Toronto, Ontario, July 2, 2024 – CMiC, a leading Next Generation Construction ERP provider, recently announced a new partnership with McCarthy Holdings Inc. (McCarthy), a leading general contractor celebrated for its pivotal role in developing essential community projects across the United States. As McCarthy marks its 160th anniversary, it continues to set benchmarks for innovation and excellence in the construction industry.
Faced with the challenges associated with scaling operations, the use of non-integrated systems and changing customer demands, McCarthy embarked on a strategic search for a robust platform that would support its growing technological and operational needs. After an extensive evaluation, CMiC emerged as the selected partner to support McCarthy’s vision of maintaining industry leadership and enhancing operational efficiency through advanced ERP solutions.
McCarthy: Celebrating 160 Years of Building America with a Commitment to Community and Innovation
McCarthy, including its subsidiaries McCarthy Building Companies, Inc. and Castle Contracting, LLC, is one of the oldest and most respected construction firms in the United States. Over the years, it has built essential community projects and played a significant role in the growth and development of numerous industries across the nation. This year marks the 160th anniversary of McCarthy, a milestone that highlights the company’s dedication to excellence and innovation in construction.
McCarthy’s ongoing purpose is “to be the best builder in America." This goal is continually pursued through a commitment to self-performance and the employment of an exceptional skilled workforce in both craft and salaried positions. The company maintains a strong presence in key markets such as healthcare, education, commercial, and renewable energy and has successfully completed a wide variety of projects.
As a 100% employee-owned company, McCarthy is uniquely positioned to align the interests of its employee-owners with the success of its projects and customer satisfaction. This ownership structure has fostered a culture of personal commitment and accountability, driving innovation and operational excellence across all levels of the organization.
Business Challenges Faced: The Use of an Outdated ERP and Limited Scalability
In response to evolving business needs and market demands, McCarthy faced operational challenges with its longstanding ERP system, originally implemented 17 years ago. These included:
Legacy ERP Limitations: McCarthy's existing ERP was outdated and non-SaaS-based, which potentially limited its ability to adapt to the advanced, agile demands of today’s construction industry. The system's impending obsolescence posed a potential impact to operational efficiency and scalability.
Need for Scalable Solutions: The imperative to adopt a new ERP platform was driven by McCarthy’s strategic growth and the necessity to support the organization’s continuous evolution. The company required a system that could seamlessly integrate with new technologies and scale according to evolving business needs.
McCarthy’s business has advanced since their previous solution was implemented. The shift to collaborative delivery and the expansion into new construction markets, elevated the need for a more robust and scalable platform.
In their strategic approach to overhaul their ERP infrastructure, McCarthy conducted a thorough evaluation of several ERP providers. The selection criteria were heavily focused on the system's adaptability, future-proof technology, and its ability to integrate seamlessly with existing operations. This approach ensures that the new system will accommodate not only current, but also future business needs and market requirements.
Selecting a Future-Proof ERP: McCarthy’s Strategic Investment in CMiC for Long-Term Scalability
In an era where the lifecycle of enterprise software is increasingly short, McCarthy made a pivotal decision to adopt CMiC’s ERP platform. This decision underscores their long-term commitment to operational excellence. After an extensive review of various systems, CMiC emerged as the top choice due to its construction-centric design, exhaustive suite of financial applications, and robust scalability potential.
This platform selection was influenced by McCarthy’s proactive approach to anticipating and preparing for future market conditions and technological advancements. Ryan Cogley, Vice President Project Executive at McCarthy, emphasized the importance of a foundational system that responds to the immediate needs of the construction industry and offers the flexibility to evolve with the company. “Our goal was to secure an ERP system that would progress with us, avoiding the need for frequent transitions to new platforms,” said Cogley.
CMiC’s ERP system promises seamless interconnectivity with McCarthy’s existing digital infrastructure, enabling enhanced data flow and improved business decision-making at the leadership level. This integration capability positions McCarthy to leverage real-time insights across its operations, enhancing project management and financial oversight and continuing to provide certainty the company and its clients count on.
The remarkable longevity of McCarthy’s previous ERP system, which served them well for 17 years, set a high benchmark for its successor. The selection of CMiC reflects McCarthy's strategic foresight and their commitment to maintaining a robust, industry-specific operational backbone that drives efficiency, helps the company deliver an exceptional experience for clients and employees, and supports growth.
Comprehensive Implementation Journey: Key CMiC Applications within McCarthy’s Product Roadmap
The phased implementation will include substantial integration of CMiC's core functionalities, including CMiC Financials and Project Controls, as well as the introduction of a Financial Planning and Analysis (FP&A) system built on the CMiC platform. This represents a new layer of strategic management tools designed to further enhance decision-making processes at McCarthy.
To ensure a seamless transition and minimal disruption, McCarthy has engaged a dedicated team and partnered with a change management firm, emphasizing the critical nature of this transformation for the company's ongoing success in a competitive construction market.
Expected Business Outcomes and Anticipated Value: Scaling for Future Demands
By deploying CMiC's robust platform, McCarthy aims to enhance its scalability and ensure continuous system integration amidst growing business complexities.
This upgrade is expected to facilitate smoother coordination between McCarthy’s various systems, which have been developed around an aging ERP. With CMiC, McCarthy anticipates a streamlined process for meeting the intricate needs of customers, designers and trade partners alike.
Reflecting on the expected outcomes, Ryan Cogley, a senior member at McCarthy, highlighted, "The real value we foresee from the CMiC platform is its ability to evolve with us, accommodate changing business needs, and maintaining continuity in our operations."
For more information about CMiC and its solutions, please click here.
About McCarthy Building Companies, Inc:
McCarthy Holdings, Inc. is the oldest privately held national construction company in the country – with 160 years spent collaborating with partners to solve complex building challenges on behalf of its clients, through all phases of the project life cycle. McCarthy Holdings, Inc. is comprised of McCarthy Building Companies, Inc. and Castle Contracting, LLC. McCarthy stands out not only for its construction expertise from design through completion but also for its commitment to safety, quality and cost certainty. With approximately 7,500 salaried employees and craft professionals, the firm has offices in St. Louis; Atlanta; Collinsville, Ill.; Kansas City, Kan.; Omaha, Neb.; Phoenix; Las Vegas; Denver; Austin, Channelview, Dallas and Houston, Texas; and San Diego, Newport Beach, Los Angeles, San Francisco, San Jose and Sacramento, Calif. McCarthy is 100 percent employee owned.
About CMiC:
As an industry pioneer, CMiC delivers complete and unified Financials and Project Management software solutions for construction and capital projects firms. CMiC’s powerful software transforms how firms optimize productivity, minimize risk and drive growth by planning and managing all financials, projects, resources, and content assets—from a Single Database Platform™. With customers throughout North America and overseas, CMiC serves one-quarter of ENR’s Top 400 Contractors and hundreds of small and mid-sized construction firms, from general and specialty contractors to heavy/highway and project owners. Over $100 billion in construction revenue is handled by CMiC annually.
Media Inquiries:
Shirin Ali
Head of Marketing — CMiC
Shirin.ali@cmicglobal.com