Over the past eight years, the general contractor Swinerton went through an up and down growth trajectory that was limited by where it operated and the products it focused on.
In 2018, the company—which dates back to 1888—came out with its March to 2030, a blueprint for future growth that emphasizes product and geographic diversity. Since that plan came to light, the firm has expanded into Texas, Atlanta, Charlotte, and Raleigh. And now, it is making its boldest move by opening its first office in New York City, which Swinerton envisions becoming its hub for the Northeast.
That’s a tall order, given that the company had virtually no presence in that part of the country outside of some work in New Jersey by its renewable energy group. But the COVID-19 pandemic created what Swinerton’s CEO Eric Foster calls “an opportunity in crisis.”
“We feel the need to answer the call to build back better and stronger in post-pandemic New York,” says David Callis, Swinerton’s president and COO.
Running the New York office is Andrew Pearl, a 14-year company veteran who grew up in northern New Jersey but had spent his entire career, until now, with Swinerton in San Diego and San Francisco. “I never intended to stay in California,” Pearl tells BD+C, and he’s been pushing the company to open a branch in New York practically since he joined the firm.
After the coronavirus hit, Swinerton’s executives approached Pearl in the spring of 2020 about accelerating the company’s growth plans for the Northeast. Swinerton officially opens its New York office today at 292 Madison Avenue with 10 fulltime employees.
HOMING IN ON EXISTING ACCOUNTS
Andrew Pearl, Swinerton's New York division manager, has been urging his firm to expand into New York City for more than a decade. Image: Swinerton.
Pearl, whose title is Vice President and Division Manager, says that for the next 12 to 18 months, the New York office’s strategy is to serve the firm’s 75-plus accounts with which it has master agreements. These include technology companies, big banks, and insurance companies. Indeed, the first job the New York office booked is a “small” project for one of its tech clients.
“Many of these clients have been asking us to expand east to do work for them, and now we can finally say ‘yes,’” says Pearl. He adds that the types of projects Swinerton’s New York office is focusing on initially are corporate interiors, aviation, and healthcare/life sciences.
LEVERAGING DIFFERENTIATORS
The New York metro area is the largest and one of the most competitive commercial construction markets in the U.S. Prior to the pandemic, the value of commercial and multifamily starts in the area stood at $30.9 billion in 2019, according to Dodge Data & Analytics estimates.
To get the word out about its new office, Swinerton has hired a local P.R. agency, Cathy Callegari Public Relations, whose client list includes several other construction and engineering firms. Pearl is also in the process of joining a nonprofit that specializes in community building and neighborhood revitalization, and that Swinerton is part of in nine other cities.
And while Swinerton is the new kid on the block in New York, Pearl believes that this $5 billion company, with 20 offices in nine states, can leverage several “differentiators” when pitching new and existing customers. For example, earlier this year Swinerton launched its Timberlab brand for mass timber delivery and integration. Its renewable energy group is active in 28 states. It has a real estate redevelopment business, and a design-build collaboration called Perq with the engineering firm Walker Consultants.
Pearl says the company also has operations in Philadelphia and northern Virginia that now fall under the New York office umbrella.
Related Stories
Student Housing | Apr 19, 2024
Cal State Long Beach student housing project will add 424 beds
A new $115 million project recently broke ground at California State University, Long Beach (CSULB) that will add housing for 424 students at below-market rates. The 108,000 sf La Playa Residence Hall, funded by the State of California’s Higher Education Student Housing Grant Program, will consist of three five-story structures connected by bridges.
Construction Costs | Apr 18, 2024
New download: BD+C's April 2024 Market Intelligence Report
Building Design+Construction's monthly Market Intelligence Report offers a snapshot of the health of the U.S. building construction industry, including the commercial, multifamily, institutional, and industrial building sectors. This report tracks the latest metrics related to construction spending, demand for design services, contractor backlogs, and material price trends.
Construction Costs | Apr 16, 2024
How the new prevailing wage calculation will impact construction labor costs
Looking ahead to 2024 and beyond, two pivotal changes in federal construction labor dynamics are likely to exacerbate increasing construction labor costs, according to Gordian's Samuel Giffin.
Healthcare Facilities | Apr 16, 2024
Mexico’s ‘premier private academic health center’ under design
The design and construction contract for what is envisioned to be “the premier private academic health center in Mexico and Latin America” was recently awarded to The Beck Group. The TecSalud Health Sciences Campus will be located at Tec De Monterrey’s flagship healthcare facility, Zambrano Hellion Hospital, in Monterrey, Mexico.
Market Data | Apr 16, 2024
The average U.S. contractor has 8.2 months worth of construction work in the pipeline, as of March 2024
Associated Builders and Contractors reported today that its Construction Backlog Indicator increased to 8.2 months in March from 8.1 months in February, according to an ABC member survey conducted March 20 to April 3. The reading is down 0.5 months from March 2023.
Laboratories | Apr 15, 2024
HGA unveils plans to transform an abandoned rock quarry into a new research and innovation campus
In the coastal town of Manchester-by-the-Sea, Mass., an abandoned rock quarry will be transformed into a new research and innovation campus designed by HGA. The campus will reuse and upcycle the granite left onsite. The project for Cell Signaling Technology (CST), a life sciences technology company, will turn an environmentally depleted site into a net-zero laboratory campus, with building electrification and onsite renewables.
Codes and Standards | Apr 12, 2024
ICC eliminates building electrification provisions from 2024 update
The International Code Council stripped out provisions from the 2024 update to the International Energy Conservation Code (IECC) that would have included beefed up circuitry for hooking up electric appliances and car chargers.
Urban Planning | Apr 12, 2024
Popular Denver e-bike voucher program aids carbon reduction goals
Denver’s e-bike voucher program that helps citizens pay for e-bikes, a component of the city’s carbon reduction plan, has proven extremely popular with residents. Earlier this year, Denver’s effort to get residents to swap some motor vehicle trips for bike trips ran out of vouchers in less than 10 minutes after the program opened to online applications.
Laboratories | Apr 12, 2024
Life science construction completions will peak this year, then drop off substantially
There will be a record amount of construction completions in the U.S. life science market in 2024, followed by a dramatic drop in 2025, according to CBRE. In 2024, 21.3 million sf of life science space will be completed in the 13 largest U.S. markets. That’s up from 13.9 million sf last year and 5.6 million sf in 2022.
Multifamily Housing | Apr 12, 2024
Habitat starts leasing Cassidy on Canal, a new luxury rental high-rise in Chicago
New 33-story Class A rental tower, designed by SCB, will offer 343 rental units.