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1998 DJC construction industry survey
In this year's survey, one local contractor may have spoken for many with his take on today's market: ``I've never been involved in anything so good.'' The only worry is finding enough people to do all this building.
Below you'll find some of the other things the area's major contractors had to say about the past year, and what they think lies on the horizon for the local construction industry.
Tabor Electric
President: Langston Tabor
Specialty: Electrical
Year founded: 1973
1997 revenues: $5 million
Projected 1998 revenues: $7 million Largest current project: Benaroya Hall
Langston Tabor takes great pride in saying that his Tabor Electric company is not only one of the largest African American construction companies in the country, but was, at a White House ceremony in 1995, named the best minority-owned construction company in the nation by President Clinton.
The company continues to grow. Tabor said he expects to add perhaps a dozen new employees to his 45-person staff in the coming year, reflecting Seattle's boomtown economy.
Those new hires are likely to be women and minorities, in keeping with Tabor's philosophy of training people for careers in the industry. But Tabor doesn't just train people for his own company; he sees a larger role.
"Part of what we try to do is give people entry-level training and management experience, with the expectation that they'll move into the industry with other companies," Tabor said.
Tabor Electric performs a broad range of work. It is one of the largest unionized residential electrical contractors in the region, but also has been performing electrical work on the Seattle Symphony's new Benaroya Hall and for a 60-unit elder housing complex called Wright Senior Housing in Tacoma. The company just completed work on the Seattle Parks Department's Rainier Community Center.
Tabor said his company also has a large electrical-maintenance contract with Texaco, handling all the company's service-station needs along I-5 from Blaine to Vancouver, Wash.
As far as the construction market is concerned, Tabor said the area's unprecedented boom is likely to be limited only by labor.
"It can only go as far and as fast as your manpower," he said. "I think manpower will be the thing that says when it peaks. That may be soon.
"It's not the economy. Somebody has to actually do the work."
While Tabor is working to position his company to take advantage of a favorable market, he is cautious. At the beginning of a boom, he said, there is a danger in overcommitting -- in agreeing to do jobs that you don't have the workers to do.
Although Tabor did not get a contract he recently bid on a Regional Transit Authority job. Had he been selected, Tabor would have recruited electrical engineers from out-of-state colleges. In particular, he would have sought out graduates from traditionally black colleges in the Southeast.
He may yet need their assistance. Tabor believes the current boom is only the beginning, with everybody "waiting for this tidal wave of work to hit."
"I have heard, and I believe, that Seattle is the number-one building economy in the world," he said. "How many cities have new stadiums going in back to back? Then you have the RTA. The RTA is a multibillion-dollar project, and that hasn't even brought in the Eastside. And then there's the schools. And we haven't even mentioned the private projects: for the first time in 10 years there's skyscrapers going in downtown -- more than one."
How long will it last? Tabor wouldn't hazard a guess.
"I've never heard anyone ask that question," he said. "We're just on the tip of it. Maybe work fuels more work, maybe money fuels more money. These are new times. It's interesting when the biggest financial problem one has is how to spend the excess revenue."
Absher Construction
President: Dan Absher
Specialty: General contractor
Year founded: 1940
1997 revenues: $70 million
Projected 1998 revenues: $120 million Largest current projects: Holly Park redevelopment; Ft. Lewis barracks
The rapid growth of Absher Construction of Puyallup is due to three factors, says President Dan Absher. One is that the company is actively seeking growth; another is the strong market; and a third is that the company has a couple of large contracts in progress.
Seattle's $54 million Holly Park redevelopment is the largest one. Absher is building it in a joint venture with Pacific Components. The other big contract is a $44 million barracks rehab for the U.S. Army at Ft. Lewis.
Absher is pursuing a number of smaller projects at the same time. They include a $9 million construction contract for a Touchstone Development office project in Issaquah; several projects around the state for Alternative Living Services; and a number of construction management jobs.
Absher also is looking for general contractor/construction manager work. He said Absher Construction is doing one GC/CM project for the state Department of Corrections in Shelton, and is the construction manager for a Morton School District job.
Despite its growth, the company has not experienced severe labor shortages. Absher said project managers and superintendents are in short supply, but trades workers are there when he needs them.
"I think it's because we've been around a long time and we're union, and all that," he said.
Absher Construction performs work all over the state, but Dan Absher wouldn't mind focusing on the Puget Sound area. Wherever the company works, however, it tries to maintain a balance between public and private jobs. Lately the push has been to expand its private work, which now accounts for about 60 percent of Absher's revenue.
"One or the other markets can dry up," Absher said. "Staying in the public sector keeps you competitive on pricing, and [tells you] which subs are active."
Not that Absher expects anything to dry up soon. Both public and private markets probably will remain strong for several years, he said.
Lease Crutcher Lewis
President: Bill Lewis
Specialty: General contractor
Year founded: 1886
1997 revenues: $200 million
Projected 1998 revenues: not available Largest current project: Microsoft Troon
Though it was founded over a century ago, construction contractor Lease Crutcher Lewis really began work in the Puget Sound region in 1940. President Bill Lewis said the company has been growing steadily and has no plans for rapid expansion.
"The challenge is finding staff and contractors to grow responsibly," he said.
The company has offices in Seattle and Portland, employing about 500 people. Lewis said his company primarily works on negotiated private projects, with some lump-sum school jobs and a "fair amount" of construction management.
Among the company's current construction projects are two high schools for the city of Edmonds; a corporate headquarters for Expeditors International (in the old Seattle City Light building); two buildings for Microsoft's Troon campus in Redmond; and the Pacific Place retail development downtown, in partnership with Sellen Construction.
Lewis said the company also has ongoing projects with Children's Hospital, Starbucks, Washington Mutual and Zymogenetics. It is starting on King Street Center with developer Wright Runstad.
In the area of construction management, Lease Crutcher Lewis is handling the Mary Gates Hall project at the University of Washington, and the Wright Runstad/Port of Seattle World Trade Center on the waterfront.
Lewis said he expects a strong construction market for a few years at least.
"But I don't think the pace will continue forever," he said. "The challenge will be people executing the work and meeting schedules. There is an awful lot of office, hotel and mixed-use projects talked about in Bellevue and Seattle. A lot will happen, but a lot won't happen."
Lease Crutcher Lewis works all over Oregon and western Washington, with scattered jobs in eastern Washington, Idaho, Montana and Utah.
"It's really not a significant [amount of work]," Lewis said of those other markets. "The market here is stronger. It's easier for us to service this market."
Mortenson
Senior Vice President (Seattle): Paul Cossette
Specialty: Sports facilities, high-rise office buildings and GC/CM work.
Year founded: 1954 (in Seattle for 16 years)
1997 revenues: $109 million
Projected 1998 revenues: $115 million Largest current project: GC/CM for UW Bothell/Cascadia campus
The Puget Sound area's robust construction market has been nothing but good news for M.A. Mortenson Co. of Bellevue. So far, the company has had few problems finding the labor it needs or meeting the rising cost of tradespeople and materials.
The company has attracted attention in the industry as the general contractor of the White River Amphitheater for the Muckleshoot tribe. Despite the outcry from neighbors against the project, Keli Hagen, Mortenson's business development coordinator, said the project has been relatively smooth under the circumstances.
"We've just had to exercise a bit of patience," Hagen said, "but the project is moving along."
Recently Mortenson has moved toward more negotiated work, taking on several new projects as general contractor/construction manager.
Also new for Mortenson is the Vancouver, B.C., market. The company recently started construction on its first high-rise office/retail building in the Canadian city.
Construction Associates
President: Eric Tessem
Specialty: Restaurants, retail buildings, warehouses.
Year founded: 1981
1997 revenues: $37 million
Projected 1998 revenues: $41 million Largest current project: The Villages at Harbor Pointe residential development
Construction Associates Inc. of Mountlake Terrace is known for building large, upscale restaurants such as the $4 million Palisade Waterfront Restaurant in Seattle. Lately the firm has changed its direction a bit, becoming general contractor for one of Mukilteo's largest residential developments, The Villages at Harbor Pointe.
According to company president Eric Tessem the decision to take on a residential project of that size -- 131 townhouse units -- does not mean Construction Associates is changing its focus. It's simply an effort to meet the needs of its very loyal client base, he said.
"A lot of our customers come to us time after time," Tessem said. "If they want to go into multi-family, then we're going to find out how to be good at multi-family."
For Tessem's firm, prosperous times in the region's construction market are not synonymous with time to relax. The hot market has created problems such as the scarcity of labor and the rising price of materials. In the past it wasn't unusual to see six to eight subcontractors fight over contracts, he said. These days construction firms are lucky to find one or two bidders.
"The whole labor situation and subcontractor situation is incredibly difficult right now," he said. "You really need to work hard to stay in budget. This strong market is a double-edged sword."
PCL
President: Peter Beaupre
Specialty: Commercial construction
Year founded: 1906
1997 revenues: $150 million (Seattle office)
Projected 1998 revenues: $150 million Largest current project: Concord Condominiums in downtown Seattle
Keith Henrickson, director of development for PCL Construction Services Inc., predicts that 1998 will be the first year his firm hits the billion-dollar mark for its U.S. operations.
The 100 percent employee-owned company, which has headquarters in Denver and Edmonton, Alberta, had combined earnings of more than $2 billion from projects in the U.S. and Canada. Now the firm is trying to strengthen its U.S. operations by focusing on what it takes to the meet the needs of the private developer.
"We are really trying to turn ourselves into a client-oriented contractor," said Henrickson. "We trying to build strong partnerships."
The company may be most well-known in Seattle for building the Key Arena at Seattle Center, but in Portland it's attracting attention for work on the Federal Aviation Administration Tower.
With several other large parking garage and high-rise office and residential projects in the area, PCL, like most firms, is just trying to keep up with the work load.
"There's a lot of pressure for us to stay on budget with the escalating cost of labor a materials," Henrickson said.
McCarthy
President: Del Bishop
Specialty: Microelectronics, health care, office, mixed-use, manufacturing, industrial, renovations, residential
Year founded: 1976 (Seattle office)
1997 revenues: $105 million
Projected 1998 revenues: $130 million Largest current project: Bellevue Galleria
"We're getting close to full capacity here in Seattle," said McCarthy Northwest Division President Del Bishop. "It will be interesting to see how long (the local market) can maintain this pace."
Bishop likened the pace of construction in the Puget Sound region to that of Portland two years ago, when about a half-dozen major wafer fabrication plants were under way.
According to Bishop, the construction boom in Portland created a spike in prices and problems with delivery and labor on projects.
"We have to be very careful in this market because of the availability of qualified people," he said about Seattle's tight labor market.
Since the first of the year, Bishop said his company has been raided by other firms looking for workers, resulting in a loss of a few foremen and administrators.
McCarthy has been able to replace its lost workers -- and retain its existing workers -- by taking a number of steps such as more vigorous training programs, providing growth opportunities and reviewing compensation packages.
The company's enhanced training programs are run by a full-time trainer that was hired last fall. Bishop said they are now looking to hire a full-time recruiter.
Bishop said costs are going up across the board, including ready-mix concrete, structural steel and subcontractor labor. He said those three elements make up about 90 percent of the cost of a project.
Although construction costs for owners have gone up, Bishop said lease rates have gone up to compensate.
To help control costs for clients, Bishop said the company has tried to minimize expenses where it can. For instance, the company evaluates switching concrete for structural steel in projects, and vice-versa.
McCarthy also is cutting costs with a new accounting system and upgraded computer information systems. In nine months, Bishop hopes to adopt an integrated on-site project management system that will "talk" to the new accounting system. Bishop said the systems will make job sites more efficient, and allow them to give owners real-time accounting information.
For 1998, Bishop is predicting the firm will have its second best year, with $130 million in revenues. But Bishop said he doesn't want to overextend the firm's capabilities. "We're trying to be more careful with our job selection, with the intent of increasing our profit margins."
Some of the larger jobs McCarthy is currently working on include the shell and core of Bellevue Galleria, the 110,000-square-foot second phase of 1000 Dexter for Alpers Northwest, and a design/build chicken production facility for Foster Farms in Kelso.
The $23 million Galleria project should be finished in February of 1999. At 1000 Dexter, McCarthy is pouring elevated concrete slabs for the $13 million office building which should be finished in December. The $22 million chicken facility should be finished next month. It is in the final stages of equipment hookup.
Later this year, McCarthy will be starting the final phases of the Harbor Steps development, a carpenters' union hall/residential project in Belltown, and a major Eastside office development.
Nuprecon
President: John Hennessy
Specialty: Demolition
Year founded: 1986
1997 revenues: $17 million
Projected 1998 revenues: $17 million Largest current project: Nordstrom
Explosive growth in the number of local demolition contractors is causing Redmond-based Nuprecon to expand outside Washington.
John Hennessy, president of Nuprecon, said there has been a 10-fold increase in the number of demolition contractors in the last three years. As a result, Nuprecon is now licensed to do work in all western states and is looking at Canada and Hawaii.
Hennessy said the newcomers are a result of many circumstances: several abatement contractors have added demolition services to counter declines in the number of abatement jobs; earthwork companies have added demolition jobs to boost sales; and for every failed demolition contractor, two new companies spring up from the aftermath.
Hennessy said he is concerned some of the new companies have little or no experience in demolition. He said the state should look into establishing minimum requirements for demolition contractors. (For example, Nuprecon had to pass comprehensive testing to get registered in California, Nevada and Colorado.)
"We are all for honest, fair competition," he said. That includes providing a level playing field for issues like prevailing wages and compliance with health and safety regulations.
As a result of the growing competition, Hennessy said his firm has not raised its prices in four years. Nuprecon is looking to diversify in order to double volume within the next five years.
"Within a relatively short amount of time, we are going to acquire a reputable abatement contractor," Hennessy said. That could include a company inside or outside of Washington state that can supplement the company's business so that it can offer a complete demolition/abatement package.
Hennessy said the acquisition will probably be made by the start of 1999.
Another business venture Hennessy is mulling over is buying an equipment rental firm. That would allow Nuprecon to rent out idle equipment between jobs.
In other strategic planning moves, Hennessy said he is looking at buying another $1 million in equipment to supplement the company's total building removal business. He has been doing total building removal for about two years and wants to focus more on it.
Some of the firm's larger recent projects include: a $1.5 million interior gutting of 250,000 square feet of medical office space at Harborview Medical Center; the Nordstrom flagship store in downtown Seattle; and a $1 million interior gutting and exterior skin removal of the former City Light Building for Expeditors International.
Of course, the big questions is: Will Nuprecon bid on the Kingdome demolition? Definitely, Hennessy said, so will everyone else.
W.G. Clark
President: Mike Ducey
Specialty: Retirement and assisted-living homes, medical, mixed-use, multi-family
Year founded: 1910
1997 revenues: $65 million
Projected 1998 revenues: $65 million Largest current project: South Park Square (Bellevue)
"(Construction is) booming," said Keith Barrow, vice president of business development at W.G. Clark Construction Co. "It's very aggressive right now."
According to Barrow, one of the hottest areas of construction makes up 60 percent of Clark's business mix -- multi-family and retirement housing.
Clark is now working on a big job in Bellevue's Old Town area -- the $22.5 million South Park Square residential towers project. It includes a pair of residential towers standing five and nine stories tall, plus underground parking. The garage was topped out earlier this month and Clark now is about 25 percent finished with the 226-unit, 346,000-square-foot project.
Another project Clark is busy with is a $10.5 million renovation of the 190-bed Martha and Mary Health Services skilled-nursing facility in Poulsbo. Construction is now about 90 percent complete on the multi-phase project.
Barrow expects the strong construction market to continue for the next year or two but work could taper off a little bit next year. For now, Clark has no expansion plans. "It's busy enough here, we don't have to go out of the area to get work."
Barrow voiced a concern nearly all contractors are facing: a shortage of skilled workers.
"One of our biggest problems right now is getting skilled workers because everyone is so busy," Barrow said. He also is worried about a lack of future skilled labor in the industry. He said there needs to be a greater effort to steer high school graduates into construction.
In the past year, the company started a unique program to cater to the increasing number of Hispanic workers in the labor force: all training and safety meetings are held in both English and Spanish. "We've had a good response from our own employees and subcontractors (on the program)."
That program, along with the company's total quality management program, have helped make it the safest contractor in the state, Barrow said.
Foushee
President: Jeff Foushee
Specialty: Team-build process, commercial/industrial
Year founded: 1977
1997 revenues: $64 million
Projected 1998 revenues: $68 million Largest current project: Highland Campus office park (Bothell)
Foushee & Associates President Jeff Foushee ventured a guess that the hot construction market will carry for two more years.
"It seems like every sector of the market is hot," he said, especially suburban office and high-tech space. "We've got a great local economy and a great national economy," which is fueling a great real estate market and causing companies to expand or move into the area.
"There's pessimism on my side because I've never been involved with anything so good," Foushee said.
The Bellevue-based contractor just came off a record year for 1997 and Foushee is predicting another record for 1998. Some of the company's current projects include the $10.2 million Highland Campus office park in Bothell; a $5 million, 80,000-square-foot high-tech building in Bothell for SeaMed; and a $4.5 million, 90,000-square-foot distribution facility in Issaquah for Federal Express.
For now, Foushee has no plans to expand his business. "We're just going to continue on the course we have for the past 10 years," he said.
Even with business booming, Foushee still has concerns about the industry. At the top of his list is the current regulatory environment. He said some municipalities are tightening requirements for treating stormwater runoff during construction.
Foushee said that regulatory environment originated with the city of Redmond's concern about stormwater runoff on Microsoft projects. He said it trickled down into other Redmond projects, and then into other municipalities and counties.
"It takes more time to get a permit than it takes to build a building," Foushee said. "It's very frustrating."
Other concerns Foushee expressed include a lack of skilled craft workers, impacts from newly-designated endangered fish, and a limited supply of developable land.
S.D. Deacon
President: Steve Deacon
Specialty: Commercial, retail and hospitality
Year founded: 1990 (Bellevue office)
1997 revenues: $37 million
Projected 1998 revenues: $42 million Largest current project: Squalicum High School, Bellingham
Steve Galash, vice president of S.D. Deacon, said there are some especially hot markets in construction right now: office, hospitality and light-industrial.
"It's definitely busy," he said. "I've been told by a client it's hard to get a list of five qualified bidders who want to compete on a bid list."
Galash said he expects the strong market to continue for at least the next year. At one point, he said, the market will get saturated. To cushion against those effects, Galash said his firm will try to stay diversified.
According to Galash, one of the biggest challenges is finding the right people to add to the company's staff. The company has taken two measures to address that problem. First, it is hiring workers "early" and spending time training them. Galash is not hiring in reaction to work he gets, but is trying to anticipate future needs by having employees on board before a big job starts.
The second measure involves trading workers on a temporary basis with other construction companies. Galash said when less work on a job is being self performed, they lend workers to other firms. He said this practice has been going on for about five years, primarily between S.D. Deacon, Kirtley-Cole, Frontier Construction and W.G. Clark Construction Co.
"You have to be careful, the companies have to be similar philosophically," Galash said.
If the firm that is "borrowing" the workers tries to steal them away permanently, Galash said the agreement is broken. Also, Galash said the lending contractor has the right to take back its workers on a moment's notice if it needs them.
"(The workers) love it," Galash said. "They don't have to go out looking (for work)."
Deacon is also striving to create a bigger and better workforce with its "Adopt a School" program. The program is patterned after one at The Rafn Co. in Bellevue. Deacon has "adopted" Juanita High School for its program, which is an apprenticeship-like program. Under the program, Deacon sponsors a couple of kids, employs them and sends to an apprenticeship school.
"For them, it's quite an exciting deal," Galash said.
In addition to the Bellevue office, Deacon has offices in Portland and Sacramento, Calif. (The company started in Portland and is managed there by Steve Deacon, its president.)
The company recently has been building several projects in the hospitality industry: it just finished an Extended Stay America hotel in Bellevue and is working on two others in Kent and Tacoma. Next month, it plans to start a $3 million Family Fun Center in Tukwila and will soon start the Northwest Expo Center, a $7.5 million public assembly building totaling 178,000 square feet.
Its largest project under construction is the new $21 million Squalicum High School in Bellingham.
"We've got to ride this wave while it lasts," Galash said. "We've got a lot to be thankful for."
Kiewit
Area manager: Steve Smith
Specialty: Fast-track projects, difficult buildings
Year founded: 1940 (Seattle office)
1997 revenues: $106 million
Projected 1998 revenues: $195 million
Steve Smith, area manager for Kiewit, is sitting in the cat bird's seat along with joint venture partner Huber Hunt & Nickels on the new $447 million baseball stadium. Kiewit has a 45 percent share of the contract.
Some of the challenges of building the stadium are its sheer size, the retractable roof and designs that continue to evolve as construction progresses.
"I've never built a stadium before, but who has?" Smith said. That will change when Smith and company finish the stadium next year in July.
Another prominent project Kiewit is working on -- an eight-building campus for Nike in Beaverton, Ore. -- may not grab as many headlines as the ballpark, but it's about the same in construction cost.
Kiewit is building the campus in several phases. So far, the contractor has finished an addition to Nike's daycare center and is now working on three office buildings, a parking garage and a research-and-development center. Designs for the final two buildings, a sports facility and a conference center, are being finished.
Smith said the indoor sports center may include a swimming pool, regulation-size hockey rink and facilities for aerobics, weight training and rock climbing.
The campus is expected to be finished about the second quarter of 2000.
Other projects Kiewit is working on include the $37 million Starwood hotel in downtown Seattle, the new $35 million Ballard High School and the $15 million IMAX theater and Ackerley Family Exhibit Gallery at the Seattle Center. Starwood should be finished in March 1999, Ballard in August 1999 and the IMAX project this October.
Smith said there are many opportunities for the next several years in both Seattle and Bellevue. He said activity has been brisk in hotels, speculative office buildings and redevelopment projects.
"I think a lot of the existing buildings will get refurbished," he added.
Smith said there also will be a lot of secondary development that will follow the initial surge in commercial development.
Kiewit evidently hasn't felt the pangs of a worker shortage that other contractors are facing. Smith said they have had no problems getting qualified workers on their jobs, and have expanded their employee base 8-10 percent each year for the past three years.
Smith did say he was concerned that there will be overbuilding in the local market, which could eat up human resources.
PACO
Co-presidents: F. Robert DeBruyn and Theodore Obermeit
Specialty: Construction equipment
Year founded: 1955
1997 revenues: about $15 million Projected 1998 revenues: about $15 million
These have been traumatic times for PACO (Pacific American Commercial Co.) Its president Paul DeBruyn died in December and an employee, sent to Mongolia to help establish a sawmill, was charged with murder.
New co-presidents are F. Robert DeBruyn, brother of Paul, and Theodore Obermeit. Company founder Frank DeBruyn, the father of F. Robert and Paul, is still on the job.
There is a new, more aggressive attitude at the company, according to controller Tom Gibbons, and more face-to-face contact with the customer is encouraged. PACO's customers include firms such as Kiewit, Atkinson, General and Mowat. Many are involved in marine or foundation construction.
PACO, located in south Seattle has 54 employees and carries just about everything from hand-held air tools to 300-ton cranes.
City Transfer
President: Ron Benson
Specialty: Sitework, supplying aggregate
Year founded: 1921
1997 revenues: Unavailable
Projected 1998 revenues: Unavailable. Current project: Third runway at Sea-Tac Airport
During these busy times, general contractors have to plan their work earlier in the season, says Keith Benson, vice president of City Transfer of Kent, Inc.
"There is more bidding between Christmas and March so owners can get competitive bids," says Benson who points to this area's weather-shortened construction season.
The past five years have been busy ones at City Transfer with the long-established company experiencing annual growth rates of 15-20 percent. Peak season employment during this time has grown from 115 to 200.
Excavation jobs have been plentiful, particularly at the region's ports. The company often acts as a general contractor performing sitework. Work is about completed at the World Trade Center on the Seattle waterfront and is starting up on the third runway at Sea-Tac Airport. Other projects include the UW's Fisheries and Oceanography buildings and the Valley South Industrial Park for Tarragon Development.
Other important areas for City Transfer are supplying trucks and aggregate for road projects.
City Transfer of Kent strangely enough is not headquartered in Kent but in Sumner where the company maintains its gravel pits. "There wasn't enough room to grow in Kent," says Benson.
Triad Machinery
President: Mike Hildebrandt
Specialty: Forestry, construction equipment
Year founded: 1992
1997 revenues: $65 million. Projected 1998 revenues: Over $65 million.
Business has been good at Triad Machinery because of the construction boom. But there could be clouds on the horizon, says Mike Coogan, Seattle branch manager.
Coogan is worried about the impact of Asian construction equipment flooding the local market because of Asia's economic problems and the resulting cancellation of construction projects there.
Because much of this equipment does not meet U.S. environmental standards, local machinery dealers working with the Associated Equipment Distributors have contacted politicians in Washington, D.C. and made them aware of the problem.
Triad Machinery, which is headquarterd in Portland, is considering adding satellite locations to current branches. The reason? "Better response time for our customers," says Coogan. "There's a lot more activity further out from our main branches and we don't want customers waiting three hours for service."
While logging has been a mainstay with Link-Belt cranes, Triad is increasing its penentation of the construction market with its wheel loaders, dump trucks, backhoe loaders, compaction euipment and forklifts. "The growth is coming from construction," says Coogan.
Pacific North Equipment
President: Gary Tondino
Specialty: Construction, logging, mining equipment
Year founded: 1971 (as McDonald Industries)
1997 revenues: $72 million Projected 1998 revenues: $88 million
Pacific North Equipment, one of the largest equipment dealers in the Northwest, got a new owner in 1997: Wajax, Limited of Vancouver, B.C., one of the largest equipment distributors in Canada.
"We now have more financial capacities," says President Gary Tondino, himself a recent arrival at Pacific North.
Tondino is pleased with sales at the company's Magadan, Russia, branch where loads of Komatsu dozers and trucks have been sold to the region's gold mine operators. Mining activity is also strong in Alaska where Pacific North has branches in Fairbanks and Anchorage.
Altogether the company has nine branches in Washington, Oregon, Alaska and Russia which employ 225 people. Tondino expects to make an annoucement later this year about a new branch.
Construction equipment accounts for most of Pacific North's sales but timber is also important. The company is the exclusive regional distributor for the Timberjack line. Logging equipemnt sales have been hurt by economic troubles in Asia but that has been offset somewhat by a revival in the world pulp market, says Tondino.
BFC Frontier
General manager Washington office: George Kramer
Specialty: retail, entertainment, mixed use
Year founded: 1961
1997 revenues: $30 million
1998 projected revenues: $40 million Largest current project: Coeur d'Alene casino
Officials at BFC Frontier Construction of Lynnwood expect to have a busy construction season, with a growth rate of about 15 percent. Sixty percent of its projects will be for repeat customers; 85 percent on a negotiated basis and 15 percent obtained from select-bid projects. New hires are expected to increase by 15 percent also, according to Renee Greenleaf, client services manager.
Frontier tackled the potential labor shortage head on by regularly attending trade fairs and recruiting directly from college campuses.
Because it is affiliated with an international company based in Toronto, people hired by Frontier have many opportunities for growth, which helps attract employees.
The company's goal is to reach an experience rating of 25 percent less than the industry average, which is on track so far, Greenleaf said.
Future work will be in the traditional areas for the company with some retail and several casino and hotel projects planned.
Wilder
President: Robert Helsell
Specialty: Heavy civil, bridges, asphalt paving and remediation
Year founded: 1911
1997 revenues: $140 million
1998 projected revenues: $150 million Largest current project: Lakemont Boulevard
Wilder Construction started out the year by completing its office consolidation in the Everett area, moving from offices in Bellingham to a site next to its Everett asphalt plant.
"We expect to be pretty busy this year," said Jerry Thayer, business development manager. Already, even without major road projects in Alaska that are out for bid, the company has an $8 million backlog for Alaskan work.
Overall, Wilder expects to do about $150 million in volume. Environmental work makes up between 15 and 20 percent of the total, Thayer said.
Large road projects include Lakemont Boulevard, a new $12 million road that will run from I-90 to the top of the Issaquah plateau, and HOV lanes on I-5 from Lynnwood to Everett. Wilder is closely monitoring federal ISTEA legislation to see what road projects will be funded locally. It also expects to bid on projects for the RTA.
Private sector work will be primarily site work for companies like Home Depot. Wilder company is expanding southward, bidding on several landfill projects in southern Oregon.
Thayer said the company does not expect to experience a shortage of labor. It averages around 485 employees and may go up as high as 800 at the peak of construction.
M. J. Ness
President: Steven Ness
Specialty: School and hospital renovations, new buildings
Year founded: 1967 Largest current project: Tolt Middle School modernization in Carnation
M.J. Ness is one of those lucky companies whose planned growth coincides with a busy construction market. The company expects a 30 percent growth rate this year, according to company president Steven Ness. "We've been planning for it."
Ness had already lined up seven new employees who will start in the next few weeks and several more will be hired before the peak of construction. The company has two school projects, a lot of medical renovation work, is adding a second floor to Ronald McDonald House in Seattle and constructing a manufacturing facility.
"Traditionally we stick to medical work, but there are not a lot of new projects so we are broadening our base," Ness said. Still the company is not taking on any more work this season. "Some people don't have a lot of work yet," he said.
The labor shortage is bound to affect costs soon. Ness predicts that some projects will be put on hold because developers don't want to pay the price. Permitting will also slow some projects down. His company put one project on hold for six months while it waits for permits.
Newland
President: George S. Newland
Specialty: Medical office and hospitals
Year founded: 1940
1997 revenues: $12 million
1998 projected revenues: $12 million Largest current project: Hospital renovation
Newland Construction expects volumes to stay about the same this year. "We have the luxury of being very selective about what projects we do," said Si Newland, marketing director.
Projects in the works include renovations at the Providence Medical Center in Everett, an Interwest bank branch, a new clubhouse for Legion Park golf course in Everett and a funeral home.
The main constraint for contractors in Snohomish County is the availability of land, Newland said. He wants the county to concentrate on increasing density.
Newland said for his fourth-generation company, high growth rates are not in the forecast. It remains competitive by using the latest technology for building systems and technology.
Garner Construction
President: Jackie Garner
Specialty: crane services
Year founded: 1991
1997 revenues: $2.2 million
1998 revenues (projected): $2.2 million Largest current job: Mariners stadium
Jackie Garner's cranes tower over the new Mariners stadium but some people might not recognize her equipment because the trademark pink crane hooks of Garner Construction WBE are painted blue for that project.
Garner said her company is doing about as much work as it can handle and still maintain its quality. She's not turning away work but is picking her jobs more carefully.
A booming construction market presents contractors with staffing problems. Garner said labor is driving management now because workers can command higher wages. This makes it harder on company owners to budget and manage projects, Garner said, and requires more effort to make sure workers are happy.
Garner said she pays crane operators over scale as much as possible, partly to keep them but also because she thinks crane operators don't make enough. At $24 an hour plus benefits, Garner said, "They are way underpaid in my estimation for the risk and responsibility ... when you consider they are in charge of a $1 million piece of equipment and everyone under the hook."
As a woman-owned business Garner isn't experiencing the same optimism about the future as many other contractors. Her concern: Initiative 200.
Even though she has an established business and a spotless safety record -- 20 jobs in Seattle since 1991 with no crane accidents -- Garner said she still relies on her WBE status to get work. "If it wasn't for that program we wouldn't have an opportunity to bid on public jobs. General contractors would self-perform a lot of specialty tasks."
"Other companies see a bright future but we're still hovering under this cloud of whether eight to 10 percent of public works jobs will be available to us," Garner said. 'A number of general contractors have said if the program falls they won't be talking to us."
Garner has increased the amount of private work she is doing as a precaution in case I-200 succeeds. She has worked on condos in Kirkland and along the Seattle waterfront and has gone as far as Oregon for jobs.
Airway Heights Sand and Gravel
President: Leann Purtill
Specialty: Manufacture and supply sand and gravel
Year founded: 1991
1997 revenues: $1.2 million
Projected 1998 revenues: $1.2 million Largest current project: various jobs at Fairchild AFB
In 1991, Leann Purtill and her sister Stacy Fleming took over the sand and gravel business their father, Albert Musser, started in 1971 after he retired from the restaurant business. Since then, the business has grown steadily from a $100,000-a-year operation to over $1 million.
Leann was an industrial sales representative with Exxon and Stacy was a driver for United Parcel Service when they decided to get into sand and gravel. Efforts to sell the property were unsuccessful, so the sisters hired two employees and set about establishing their reputation as reliable suppliers.
"We knew rocks were round," Purtill said, summing up what the sisters about the business when they started, "and now we know they aren't."
Purtill and Fleming have learned by doing, asking for help along the way. Today they work all over the Spokane area, particularly at Fairchild Air Force Base, Eastern Washington University and the Spokane Airport.
The Spokane area is growing and the construction market is very good, with a number of big projects coming out to bid this year such as road resurfacing to accommodate residential growth, new manufacturing facilities and more work at Fairchild. The River Park project downtown won't bring Airway any work but it's the kind of expansion that fuels Purtill's optimism.
The impact of Initiative 200 on affirmative action programs is a concern but Purtill said her company only gets about 10 percent of its work through set-aside programs. "It has helped us," she said. "We'd like to see it stay but a lot of our projects we get without it."
Purtill is considering putting in an asphalt or concrete batch plant at their pit, but that is the only thing she would change. They have two great employees and hire all their trucks, eliminating the headaches and expense of owning trucks.
Purtill said at first contractors were surprised to see women in the sand and gravel business. Statewide, there are only about six women-owned companies in the industry. But she loves the work and is proud of the business she and her sister have built.
Hartford Contracting
President: David Calixto
Specialty: general contracting
Year founded: 1992
1997 revenues: $4.3 million
1998 projected revenues: $6 million Largest current project: renovation at McChord AFB
In 1992, armed with a degree in business finance from the University of Washington, some credit cards and a few years of experience working at his uncle's construction firm, David Calixto started a small construction company.
Revenues for Calixto's Hartford Contracting were $70,000 that first year but the business has grown steady since then. Hartford Contracting does a variety of projects, from concrete restoration to seismic upgrades and office remodels. Ninety percent of the work is public.
Calixto said as a public contractor he pays prevailing wages and, as a result, has not had much trouble finding skilled labor. Finding credit during the early years of his business was a struggle, but now he has a track record and "the right banker" so he is over that hump.
As the owner of a minority business enterprise, Calixto is completely opposed to Initiative 200. He said its passage would not significantly hurt his business because he is a general contractor and could continue to bid work on his own. But the erosion of such programs generally is a serious concern to him.
The bigger impact will be on minority-owned subcontractors. Without affirmative action goals, general contractors will have no incentive to seek out minority or women-owned business and will be more apt to rely on the old-boy network, Calixto said.
His main complaint with Initiative 200 is the effect it would have on education. Calixto attended schools in the Yakima Valley where no one advised him about how to prepare himself for college.
"Without affirmative action in higher education I wouldn't have been able to go to the University of Washington which I think is the biggest reason we are having success. If I hadn't gone to the University I would never have been pushed to a new level. I wouldn't have created a company or employed people."
Despite the area's red hot construction market, Calixto doesn't expect his company to grow dramatically in the coming years. "There's a lot of headaches that go along with growth. I focus on net results not volume."
The abundance of work is bringing new contractors into the market, keeping it highly competitive, Calixto said. "It never becomes a free-for-all for contractors, particularly in public work."
Olympian Precast
President: Judy Jewell
Specialty: Architectural precast concrete
Year founded: 1987
Annual revenues: Would not disclose Largest current project: Swedish Tower
In Judy Jewell's business, it's okay to cast the first stone.
Jewell is president of Olympian Precast Inc., a Redmond company that manufactures precast concrete building components for both small and large construction projects. Such components can range from sills and columns to entire building facades.
Olympian's largest current project is the Swedish Tower at Swedish Medical Center, a project the company is doing as a supplier to general contractor Sellen Construction Co.
Other current projects include: Phase II of the AT&T Wireless headquarters in Redmond; Timberline Software in Beaverton, Ore.; and the Salem Hospital parking garage in Salem, Ore.
Olympian just completed work at the new Adobe headquarters in Fremont and at the Sunset corporate campus along Interstate 90. The company also handled a complicated trim job on the University of Washington Electrical Engineering Building, Jewell said.
A big upcoming project for Olympian is Phase I of the World Trade Center on Seattle's central waterfront.
"There's an enormous amount of work available right now for all precasters," Jewell said.
Olympian buys cement from several different suppliers and then batches its own concrete. The company's two batch plants can handle more than 10 colors of aggregates.
All of Olympian's manufacturing is done in a fully-enclosed, climate-controlled building. In addition to architectural precast concrete, the company manufactures cast stone and glass fiber reinforced concrete.
"Concrete is something that you can do a lot with," Jewell said. "Our company is pretty much open to whatever an architect wants to do. That's our niche: being very versatile."
Lugo Construction
President: Adrian Lugo
Specialty: Commercial, industrial and medical buildings
Year founded: 1978
1997 revenues: $21 million
Projected 1998 revenues: $27 million to $30 million Largest current project: Quinault Indian Nation administration building
Adrian Lugo learned a life-altering lesson 20 years ago: high school art teachers get paid a whole lot less than people who run their own construction companies.
"I started in construction because I was a teacher and I made $11,000 a year," said Lugo, president of Lugo Construction Inc. in Fife. "I was off in the summers, so I would do construction work during the summer months. ... I wound up making one to three times my yearly income in one summer."
In 1978, Lugo left his high school teaching job to start his own construction business -- a career change that initially presented him with a whole new set of financial challenges.
"If you look at the amount of money I lost because I didn't know what I was doing, you'd see that I paid dearly for my education," Lugo said. "That's why I know so much now."
Today, Lugo's company has about 80 employees. Lugo Construction typically works on projects such as small shopping centers, warehouses, manufacturing plants and federal projects for the Navy, Army and Bonneville Power Administration.
"We do a lot of work for private developers who do projects that are private, not flashy," Lugo said. "They're developers who don't want to get their names in the papers."
Lugo says the "flashiest" project his company has done is the Emerald Queen Casino for the Puyallup Tribe of Indians in Tacoma. By working around the clock, Lugo Construction managed to build that $2.2 million project in 74 days, Lugo said.
Lugo Construction's largest current project is a $3.5 million administration building for the Quinault Indian Nation in Taholah, Wash.
Other current projects include: a three-story office building for T&W Financial in Fife; a Seafirst Bank in Puyallup; a ground-support facility for the U.S. Navy on Whidbey Island; the Gurudwara Fingh Saba Temple in Renton; several gas stations; renovation of Ruston Elementary School in Tacoma; and remodel of the Great Earth Vitamins store at Tacoma Mall.
Lugo Construction also is about to start work on Cascade Middle School in Auburn and on a campus ministry building at Bellerman High School in Tacoma.
"Locally, we're pushing headlong into design-build," Lugo said. "Design-build is really an ability and an art."
Lugo says that when his company has been allowed to be involved with a project's plans and specifications, change orders have totaled less than 1 percent.
"We've been doing design-build for five years, and just now our reputation is starting to be recognized for that," Lugo said. "It doesn't happen overnight. You have to pay your dues."
Sellen Construction
Chairman and CEO: Richard C. Redman
Specialty: General construction and construction management services
Year founded: 1944
1997 revenues: $185 million
Projected 1998 revenues: $250 million Largest current project: Pacific Place (joint venture with Lease Crutcher Lewis)
Rick Redman, chairman and CEO of Sellen Construction, says Seattle's construction market is so busy right now that his company must be selective about the projects it pursues.
"We want to be sure we're taking care of our good clients," Redman said. "Even the sub market is being somewhat selective about the projects they go after."
Sellen's largest current project is Pacific Place, the huge retail-restaurant-cinema complex being constructed atop a 1,200-stall parking garage at Sixth Avenue and Pine Street in downtown Seattle. Sellen formed a joint venture with Lease Crutcher Lewis for the Pacific Place project.
Some of Sellen's other current projects include: KOMO TV's new headquarters at Fifth and Denny in Seattle; the University of Washington Harborview Research and Training Facility at Harborview Hospital; Phase II of the AT&T Wireless headquarters in Redmond, which involves construction of three office buildings and a garage; Newport Four, a Bentall Corp. office building project in the Factoria area; and the southeast wing addition at Swedish Medical Center in Seattle.
Sellen also has been selected as the general contractor for several big, upcoming projects that should start in 1999 or early 2000. They include: 700 Olive Way, a new headquarters office building for Nordstrom; Meydenbauer Place, a mixed-use office project in Bellevue; Hyla Crossing, a new office building in Issaquah; and renovation of the Hec Edmundson Pavilion at the University of Washington.
Sellen has between 450 to 500 people on the payroll at all times, Redman said. He said the company plans to hire more craftspeople who are just entering the construction industry.
Sellen is relying more and more on high-tech communications tools and software programs. In fact, Sellen recently developed a new software program in-house.
"It gives our project managers much faster access to documents and people they're in contact with, such as architects and owners," Redman said.
As for the company's growth projections, which reveal that Sellen plans to increase its revenues by $65 million this year, Redman said: "The market kind of speaks for itself."
WPC
CEO: Wade Perrow
Specialty: Design-build projects
Year founded: 1979
1997 revenues: $24 million
Projected 1998 revenues: $30 million Largest current project: A sports complex for the U.S. Army at Fort Knox, Ky.
Since Gig Harbor-based WPC Inc. broke into the design-build market five years ago, the company has landed many design-build jobs in the Puget Sound area.
Some notable examples of WPC's current design-build projects are: the Center for Health Promotion and Preventive Medicine, a medical research center at Fort Lewis; and two U.S. Post Office annexes in Burlington and Enumclaw.
"Design-build is becoming more of a trend," said Todd Ward, vice president of WPC. "It's more economical for the owner with fewer hassles for the owner. ... It's less competitive and more value-driven."
WPC's largest current project is an out-of-state one: a sports complex for the U.S. Army in Fort Knox, Ky. Locally, the company's largest project is a bus-maintenance facility for the Auburn School District.
Both the Army and the Navy recently awarded WPC open design-build contracts called "indefinite delivery/indefinite quantity contracts." So far, the company hasn't done any work for the Army under the ID/IQ contract, but WPC has been tapped by the Navy to construct an Electronic Combat Trainer at Whidbey Island. That project will begin in May.
"The Army and Navy seem to be moving toward job-order type contracts," Ward said. "They used to bid out many small projects, but now they're awarding contracts either to a pre-qualified contractor or a contractor who will do a whole bunch of small projects."
WPC recently completed construction of the Fircrest Golf Club in Tacoma and the remodel of the University of Puget Sound Student Center. The company is in the running for an Excellence in Construction Award from the Association of General Contractors for its renovation of three Auburn elementary schools last summer.
Wade Perrow is WPC's CEO. The company's president is Dan McKinney. WPC employs 75 people - 17 in the office, and 58 in the field.
Ward said he's heard a lot of talk about a shortage of skilled construction labor in the Puget Sound area, but he said his company has yet to be affected by it.
"Are the sub prices higher due to a busier market? Not really," Ward said. "Our prices seem to be about the same ... and we've been able to staff our jobs quite well. It hasn't been as hard as people have said."
Rafn Co.
President: Jack Rafn
Specialty: Multi-housing construction, commercial construction, tenant improvement and renovation
Year founded: 1978
1997 revenues: $58 million
Projected 1998 revenues: $65 million Largest current project: Town Square in Bellevue
Exactly 20 years ago this month, Jack and Marilyn Rafn started their own construction business in the garage of their home.
Their first major project was the historic renovation of Seattle's Pioneer Square. "From there, we grew into a wide range of construction products and services," Jack Rafn said.
Today, the $58 million Bellevue company is working on numerous projects throughout the Puget Sound area, including Town Square in Bellevue, Rafn's largest current project. Town Square's first phase, The Plaza, is a retail-residential development; its second phase, The Gardens, is an assisted-care facility.
Several years back, the Rafn Co. restructured into four market teams: Multi-housing Residential; Special Projects (tenant improvement and renovation up to $500,000); Commercial Projects (tenant improvement, renovation and ground-up construction up to $2.5 million); and Major Projects (renovation and ground-up construction up to $20 million).
At the time of Rafn Co.'s restructuring, the company also gained two more owners in addition to Jack and Marilyn Rafn: Chief Operating Officer Tom Ambrey, and Chief Financial Officer Kim Bottles.
Rafn Co. employs about 200 people. Rafn says he views the shortage of skilled construction workers as a long-term problem.
"There's a shortage of craftspeople across the board in all trades," he said. "It's happening all across the country ... and it's a permanent condition. The demographic is that people are leaving and retiring from this industry at a greater rate than people are entering."
Some of Rafn's current and recently-completed projects include: the Fun Forest at Seattle Center; Brezza Condominiums in Kirkland; Main Street Office Building in Bellevue; the Blowfish Cafe at the Paramount Hotel in downtown Seattle; remodel of The Canlis Restaurant in Seattle; construction of both Beppo restaurants in Seattle and Lynnwood; construction of several Cucina! Cucina! and Cucina! Presto! restaurants; the Parkhill apartment complex in Issaquah; renovation of the Claremont Hotel in downtown Seattle; and renovation of the old Boeing building on West Marginal Way Southwest for Foss Redevelopment.
Rafn says his company has no plans for major growth. Instead, he said, "We'll continue a modest rate of growth."
Len-Can Builders
President: Len Simpson
Specialty: Commercial and residential
Year founded: 1984
1997 revenues: $2.25 million
Projected 1998 revenues: $2.5 million. Largest current project: General Services Administration day care center in Auburn, $1.3 million.
It's an exciting time for small contractors.
``I haven't seen this much activity in my 14 years in business,'' said Len-Can Builders President Lem Simpson, referring to his own ringing phone as well as the many construction sites visible around the region.
He expects to do $2.5 million in business building smaller commercial and residential projects this year. ``I can see that we'll be booked up for the season within the next 90 days,'' said Simpson.
He could take on more, if he decided to. There are a lot more projects, but not a lot more builders. And while there is opportunity, there is also peril.
``I think a lot of subcontractors went out of business in the last year taking on more than they can handle,'' said Simpson. ``There was too much work in the last year.'' Instead of adding inexperienced people, ``We pretty much had to shut our door,'' he said. ``Now we're kind of leaner and meaner.''
Poe Construction
President: Charles Poe
Specialty: Private commercial construction
Year founded: 1976
1997 revenues: $36.5 million
Projected 1998 revenues: $40 million Largest current project: Van Doren's West, 692,484 square feet
``We've had to turn down a lot of work,'' said Gretchen Amsbaugh, director of business development for Poe Construction. ``We take care of repeat clients.''
Poe Construction specializes in private, commercial construction, from tilt-up to retail to medical/dental. Most of Poe's recent contracts have been negotiated, and the firm has hired two additional project managers.
For now at least, Poe is working in the south King County neighborhood, building three distribution, warehouse and office buildings at Van Doren's West, a $15 million job in Kent.
``There's a tremendous amount of development in south King County. They're snatching up every peace of land. Things are built on spec and sometimes leased out before construction begins,'' she said. ``It's been great for us,'' said Amsbaugh.
``I'm sure there are going to be challenges when we run out of land,'' said Amsbaugh.
``Eventually, the market is going to move further south,'' she said. ``We're not going to be so fortunate as to have all of our job sites close to the office. If someone wants to build a huge distribution center, its not going to happen in Renton, Kent or Auburn.''
Lone Star Northwest
President: Jim Repman
Specialty: Gravel and concrete supply
Year founded: originally founded as Pioneer Aggregates over 100 years ago
Current projects: The World Trade Center, Mariners Stadium, Pacific Place, King Street Station and Adobe headquarters.
``The number of projects that are coming up to be built is incredible,'' said Don Grimes, general sales manager for Lone Star Northwest, a supplier of gravel and concrete for contractors. Current projects include the Mariners Stadium, Pacific Place and King Street Station.
``I've never seen so much work, and I've been in this business over 20 years. It may have been busier when I-5 was being built.''
The company is gearing up. ``We're getting more trucks. We're just trying to gear up as much as we can,'' he said.
Recent investments are now paying off. Lone Star built a new facility in DuPont in 1997.
But the company is also putting on the brakes in some areas. ``We're being much more selective about the jobs we pursue,'' said Grimes, ``and trying to figure out how we can keep all of our customers.''
He sees a construction industry reaching the limit of its material supply. ``It's really going to be difficult to get concrete when you want it Ï and finishers and pumping equipment.''
GLY Construction
President: Roger Anderson
Specialty: Negotiated, team-built office, medical and retail
Year founded: 1967
1997: $85 million
1998 projected revenues: $140 million Largest current project: Adobe at Quadrant Lake Union Center
``The dramatic change in the last 12 to 18 month has been the increase in development activity in our markets,'' said GLY President Roger Anderson. ``It has in fact become a market where firms like ours Ï with 30 years experience and a solid reputation Ï are actually faced with making choices.''
He has seen a continuing increase in speculative office buildings, and the majority are preleased before groundbreaking. The company has been able to capitalize on its reputation and increase revenues from $85 million in 1997 to a projected $140 million for this year. Its specialty of large-scale, team-built office buildings positions GLY to take advantage of an expansive economy.
``We're seeing a lot of things happening Ï and proposed Ï in Bellevue,'' said marketing manager Lori Schauer.
When will it slow down?
``That's the question,'' said Schauer. But GLY may be among the first to know, because the firm is managing a two-year backlog, and ``we watch it pretty carefully,'' she said.
These days GLY is doing larger individual projects rather than seeing a large increase in the number of projects, said Anderson. Most of the work is coming from repeat clients, including Microsoft, Nintendo, Optiva and Adobe.
Adobe at Quadrant Lake Union Center is 300,000 square feet in size, including Adobe headquarters plus retail and common areas for the residents of Fremont.
Edifice Construction
President: Bill Alexander
Year founded: 1978
1997 revenues: $16 million
Projected 1998 revenues: $22 million Largest current project: $20 million Nordstrom store in Spokane.
``We're in the middle of the biggest boom that we've ever seen. Everyone is scrambling to meet that demand,'' said Bill Alexander, president of Edifice Construction. And most companies are not meeting the demand. ``It's tough to say no to someone that you've worked with for the last 20 years.''
Edifice Construction specializes in new commercial buildings, tenant improvements and high-end residential projects. One current project Ï a $20 million Nordstrom store in Spokane Ï represents a large jump in project size for Edifice. Until now the largest project was an $8 million build-out of Nordstrom corporate offices in the old Frederick & Nelson Building.
``We have been careful to build our ability to build larger projects,'' said president Bill Alexander. ``We've got the management and infrastructure in place. We have made the decision to go ahead and let this company be as big as the market place wants it to be.''
Despite years of controlling company growth, Edifice is now trying to go with it.
``We don't plan on being a $60 or $70 million company in the next five years,'' said Alexander. ``But we're doing a lot of face-to-face sales calls. We're trying to expand our client base.''
Growing is tough when labor is short. Alexander's biggest motive for growing now is holding on to key employees.
``By growing the company, increasing value in the company (Edifice can let) key employees buy in as shareholders,'' he said. ``With the shortage of qualified people, it's the only way you can tie people in. We ask our key employees to treat the project as if it is their own. So why not make it their own?''
In the meantime, ``We're continuing to emphasize the same things we have always emphasized,'' said Alexander. ``You've got to take care of the customer, and you've got to do it every time.''
Copyright © 1998 Seattle Daily Journal of Commerce. |