Dirt Movers, Inc. has a large stable of machinery for various jobs. Here, a bulldozer operator performs grading.

Dirt Movers, Inc. President John McDaniel started the company 16 years ago and has grown annual revenues from $2 million to $22 million.

For 16 years, John McDaniel has led Stockton, Calif.,-based Dirt Movers, Inc. as a hands-on boss, earning the respect and loyalty of his staff by working side-by-side with them in the field. Even when he was going through cancer treatments almost three years ago, he didn’t miss more than 10 days of work.

“The secret to running a quality business is good leadership,” John says. “I do the estimating on every job and work as a project manager with two other project managers on each job. I believe in being involved in the everyday operation of the company.”

The contractor does grading, excavation and underground utility projects from Bakersfield to the Oregon and Nevada borders. The company can do “wet” construction, like sewer, fire, domestic water and storm drainage, as well as “dry” projects, such as telephone, electric and gas. Grading and excavation services consist of site development, ditching and trenching, demolition, erosion control, drainage solutions, hauling and delivery. Grading operations include cut and fill, hillside work, and building various pads with different elevations.

“When I’m talking to potential clients, I’ll give them an honest answer about their projects whether they choose me to do the job or not. I’ll give them my expertise to help them solve their problems. As a result, eight out of 10 times I get the assignment. I think that’s because they want to deal with someone who is honest and will do the job right,” John says.

He continues, “I lead by example and I tell our team, ‘It’s either right or wrong; so let’s do it right. If there is something that we owe a client, let’s do it.’ ” It’s important to him that jobs are also done on time and within budget. That’s where his direct involvement in a project can be crucial.

Not one to whine or make excuses, John says he battled cancer just like he tackles everything in life: with a never-say-die attitude. “If you give up, you’ll die. Not everyone is built like that, but I don’t dwell on it. I think that’s why I earned so much respect from my people. I spent years out in the field with them and I trained my general superintendent to be honorable, honest and to do the right thing. If we do all that, we’ll always be in business,” he says.

Company Growth on the Upswing

The owner and President has led the growth of the company from annual revenues of $2 million to $22 million. Early on in the company’s history, Dirt Movers might have 15 jobs for an entire year; today, the company has about 15 jobs going on simultaneously right now. Still on an upward trajectory for annual sales volume, John says the only thing preventing the company from increasing its workload and income is the challenge of hiring the right people.

He says the economic downturn around 2008 caused many people to leave the construction industry and they never returned. Now that the economy is booming in the Bay Area, there is plenty of work to be done. He’s looking for quality equipment operators, foremen and superintendents.

Currently, Dirt Movers has a staff of 100. “I’ve got people who have been with me for 18 years and most of those have been trained in-house by me,” he says. “If our team works as a family, we have more happy clients.”

The company experienced its largest growth surge in 2008 when the economy tanked, he recalls. He anticipated the economic downturn and carefully guarded the company coffers to prevent being overextended. Despite the recession, there were projects that clients still had under development and because of his preparation, he was still ready to do business. Dirt Movers garnered new clients because many of its competitors folded under the economic pressure, John says.

Looking at the economic cycles, John acknowledges that the bottom can drop at any time. But, in California, he says there is typically a three-year upcycle and a three-year downcycle. It has taken a long time to recover from the economic downturn of 2008, he says, leading him to believe the good times may last a little longer than normal.

Project Demands

Dirt Movers has completed projects for some demanding clients such as Walmart, John says. “Their expansions are as tough as working for the government because of the strict standards and expectations that they have. We work while the store is still open, which is a logistics nightmare because we have to worry about staging, safety, working both day and night, and moving things around the underpinning on the building—all while the store is full of customers.”

The company recently started working in the lucrative condo/townhome/apartment industry, which has some really good developers that have massive growth potential, John says. This venture is another way to diversify the types of markets that Dirt Movers serves, he explains.

In the Works

Currently, Dirt Movers handles only private projects, but John’s looking to add a public works division within the next year. “With two divisions, we will ensure that our service lines are diversified and keep the company thriving regardless of what is going on in the economy,” he predicts.

He also plans to upgrade existing equipment and invest in more machinery. One thing he plans to do is add GPS (Global Positioning System) capabilities to his equipment. John says it is a lot like the portable devices found on the dashboard of a vehicle, but navigation is only one part of it. For construction companies, GPS can help manage expensive machinery, from mobile cranes to earth-moving equipment, by transmitting status updates of the equipment, including when it’s operational or parked, in addition to location.

Additionally, John says another office is coming to the Bay Area sometime in the near future because of projected growth and company expansion.

“Upgrading our equipment technology, adding another office and offering other services will help ensure the business runs smoother,” John says. “From working in the field, I know what we need to keep the company thriving and moving forward; I’ve weathered the storms over the years and learned that being a part of business operations in a hands-on capacity is easier for me and more successful for the company. I don’t like to sit back and watch others do the work.”