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Rock Solid

Granite Construction celebrates 100th Anniversary; Salt Lake office thriving in heavy/highway/civil market. 
By Brad Fullmer

With more than 200 total offices, project offices, and materials facilities spanning 31 U.S. states, Mexico, Canada, and Guam, Granite Construction Company has forged a solid reputation as a leading general contractor. Working mainly in the heavy/highway/civil construction markets, their annual revenues are nearing the $3.5 billion mark. The company hit a major milestone this year by celebrating its 100th anniversary, and key executives say the best is yet to come. 
“It’s pretty impressive,” said Kyle Larkin about the firm hitting the century mark. Larkin is a 27-year company veteran who started as an intern in 1995, the same year Granite Construction—headquartered in Watsonville, Calif.—acquired Utah-based Gibbons & Reed Co. for $42.8 million and immediately set out to complete the Jordanelle Reservoir project in Wasatch County. He was named President in September 2020 and added the title of CEO in June 2021, making him only the sixth CEO in Granite Construction’s long history. “When I started, we were doing $600–$700 million. Today, we do close to $3.5 billion, so there certainly has been a lot of growth,” said Larkin. “As much as it’s grown, it hasn’t changed much with our culture. That’s equally impressive.”
Larkin credited the strong culture to the core values and principles instilled by founder Walter “Pop” Wilkinson, saying, “It’s been important for our company’s success historically—and into the future.”
Larkin said Granite ranks as the 28th largest general contractor per 2021 revenues, according to ENR’s 2022 rankings, including ranking No. 1 in highway and No. 1 in stormwater. The firm also ranked No. 2 in mining, including performing considerable work at Kennecott Copper Mine in Utah. 
Granite Construction is divided into two divisions: The Branch Division serves local markets in California, Arizona, Nevada, and Utah, focusing on highways, bridges, pipelines, and site work. Granite’s Heavy Construction Division, operates on a national level, including major public and private projects generally valued in excess of $50 million—highways, dams, rapid-transit bridges, tunnels, pipelines, and canals,. The firm produces its own sand, gravel, and aggregate-based materials, which it also sells to other companies. Granite owns/leases strategically located reserves of aggregate materials, plus 158 processing plants for rock, asphalt, and concrete. 
The company is publicly traded, with employees owning more than one-fifth (21%) of shares. 
“We want to stay focused on civil construction and aggregates,” said Larkin. “We plan on capitalizing on this robust market and grow the firm organically. We’re looking at opportunities in the near term for acquisitions and looking to move further east in a bigger way.” 

Utah Office Poised for Steady Growth, Strong Future Revenues

In addition to acquiring Gibbons & Reed in the mid-90s, Granite holds several subsidiaries in Utah, including: Concrete Products Co., which produces concrete, asphalt, sand, and gravel; Garco Testing Laboratories, a materials testing company; Inter-Mountain Slurry Seal, which focuses on asphalt rehab/rejuvenation; and Bear River Contractors, a construction and materials processing firm. 

Larkin said the acquisition of these Utah subsidiaries “was a big step for the company—it was the furthest east we had been in our company history. Gibbons & Reed approached Granite at the time and we knew they had good assets [and] aggregates. It was an opportunity for us to operate more efficiently.”

The Salt Lake office is led by 22-year company vet Jason Klaumann, who was named Vice President/Regional Manager in June 2017. The office performs work throughout the Beehive State, in addition to Western Colorado, Wyoming, Idaho, and Montana. Klaumann oversees 650 employees in all, a number he expects the company to add to in the future. He said Granite prides itself on hiring the best of the best and providing a strong corporate atmosphere with plenty of opportunities for growth. 

“The caliber of people we’ve hired and the reputation they’ve built for the owners we work for is key,” said Klaumann, a Montana native who was hired in 2000 after graduating from the Montana School of Mines with a Bachelor of Civil Engineering. Klaumann said Granite’s safety culture has improved considerably since he started working for the company, crediting Dave Hulverson, Director of Safety, for making safety a top daily priority. 

“It’s an ongoing process every day,” Klaumann said of safety. 

Revenues from the Salt Lake office are evenly split 50%–50% between highway projects and the private industrial market, which includes local mining and refinery work. Specializing in those markets, he said, is a further testament to Granite’s strong safety track record.

“You don’t get a second chance there if you do something stupid,” Klaumann said of the firm’s industrial clients. 

When he started, Granite was contracted to work on several projects related to the 2002 Winter Olympics, which he said certainly helped the company with its local marketing. The company also played a key role in helping Kennecott recover from a major landslide in April 2013, one of the largest non-volcanic slides in North America’s modern history, with approximately 100 million cubic yds. of material—enough to bury New York’s Central Park 66 feet deep. 

The firm operates several construction materials subsidiaries in Utah, including an aggregate pit at the mouth of Big Cottonwood Canyon, an asphalt plant on 1900 W. in Ogden, an aggregate pit in Willard, and a hot plant in Eagle Mountain, and is currently in the process of opening a new aggregate pit near Grantsville. Granite is also drawing from several strategic partnerships it has in other parts of the Western U.S. 

Klaumann said he has benefitted the past two years serving on the Board of Directors as Secretary/Treasurer for the Associated General Contractors (AGC) of Utah. 

“The biggest [positive] outcome is networking and forming relationships with other leaders in the industry,” he said. “I’ve met a lot of people who work for us as subcontractors and suppliers, and other general contractors that we can do joint ventures with. You don’t know when you’ll need a relationship.” 

The firm’s biggest current project is the U.S.-89 Reconstruction in Davis County, a job that could end up in the half-a-billion-dollar range by the time it is completed in June 2023. Granite is the lead contractor on the Oak Hills Constructors team with Draper-based Ralph L. Wadsworth serving as the minority partner. 

Klaumann said the project “has been really good for us. The relationship with UDOT is phenomenal, and we have been excited to lead the way in progressive design-build in Utah.” 

Klaumann anticipates a solid finish to 2022, with 2023 also expected to be a busy year, albeit perhaps a little softer, depending on what happens nationally with the economy. 

“Everybody is cautious with what is happening with the national economy,” he said. “Utah is slower to be hit and quicker to recover generally, so we’re optimistic that […] if it comes to a recession, it won’t be as long as other states. Our state government does a good job funding construction. In general, the outlook is pretty good, but we’re a little cautious.”

“Utah is a really important office and is one of the larger regional offices of the company,” added Larkin. “We see tremendous opportunities for healthy growth over the next two to three years and will continue to make investments in the market.”


Aerial view of Jordanelle Reservoir Dam in Wasatch County, which was completed in June 1995, the same year Granite acquired Utah-based Gibbons & Reed (photos courtesy Granite Construction).

Granite Construction Company 

General Information

1900: Granite Rock Company is incorporated. 

1922: Granite Construction Company is formed as Granite Rock subsidiary. 

1936: Granite Construction is sold. 

1985: Employees gain ownership stake. 

1987: David Watts is named CEO. 

1990: Company is taken public. 

1995: Granite places final truckload of material for the Jordanelle Dam.

2016: Granite conducts its first carbon footprint assessment


Public Company; Ticker Symbol:
 GVA 
Employees:
 5,017 
Revenues (2021):
 3.5 Billion


Principal Subsidiaries:
 

Granite Construction Company, Layne a Granite Company, Intermountain Slurry Seal, International Directional Services (IDS), Granite Industrial, GARCO Testing Laboratories


By LADD MARSHALL January 1, 2025
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