Generals Reassure Subcontractors on Market

General contractors told members of  the  Midwest Council, American Subcontractors Association  (ASA) that market conditions in the commercial industrial markets have have  changed, but remain strong.  Representatives of McCarthy Building Companies, Kadean Construction Companies, and J.E. Foster Company spoke at the ASA's annual "Meet the Generals" business meeting program.

The three speakers were representatives of contractors who had received "conractor of the year" recognition in three different dollar volume categories.

"You don't need to worry in the near future," Paul Hartwig, senior vice president  of  McCarthy Building Companies. "The country's doing well as far as we can see out,  which is 4-5 years."

Hartwig noted that the industrial sector is very strong with a number of large energy-related projects coming online and that area hospitals also have a strong commitment to building programs. "Higher education will also continue strong," Hartwig stated. 

He said that the members of the St. Louis Construction Consumers Council recently reported that a "record year" for construction at members' companies.

Mike Eveler and Matt Breeze, principals at Kadean Construction, also stated that they expected continued growth in their company, which has doubled its volume in the last five years. Kadean builds across the commercial/industrial/institutional spectrum, but specializes in tiltup and distribution/light industrial projects.

Joshua Foster, president of J.E.  Foster said that his company's business mix has been turned on its head in 2008.  J.E. Foster, which builds small commercial projects and tenant finishes booked 80 percent  of its work in the commercial  sector, including 33 stores for Starbucks last year. This year Joshua Foster said he expects to do only four projects for the coffee chain. Instead, 80 percent of the company's work will be  bid educational, state, and municipal projects.

All three generals credited the strong subcontractor community and training  level of the  workforce in  St. Louis  for their successes. On the Pinnacle hotel/casino  project, Hartwig said,  "We put a million dollars of construction in place a day. We never would have been able to do that anywhere else in the country. There's a phenomenal culture of integrity and partnership here."

Joshua Foster whose company has won contractor  of the year honors from ASA multiple times said, "We'd never be where we are without the people in this room."

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