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BUSINESS OUTLOOK & COMPANY HEALTH UPDATE
SETH ANDERSON ~ STATE OF THE COMPANY ADDRESS AUDIO PLAYBACK [4.15.20]:
UPDATE #33 – 5.29.20
Good Evening to Everyone,
It has been awhile since I provided an update. I hope everyone knows that is a positive sign and that I believe we have made it through the worst of the uncertainty. Many of you are aware our Centennial and Windsor offices reopened for the last 2 weeks. Lots of planning went into our return-to-work policy and it is working well. In addition, due to the decrease in COVID related items, the Task Force has reduced meetings to 2 times per week vs. everyday. Thank you to all the people who made this happen!
Accomplishments, Challenges, & Changes:
With all of the shifting of people, it might feel a little bit overwhelming. I can assure you that, at times, I feel that way as well. I want to remind everyone about the top two things that drove the creation of Weifield; 1 – making the next generation better than us and 2- providing best-in-class electrical solutions (you can find this on our Company Blueprint). We have had great blessings with landing work over the last few years, and we have found ourselves working towards our ten-year target, which includes “doing the biggest, baddest, most challenging projects.” This includes projects like the Convention Center temporary hospital, the Amazon project, and many other various projects that we have done and will be doing. We are truly becoming one of the go-to electrical contractors in town.
One of the most significant shifts was getting James and Pete back out working with the field teams. One aspect that made us successful in the past was having these two superstars coach and develop our current and future field leaders. Pete found himself getting frustrated with all the issues that come up in a company of our size, which is why we shifted George into the role (sorry George). Also, George was getting way too comfortable helping us win work. If you know anything about us, we like to mix things up when you are comfortable (smile that’s a joke). However, it can seem like it from time to time. This is a similar approach we used in Texas when Nate Anderson took over. For years Texas followed the direction of Richard. Richard found himself missing out on working with the guys in the field and dealing with clients. With Nate taking over the business side of things, it allowed Richard to be more hands on and get into a position he loves. At the end of the day, our execution is the main reason we have grown, expanded, and will be the main reason we power through any downturn in the economy. Teamwork at all levels will be required to make this happen.
I know our communication can improve, and you may be feeling like you don’t see the overall direction of the company. Heck, sometimes I wonder… (another joke). Remember, this is a journey and not a destination. I am starting to see many pieces come together. Yes, we are making mistakes along the way. Yes, we have missed out on opportunities. Yes, we have lost some good people. Yes, we do not have everything dialed in 100%. Ultimately, it is both the good and the bad times that make us strong. It is easy to push through when things are great, but it is the hard times that let us know we are a team. There is a quote, “Good times become good memories and bad times become good lessons.” Always keep that in the back of your mind. Our production has increase from 82% to 94% (CO) and 98.6% (TX). Our sales hit rate overall is above goal even though we need to pick Texas up by 10% (this could be a couple of jobs). We have forecasted our top work choices around $200M, which is above goal for both Texas and Colorado. We have a lot of great things going, and everyone should be proud of the accomplishment our team has done!
You might be hearing from many general contractors that they are experiencing some layoffs. We currently are not planning on any layoffs. Our current workload is showing a pickup in manpower needed from now until the end of the year, so we need everyone to help keep us productive and keep the manpower from spiking. This will help keep us away from any future layoffs.
In March 2020, the construction market saw an increase from the prior year. However, projections are showing a significant nationwide market drop in April/May with some recovery toward the end of the year. On the positive side, I also see some good growth in 2021.
We continue to land work, as shown by getting the official LOI for the Austin Community College project down in Texas and some great contracts for our Service team. This is excellent news! We are hearing and seeing a reduced amount of projects for us to bid. As stated above, our funnel seems to be alright at the moment, but looking further out, it will be tougher to get work. We are seeing and hearing margins starting to tighten up, which means we need to figure out how to do things quicker, faster, and better. Execution will be required to keep the projects we get in line with our projections. Please share your productivity best practices with your supervisors.
Let’s show these other contractors how we provide the “best-in-class electrical solution.” Thank you!!
Chief Executive Officer | Weifield Group Contracting