April 2022
With the first quarter of 2022 behind us, we are still seeing headwind factors that are impeding what could otherwise be a post Pandemic construction spending and Federal stimulus boom. These factors have come in the form of increased inflation and significant manufacturing and supply chain issues. With the sudden war in Ukraine, these factors have unfortunately been compounded. The net impact on M&H has honestly been a slower start to the year than we had hoped for.
In spite of this, we are maintaining a healthy backlog of coming work, and more importantly, we have made important management adjustments to target a growing market that, as I see it, we have been practicing for years to take advantage of. This comes in the form of Alternative Project Delivery Methods. Historically, project owners have primarily hired us because we gave them the lowest pricing for a pre-designed plan. However, more recently, a growing number of project owners have decided that this does not necessarily lead to getting the best value for their dollar. Therefore, Alternative Delivery methods, where the contractor, “M&H,” is brought in early to help guide the design, budget for a project, and share in the risk, have gained in popularity. It is now expected that this will soon become the principal method by which contractors are chosen for most major projects.
I say we have been practicing for this for years because M&H has always been a very service-oriented contractor. We hold the hand of either the project owner or the GC we are working for in a way that far surpasses most of our competition. Now the industry recognizes the benefit of this and is willing to pay us more fairly for this effort. This is largely why years ago, Stanford chose us for the trusting work relationship we have fostered with them. This is why we have recently been chosen to be part of a huge UCSF Hospital rebuild that should amount to over $80 million in work for us. It is our collective experience in many trades, our knowledgeable Estimating Department, and our excellent field management that gets us recognized and makes us stand out from our peers.
So I just want to say that although we might wish for our immediate work to be moving along with less interruption, everyone on our team deserves lots of praise for positioning us for a great future.
Bringing your knowledge, passion, and commitment to the task every day is why we are chosen. You all deserve a tremendous thank you for this.
Brock Grunt