Logistics provider the Phoenix Group landed a construction logistics contract with the Mexican division of H.E.B. Grocery Co. of Houston that will more than double the size of its construction management division, Phoenix said.
H.E.B.-Mexico will use Phoenix, Greenwood, Ind., to manage the logistics of building and remodeling grocery stores in Mexico. Phoenix said Aug. 18 that it has opened a facility in Monterrey, Mexico, to handle the work.
Phoenix started its logistics division in early 2008, said Jeff Wells, division director. Before the H.E.B. deal, the division was generating $4 million in annual revenue, and the Mexican job should boost annual revenue between $8 million and $10 million, he said.
Wells estimated his division would boost its revenue contribution to almost 15% of Phoenix’s total because of the H.E.B. contract and growth from other customers.
Besides construction logistics, Phoenix also does subassembly and material management work for the retail, automotive, health-care and oil industries, especially related to just-in-time delivery.
The material management and subassembly divisions contribute 85% of Phoenix’s annual revenue of $70 million. The company was formed in 1995.
By Jonathan S. Reiskin
Associate News Editor
