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Gray, Inc. Company Updates

Gray Construction competing on one fulfillment center project

with Brian Jones totaling approximately $85 million with an
President & Chief Executive Officer expected 1-2 more opportunities coming
Celebrating Gray’s 60th anniversary in the next 60 days. We anticipate similar
has caused me to pause and reflect on velocity with fulfillment centers over the
how our company has changed through the years. As next three years, possibly longer, considering Amazon’s
I’ve thought about it, many great customer relationships aggressive growth plan.
come to mind. One in particular I’d like to focus on in Another great part of this story is how our team
this article is Amazon. Some of you will remember a started developing a relationship with a separate
Graypvine Amazon article I wrote in early 2019. Just Amazon company, Amazon Web Services, the mission
over 20 years ago, Amazon was starting their “books critical arm of Amazon’s business. To-date, we’ve been
by mail” on-line ordering business and Gray was awarded close to $400 million in new projects and are
fortunate enough at the time to win two projects with tracking an additional eight projects with several others 3
them in central Kentucky. In those days we failed to in the next 60 days. This momentum led to the creation
realize their potential and we didn't adequately nurture of one of our newest business units led by Ben Meurer.
the relationship. Gray was a much different company From all indications, the mission critical sector will
then – much smaller with nowhere near the scope of continue to grow over the next five years. What makes
services we offer today. We were heavily entrenched this account special is their procurement strategy is
in the manufacturing market with a big focus on typically tied to the award of several projects at once
automotive. We weren’t nimble enough at the time to that span 12-30 months, creating cemented backlog
be able to pivot toward a growing sector – ecommerce. for Gray.
As a result, we lost out on a 10-year growth period When the pandemic hit and forced us into a recession,
with Amazon. Then, upon the completion of the Logan several markets started to slow down. But e-commerce,
Township project in 2017, a few of our exceptionally data storage and segments of food and beverage
talented team members realized the potential with actually began to accelerate. Thank goodness for
Amazon and worked tirelessly to gain their attention Amazon and thanks even more for a dedicated team
as a trusted partner once again. Curt Hargrove, our that got us here. Emily Mathis, Scott McCormick and all
dedicated team and their entrepreneurial spirit were of the many folks that work across these project teams
empowered to focus on this relationship and their efforts are the reason we’ve been able to accomplish these
paid off with five fulfillment center project awards in results. Building relationships that endure is key to our
2020 totaling $875 million. Additionally, we’re currently future. Who’s our next Amazon?

Growing with Amazon Circles represent number of projects; dollar amounts are sales revenue

1999 2003 2013 2016 2017 2018 2019
2 2 4 1 1 1 1

$16.1 MM $0.82 MM $12.1 MM $0.23 MM $63 MM $146 MM $7.1 MM

2020 2020 FUTURE

5 5 on multiple fulfillment Company
Currently competing
center projects with more updates
opportunities to come. continued
$875 MM $190 MM Tracking an additional on next
Amazon AWS projects 8 AWS projects. page
fulfillment centers