewater treatment plant. This facility will stimulate economic growth along the US 85 corridor while also providing much-needed long-term solutions to water quality and infrastructural challenges in northwest Douglas County. Meanwhile, before the wallboard manufacturer was acquired by C.D. “Dick” Spangler Jr. in 1995 for what would be considered $2.5 billion in today’s money, National Gypsum was a prominent figure in the corporate world for the better part of a decade.
Arpa-funded Construction of a New Water Treatment Facility in Douglas County Has Begun
Original Source: Construction begins on new water treatment facility in Douglas County with ARPA funding
A new wastewater treatment facility under construction in Douglas County will improve water quality and infrastructure in northwest Douglas County and boost economic growth along U.S. 85.
On Thursday, Aug. 28, Congresswoman Lauren Boebert, the Board of Douglas County Commissioners, and project partners celebrated the commencement of construction on the Chatfield Basin Water Reclamation Facility, a crucial step in modernizing essential infrastructure.
In 2022, after extensive stakeholder engagement and solicitation, the Board decided to use ARPA funds to improve water and wastewater infrastructure along Highway 85 from Louviers to Castle Rock, a long-underserved section of northwest Douglas County.
The reclamation facility is part of the new regional system that will modernize and allow existing communities to connect and replace an aging lagoon system with a modern, centralized wastewater system available to landowners using septic systems, improving public health and economic growth. The system enhancement will benefit Sterling Ranch, Roxborough, Louviers, and Titan Industrial Park and add trails for enjoyment.
This collaborative project is being delivered by Douglas County, PCL Construction, Dominion Water & Sanitation District, and Stantec. Construction is expected to finish in 2027, and Douglas County will invest $20,482,400. The remaining $15 million will be paid by Dominion Water & Sanitation District.
A vital initiative like this would not be possible without Douglas County’s investment. Small district property owners would have had to pay for the facility, making it unaffordable.
“This is exactly the type of project we are excited to fund through ARPA dollars,” stated Commissioner Kevin Van Winkle. “This wastewater treatment facility will improve residents’ lives and allow for future collaboration on environmental projects, trail systems, and more.”
“When Douglas County received ARPA funds, we knew the US 85 corridor needed water infrastructure updates,” stated Commissioner George Teal. The Board is happy to spend these monies to build this facility for our community.”
“We are thrilled to make this investment in water and wastewater infrastructure,” said Douglas County Commissioner Abe Laydon. “All Douglas County residents deserve peace of mind that their water systems are secure.”
“Our partners and clients’ collaboration, expertise, and innovation will improve facility design and help this growing community meet long-term water reuse and quality goals. Ankur Talwar, PCL Construction district manager, stated this building will be reliable, resilient, and constructed to last due to PCL Construction’s safety and quality standards.
“A new wastewater treatment facility in Douglas County has far-reaching benefits, and we’re pleased to provide our design expertise for such an impactful project,” said Stantec Project Manager Cody Charnas. “We’re proud to work with the County, PCL Construction, and the Dominion Water & Sanitation District to improve water quality and important infrastructure.”
About Douglas County ARPA Funding
During the COVID-19 epidemic in 2022, the federal government created the American Rescue Plan Act, which funded local governments by population.
The County received $68.2 million from the federal government to fund legacy projects in wildfire prevention and response, mental and behavioral health, economic foundations, homelessness, and intellectual and developmental disabilities.
Including recently approved Louviers and Sedalia projects, the County will invest over $35 million of ARPA cash in water and wastewater facilities.
National Gypsum’s Calm Character Conceals Its Construction Dominance
Original Source: BNC 125: National Gypsum’s quiet style belies its major role in U.S. construction.
National Gypsum was in the business headlines for most of a decade until C.D. “Dick” Spangler Jr. bought it in 1995 for $2.5 billion.
Management and French corporation Lafarge led a leveraged takeover of the old-line industrial industry in the mid-1980s. The 1986 deal came two years before the RJR Nabisco takeover that altered Winston-Salem.
The National Gypsum LBO seemed smart until wallboard sales plummeted. US housing starts fell 44% between 1986 and 1991. Late 1990 saw the debt-laden company file for bankruptcy. Investors and staff lost about $700 million during the three years under court order. But realignment allowed new leadership to focus the firm.
Spangler and other smart investors saw a significant return at National Gypsum in 1993 as building ramped up. After the company returned to the public stock market, Spangler won a heated takeover struggle in May 1995. That year was his 10th as UNC System president.
The headlines ceased quickly. Those outside the wallboard sector have heard little from National Gypsum for 30 years. The quiet profile suits Spangler and Tom Nelson, who became CEO in 1999 after his father-in-law. National Gypsum knows how to keep quiet, unlike many closely owned corporations.
Luckily, National Gypsum is celebrating its 100th anniversary, so Nelson agreed to a rare interview to discuss the company’s 30 years of history and performance.
Nelson has been active and his long-term investing strategy has worked, but details are few.
“[Dick Spangler] loved the company and believed it made an important, essential product that you use every day,” Nelson adds. His investment firm bought the company to invest long-term. He insisted on prioritizing skill and creativity. We capitalized on the excellent period since the early 2000s.”
Peter Browning, National Gypsum’s CEO for three years during its bankruptcy restructuring, appreciates Spangler’s vision while others saw a dormant commodity company. “He saw a business with strong assets, operating in a cyclical industry, and able to compete in both good and bad times.”
He also understood wallboard’s relevance.
Nelson says it’s one of the few items utilized in new construction, remodeling, and manufactured housing.
Wallboard became crucial in the early 20th century when gypsum, newspaper, and starch replaced plaster as a better means to make interior walls and ceilings. Melvin Baker, Joseph Haggerty, and Clarence Williams founded the corporation near Buffalo, New York, in 1925. Baker led National Gypsum for 40 years, taking it public in 1937 and managing a diversified construction goods industry with over 13,000 employees.
In 1902, many smaller businesses merged to form Chicago-based U.S. Gypsum, its rival. For decades, it dominated the wallboard business, but competitors like the tenacious Buffalo group took market share.
To prevent a hostile acquisition in the mid-1980s, U.S. Gypsum took on tremendous debt and went bankrupt like National Gypsum. Berkshire Hathaway, owned by Warren Buffett, turned a loan into 31% stock in 2001. The corporation emerged five years later from judicial protection. Buffett waited until 2019, when Germany’s Knauf Group bought U.S. Gypsum for $7 billion. The world’s most famous investor termed the holding a “disappointment” and criticized the directors for “not doing their jobs.”
Nelson said National Gypsum is the leading U.S. wallboard maker now that USG is foreign-owned. USG earned $3.3 billion in 2018, its last year as a public business.
However, National Gypsum has aggressively reinvested since 1995, contradicting the idea that newly private corporations don’t.
“A lot of capital has gone back into the business,” he continues. The corporation has made “big capital investments that will be around for generations if we do it right.”
For businesspeople, C.D. Spangler Jr. was the largest shareholder in Bank of America’s forebears and led the UNC System for 11 years before dying in 2018. He was instrumental in Hugh McColl Jr.’s Charlotte megabank construction.
However, Spangler’s father started his contracting firm in the 1930s. Spangler Construction’s south Charlotte headquarters was next to National Gypsum’s local sales office for years.
The family knew National Gypsum before the 1995 acquisition. In 1955, Spangler’s father testified in a Saturday Evening Post ad that National Gypsum wallboard was better.
A landmark business relocation for Charlotte occurred in 1978 when the corporation transferred Gold Bond’s main office from Buffalo to Charlotte. After Browning became CEO, the headquarters moved from Buffalo to Dallas, but company leadership went to Charlotte.
Nelson feels private ownership is beneficial. “We’ve invested long-term and stopped worrying about quarterly performance.” Nelson is a director of Yum! Brands, which owns Taco Bell, KFC, and Pizza Hut, and Bechtel, one of the world’s largest private construction corporations.
Since buying National Gypsum, the family has added wallboard operations in Mount Holly, Gaston County; Tampa, Florida; Shippingport, Pennsylvania; and Eloy, Arizona. Early this year, the firm opened its largest plant, facilitating western U.S. expansion. Again, National Gypsum doesn’t reveal plant investments. Georgia-Pacific’s 2023 Sweetwater, Texas, wallboard factory cost $325 million.
Nelson adds National Gypsum has many ProForm and PermaBase operations that make “joint compound” and “cement board”. Joint compound finishes drywall, while cement board is utilized in bathrooms and kitchens.
The company employs over 3,000 individuals in over 40 U.S. and Canadian plants. Anything closer than billions is a guess for revenue. Nelson thinks he has lots of North American expansion potential.
Innovation is important for all businesses, including century-old wallboard makers. Its Charlotte research center has Ph.D. scientists and professionals studying fire, sound, and air pollution. National Gypsum’s Purple brand of interior mold- and moisture-resistant wallboard may be best known for innovation. The company obtained a rare construction product color trademark in 2012. Nelson believes purple is “very effective” for National Gypsum without further explanation.
A stable senior leadership team indicates company success. National Gypsum’s top management have 250 years of experience, with many working 20+ years. Earlier this year, John Mixson became executive vice president and COO. He became strategic planning director in 1999. CFO Lori Hudson, CIO Chuck McMinn, and Corporate Counsel Laura Budzichowski are also important.
National Gypsum anticipates additional housing starts in the future. “We underbuilt new residential [property] as a country for a decade,” Nelson says. Because many people in their early 30s are becoming first-time buyers, I think that will unlock a lot. Many are starting houses and marrying later in life. they want to live in their own home.”
Nationally, affordable housing is a problem. “We made it through a lot of other cycles and I’m confident things will play out well here,” Nelson says. “I think we have great tailwinds.”
Since departing National Gypsum, former CEO Browning has worked closely with the company as a director of Lowe’s and Atlanta-based Gypsum Management & Supply, a building products distributor being acquired by Home Depot for $4.3 billion.
Tom has led the business well. Morale is good and they invested in the firm during economic downturns, adds Browning. After sitting on the board of their biggest customer (GMS), I can promise you they are highly regarded.”
He adds that National Gypsum has developed a winning spirit beyond capital investments and product advancements. “If they had culture issues, they would have had high executive turnover. They achieved greatness for that company.”
Nelson answers simply when asked what makes work fun. “Our people’s profound pride. Our people behind the product keep us moving forward and keep me coming back every day.”
Summary of today’s construction
To sum it up, Stantec, PCL Construction, and the Dominion Water & Sanitation District are working together to bring this project to the people of Douglas County. Douglas County expects to complete the facility by the end of 2027, investing a total of $20,482,400. The Dominion Water & Sanitation District will cover approximately $15 million of the project’s total cost.
Meanwhile, the organization employs over 3,000 individuals and runs over 40 sites across North America. Browning has maintained close ties to the company since stepping down as CEO of National Gypsum. He is now a director of Lowe’s, a home improvement store, and Gypsum Management & Supply, an Atlanta-based distributor of building supplies that Home Depot is acquiring for $4.3 billion.
