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A Conversation With...
Richard Karp of Advanced Masonry Systems Inc.
THE COMPANY
Business/Niche: Florida's largest masonry contractor; schools, large condominiums and commercial projects.
Founded: 1985
Employees: 350
2004 Revenues: $25.6 million
Signature projects: Whole Foods, downtown Sarasota; Van Wezel Performing Arts Center renovation; Ritz-Carlton, Sarasota; Ritz-Carlton Tower Residences, Sarasota; Beau Ciel Condominium, Sarasota
Current projects: Ritz-Carlton Beach Residences, Lido Beach; Orchid Beach Condominium, Lido Beach; Phillipi Shores Elementary School, Sarasota; Parkside office, retail, condo complex, Tampa; East Manatee County high school.
PERSONAL
Hometown: Long Island, N.Y.
EDUCATION: Attended PS 193 in Queens, junior college
Age: 47
Family: Oldest of two boys; currently married 18 years; two daughters, 8 and 9.
How he escapes: "I take a lot of trips with my family. We practically live in Orlando every weekend."
LEADERSHIP/MANAGEMENT
How he holds himself accountable: "By being there, by picking up a hose and pumping concrete, treating everyone with mutual respect. What goes around comes around. (Employees) need to see your committed. You've got to be one of them." Karp says he personally signs his company's 350 payroll checks every week, a two-and-a-half-hour process. "I want to see the names. It connects me to my employees."
If you could make a big leap in your management or leadership, what would you do: "Spend more time out in the field. You've got to be out there."
CHALLENGES
Toughest internal challenges to keep your company on track: "Keeping abreast of the rapidly changing industry, especially with estimating jobs and allocating your resources. I have to make bids today, but often times the jobs don't start for six months."
Toughest external challenges to corporate growth: "Getting product. The construction industry is upside down right now. Rebar was $375 a ton a year and a half ago. Today, it's $800 to $1,000 a ton. In cement, there's a big crisis going on. Prices are going through the roof. They were $60 a yard a year and a half ago, now they're $85 to $90 a yard and you're on allocation. Concrete blocks were 68 to 72 cents, now they're $1.10 to $1.20 - and that's if you can get them."
How will you overcome this: "I met with all of my suppliers. I said I need to know what I can count on, how many blocks I can get."
WHAT'S AHEAD
Economic / industry forecast for the region: "Rock solid, continued growth. There'll be as much business as you can do, but be careful not to bite off more than you can chew."
Danger signs: "There aren't any in this area of the country. If the economy goes bad elsewhere, they cash out and relocate to Florida."
John McIntrye of McIntyre, Elwell & Stammer
THE COMPANY
BUSINESS/NICHE: Full-service commercial building construction; 95% of work is for end users.
FOUNDED: 1987
EMPLOYEES: 70
2004 REVENUES: $44 million
SIGNATURE PROJECTS: 250 Publix Super Markets, 150 Bealls stores; Whole Foods store, downtown Sarasota; Photo-Tech world headquarters.
CURRENT PROJECTS: Pines Nursing Home expansion, Sarasota; Publix, Bealls, Anheuser-Busch distribution headquarters, Punta Gorda
PERSONAL
HOMETOWN: Fort Lauderdale
EDUCATION: Graduated from University of Florida College of Building Construction
AGE: 48
FAMILY: Married high school sweetheart, 28 years; two sons, 21 and 17.
HOW HE ESCAPES: Traveling with sons in youth soccer; offshore fishing.
HOW HE LANDED HERE: "I did a quantitative matrix before I graduated and Sarasota won out. We deliberately did not want to go back to a big city."
LEADERSHIP
SECRET OF A LASTING PARTNERSHIP: "Giving away power and authority and sharing the rewards. The synergy that develops by having truly equal partners is immeasurable."
WHO SPECIALIZES IN WHAT: "I'm in charge of administration, Greg (Elwell) is the operations manager, and Fred (Strammer) is sales and estimating. We all function as senior project managers.
HOW THEY SETTLE DIFFERENCES: "It's easy with three people. There's never a tie."
HOW HE HOLDS HIMSELF ACCOUNTABLE: "The same way we hold all of our employees accountable. Our goal for every employee is to perform in such a manner that our clients want us for their next project."
IF YOU COULD MAKE A BIG LEAP IN YOUR MANAGEMENT OR LEADERSHIP, WHAT WOULD YOU DO: "Improve my ability to inspire and motivate our employees."
CHALLENGES
TOUGHEST INTERNAL CHALLENGES TO KEEP YOUR COMPANY ON TRACK: "We have huge challenges in scheduling, estimating and allocating our resources."
TOUGHEST EXTERNAL CHALLENGES TO CORPORATE GROWTH: "Supply and demand is out of balance," McIntyre says. Global demand, hurricanes, the influx of Baby Boomers, fast real estate appreciation and the impact of government on costs "have made the supply-and-demand equation the worst I've seen it in 30 years."
HOW WILL YOU OVERCOME THESE: "Know your resource limitations, have some reserve capabilities and know your vendor capabilities."
WHAT'S AHEAD
ECONOMIC / INDUSTRY FORECAST FOR THE REGION: "I'm seeing a slowdown in the real estate appreciation and the rise of material costs because (these conditions) are unsustainable."
DANGER SIGNS: "Rampant real estate appreciation. It is just out of control. It's unsustainable."
Pat Cook of Pat Cook Construction
THE COMPANY
BUSINESS/NICHE: General contractor/fast-track retail construction (Building retail stores in 90 days or less. "We like the fast-track retail niche because we know how to perform.")
FOUNDED: 1992
EMPLOYEES: 18
2004 REVENUES: $20 million
SIGNATURE PROJECTS: 110-square-foot addition (Staples) at Home Depot Center, University Parkway; ReMax, BB&T at University Parkway and Honore; more than 60 Eckerd Drug Stores (now CVS), with each one built in fewer than 90 days.
CURRENT PROJECTS: Remodeling Benderson Development shopping center in Orlando and Benderson's Paradise Bay at 75th Street and Cortez, Bradenton; four RBC Centura branches throughout Florida.
PERSONAL
HOMETOWN: Red Hook, N.Y.
EDUCATION: High school ("I was born a drywaller. I started when I was 11." He started a drywall company at age 20.)
AGE: 44
FAMILY: Third of four children; father a drywall contractor. Married, 3-year-old son.
HOW HE ESCAPES: Boating, fishing. Also: "Driver's ed events at the Sebring Race Track. It's just such a great release. No kids, no dogs. It's safe. You're doing 150 mph down the back straightaway. It's great." Cook's wife has her own escape: She started a children's retail store in Bradenton: A Bun in the Oven.
HOW HE LANDED HERE: Cook's father followed his boss, a contractor, to Florida.
LEADERSHIP
SECRET OF A LASTING PARTNERSHIP: "You both have to work hard at it; it's like a marriage."
WHO SPECIALIZES IN WHAT: "Darla controls most of the business side, the office and accounting. She's very organized. I'm estimating and the field work."
HOW THEY SETTLE DIFFERENCES: "Somebody has to give. But she's right most of the time."
HOW HE HOLDS HIMSELF ACCOUNTABLE: "Whenever a new employee asks me if I can guarantee him full-time work, I tell him: 'I wake up every morning knowing I have to look for more work or I don't have a job.' "
IF YOU COULD MAKE A BIG LEAP IN YOUR MANAGEMENT OR LEADERSHIP, WHAT WOULD YOU DO: "If anything, I would wish that I was more like Darla, more direct."
CHALLENGES
TOUGHEST INTERNAL CHALLENGES TO KEEP YOUR COMPANY ON TRACK: "Finding new qualified employees. If you don't get someone who is relocating, then you have to steal somebody. Six to eight months ago, we paid $2.40 a block for labor. We just signed up to pay $6 a block."
TOUGHEST EXTERNAL CHALLENGES TO CORPORATE GROWTH: HOW WILL YOU OVERCOME THESE: Shortage of materials and subcontractors. "We drove to Ocala last week just to get blocks. One of my guys drove out east today to look for subcontractors. We used to get 200 bids (from subcontractors). Now you have to call them to make sure they're going to send in a bid. They are all so covered up with work."
WHAT'S AHEAD
ECONOMIC / INDUSTRY FORECAST FOR THE REGION: "We're hearing we're going to have 10 more years of strong growth."
DANGER SIGNS: "The material and labor shortage."
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