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In 1896, Winchester was a very small town. But Civil War reconstruction was in full swing, and Howard Shockey & Sons went into business repairing wagon wheels.

Over a century later, the construction company continues to be owned and managed by the Shockey family with the founder's grandson, Don Shockey, at the helm.

Even more unusual, however, is the fact that most of the company's employees have been with the firm for at least 15 years. Many have been there 30 years, and a few can boast 40 years with the company, according to Vice President and General Manager Dennis L. Hilgenfeld, a relative newcomer at five years.

"What makes us unique is our focus on relationships," says Hilgenfeld. "The philosophy of the company is to be successful by making those we work with successful -- not only the clients, but the architects, engineers, subcontractors and suppliers, and -- more importantly -- our own employees."

Despite the shortage of skilled labor in the construction industry, Hilgenfeld says the company has no problem hiring and retaining good employees. However, he says their subcontractors have difficulty filling all the available positions, which ultimately affects scheduling and costs.

As a design/build general contractor and construction manager, Howard Shockey & Sons is primarily a regional company, usually working in the northern half of Virginia and as far south as Lynchburg and Roanoke. "We believe very strongly that companies that are in some way tied to the region they serve are better companies. Outside companies are inclined to have short-range goals," says Hilgenfeld.

Howard Shockey concentrates on factories and warehouses. And it performs institutional work such as schools, churches, government buildings, jails, health care facilities and retirement homes. To a lesser extent, the company also builds banks, shopping centers and office buildings. "We are able to negotiate two-thirds of our work volume," Hilgenfeld says. This means only one-third of the company's work is done on a bid basis, which allows the company to focus on more profitable projects.

The firm constructed a $17 million performing arts building for Shenandoah University in 1998. "We also built Winchester Hospital and recently completed the professional health building for Valley Health System," says Hilgenfeld. The company currently is working on a 1,642-space parking structure and another 120,000-square-foot medical building for the same group.

"The Shockey Cos. have been very good to work with and I'd rate them right up there with many national companies," says C. Douglas Rosen, a senior vice president of Valley Health System. "I've found their construction quality to be excellent." According to Rosen, Howard Shockey & Sons closely monitors budgets and schedules. "They are professionals who work with you, and they are very good problem solvers."

Between this company and another related Shockey company -- Shockey Precast Group, which concentrates on precast contracting -- the firm has annual contracts of $123 million.

Although the construction industry is labor intensive, it -- like many other industries -- is becoming increasingly high-tech. "We feel we are well ahead of the curve in embracing technology," says Hilgenfeld. The company uses computers for scheduling, estimating, accounting and communicating with suppliers. On-site equipment also is becoming more sophisticated, he says, but "we need to keep technology in its proper place. It is still a relationship and people-driven business. Technology just gives us some more effective tools."

Looking to the future, Hilgenfeld says: "We see the level of expectations becoming greater with each passing year. It forces us as a general contractor to continually improve all aspects of our business in order to maintain and ideally improve our market share."