Concrete blocks may not sound like an item on every saavy entrepreneur's shopping list, but for CEO of building and home improvement company S.A.L. Bill Morrison they are precious commodities.

The company is reporting record sales revenue this year with a rise in its total net income of more than 12 percent. A booming construction industry and a loyal customer base have helped S.A.L. to remain successful in a competitive market.

Opening the new concrete block factory is also part of the company's plan to stay abreast of local competition. Mr. Morrison said he wanted to stay ahead of competition and fulfill the long term plan of becoming a comprehensive building supplier.

"There are two reasons - we decided to open the new block plant to satisfy a very brisk marketplace and our old plant was at that stage and needed replacement. We'd been operating it in excess of 20 years," said Mr. Morrison.

The plant will be located at Wilkinson Quarry and has received full approval from the Department of Planning.

"We hope to make profit from this of course but it's all part of being a comprehensive building supplier, if we didn't supply the block then a main product would be missing. We already supply ready mixed concrete, steel, lumber, slate, doors and windows but this block is a main product. Housing in Bermuda is so important at the present time that the market is booming. It's strained our capability to meet the demand we thought the time was right to replace the existing plan."

For the past two years the company has drafted plans for the plant and a start date is anticipated within the next two weeks.

S.A.L.saw its total sales revenue surge to record levels in fiscal year 2005 due to increasing product demands from the construction sector.

In his annual report to shareholders, company president John R. Berg said that S.A.L. supplied the greatest ever volume of goods and materials in its history with total sales revenue reaching $26.6 million, a 19.5 percent increase over the 2004 fiscal year when sales revenue was $22.3 million.

S.A.L. posted a net operating income of $4.6 million, a 13.8 percent increase over 2004 net operating earnings of $4 million. Net income rose to $3.1 million, a 12.8 percent increase over the $2.7 million recorded in fiscal year 2004.

Although he declined to disclose the number of blocks the new plant is expected to produce, Mr. Morrison said it is expected to help SAL make a significant stride.

He also credited the company's 80 plus employees with the year's business success.

"It's always satisfying when a new company does well, part of it is the booming market and the fact that we set ourselves up some years ago to satisfy consumers.

"I'd like to think the right products at the right price help us to improve efficiency.

"The employees can be credited with leading the way to our success, and the majority of our team in Bermudian."

Mr. Morrison is originally from Edinburgh, Scotland and began working in the industry more than 25 years ago as an civil engineer after working for more than a decade on various projects in the Middle East and Africa. He joined SAL in 1982 as a manufacturing manager in charge of the quarries, ready mixing and ancillary construction.

He became CEO of the company in 1994.

"As an engineer I grew up in the industry, I initially started in the direct project construction and management and it developed from there as I specialised in various products required by the industry it was a natural progression. As I got more senior I moved into the management side over the years."

While the company is enjoying the success of the past year, Mr. Morrison said controlling costs and remaining profitable is also an issue for those in the industry.

"We have to keep shipping, freight costs, and the costs of materials controlled, now it's become an issue of controlling costs and keeping up our efficiency in a competitive market."

The company is also expanding its contract sales department to meet demand from contractors and introduce more products. Mr. Morrison said business plans for the future include plans to make more products locally and continue successful business in the future.