Building on Generational Success

Central Builders
Written by William Young

For Central Builders Inc. (CBI), it all started with family. The company began in 1989 under the leadership of Carl Ehrlich and his son Matt, who is now the company’s Vice President of Administration. The Ehrlichs wanted to fill a niche as a general contractor in the grocery industry in the early ’90s, at a time when construction projects attached to grocery stores had turned into seven-figure remodeling operations.

As a grocery contractor, CBI fit well into that niche early on and has stuck to it ever since while expanding its clientele considerably over 35 years in business. Matt’s brother Mark Ehrlich, Vice President of Operations, came into the business in 2012, from which time the company adopted a strategy of structured growth within its existing grocery sector as well as in public works like elementary and secondary schools and government facilities. The firm also broadened its general retail scope in the private sector.

“Since 1989, we’ve done business in more than 35 states,” Mark Ehrlich says as an example of the company’s considerable reach. The remodeling movement in the grocery sector progressed into major expansion work for CBI which, in turn, meant substantially larger and more complex work, as well as getting in on the ground floor of projects in its native Texas and its neighboring states.

Ground-up projects have become a significant focus for the business in the past four to five years, along with growth in existing clients and bigger volume projects. Having established its identity in its preferred markets and broadened its reach with existing and new customers alike, CBI has continued to evolve into a more rounded retail contractor.

As the company has grown from $30 million to almost $73 million in annual earnings, it has not increased the number of its employees, which is unusual in the construction space. But the Ehrlichs still see the company as on the path that their father, Carl, began 35 years ago, and that has allowed it to grow through trust and faith in the right people.

This path is demonstrated every day to employees and their families, and shows most concretely in the company’s revenue growth. Shea Shiley, Strategic Development Manager, says that Carl’s influence has allowed him and other workers in the company to confront problems head-on and embrace making mistakes as part of growth, with the plan being another 35 years of success to build on what has come before.

Safety is huge for any construction company, and grocery store remodeling puts an emphasis on that, Matt Ehrlich notes. CBI’s safety record has been celebrated in recent years as it has received national awards from organizations like the Associated Builders and Contractors’ Safety Management System, which awarded CBI its Diamond-level certification; the Associated General Contractors of America; and both national and local councils. Shiley says that “awards are the proof” that CBI can approach work in the industry both profitably and safely.

The company also takes the physical and mental well-being of its employees to heart, especially since the advent of COVID-19, and offers in-house amenities like an employee gym and more flexible schedules to promote work-life balance. Safety may primarily concern the job site, but truly extends far beyond to the general health of those who inhabit it.

Any general contractor knows that you are only as good as the subcontractors you bring to the table, as well as the relationships you build with them, according to Matt. This is why CBI prides itself on controlling subcontractor costs and schedules, a practice that starts in the estimating room.

Shiley points out that, when subcontractors know their schedules weeks in advance, it allows for better preparation, fewer mistakes, and increased safety. Fairness is also a key value held by the firm, so steps are taken to ensure that subcontractors are paid justly.

When it comes to the company’s vision, the next project is what interests the team the most, according to Matt. What this means is that the company is more likely to get a better price on bid day than its competitors because of both its predictability and strength in managing risks, which it achieves by keeping its eyes on the future. By building relationships prior to the bidding process and always putting the best interests of the client at heart, all that’s left is to perform and complete projects as efficiently as possible, as well as being fair on change orders, aspects that CBI knocks out of the park every time.

CBI was initially hesitant to spend money at the beginning of 2024 due to rate hikes occurring in the industry; however, after a while, some clients found themselves with a surplus, allowing them to get more creative with making deals for new projects. While the year has had a slower start with new contract awards, the floodgates opened in spring, and CBI is now as busy as ever.

Thanks to this, the company has a good portion of both 2025 and 2026 mapped out, again attributed to strong client relationships and open communication. Combined with increasing capacity, CBI has awarded a few promotions recently such that more employees are in positions to succeed while sustaining both the growth of previous years and long-term profitability.

Mark believes that 2025 will be the biggest year for CBI to date, with 2026 on track to continue that trend. The key concern now is to make sure all internal processes are shored up to make sure it can all be repeatable. With Mark and Matt having controlling interest in the company, Carl Ehrlich will soon be moving ahead with his retirement plan (although he will never truly be out of the picture). Carl has always been a fixture of the company, and his presence has helped to lead the CBI team into the modern day. Even if he will not physically be around as much as before, his presence will be felt in all aspects of the business.

In over 35 years in business, Mark says that he has learned to maintain culture through growth and empower people to make decisions. For a long time, he says, CBI took a more top-down approach to operations, but the ability to let go and put trust in the workforce has been a greatly rewarding experience for all involved. This kind of empowerment also helps the Ehrlichs ensure that they are focusing on headier subjects like long-term goals and planning while the day-to-day operations are covered by capable staff members.

Mark and Matt Ehrlich are quick to attribute the success of CBI to the culture of the company and the people within it. Having been voted the best place to work by the San Antonio Business Journal for several years in a row, the company promotes a jovial atmosphere that allows people the freedom to succeed with the agency given to them.

“We’re not slowing down; we’re just hitting our stride,” says Matt Ehrlich, and both the family and the workforce are not short on confidence heading into what promises to be another busy and lively year.

AUTHOR

CURRENT EDITION

The Power of Print

Read Our Current Issue

PAST EDITIONS

Retro Vibes

September 2024

Shady Business

August 2024

Storm in a Teacup

July 2024

More Past Editions

Cover Story

Featured Articles