Journey Group marks 115 years of building community

This article was originally published by Jodi Schwan of SiouxFalls.Business.

Officially, Sioux Falls Construction – now Journey Group – was incorporated on Feb. 10, 1910.

But CEO Randy Knecht has reason to think the actual start of business could have been years earlier.

“I know we were around before that because the Sioux Falls Chamber of Commerce acknowledges us as a founding member from 1907, when it was established, so we were here before we actually incorporated,” he said.

It’s also not surprising that even in its earliest years, the company that eventually would be called Journey Group saw the importance of becoming part of the broader Sioux Falls-area community.

“We say to each other a lot that we’re very fortunate to be based in this community,” chief operating officer Darin Hage said. “We’re grateful to be part of the community’s growth, and a huge part of our success is because we are in Sioux Falls and because of the leadership that’s made the community what it is today. We take a lot of pride in how we’ve grown with Sioux Falls.”

This year, Journey Group marks a milestone 115-year anniversary – a chance to reflect on how the company has shaped the skyline of Sioux Falls and built foundations for growth throughout the state and region.

“It’s been a pretty unique and special story,” Hage said. “It’s not about one person or one family. It’s a lot of people who have come through the years and took ownership and then passed it on to the next group. It’s bled into our culture that we’re about a team. It’s never one person who makes or breaks our success. And that team approach as much as anything has been a key piece to our success for 115 years.”

The early years

Sioux Falls Construction was founded by William Snitkey, who served as general manager; Robert Perkins, consulting engineer; and Charles Miller, assistant manager. Their timing was key: From 1910 to 1920, Sioux Falls grew from about 14,000 people to more than 25,000.

Sioux Falls Construction took advantage of the land boom, building several well-known structures that still stand today: Central Fire Station in downtown Sioux Falls, the Orpheum Theater and the Albert House hotel, now apartments.

“When we finished the fire station, they were still using horse-drawn wagons to put fires out,” Knecht said. “It was built for $36,000, so it’s been a good return on investment.”

The company also had a hand in constructing the Boyce-Greeley Building and the Carpenter Hotel, along with the first spillway near the South Dakota State Penitentiary and many improvement projects at John Morrell & Co.

In the 1920s, ’30s and ’40s, Sioux Falls Construction pursued public projects as private construction struggled at times, building the first wastewater treatment facility in the city as well as the YMCA and a new building for The First National Bank on Phillips Avenue. The iconic stone eagle that used to perch on top of the building remains as a downtown sculpture.

The 1950s and ’60s brought leaders to Sioux Falls Construction who remain well-known in the business community today: Frank Boyce and Jack Marshman. Both had family ties to the business and worked their way up into leadership, helping guide the company through projects in those decades, including the Argus Leader building, Our Savior’s Lutheran Church, Howard Wood Field and multiple projects at South Dakota State University.

At the same time, the company began asphalt paving through a new division, Black-Top Paving, adding further diversification and opportunity to take advantage of the city’s growth.

“It’s fun to talk to our new hires about the people who made this all happen – who laid the foundation for what Journey is today and how it’s our responsibility to build on that legacy,” Knecht said.

Growth and diversification

As the country invested in an interstate highway system in the 1950s, Sioux Falls Construction saw an opportunity to broaden its scope of business. By the 1960s, as Sioux Falls sat at the crossroads of two interstates, the company had expanded into bridge-building on I-29 in Iowa and on the I-229 bypass in Sioux Falls, as well as interstate overpasses at Ellsworth Air Force Base in western South Dakota.

“For us, it’s more than just a bridge or a repair,” said Jared Gusso, president of Journey’s SFC Civil Constructors.

“We’re driving connections for communities, and we’ve had a chance to be part of some of the most impactful bridge work in the state’s history for decades.”

The 1960s also brought legacy education projects for the company, including Lincoln High School and O’Gorman High School.

But the 1970s and ’80s proved challenging. While the urban renewal movement brought some projects at first, including a new food distribution building for Nash Finch in a city industrial park, “stagflation” hit nationally, followed by the farm crisis, and private construction was tough to find.

“The company went through world wars and the Great Depression and so many other challenging times through the years and made it through all of that, so it puts things in perspective as we face challenges today and brings a sense of stability,” Hage said. “They adapted and shifted to survive and came out stronger, and that grit and determination has carried on through each generation.”

Public projects became a lifeline for Sioux Falls Construction, which leaned on its bridge and other infrastructure work.

“When the economy was down, our leadership would go to highway bid lettings all over the region – even to Colorado – because the commercial market was down,” Gusso said.

“That’s the strength of our diversity even today. We’re able to shore up individual divisions if they happen to be having a down year because of the strength of the overall operation.”

The Black-Top Paving division, for instance, supported the company’s growth by taking on both small projects and large-scale work, including the parking lot of The Empire Mall.

As the Sioux Falls economy recovered, major health care projects helped lead the way, and Sioux Falls Construction built on its longtime relationship with Avera McKennan to help construct multiple buildings and additions.

“That’s a great example of a relationship that has spanned several decades,” Hage said. “It’s because of key partners like Avera we’ve been able to be here for 115 years. And those long-term relationships are really what it’s all about for us.”

The relationship is so integrated that several Journey team members essentially work full time at Avera.

“And when the system Avera was formed in 2000, it allowed us to serve them across their regional footprint at five facilities where we’re on campus, as well as owned and managed facilities around that footprint,” Knecht said. “So our Avera relationship really has grown and strengthened over the decades.”

The modern era

Dave Fleck served as president of Sioux Falls Construction from 1998 to 2010 and brought the company into a new stage of growth, with the city’s population surging over 100,000.

The 1990s and 2000s brought a broad range of projects, from asphalt/concrete paving and bridge work to medical facilities, school and university projects and corporate buildings.

In the mid-2000s, signature projects included the total restoration of St. Joseph Cathedral.

“We had 60 feet of scaffolding inside the facility, and it was amazing to go in and see the work being done,” Knecht said. “It was essentially a really large art project to restore the Cathedral to its original architectural intent with the colors and paintings that went on there.”

Other key construction work included the Avera Prairie Center and all phases of the mixed-use downtown development Cherapa Place.

Major infrastructure work over recent decades has included the I-29 Tea interchange, the I-29 and I-229 interchange, I-29 and 12th Street, I-90 and Cliff Avenue, repairs to the downtown viaducts, the 41st Street bridge west of Kiwanis Avenue, the city’s levee construction for flood control and the Sixth and Eighth street bridges downtown.

“We travel all over the state, and it’s fun to see people care about the work we’re doing,” Gusso said. “They’re excited when a bridge project is done, and for our team, it’s a chance to do really impactful work.”

That same sense of pride ripples throughout the company.

“There’s always something for our team that keeps us going,” Hage said. “It’s seeing the projects, the history and how much we’re able to help this community grow. These are important buildings and functions that go on within them, the services they provide, so it gives us a lot of pride growing from a small company to where we are at today. Our path and the city’s path have rolled parallel to each other in a lot of ways.”

One of the most gratifying things as a leader “is seeing multiple generations of families that have been with Journey, where sons and grandsons are following in the footsteps of fathers and grandfathers,” Knecht said.

“I love talking to spouses and kids of our employees who say they drive around with their family member and have so much pride in what was built. It’s so gratifying when people are still able to see the results of their work at the end of the day and know they’re building places where really important work happens, from education to lifesaving care.”

Looking ahead, Journey Group will grow with an evolving mix of business, including industrial projects and additional infrastructure work, as well as under new leadership. Knecht has announced his upcoming retirement next year.

But the work will continue with major projects underway, including the largest construction project in Avera McKennan’s history, a new addition to the Avera Heart Hospital, completion of the DSU Applied Research Building, SDSU Metro Center and others that haven’t been announced yet.

“We have a group of driven and committed people,” Hage said.

“As we’ve seen through the generations, the more you can grow, the more opportunities it provides your people. That’s through new markets, diversification and leaning into the future. We’re proud of our history and where we have come from, but we know that in itself isn’t going to get us where we need to go. We need to continue to challenge each other to adapt and evolve and find new ways to add value for our clients. We really feel the sky is the limit as far as where we can go in our next 115 years.”