JENCO INC. A FAMILY OF COMPANIES JANUARY 2013

WATT’S CURRENT 2012 REFLECTIONS & 2013 AMBITIONS PAGE 2

WHAT’S NEW IN PREFAB? PAGE 3

CHECKING IN WITH CONTROL ENGINEERING PAGE 6

AN UPDATE ON JEN SERVICE PAGE 11

2012 Reflections &

2013 Ambitions

By: Kelly Anderson, CEO

Before I begin sharing my ambitions for the company for 2013, I want

to reflect on what the JENCO team accomplished last year. Here are

some of the highlights:

The United States Economy continued to produce high employ-

ment throughout 2012. In spite of the gloomy economy, we

grew our revenue and net operating income from the previous

year. Not many subcontractors were able to accomplish this.

Some of our valued employees that had previously left Jenco

have now rejoined us. Many have said that they didn’t realize

how committed Jenco is to improving each employee’s ability

to earn a living, until they had worked for another firm. That is

good to hear, and for them to know that we have mutual con-

cerns for the business as well as the employees.

In 2012, we began relationships with well established General

Contractors and Construction Managers like Kitchell, Hoffman,

and Turner.

We performed Instruments and Controls (I&C) work at

a semiconductor plant here in Arizona.

JENCO was awarded a major portion of the electri-

cal installation for a new semiconductor plant here in Arizona.

We formed a Board of Advisors for Jenco last year. The board

is made up of industry experts, as well as an outsider with

large company experience. This gives us a lot of knowledge

and power to interpret marketplace changes, and to develop

long-range strategies for the company. Our focus is on ways to

produce enterprise value for the Employee Stock Option Plan

(ESOP) to help our employees earn, save, and invest in their

retirement plans superior to other retirement options avail-

able.

My daughter, Jennifer (the company was named after her), got

married and joined the team here at JENCO. She's taking on

various roles, including editor of the newsletter. Next time

you're in the office please make a point to meet her.

Now for the future... Article continued on page 5

Jenco’s Business Mission:

Build a learning organization by

compelling every associate to

notice, observe, and assess

their ethics and capacity to

produce Conditions of

Satisfaction for all our

customers with practical offers

that manifest, demonstrate,

and display the highest of

human virtues.

Table of Contents:

A Note from the CEO 2

What’s New in Prefab 3

Accomplish Your Goals 4

Checking in with CE 6

President’s Report 7

New Year’s Resolutions 8

Jenco Mission Statement 9

In the News 9

All About Blood Pressure 10

An Update on JS 11

Bright Ideas 11

Bulletin Board 12

A Little Bit of Humor 13

What’s New in the Prefab Department?

Prefab’s

Demonstration

Wall

Jenco’s Prefab Department achieved over 24,000

hours in 2012 with 0 accidents. We now have an

improved prefab catalog, a new sales and market-

ing demonstration wall, and a fresh approach to

new ideas. All of this will benefit every department

at Jenco including estimating, sales, and market-

ing. Also, prefab’s growth and development is prov-

ing to be a huge added benefit to our guys in the

field.

With new research and development in prefab on a

daily basis, it is easy to see that we all benefit from

the prefab department. Recently, we introduced

more prefab items and packages. For example, whole room installations which include MC Cable interior

wall rough and whole electric rooms, panels, and transformers.

We will soon be a UL listed and approved QQYZ prefab shop. We will offer different types of approved cord

and seal-tight whip assemblies. This will expand our reach into the medical and high tech industries, allow-

ing for a larger customer base.

The prefab department is currently trying out many new techniques and testing new ideas. Our innovative

thinking and strong deign/layout team allow our jobs to run more smoothly and efficiently.

Eric Myers

Accomplish Your Goals!

Most of you have probably taken a long distance trip at one time or another during

your life. To do so it takes a lot of planning and preparation to make your trip a

success. One of the most important

decisions you need to make is

where your destination will be.

Without knowing where you want to

go, it is almost impossible for you to

ever get there.

When it comes to your life journey,

you have that same decision that

needs to be made. Where do you

want to go with your life? What do

you want to accomplish in your

career and in your personal life? These are all decisions that you can make for

yourself. However, just like a long distance trip, if you don’t take the time to answer

these questions, it will be almost impossible for you to ever get there.

Several of us at Jenco are taking a course of study which helps us to focus our at-

tention toward making strategic decisions, for both ourselves and the company,

through the roles that we hold. One of the first things that we learned is how to de-

fine both our business and our personal ambitions, so we know exactly what we are

trying to accomplish. This has proven to be a very important lesson that I have

learned, and one that most people, including myself until recently, have over-

looked.

Of course I have always had some sort of direction that I was heading, but I never

stopped to determine where it was that I wanted to go, or how I was going to get

there. Having now answered those questions myself, I can honestly say that the

destination that I have selected now seems much more attainable then it did when

I was just hoping that I would end up with a future that would work out for me.

If you are like I was, and never really took the time to decide where it is that you are

trying to get to, I encourage you to give that area of your life and your career some

thought. It doesn’t mean that you have your entire life planned out from beginning

to end. That is not very practical for most people. Begin with shorter intervals, and

add to them as you identify things that you would like to accomplish. It also doesn’t

mean that once you decide on what your ambition is that you can never change it.

As time goes on things change, and what it is that you are interested in accomplish-

ing will also change.

Have fun with it and good luck with accomplishing your goals. If I can ever be of any

help, do not hesitate to ask.

Joe DeVecchio

”If you don’t know

where you are going,

you will probably end

up somewhere else.”

- Lawrence J. Peter

2012 Reflections & 2013 Ambitions

Continued from page 2

Every year I produce a business plan to give everyone a clear set

of achievable objectives. The Board of Advisors proved to be an

added benefit by helping develop a more rigorous plan, which

enables me to know that it will take us where we need to go and it

will work. The highlights of the plan are to continue growing the

company, and to do so by capturing new clients and new types of

projects.

We will continue to develop the next stage of the Adroit

Operation Management systems. Remember that AOM is not a

software package. It is a constellation of philosophies, practices,

commitments, software, and strategies to bring forth new, more

powerful interpretations of situations and trigger new thinking and

actions to produce recurrent situations that are satisfactory for

our clients. This means we will prove to the construction commu-

nity what it means to be a learning organization. AOM is the

source to know if a practice or strategy is effectively able to recur-

rently produce more satisfactory situations, and/or able to pro-

duce more powerful action plans.

Control Engineering will begin to focus on a few customers this

year, rather than trying to be the best to everyone. We are able to

produce consistency with a certain profile of project and cus-

tomer. In 2013, we will be organizing our operation around those

types of customers and projects. So in the interim, we will down-

size to meet the realities of the temperature controls business.

JEN Service has a new leader... Eric Torvie. Eric is heading up

Control Engineering and Jen Service to produce commitments,

practices and talent to produce Satisfaction for all of our

customers.

In closing, I am excited about the business plan for this year, while

at the same time I am still guarded about the construction indus-

try still being in a recession. We will compete aggressively to earn

business from our customers. We will produce superior offers and

superior commitments to help them produce the outcomes they've

promised their customers. In order to achieve these objectives, we

will need to be in ethics to learn every day to increase our capaci-

ties to think and act for the customer to "realize" our promises.

Make this a growth year for yourself too!

Kelly Anderson

Click on any of the

divisions logos to learn

more!

Checking in with Control Engineering

Goodbye 2012. Hello 2013! As I reflect on another successful year for Control Engineering, I wanted to

highlight a few of our major successes, both in the Phoenix and Tucson marketplaces.

Phoenix – Cityscape Palomar Hotel; National Bank of Arizona – Branch Energy Upgrades and New Con-

struction; Cartwright Holiday Park Elementary School

Tucson – Davis Monthan Predator IMOT; NACO Border Patrol; Davis Monthan Heaffner Gym; University

of Arizona Mirror Lab

Project Highlight – University of Arizona Mirror Lab

We recently took on a high-profile, high-reward project direct

with the University Facilities department. The scope was to

replace their Energy Management System for the casting

laboratory located underneath the Arizona Football Stadium.

On the surface, the project seemed small in scope, but it

provided valuable credibility for Jenco. This is because the

environment is similar to a high-precision clean room with

the strictest of temperature requirements. One of the mirrors

in the facility at the time of the integration was on its final

phase of a 7 year long casting process. Due to the size of

each lens (some over 30 feet across and 3 feet thick) and

the nature of the work, temperature variations of even +/- 1

degree Fahrenheit could cause permanent damage. If it

wasn’t for the highly skilled employees of the Jenco family,

this project wouldn’t have been the outstanding success that

it was. We’ve taken great strides with the school, and have

earned additional work as their new preferred contractor for

energy management contracts.

We look forward to a productive 2013 as we continue focus

on our core customers. We have a positive outlook with

continued projects upcoming at Davis Monthan, Midwestern

University, National Bank of Arizona, and University of

Arizona.

Eric Torvie

President’s Report

As we begin 2013, we do it in a “mood” of anticipation. What will the year 2013 hold for us personally?

Professionally? Will the economy come back? Will I get the raise I was looking for? Will I win the lottery?

Will I shed those extra 10lbs that I pledged on New Year’s Eve? This is a time-honored New Year’s tradi-

tion that goes back generations.

While I cannot answer the above questions, I can say that here at Jenco we enter 2013 in a mood of won-

der and anticipation for our future. As a learning organization, we have many ideas to explore in 2013, as

well as incorporating and executing many lessons learned from our experiences in 2012. We have many

“takeaways” from 2012 that will make us successful in all future

ventures. Examples include higher safety awareness, and new

practices that will be integrated into all new projects. Our Building

Information Modeling Department (BIM) has matured into a force

to be reckoned with. BIM and prefab will combine to make us very

competitive in 2013 and beyond. We have improved the Adroit

Operations Management software (AOM) reporting component to

give us better and more accurate “real time” information than

ever before. This is a learning practice that will continue as long

as we are in business, or until we invent a superior interpretation.

In late 2012, we launched and completed the initial stages of sev-

eral “marginal projects” aimed at making us more competitive,

and thus profitable, in many areas of our business. Now that they

are complete, we are beta testing them for effectiveness on pilot projects, and anticipate they will be used

on all Jenco projects in an effort to cut costs, so we can “win” more work and drive more “profit dollars” to

the ESOP for the benefit of us all.

If you are “sensing” a theme of learning, then you are very observant. Jenco’s mission statement, to build

a learning organization by compelling every associate to notice, observe, and assess their ethics and ca-

pacities to produce Conditions of Satisfaction for all our customers with practical offers that manifest,

demonstrate, and display the highest of human virtues, is in play all day, every day. This is not a “wordy”

slogan, but what will drive all of us to be successful for the rest of our working career. I invite you to turn

off the TV for awhile each week, and invest in your learning. See any of us for help on what this means to

you and Jenco. Together we will be the most successful electrical contractor in the valley for years to

come, no matter what the economy does.

Work safe….

Bob Kohnen

It’s That Time of Year Again...

With the rolling in of a new year, nearly half of all

adults make New Year’s resolutions. Many people’s

resolutions involve losing weight, spending more

time with family, and saving money.

People go into the new year with the highest of in-

tention and motivation, but typically by February the

excitement has fizzled out and most people have

given up. For example, if you go to a gym regularly

you know what I am talking about. That first week in

January the gym is always packed- to the point you

have to wait in line to get on the treadmill. Do you

notice though, that as the weeks pass, the gym

crowd gets back to the normal size?

So how can you develop or change a habit?

Make your goal specific. For example, if you want

to lose weight, how much weight?

Understand that it takes three weeks to change or

develop a habit

Make yourself accountable to others. Make your

goal known to your friends, family, and coworkers.

Make a plan! Have a plan for how you will reach

your goal, how you will handle temptations, and

how you will measure and track your success.

Top 10 New Year’s Resolutions

1. Lose weight

2. Get organized

3. Spend less & save more

4. Enjoy life to the fullest

5. Stay fit and healthy

6. Learn something exciting

7. Quit Smoking

8. Help others in achieving their dream

9. Fall in love

10. Spend more time with family

Click here for more tips on how to keep your New

Year’s Resolution

Understanding Jenco’s Mission Statement

Over the next several months, I will examine our Jenco Mission Statement and dissect it phrase by phrase

so that we can gain a better understanding of how this applies to our work experience. In addition, commit-

ting this statement to memory will help us consciously and sub-

consciously apply this to our daily work tasks, helping to put

them into perspective in relationship to the mission statement.

What does it mean to “Build a learning organization?” When we

complete tasks on the job that we have entered into our Adroit

Operation Management system, for instance, we will only know if

they are successful if we assess these tasks. It is important to

analyze what worked, what did not work, and what processes we

will need to change to improve the outcome next time. Without

this assessment, we will not learn as an organization. Will we make mistakes along the way? You bet! It’s

what lessons we learn from these mistakes to ensure they will not happen again. These lessons will make

our organization grow and prosper. This is what building a learning organization is all about.

Wes Heier

In the News

“Build a learning organization by

compelling every associate to notice,

observe, and assess their ethics and

capacities to produce Conditions of

Satisfaction for all our customers with

practical offers that manifest,

demonstrate, and display the highest

of human virtues.”

Schools around the nation are being forced to fig-

ure out how to reduce their operating costs. Here

in Arizona, schools are starting to use solar to help

reduce their electricity bills.

The Star Charter School in Northern Arizona is the

first school in the United States to run entirely off

renewable energy. Their 100 solar panels produce

37 kilowatts of electricity to the school.

Three schools in Yuma will soon have solar panels

providing some of their electricity. The school dis-

trict estimates that each school will save between

$5,600 and $25,000 the first year the system is

in operation.

Washington Elementary School District, the larg-

est district in Arizona, recently completed their

961 kW project. They expect to save more than

$1.5 million over the next 20 years.

Jen Meacham

Overall, Arizona’s solar energy industry is growing at a

rapid rate. Check out these facts:

The amount of installed PV capacity in AZ has

increased in the last three years by 400%

The installed solar capacity in AZ totals about

448 megawatts, which is enough energy to

power 57,491 homes

AZ plans to have 15% of its power generated

from renewable energy, like solar, by 2025

Click here to read more!

All About Blood Pressure

High blood pressure, also known as hypertension, is the

most common cardiovascular disease. Blood pressure

refers to the force of blood pushing against artery walls as

it courses through the body. Like air in a tire or water in a

hose, blood fills arteries to a certain capacity. Just as too

much air pressure can damage a tire, or too much water

pushing through a garden hose can damage the hose,

high blood pressure can threaten healthy arteries and

lead to life-threatening conditions such as heart disease

and stroke.

The leading causes of death in the U.S. are heart disease

and stroke, so it is important to maintain a healthy blood

pressure. People of all ages and backgrounds are at risk

for developing high blood pressure.

Jennifer Thompson

What causes high blood pressure?

Smoking

Being overweight

Lack of physical activity

Too much salt intake

Too much alcohol consumption

(more than 1-2 drinks/day)

Stress

Old age

Genetics & family history

Chronic kidney disease

Adrenal and thyroid disorders

Interesting Facts:

About 1 in 3 U.S. adults have high blood

pressure; that is an estimated 68 million

adults.

69% who have had their first heart attack

and 77% who have had their first stroke

have high blood pressure.

Less than half (46%) of individuals with high

blood pressure have their condition under

control.

Costs directly attributed to high blood pres-

sure for the nation total almost $131 billion

annually in direct medical expenses, and

$25 billion in lost productivity.

Reducing average population sodium intake

from 3300 mg to 2300 mg per day may

reduce cases of high blood pressure by 11

million, and save 18 billion health care

Tips for lowering your blood

pressure:

Eat a healthy diet that includes lots

of fruits & veggies. Eat foods that

are low in saturated fat and choles-

terol.

Exercise for at least 30 minutes

every day

Maintain a healthy weight

Reduce stress

Quit smoking and drink only in

moderation

Click here to learn more!

An Update on Jen Service

Bring on the solar! As we quickly move into the

New Year, JEN Service does so with a new offer.

Through the recent success of our residential

panel upgrades, Solar City has partnered with the

Jenco team to gain velocity with their current

project backlog. As a result of the new demand,

we’ve recently added Mike Manning to our team

to lead the solar offer in managing several crews

across the valley. We look to use the successful

reputation of JEN Service lead by David Andre-

sen, to market the opportunities that we can

bring forth to Solar City and others. I personally

look forward to seeing this offer grow over the

year as solar projects gain more momentum in

Arizona.

Eric Torvie

Bright Ideas

Most homeowners know that a bulk of their electrical

bill is generated from HVAC and water heaters, but

did you know that over 15% can be associated with

your household electronics and appliances? It’s of-

ten easy to overlook these items, but their cost can

add up, even when the device is turned off. Prevent

the waste while you’re away by adding a power strip

to entertainment systems and turning it off when not

in use. Also, unplug appliances that aren’t being

used to help minimize “lost energy”.

Use this at the office too! Turn off computers and

printers when you are not using them and at the end

of the day. You’d be amazed at how these small

steps can lead to big savings.

Bulletin Board

Employee Anniversaries

Please join us in congratulating the

following employees who celebrate an

anniversary this month with Jenco.

Congrats everyone!!

Stuart Steadman: 1 year

Susan Arroyo: 1 year

Jennifer Thompson: 2 years

Alvaro Reyes: 5 years

Caresse Hughlett: 1 year

Lance Gaare: 1 year

Paul Gladysz: 5 years

Richard Ochoa: 1 year

Richard Velasquez: 6 years

Ryan Thomas: 1 year

Chad Hoffman: 7 years

David Andresen: 2 years

David Nava: 1 year

Ignacio Nunez: 1 year

Irvin Wauneka: 1 year

Jen Service has a new

leader... Eric Torvie.

Congrats Eric!

New Faces Please join us in welcoming

the following people to the

Jenco team!

Jesus Andrade-Aviles

Ramon Flores

Steve Ettinger

Matthew Jonelis

Raymond Sinks

Richard Webster

Francisco Ramirez

January Birthdays Benjamin Dallmann

Jonah Weber

Janet Seales

Robert Weeks

Mauro Trevizo

Tanner Nelson

Michael Engelmeyer

Gerard Coster

Joe Madril

Jerry Perez

Ernie Haymes

Erick Mendivil

Hector Vasquez Brienco

Steve Ettinger

Richard Webster

A Little Bit of Humor W

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