FoutsCo is a highway and general road construction contractor in north Texas. The company has grown at a spectacular rate over just eight years in operation. The organization under the direction of Lane Fouts, CEO, FoutsCo Paving Company LLC, has grown during this relatively brief period from zero to become a major contractor with the Texas Department of Transportation and one of the largest first-gen contractors in the state.
We were fortunate to have the opportunity to meet with Mr. Fouts and learn the very interesting story of his company’s rapid rise to success in its regional market. Here, Lane reflects on his entrepreneurial venture into the paving industry, the factors of his business’s advancement and the position of the enterprise today.
Fouts Launch in Texas Road Construction
I got a construction management degree from the University of Louisiana at Monroe. I worked with large and small companies on road construction. I had been working with road building contractors for about 17 years before I thought the market was good enough, and I had become knowledgeable enough at that point to go out on my own. The companies I had been working for during that time had put me in challenging positions, which taught me how to succeed, how to fail, how to handle challenging situations, and many other critical lessons.
I was lucky to be hired by a company that was experiencing extremely fast growth. This allowed that company to put me in multiple disciplines of construction, even though I wasn’t ready for all that responsibility. I wasn’t limited to just a single role, like operations, accounting, estimating, etc. That experience gave me the kind of diverse background I needed to succeed in running my own company.
What inspired me to choose this line of work? Nobody in my family was in our industry. I was in college, was looking for a way to pay the bills, and started working as a laborer on a construction crew. I saw that there were career opportunities in construction, and that there was actually a degree for Construction Management. It looked like a good fit for me.
I decided to move from Louisiana to Texas after college because it was known to be a growing state that would always be a good fit for construction managers. It was never a goal for me to own my own thing.
Where I was from, people around me were only workers for “mom and pop” companies. I never thought being a business owner would be possible for me. But, once I worked with a couple of other contractors and came to understand how things worked, I developed the confidence I needed to do it myself.
Lane Fouts – Leadership in Texas Road Construction
Construction was a great avenue for me to pursue being an entrepreneur. Now that I’m older, looking back, I think if I wasn’t in construction, I would have owned some other kind of business. It seems like management is in my nature. The fact that we’ve been doing very well adds to reinforcing that perspective for me.
Having clearly defined objectives has also helped us direct our energies efficiently. We focus on North and West Texas. I focus on areas where my allegiances are, where my friends in the industry are. We’re predominantly an asphalt paving construction contractor. TxDOT contracts are awarded to the lowest responsible bidder.
That means it is extremely important for us to rely on good relationships with material suppliers, equipment dealers, DOT representatives, and others. It is easiest to build on those relationships when we stay within a region, as opposed to covering the entire state of Texas.
Startup and Growth Through the Years for FoutsCo
The vast majority of our business is from us being the prime contractor with TxDOT. Most is low-bid work where we are the prime general contractor. We just find that we’re more successful when we are in charge of the project and can manage our own schedule.
We’re living off the relationships we have with asphalt producers, so we don’t need sales or marketing. The connections we have developed through these years allow us to get the work as a prime contractor. Being friends with everyone is the reason we’re able to grow in the Texas market.
Texas is the Mecca for road construction. If I was in another small state, we wouldn’t be able to grow as quickly as we’ve done here. Texas is a very forward-thinking state. To develop a thriving commercial and residential market, of course, you have to have the infrastructure. About 1,500 people are moving here every day. So, we’re in the physically largest state (of the lower 48), with one of the fastest growing populations, and, therefore, the largest market for road construction.
Because of the opportunities Texas provides and our ability to have success bidding on TxDOT projects, we have become one of the larger first-generation contractors in Texas. From starting at zero employees at the beginning of 2018 to having close to 100 employees now, including 3 full-sized asphalt paving crews, is a very strong growth rate. We are proud to have recently surpassed $300M in work performed for TxDOT.
FoutsCo’s Construction Equipment
Road construction is, of course, a business of heavy equipment. FoutsCo has an extensive fleet and array of road-building equipment assets. That includes milling machines, pavers, rollers, power sweeping trucks, and various field support vehicles.
Nothing is more expensive than doing work twice and getting paid once. To help eliminate poor quality, we maintain the highest quality of equipment. We want to have the newest equipment with the newest technologies for milling, paving, and sweeping. I need every part of my business, from equipment to manpower to be reliable.
A lot of our work is considered “mill and fill” paving projects. We remove the old road by chewing it up with milling machines, clean/prep it for paving, and then we place the new asphalt. This work is normally performed on a short timeline so that the traveling public isn’t impacted during peak travel hours. Efficiency of work crews and reliability of equipment are essential.
Our crews have a small window of time to complete their road work and clean up to get the section of highway back open for drivers. Using top-quality sweeper trucks allows us to work much faster than we could with just a four-wheel broom that sweeps it all to the side for cleanup later. The mechanical sweepers mean that once we do the paving, we’re done. The sweepers allow us to get a little more production and get off the road within the allotted time restrictions.
As I mentioned, we’ve got several paving crews. Most of our work is late at night. So, if we have mechanical issues, it’s hard to fix those issues late at night. With such a short window to perform the work, costs increase greatly if equipment is down. With good sweeper trucks, like the ODRAs, there is typically less downtime.
We have recently bought the two ODRA MS5 sweepers we use for milling cleanup. We chose the ODRAs because they are comparatively very easy to use. The brand is also known for the excellent reliability of their sweeper trucks. They also are a manufacturer that offers a large hopper size, which means the ODRAs can trap or clean more than those with smaller hoppers. The size of the hopper was a big attraction for us. [ODRA hoppers are the largest legal payload capacity of all non-CDL mechanical sweepers.] Overall, their functional quality and exceptional reliability are what we like most about the ODRA sweepers.
A Word On ODRA Sweepers
ODRA sweepers have become a top choice for companies like Lane’s and others across the milling, paving, industrial, and municipal sectors. Their popularity stems from top notch performance combined with user-focused design that emphasizes simplicity, reliability, and efficiency.
What sets ODRA apart is its engineering philosophy centered on durability and serviceability. Each sweeper uses a straightforward control box with no onboard computers or CAN bus systems, unlike many competitors that rely on complex electronics prone to failure and difficult field repairs. In addition, ODRA employs chrome shafts and greaseless composite bushings at all pivot points, requiring only six greased bearings in the entire unit. This design minimizes maintenance, prevents dust intrusion, and extends component life well beyond conventional setups.
Powering every ODRA sweeper is a Danfoss® 32 GPM load-sense hydraulic system with PVG-32 proportional valves. Compared to the basic on/off valves found in many competing models, ODRA’s proportional valves deliver smoother operation, higher efficiency, and precise control. The system automatically adjusts hydraulic flow based on demand, improving fuel economy and reducing wear on components.
Together, these features result in superior uptime, smoother performance, and a lower cost of ownership, making ODRA sweepers a dependable long-term investment for demanding operations.
FoutsCo’s Employee Culture
Early in the development of the company, it was a challenge to find good employees. Working with a newly formed company is a risk to that employee. Understanding this, it was important for us to develop a competitive compensation package so that it helps keep the talent in place. For example, we provide 100% health insurance — no premium payments for the employees and their families. I’m not aware of other contractors that provide free healthcare for the family of the employee.
We also provide tuition reimbursement for the employee’s entire family, for any area of higher education that any member of the family wants to go into. Whether a family member wants to go to cosmetology school, the fire department academy, or pursue a teaching certificate, they can do it. If someone wants to be a welder or earn a CDL, they can do it. Even if it means they will leave our company.
Many companies only offer tuition reimbursement for education applicable to the employee’s job or a related job. Also, if they go to work for a competitor, they’re not getting free health care there, so we’re confident that they know they’re getting very strong compensation working with us.
I want our employees’ families to benefit when the company is successful, because they are the reason for that success.
Fouts’ Commitment to Giving
The Fouts family and company believe in supporting their community. For example, see Lane’s comment on LinkedIn about a faith-based organization he supports, the Denton Freedom House in North Texas, and the great work they are doing. He promotes the organization as exceptionally worthy of support.
Advice for Paving Industry Newcomers from Lane FoutsCO Paving Company LLC, Dallas TX
In general, I encourage anyone who wants to get into the business as an owner to get some guidance from someone experienced in the industry. I’ve sat down with people and explained how I was able to do it. It can change the generational wealth of a family if an individual is ready to take on the task of being an entrepreneur.
For information about FoutsCo Paving Company, LLC, Bartonville, TX, you can call (940) 222-1012 or visit foutscopaving.com.