We are lucky to be in the major cities in Texas. As all of the economic outlooks reveal, the business environment here, both now and in the future, are of the best in the country. It is projected that the country’s fastest return to normalcy in all of our major cities will be first in Austin and San Antonio in 2010, and shortly thereafter Houston, Dallas, Fort Worth and the Rio Grande Valley. While lucky to be where we are, the downturn in the economy has had its effect here and while Structura’s volume has stayed consistent even with the commercial construction volume down as much as 50% across the state, our profit margins have significantly decreased and our risks of loss have increased.
Competition is much fiercer, so to get a job we have to reduce fees and sometimes take risks with contractors we don’t know which invariably turns into problems. Many subcontractors are struggling to stay in business and we have experienced several on our projects who, when they could not pay their bills, forced Structura to pay their debts to keep owners’ properties free of liens and to get paid. We are finding it more difficult to cover the general conditions needed to perform the way we want: having a full time, on site superintendent and covering time needed for project managers and project engineers, not to mention estimating, accounting and administrative functions.
What can we do to flourish in these market conditions? First is to continue to outperform our competition: go the extra mile for our customers, provide quality workmanship, finish on time and complete the close out crisply. Finishing a project faster than our competition gives us a clear monetary advantage over our competition. Also, we stand out by showing our clients added value: providing them with good ideas then the data to make good decisions to help them create the most bang for their buck.
Secondly, we must try and do business with known entities. Structura has a strong solid base of contractors we have developed good working relationships with and we need to leverage these relationships to get jobs. There are times when we have to take a low bid from someone we don’t know to get the job, and when that happens the best thing we can do is get to know them quickly, keep a close eye on their performance and raise a red flag as soon as things aren’t going well. It is also of paramount importance to get lien releases and all bills paid affidavits to ensure their suppliers and subs are being paid.
Third, we all have to work a little harder than our competition with less resources and the best way to do this is become as efficient as possible and we do that by being smarter, planning carefully and creating a good team environment with the building team.
Thanks to everyone for your hard work during these challenging working conditions. Structura succeeds due to your dedication, quick thinking, experience and innovative thinking. Our team will come out of this poor economic climate with sharpened skills and a lot of great experience that will pay off in a big way when prosperity comes knocking. Keep up the good work!
Rusty Morgan, President, Structura, Inc.
Perry Brooks Building Shines
Architects, commercial contractors, and brokers gathered in the lobby of the newly modernized 1950’s downtown office building, the Perry Brooks building, for a tour of the 12 story structure ready to meet office space needs in the downtown Austin area. Structura, in collaboration with L. M. “Mac” Holder III, FAIA, owner of L.M. Holder and Associates, along with Capitol Commercial Investments and Transwestern Austin, organized the event.
Mac Holder recalled a story of the evolution of the building’s transformation “Early in the project’s beginning, construction of the site was slowed down by an unusual event. While working on the exterior, a red tailed hawk’s nest was found filled with bird eggs.The crew decided it best to wait for the eggs in the nest to hatch before they continued work, so as not to disturb natures work!” Only in Austin!
The Perry Brooks building, built by Commodore Edgar Perry after World War II, has been a part of the Austin skyscape since the 1950’s, having housed everything from a radio station to office space. It was once the tallest building in the downtown financial district. When Structura began work on the building early last year, there had been over $300,000 in damage to the outer bricking of the old skyscraper, the mechanical systems were shot, and the plumbing was woefully inadequate. “Also,” said Holder during the tour, “the building was loaded with asbestos. Now, we’re proud to say, the building is asbestos free.”
The lobby of the building was once used as unsightly office space. Now, it shines with granite walls and floors (according to Holder granite is far more durable than marble, with the same elegance in look) and brilliant chrome railings and window trims, all lit up by modern fixtures and mostly natural light through the Solarband 60 high glass windows. “These are the same windows that were used for the renovation in the Bergstrom Airport,” Holder pointed out.
The outer look of the building strikes quite a pose with interlocking metal panels covering its upper levels and giving the building an undeniable look of contemporary chic. With its 60,000 square ft. footprint, according to Rusty Morgan, the building is now far more energy efficient, as it uses about 30% of the energy it once used.
From the top, 12th, floor of the building, there is glass 3 of four of the sides of a long room that dazzles with panoramic views of Austin’s cityscape. Transwestern commercial real estate (www.austintranswestern.net) is actively leasing the space.
“We plan to win an EPA/Austin Energy Star for this project,” says Morgan. “This building now makes best use of the space; a dramatic difference from the way it utilized space and energy before. Each floor is designed in a loft-style, and is far more energy efficient.” according to Morgan, who points out that architect and designer Holder is known to make conservation and sustainability a priority in all his work.
Morgan is a third generation Austinite who’s honored to play a role in revitalizing Austin’s downtown area.