North Bay construction leaders reveal how the pandemic has affected revenues, jobs, materials costs
The world remains vigilant in the battle against the coronavirus, and that is true for the area’s top contractors and their firms.
But there’s more to watch, like the cost of materials, the availability of labor and the threat of a return of wildfires.
Asked by the Journal for a status of their industry, some of those leaders reported good news as well. They are busy, with some projecting revenues increasing from the single digits to more than doubling.
Here’s these leaders’ view of the status of building in the North Bay.
Robert Cantu
Western Builders, 1400 N. Dutton Ave., No. 19, Santa Rosa 95401; 707-542-3213; westernbuilders.info
How long has this business been operating?
19 years
Briefly, describe the type of construction work done.
Commercial, design-build and custom residential.
How much revenue growth are you anticipating in 2021 over 2020?
Expecting similar to slightly higher revenue in 2021.
How has the experience of the pandemic and restrictions it brought over more than a year ago changed the way your company approached its business operations?
Reactions in the pandemic slowed or stopped the planning and entitlement phases of several projects. Some projects will and are delayed, while some will never start due to shifts in the materials expenses.
Also, of all the issues created for your business in the past year, which one has been the toughest to deal with, and why?
Material price increases. Abnormal increases across the board.
Going forward between now and the end of the year, what is your outlook for the construction industry in the North Bay?
The supply of projects will sustain itself over the year. We will likely see a downward trend in 2022 due to projects not starting the planning and entitlement phases in 20/21.
Specifically, describe the impact of the hike in the price of materials. Is that causing customers to be leery about starting jobs, or are they eager to get started and avoid even more price increases in the future?
The hike in materials have created uncertainty in the end-user client. Those who can absorb the increases will to avoid further increase. Several investor-driven projects will no longer “pencil” and will become non-starters.
How much has the threat of wildfires and/or power outages changed what customers are asking for in their projects, either commercial or residential?
It has reshaped material choices and preferences. Building codes are also starting to change in some areas in reaction to the wildfires. The impact has been an increase in building costs.
What are your three biggest jobs right now? What's interesting about them?
110,000-square-foot Napa Office Building- Merging of complex building and finish systems.
Architectural firm office- Being chosen to build for an architect is a genuine compliment.
Retail financial branch location- Complex multiphase redevelopment of interior, exterior and site while keeping the facility up and running throughout the construction process.
Mark Davis
Wright Contracting, 3020 Dutton Ave., Santa Rosa 95407; 707-528-1172; wrightcontracting.com
How long has this business been operating?
Since 1953 (68 years).
Briefly, describe the type of construction work done.
Wright Contracting is a general contracting company that specializes in commercial construction, including wineries, hospitality, education, medical, multifamily, high-end residential and more.
How much revenue growth are you anticipating in 2021 over 2020? What is contributing to that?
We expect a slight decrease in revenue in 2021 due to the completion of a couple of major projects and overall delay in new project starts due to the pandemic.
How has the experience of the pandemic and restrictions it brought over more than a year ago changed the way your company approached its business operations?
We’re adjusting to Zoom meetings and calls versus in person, face-to-face interaction with clients and design team. Construction takes a collaborative approach/effort, which is difficult to achieve via remote observation.
Also, of all the issues created for your business in the past year, which one has been the toughest to deal with, and why?
Material cost escalation and product lead times. As a builder, when you commit to a price and a schedule during the preconstruction phase based upon the market at that time, and the market completely changes over the ensuing months, finding ways to meet this commitment is a challenge.
Going forward between now and the end of the year, what is your outlook for the construction industry in the North Bay?
All indications are the industry is looking to recover, with many projects in the design and/or permitting phase. However, the material availability and continuing material price increases will undoubtedly cause some projects to stall.