Title: Plaza Park Bank - Case Study: Big Bank Capabilities, Small Bank Service for
K Johnson Construction, Inc.
K Johnson Construction’s Inc. unique story really began 50 years ago in Mankato, MN..
Owners Kevin and Julie Johnson have worked tirelessly to continue the success and
growth of this Central Minnesota construction business. In 1965, Kevin’s father left the
farm in Mankato and moved to Los Angeles, CA. to work for his uncle, a concrete
contractor. A few years later he returned to Mankato and began his own concrete
business. However, the recession of 1979-1980 forced him to take a position with
another company. At only 17 years old, Kevin took the reigns and continued the
business for several years. After moving around, Kevin landed in St. Cloud and started
K Johnson Masonry in 1987. Working from their home, Kevin and Julie focused on
residential projects and apartments, but it would not be long before they would reach a
turning point.
Valuable Lessons Learned
In 1993, Kevin and Julie were awarded the subcontract to work on the school in Becker,
MN. The very next year in their own “field of dreams,” the couple built their offices, and
things started moving quickly. Since the beginning, K Johnson Construction has
primarily focused on masonry and concrete and continues that specialty. It was in 2005
that the company added general contractor to their list of specialties allowing them to
tackle larger projects including the St. John’s University Football Suites. They realized
that with other general contractors viewing them as competition instead of a partner,
their local business was negatively affected. With the economic downturn starting in
2008-2009 KJC choose to drop that portion of their business and focused on their
primary business in concrete and masonry. Securing the St. Cloud Hospital Masonry
contract during this time period ensured their survival when many contractors closed
their door. It did take some convincing of other contractors that they were no longer
competitors, their relationship with these commercial contractors are as strong as ever.
They now look forward to continued success as they move towards the future.
Their excellent reputation built on their steadfast adherence to their core values of
honesty, quality, and innovation has treated the company well. Their “field of dreams”
has undergone four separate expansions since 1995. They also were able to start
another independent business called Polished Concrete Plus. That endeavor began in
2005 when the company began polishing concrete. This method of a durable finished
floor process has taken off throughout the USA and you can see many examples of
PCP's work throughout central Minnesota. Polished Concrete Plus continues to be
successful as well both in the areas of floor finishing and precast and custom concrete
pieces. Kevin explains how managed growth leads to success. “I never built ahead of
what we needed—we’ve been successful because we built what we needed when we
needed it. We’ve focused on slow, controlled growth in order to manage expenses,
keep debt low and best serve our clients.”
Challenges Faced and Overcome
As is the case with most businesses, success is not experienced without facing and
overcoming some challenges. K Johnson Construction was certainly not exempt from
this reality. Some difficult choices were made, however by relying on those values
mentioned; the company was able to overcome and hold true to what they believe. A
prime example of this relates to their insulated concrete forms division. Before the
recent recession, that segment of their operations was enjoying sales of over $1 Million
annually. Sales continually dropped for this division as the market was flooded with
many producers and lower prices. So the decision was made to close this division of
KJC. Even after the recession, though sales had slowed elsewhere, there was still a
high demand in North Dakota. Their crew often traveled to Dickinson and the oil boom
there, but the success did not come without a price. It was not long before it was clear
that it was very hard on the families of their employees, and also was logistically difficult
to coordinate jobs so far away. As stress and expenses began to rise, it was decided
the company would no longer pursue North Dakota projects.
Another challenge that K Johnson encounters is regarding employee recruitment and
retention. Individuals are trending away from jobs involving manual labor leaving a
shortage of qualified employees. Employing individuals that are inexperienced is costly,
and it takes time to train and learn all the various aspects of concrete and masonry
construction. Fortunately for the company, their turnover is extremely minimal, a very
rare thing in the construction industry. When asked what their secret is to employee
loyalty, Julie points to Kevin, “He treats them so well. Our employees are treated like
family, and they have the freedom to make mistakes — and Kevin has been known to
give them multiple chances. People learn from their mistakes by making better choices.
In fact, we’ve had guys quit for opportunities that seemed better, and then return and
ask for their jobs back because they wanted to return to KJC. We take them back if we
can because we care about them, about their families and about creating a good
team.” “They also trust Kevin and see him digging in and working alongside of them
when the going gets tough—he’ll go out and work on the job when they are shorthanded or running behind. He is an all-in kind of owner.”
Loving What They Do and Looking To The Future
Currently, K Johnson employs 45 people with only five who work in the office. They’ve
come a long way, and their longevity is due to the love they have for their work, their
clients, and their business. New technology and innovation, as well as how it impacts
their industry, is something Kevin has always been known to research bring to the
company. He knows that is there a new technology, product or technique, KJC will
look forward to exploring it and giving it a try. One utilized is a new laser guided
equipment that makes their work significantly easier. They also enjoy looking at ways to
improve the efficiency of the business. In fact, Kevin’s vision for effectiveness and
willingness to invest in new technology is a critical factor that has allowed them to grow
in manageable ways. They appreciate and listen carefully to the fresh ideas of their
employees and have seen significant benefits from doing so.
The Johnsons are always seeking new ideas and opportunities. They look forward to
someday spending some vacation time away in the winter now that they are on the
verge of being empty nesters. While Kevin does not plan to retire anytime soon, or ever
for that matter, he loves what he does too much to leave it entirely. They have a lot to
love. “We love the freedom and autonomy of being business owners. We work hard,
but can come and go as we need to. We have pride in the reputation we’ve built. It is
our legacy. We love driving around town and knowing we helped build that, and that,
and that . . .and that.” They’ve worked on a lot of local businesses over the years
including rebricking the Byerly’s building, Sauk Rapids High School concrete,
CentraCare ISB Building and using 493,657 bricks in the ten story addition at the St.
Cloud Hospital.
Through all the success, they are clear about one thing. It takes great employees to
experience great success. “Employees have raised families while working for us. They
trust us to keep the business strong so that they can raise their families. Our employees
and their families ARE our family.”
K Johnson Construction and Plaza Park Bank
Kevin and Julie switched from a large national bank to Plaza Park Bank in 2012 for a
number of reasons. The couple realized that they were not receiving the personal
service and quick responsiveness they needed to have from their bank. Having worked
with banker Denise Rosin previously, they knew how deep her commitment to the
clients ran. Jacki Templin accompanied Denise at that first meeting, and it was clear
that they were in for an entirely different type of experience with Plaza Park Bank. It was
not merely they way they were treated and respected, but also because of the policies
and local decision-making abilities the bank utilizes. After interviewing Plaza Park Bank
and one other, Julie had made a decision. “We interviewed them both, but we learned
that larger isn’t always better. We felt like we would be another number to the other
bank. Jacki had done her research and took time to ask a lot of questions to really
show interest in, and understand our business. The other bank was interested only in
what they were going to do for us. We loved the “welcoming atmosphere” with PPB and
knew it would be about our relationship.”
The Johnsons were considering a change when a loan became due at their previous
bank. Their business banker had left the company, and their new banker advised them
the loan would not be renewed due to new banking policies. Plaza Park Bank, however,
made the loan renewal possible and in less than a month, K Johnson moved 37
accounts to their new bank. They work with Plaza Park Bank for every aspect of their
finances including loans, checking, savings, and credit cards.
The only concern that Kevin and Julie had regarding the move from a large national
bank to a small locally-owned bank was the available technology. They wondered if they
would be able to enjoy the same conveniences that technology offered. After seeing a
demonstration of Plaza Park Bank’s online suite of services, the couple was completely
reassured. Not only is the technology as cutting edge as the national bank, but they are
also enjoying additional ancillary benefits due to the flexibility and responsiveness of
Plaza Park Bank.
K Johnson Construction Loves Their Bank
“It used to be, call and wait a LONG time for an answer from the big bank, and now?
We call Jacki when we have an opportunity, and Jacki’s answer is always “let's find a
way to make this work. Now.” They are creative problem solvers at PPB. They make it
work without us having to put up our first born as collateral. We love that Jacki, our
banker, is on the loan committee and helps make the decisions. It means she is
advocating for us, and when we need to modify our request, she knows exactly why the
decisions are made.”
The Johnsons love working with Plaza Park Bank because they believe the bank shares
in their vision and truly desires to be a part of their success. Julie explains, “I know
when I call, someone will help. Plaza Park Bank is extremely easy to work with, and
they make things happen. I love that everyone will greet us and know us by name.
They are so welcoming. We also love the Sartell location; it is very convenient for us,
but I also know that if I cannot make it in, Jacki will come out to us.”
Since 2012, K Johnson Construction has partnered with Plaza Park Bank for refinancing
real estate, operating lines of credit, purchasing a new building, business checking and
savings, credit cards, ACH payroll, online banking, and even Kevin and Julie’s personal
banking needs. They needed a bank nimble enough to help them seize opportunities
stemming from their expanding lines of business. The Johnsons have found all they are
looking for in a bank and see a very bright partnership continuing far into the future.
About Plaza Park Bank
Plaza Park Bank has been helping the Central Minnesota community since 1910. We
are passionate about continuing our tradition of providing personal service from our
experienced and caring family of banking professionals. Our bank is family owned and
operated, and we honestly believe that we must develop relationships with those who
bank with us. Our core values include a team focused strategy that ensures with Plaza
Park Bank; you can expect the very best. We understand that you have questions and
look forward to answering them to meet all your online banking needs.
Description: Plaza Park Bank helps K Johnson Construction with their banking needs in
a way that supports the company’s continued success.