The construction industry is notoriously unpredictable, with peaks and valleys and a competitive marketplace. But PDS Engineering and Construction of Bloomfield has weathered the economic storm well, growing to a company with about 50 employees and revenue of over $50 million.
Its secret: Diversification.
For its performance, PDS has been named a Business Champion in two categories — for revenue and overall for companies with over $5 million in revenues — by the Hartford Business Journal and Metro Hartford Alliance.
“Staying diversified in two different markets is the key,” said Ron Jodice, president of PDS Engineering and Construction. “We’re one of the few construction companies that do that.”
PDS was started by Jodice’s father in 1965. He and a couple of employees began by selling steel products and materials. The company then became involved in selling pre-engineered metal buildings before eventually growing into a full-blown construction company.
Today, PDS serves as general contractor, construction manager and design builder. The company takes projects ranging from small additions to huge projects such as the $30 million Mary M. Hooker Environmental Studies Magnet School in Hartford. The company has done other large projects for the Veterans Administration, the University of Connecticut, the York Correctional Institution, and the New Haven Rail Yard, among others.
“We started branching out from just the private, small business products market to doing the public works-type projects,” Jodice said. “Several years ago, we saw that we need to keep our feet in both markets because of smaller negotiated jobs.”
The large, public sector work is a hard-bid market in which companies must have a certain level of qualifications to be allowed to bid. It is quite competitive and challenging – something Jodice believes leads some of PDS’s competitors to steer clear of it.
“Because there was a lot of private work, they felt they don’t need it,” he said. “It’s hard to make money on it, and the projects are a lot more challenging, but we’ve stayed in it and have picked up projects in both areas.”
Diversifying has helped with the company’s bottom line during the economic downturn. With private jobs ranging anywhere from $1 million to $6 million and public sector jobs in the area of $15 million to $30 million, PDS has been making up ground by picking up a handful of larger jobs rather than many small ones. Jodice said the company is financially conservative to help weather tough times.
“Construction isn’t a 12-month business cycle – it’s really more of a five- or 10-year cycle between the highs and lows,” he said. “You have to keep your eye on that and not get too panicky if you have a couple of down quarters – but be prepared for them because they do come.”
Jodice said keeping the company’s hand in both the small, private market and the public sector has helped the company grow by showing what PDS is capable of.
PDS also distinguishes itself from other construction companies by working on design build projects with its own in-house design staff.
“It gives us better flexibility to meet challenges within the job,” Jodice said. “We can figure a problem out without having to rely on some else. It gives the customers a feeling of comfort that we’re not just contractors – we’re also designers that understand the whole process.”
“It gives the owner some added value when we are able to see any design issues as they come up,” Jodice said.
PDS focuses on integrity in the business market.
“People have to be able to trust you,” he said. “We’re always focused on doing the right thing, whether it may make you money or not.”
Jodice said his employees are treated like family. Several employees have been with the company for 15 to 20 years or more. “We’re a service company – it’s all about our employees,” he said
