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Navigating Insurance Market Uncertainty; Failing to Prepare is Preparing to Fail

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By: Brett Findlay, OneGroup

Over the course of the past year, it is fair to say that businesses in all industries have faced new challenges. The construction industry and the corresponding insurance marketplace have been no exception. In the Spring of 2020, reports suggested that commercial insurance buyers specifically in the United States, would face sizable pricing increases in 2020 and 2021. These reports were published prior to the Coronavirus pandemic. At that time, the potential increases were predicted for most lines of insurance. Those indications were the first of a hardening market. As a contractor in New York State, the insurance marketplace is limited enough to begin with, let alone at an affordable price. The question(s) become, what has changed and how do I prepare as a buyer? Because if you do not prepare, you may be on the receiving end of negative renewal experiences.

A hard insurance market, by definition, is characterized by an increased demand for insurance coverage coupled with a reduced supply. Typically, underwriting guidelines become more stringent, policies issued by carriers dwindle, premiums are high, and insurers are less willing to negotiate terms. This was happening prior to the pandemic, and for certain lines of insurance the pandemic has only seemed to exacerbate the situation. We are now in what is considered to be the first hardening market to take hold since the turn of the century. Rates have not reached that point yet, and it is too early to tell if they will continue on that trend.

 

As a business owner there are some items that are paramount to have a handle on in order to weather the cycle as effectively as possible. Having an experienced broker and a strong relationship with them is of the utmost importance. That broker should be able to coach you on the development, implementation and/or fine tuning of your risk management & safety program, coverage adequacy, carrier relations and claims history. Having a handle on these items, and how you represent them to the insurance carrier(s) is key to maintaining or improving your current program and budgeting for the costs associated with it. So, what has changed with your program, and how do you prepare for it?

Any given broker may be the best fit for your company, but, if the agent representing your account cannot properly handle it then your company is the one that ultimately pays for it. That is why it is critical to have an experienced agent. The agent should be diligent and proactive in learning about your business. They will need that firm understanding of your industry, and how your business functions within it, to properly paint the best picture of your organization while discussing it competently with the underwriter of any given carrier. The picture being painted needs to include certain key points, as previously mentioned those points include your risk management and safety procedures, claims history and coverage needs. Being able to discuss each in depth and coherently to an underwriter will put them on the path to providing the program that you need and being able to do so will provide you with the best program and rates available to your industry class.

It is equally important to have a broker that understands the marketplace and which carriers to involve in the underwriting of your account. The ability of that broker to forecast the costs and insurance availability with the proper coverage is key. Long story short, you need someone who knows construction, and knows the carriers and underwriters that write insurance for construction operations.

                Typically, a hard market is not a fun process to go through. With that being said, you have the ability to proactively position your business to handle the situation. Talk to your agent, prepare yourself for the unexpected and the possibility of having to market your insurance, get in front of the curve to limit any potential program failures. As you have heard me say before, contractors in todays’ economic landscape, must be sharper than ever to increase or even maintain profit margins. Preparing yourself for a hard market and forecasting any potential dramatic increases to soft costs, will put you in a better position to control your margins.

            At OneGroup, we are a team of specialists, dedicated to risk management and construction industry specific insurance issues. We hope to serve as a resource to your organization for all your construction specific questions and concerns. OneGroup takes great pride in being at the forefront of industry trends and assisting others where we can. You can learn more about us at: www.OneGroup.com.

Construction Contractor – Spring 2021

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J&B Installations, Inc. Commercial & Industrial Roofing Contractors; Celebrating 40 Years of Success

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By Sarah Hall

J&B Installations has come a long way from its humble beginnings. The roofing company got its start as a two-man operation in 1981. Now, celebrating their 40th anniversary, they employ upwards of 100 people during peak season and are known as one of the most reputable and safest roofing companies in Upstate New York.

Majority owner and President Robert Parker says he owes that growth to his team. “We employ good people” he said. “Our company is productive and safe because of our employees’ commitment—it’s a team effort.”

J&B specializes in commercial and industrial flat roofing. Their 16,000-square-foot corporate office/warehouse in Skaneateles Falls includes an in-house sheet metal/fabrication shop and a top-of-the-line plan room using cutting edge estimating software. They also have satellite offices in Ithaca and Rochester and are looking to increase their presence in those areas. All roofers, foremen, and superintendents are OSHA-certified. J&B’s full staff of 12 roofing crews, facilitating a 25-vehicle fleet, including its own crane and 8- 42’ to 55’ forklifts, allow the company to provide clients with complete roofing services and 24/7 roofing repairs.

J&B’s 5,000-plus clients include office parks, warehouses, supermarkets, schools, municipalities, and production facilities, among others. “We’ve performed work on over 200 Aldi’s stores,” Parker said. “Aldi’s insists on quality when selecting a contractor to install in their region. They chose us and that’s a huge compliment.” 

J&B’s reputation has netted the firm a number of clients. “Most of our work is word of mouth,” Parker said, “which is the best form of advertising. We strive to exceed clients’ expectations and have gained many loyal customers as a result.” 

The company, which typically does work all across New York State, has ventured into Pennsylvania and Massachusetts as well. They even followed a client to Colorado Springs. “We were doing work for a company in Fulton,” Parker said. “They had a roof problem at their plant in Colorado Springs and they were very happy with our work here, so they asked us to re-roof their plant in Colorado. It was a new type of long-distance challenge we had yet to experience, and the crews and superintendents that ran the project ultimately brought it in on time and budget.

The firm has taken on some significant projects, including the 1 million-square-foot Tops Distribution Center in Lancaster, New York, and a $5 million roofing project for the Webster Center School District.  J&B will be starting a $4.9 million roof project for Ithaca City School District, a $750,000 project for Community Hospital in Hamilton and a $650,000 project for JMA in Syracuse, to name a few upcoming projects in 2021.

It’s a far cry from Parker’s kitchen table, where he first drew up plans for his own company back in 1981. As a 23-year-old newlywed who had worked for Rochester Roofing & Sheet Metal Co. for three years after college, Parker couldn’t find anyone local who was hiring. So he decided to start his own company, “to be outside,” he said. When the business outgrew his “home office,” he moved into an office building down the street, where he slowly added staff, an administrative assistant and an estimator.

 

In 1988, the warehouse caught fire after being struck by lightning, making it unusable. In 1989 the current office/warehouse was built. In 1993, Mark Anderson, the owner of a local competitor, came on board as vice president and part owner, and he has been with the company since. By 2014 the company had again outgrown its space. A 6,000-square-foot addition was completed that year. Keeping up with the consistently changing industry and company growth has kept Parker and his employees extremely busy over the last 40 years.

Longevity has also brought recognition to J&B; the company is the recipient of numerous honors. J&B has been named Firestone Master Contractor 25 times. “The award is only bestowed on the top 125 contractors in North America,” Parker said. “It’s based on the quality of installation and workmanship.”

J&B has also been a Sarnafil Partners Club member for more than two decades, receiving Sarnafil’s Elite Contractor Award for a number of years. In addition, J&B has earned Carlisle Syntec’s Excellence in Single Ply Award, which Parker said is only awarded for “perfect work.”

Parker said his employees undergo rigorous training, both to ensure they’re producing top quality work and to guarantee everyone’s safety.  “We are a safe company,” Parker said.  “We preach to them by saying, ‘we want you to come to work on time, rested ready to work, and we want you to go home to your family safe.’”

Community and family are important to J&B, which is why the company makes sure to give back on a regular basis. The firm has done pro bono work for a number of local charities, including the Make-A-Wish Foundation, the Southern Cayuga Observatory, the Elbridge Fire Station, and the American Legion Post 317 in Skaneateles Falls. And their generosity doesn’t stop there.

“We like to give back to the community,” Parker said.  “We donate to a variety of causes.  Locally we’ve contributed to the Christmas Basket for the elderly and to the Jordan-Elbridge Central School District, which helps families in need of Christmas presents for kids.  We’ve donated to several cancer charities and have helped raise suicide awareness, both of which have personally affected our J&B family. We also try to take care of our employees if they need something, such as help with funeral expenses or food for a benefit. We try to give where we can.”

Parker said J&B has been fortunate during the pandemic to not have faced as many losses as other businesses. “We were considered essential,” he said. “We had a lot of work going on. As far as the pandemic went, yes, it affected us somewhat in sales and with labor. Navigating the legalities of the ever-changing landscape and day-to-day updates in the beginning took a lot of focus and our office team really came to the plate. We wanted to ensure that our staff was safe and compliant. We got hurt a little bit, but not as harshly as other companies. Your smaller businesses, they really took a hit.”

That’s not to say the business is without challenges. As the new administration takes over, Parker said there is some concern that the tax bill passed as part of the 2017 Tax Cuts & Jobs Acts may be repealed. The tax bill allows for 100 percent expensing of a new roof in the first year up to $1 million per property instead of the old 39-year depreciation schedule it replaced.

The 2017 Tax Cuts and Job Act also helps with the cost of bringing existing buildings up to the new energy code. The new building code requires R-30 minimum insulation on all new construction and re-roofs. Parker estimates that 90 percent of existing buildings presently do not meet the code.

Parker also states that “multiple metal buildings/roofs built in the 1970s, ‘80s and ‘90s are leaking and are at the end of their life cycle.” These buildings are easily re-roofed using fill insulation between the flutes and adding additional insulation to bring the system up to the new energy code. The building owner then receives a 20- to 30-year leak-free warranty from the roof system manufacturer.

As for the future of the company, Parker says it looks pretty green. “People are getting more conscious about the environment, which they should,” he said. Parker is so invested in the green movement that he also owns a green roofing company. Chatfield Green Roofing supplies the northeast with Xeroflor mats grown at Chatfield Farms in Elbridge. These mats consist of sedum, which are flowering succulent plants meant to withstand the harsh weather conditions of the Northeast. The mats are non-biodegradable, lightweight, low maintenance, economical and can be removed 10, 15, or 20 years down the road to perform roof service/maintenance and then be reinstalled, making them a truly “sustainable” product. Chatfield and Xeroflor have supplied their products on a number of large-scale green roof projects throughout the East Coast, including the 294,000-square-foot Jacob Javits Convention Center roof in New York City. Other recognizable landmarks using these living mats are Binghamton City Hall, the Empire State Building and Duke University Medical Facility. Eventually, Parker said he plans to retire from J&B and devote himself full time to Chatfield Farms, but that’s still at least two to three years away. Right now, he’s fully invested in J&B.

“I’m really happy about our reputation as roofing contractors,” he said. “I’m proud of my team. They really work hard to get to a common goal and they do a very, very good job.” 

Parker marveled at how far the company has come since the day he sat down at his kitchen table to sketch out the plan for his company. 

“I cannot believe this is our company,” he said. “Our employees are here for a long, long time. We have people that have been here for over 30 years and we count multiple generations among our crews. Our CFO, Lynn Proulx, has been with me for 33 years. There are several other employees that can say the same. We have had very little turnover… I am proud of that fact and when I see my employees living in nice homes, supporting their families that now, in some instances include grandkids, I feel like we’ve all grown up together. We’ve helped support a lot of families, and it’s nice to see that.” 

The business is transforming to the younger generation. Chris Bacon, Parker’s nephew, will be taking over as majority owner in the near future with Brian Anderson, Anderson’s son, taking over his interest. This will happen over the next few years but both have been with the company for 20 and 15 years respectfully. “No one knows what the future holds, but one thing’s for sure—J&B will continue to provide the best quality and workmanship for years to come,” Parker says. “I have loved coming to work every day even after 40 years.”

 

Tim DeLany joins Five Star Equipment as its Used Equipment Manager

 

Camden Group Conquers the Difficult Projects

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By: Tami Scott

As the sole shareholder of Camden Group, Ken Scherrieble’s company has earned itself a prestigious place in the world of environmental services and infrastructure restoration. Established in 2011, clients have come to know it as the solution to their most halting problems.      

Camden Group specializes in water and wastewater operations; grouting and waterproofing; and infrastructure restoration, including manhole rehabilitation and concrete rehabilitation and coatings. Its northeast and mid-Atlantic client base is comprised of municipalities, utility companies, and public sectors in the northeast and mid-Atlantic.

“Over the years we have become known as the firm you call when others have tried and failed,” Scherrieble said. “We have an exceptional corp of experienced craftsmen with well over 200 years of experience in water infiltration. We have been on many projects where the client or engineer has said there is no way we could do the job, only to hear them exclaim they would have never believed it if they did not see it with their own eyes.”

These jobs have included manhole restoration projects in the Metro NY/NJ area and in the suburbs of Philadelphia where water is pouring in and engineers are convinced nothing can be done to fix them. When Camden Group comes in, they turn it around and make it work. When the aquarium at the Dream Mall of America in East Rutherford, NJ was leaking and nobody could stop it, they called on Camden Group. The team got it to stop.

“Those are the fun things that we get into when other people just can’t solve the problem,” he said. “Pretty much anything that’s got to do with water moving, we can figure it out — [we can] stop it or move it in another direction.”

National recognition

Just last year, Camden Group earned national recognition for its role in a progressive pipeline project with the Public Service Electric & Gas Company (PSE&G) in the Metro NY/NJ area.

It involved establishing a cured-in-place lining (CIPL) of a 573 lf, 42-inch, high pressure cast-iron gas main leaking under the Garden State Parkway at Central Avenue Bridge in East Orange, New Jersey. Several challenging obstacles had to be overcome to complete the project, one of which was water infiltrating the deeply buried gas lines. Scherrieble said they had to find a way to stop the water before a liner could be put in place.

“We created a means by which to drill through and then grout the pipe so that the grout surrounded the pipe from the outside to stop the infiltration of water,” he said, and due to the complex pipe configuration, Scherrieble’s crew had to travel inside the pipe on a skateboard-type conveyance, on their backs, down 300 feet at a 45-degree angle, then straight, and then another 300 feet down, before they could begin their “patchwork.”  

According to project officials, CIPL was the only option, yet lining a very large 42-inch cast-iron pipe had never before been done.  Camden Group played a critical role in the project’s successful outcome.

This PSE&G project was named the 2020 Trenchless Technology Project of the Year runner up and was showcased at the National No Dig Show. It was also set to be highlighted in Denver but the pandemic pushed it to a virtual show like many others.

“We were proud to be a part of it,” Scherrieble said.

Holistic approach

Unique to other companies, Camden Group began as a water and wastewater operations firm and over the years was involved as a client for the infrastructure restoration services that it now provides.

“That experience allowed us to see the good and the bad and since our focus as operators is assuring clean water, we used that experience and determined that we could perform the services we were contracting better (in our mind),” Scherrieble said. “We take a more holistic approach to the contracting side since we were, and in many cases still are, the client of these construction services. This gives us a different perspective and allows us to work with clients showing them how to meet their I&I, water intrusion, coatings, or soil stabilization goals.”

Large company expertise, small company values

Camden Group is based in Camden, NY, which is part of Central New York in Oneida County. Here they have a 9,000 square foot warehouse for the infrastructure restoration division and a separate 2,000 square foot office which serves as the company headquarters. In 2019, the company opened a second location in Butler, New Jersey, located in the Metro NY/NJ area. That location specializes in chemical grouting, soil stabilization, waterproofing, and concrete repair. The addition welcomed a 26-year veteran to the waterproofing division, and grew the employee base from three to 13. Due to this new and enjoyed growth, Scherrieble is on the lookout for more space in the New Jersey area, specifically, about two thousand square feet for both an office for staff and a warehouse to accommodate vehicles and product they utilize.

A family-oriented company, Camden Group has 38 full-time employees. The number climbs to about 50 during the peak summer season. Scherrieble takes pride in providing large company expertise with small company values. Each year, employees and their spouses gather for a large holiday party (minus 2020) where Scherrieble gives everybody a chance to meet and get to know each other.

“The company is stretched over such a distance that sometimes people think they’re just a core group of four to six, they don’t realize that there are 38 people that are part of the organization,” he said, adding he was disappointed he couldn’t bring his team together as often as he had planned last year due to the new COVID-19 protocols. He looks forward to bringing the family back together again.

Company philosophy

The Camden Group company philosophy, which Scherrieble attributes to his German upbringing, stands out front and center in the work they do every day, no matter how big or small is the job.

“No. 1, if you’re not gonna do it right, don’t do it at all. No. 2, if you are going to do it, do it right and don’t do it a second time,” he said, noting his grandfather was first-generation German. “Sums it up. Our philosophy is very much that philosophy.”         

Scherrieble’s father, Otto, owned his own machining company for which Scherrieble did some work. In a humorous yet accurate account of his family’s work ethic, he told of an encounter he had with an inspector from the National Regulatory Commission (NRC) while touring his father’s facility. It takes place in the QA/QC room:

“[The inspector] says to me, ‘What’s your sample size for your QA/QC program?’ And I said, ‘100 percent.’ ‘I don’t think you understand me. Out of 100 pieces, how many pieces do you measure to make sure they meet the QA/QC?’ ‘One hundred percent!’ ‘Nooo, you don’t understand me. I don’t mean what measurements you take. I mean how many of the pieces do you take? So, if you made 100 pieces, how many of those pieces do you measure?’ And I said, ‘100 percent!’ And he looked at me, and my father was standing in the doorway, and my father says, ‘Did you see the name on the sign when you came in? OttoTech. My name is Otto. Every single piece that leaves this facility is measured.’ And the NRC inspector turns around and he says to me, ‘Okay, 100 percent!’”

   “That’s the way I was brought up,” Scherrieble said. “You do it right. You do it right the first time.”

Ken Scherrieble has been in the water and wastewater treatment and infrastructure business since 1991. He is a Certified 4A NYS wastewater treatment plant operator and a member of various organizations including NACE (now known as AMPP) WEF, NYWEA, NYSRWA and AWWA.

To learn more about Camden Group, visit https://camdengroupusa.com/.

 

 

Tim DeLany joins Five Star Equipment as its Used Equipment Manager

Advocating for the Construction Industry

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Earl R. Hall, Executive Director

Return on investment (ROI).  How many times have you asked yourself what is the ROI on various items?  Kitchen renovation, professional Association membership, club membership, bathroom renovation, etc.  Many people want to know, which may not always be easy to quantify, but typically you can determine an estimated ROI.

Association Executives had better keep ROI at the top of their priority list when evaluating the goods and services delivered to a membership of individuals or employers.  While many of the services the Syracuse Builders Exchange (“SBE”) delivers to the construction industry, our member employers and their employees are well known, one not so well-known service is our advocacy efforts.  How does one quantify the value of “advocacy” into the ROI determination?  It is a good question which I will address.

Advocating on behalf of the construction industry and our member employers remains a vital service SBE provides.  Although SBE does not have a lobbyist, as Executive Director I do participate with my construction industry Association peers across New York in identifying items of importance to the industry throughout New York State.  The group consists of construction industry Association executives from western New York, Rochester, central/northern New York, the Mohawk Valley, Albany, Hudson Valley, New York City and Long Island.

Collaboration among a small group of Association Executives has proven beneficial as our strength in numbers approach has illustrated a unified message to elected officials and bureaucrats in Albany.  I would be remis to say as a group we have any political power to overcome opponents which generally donate thousands of dollars to the same elected officials; however, we do have the intellect to deliver a thoughtful message that is not only in the best interest of the construction industry, but in most cases, taxpayers.

Examples of successful advocacy efforts in 2020 include implementation of new Substantial Completion legislation signed by Governor Andrew Cuomo.  Substantial Completion is now defined by law and will prevent project owners from withholding retainage for extended periods of time after a project has been fully occupied or utilized for its intended purposes. 

SBE successfully advocated for changing onerous provisions in State University Construction Fund (SUCF) project specifications relating to COVID-19 contractor liability on job sites.  The language essentially stated contractors would be responsible for any Executive Orders or orders by public health officials which were not present at the time of bidding but may be imposed during the project.  Those unknown costs would be the burden of the contractor.  SBE opposed such language and I engaged in discussions with SUCF legal counsel.  As a result, SUCF amended the language to mitigate the contractor’s liability on all SUCF projects, including the SUNY Oswego project in question.

Not all advocacy efforts result in favorable outcomes.   I remain frustrated that those of us advocating for Labor Law 240 reform (Scaffold Law) have failed.  The trial lawyers lobby and the lobbying efforts of organized labor continue to be too powerful to overcome.  In addition, some legislators in Albany are also attorneys who remain very reluctant to remove this absolute liability statute.  New York remains the only state that maintains an absolute liability statute.  Reform advocates simply request New York remove the absolute liability standard and replace such with a “comparative negligence standard”.  As long as our elected officials who continue to maintain control in the New York State Assembly and Senate, Labor Law reform is highly unlikely. 

Although New York State Labor Law reform is highly unlikely, I am working with Congressman Chris Jacobs (NY-27) in supporting his effort to remove the absolute liability standard on all federally funded projects in New York and replace such with the comparative negligence standard.  As you can imagine, unfortunately, he is not getting the support from his colleagues on the other side of the aisle.

Quantifying the ROI of advocacy efforts is difficult, especially in instances as illustrated above.  I suspect the ROI is valued differently and varies from member to member; however, it remains important the construction industry and our member employers understand that such efforts will continue as representing the best interest of contractors and the industry is outlined in the SBE By-Laws.

Advocacy efforts will remain one of the top priorities at SBE.  Dues dollars are not taken for granted but are appreciated especially during the tail-end of a pandemic, and challenging economic times.  While the pandemic may be retreating and our return to “normal” just around the corner, the economic damage done by the pandemic and our elected officials in Albany will be felt for quite some time. 

I welcome and encourage contractors, engineers, architects, and project owners to contact me with items of importance.  All items will be reviewed and discussed to determine if such impacts the industry throughout New York, or just at the local level. 

 

 

Tim DeLany joins Five Star Equipment as its Used Equipment Manager

Three Pillars of a Good Cybersecurity Plan; The best way to prepare for a cyber-attack is to know exactly what you would do if one occurred.

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By Dennis Ast, CPUC, CCIC, OneGroup

Cyber-attacks and their corresponding insurance claims are on the rise. We all spent more time in the virtual space last year than we ever had before, making it imperative that we really think about the increased risk that virtual work, school and living presents.

As our lives rapidly shifted into the digital space last March, hackers got to work. Cloud breaches, “Zoom bombing” and misleading links promising coronavirus cures and statistics costs companies billions in claims and ransom payments. Virtual schooling and telecommuting forced cybersecurity professionals to work in high gear.

You should be thinking about your cybersecurity plan more than ever, and if you are, make sure you are including cybersecurity measures, contingency planning, and risk transfer with a solid cyber insurance policy.  The worst time to try and establish a cybersecurity plan, or to put an insurance policy in place is after the breach has occurred.

Cybersecurity measures

Make sure you have done all you can to prevent cyber incidents. 

 

Keep your software up to date, use and be familiar with multi-factor authentication and strong password protocols, and train your team regularly on how to spot phishing or malware attacks. Install reputable NextGen anti-virus software and establish protocols for remote employees. Keep your data backed up and test these backups often.

Be sure to consider all possible goals of a cyber attacker, too. Some want money, others want trade secrets or patents, and still others could want something entirely different. Be sure your risk management plan addresses any possible motive.

Contingency planning

If 2020 taught us anything, it is that we need strong contingency plans for every circumstance. Talk with your team about what you would do if you could no longer access your network or files. Know how you would reach your team, your clients and how you would access your backed up data if necessary.

Risk transfer with a solid cyber insurance policy

Cyber-attacks can be incredibly costly. After you are through paying for legal services, tech services, fines & penalties, ransom, etc., you could be looking at a bill in the millions. Cyber insurance can cover your business’ cyber liability, the costs of restoring or repairing your systems or data and more. Insurance carriers often impose certain exclusions and sublimits, though, so be sure to work with a trustworthy broker who can explain your policies to you in a complete and understandable way.

In the end, the most important phase of your cyber response plan is knowing what you will do immediately after you discover it. Know who you will call first and know what you will need to ask them. You do not have to face these incidents alone, and in fact, you should not face these incidents alone. Have the phone numbers of people like the police, your lawyer, your insurance broker and policy number and cyber claim reporting handy. Make sure you have got a team that will have your back if the worst were to happen to you.

For more information on Cybersecurity you may reach out to Dennis Ast, Senior Account Executive Cyber Risk Specialist at OneGroup.  He can be reached at DAst@onegroup.com or 716-572-2410.

 

 

Tim DeLany joins Five Star Equipment as its Used Equipment Manager

Construction Contractor – Winter 2021

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Mattessich Ironworks; Service-disabled, veteran-owned business, and proud member of the last great industrial trade

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By: Martha Conway

Mattessich Iron, LLC, a New York state-certified service-disabled, veteran-owned business (SDVOB), was founded in 2008 by now 39-year-old Michael Mattessich.

Mattessich said his love of metal work developed from 

working on old muscle cars and motorcycles with his father. In 2018, Mattessich Iron was named Central New York’s third-largest service-disabled veteran-owned business by the CNY Business Journal.

Born and raised in Baldwinsville, Mattessich graduated Baker High School and enrolled in the United States Military Academy at West Point. After graduation, his military assignments took him to Missouri and Georgia.

He spent downtime sharpening the skills he learned while working with dad. He started with Harley Davidson frames and components and moved to welding and machining for local motorcycle dealers, restaurant kitchen maintenance, construction equipment repairs and service calls to Fort Benning when contractors needed steel.

After serving two tours of duty in Iraq, leaving his military service with the rank of captain and an injured hip, Mattessich took his combined education, construction experience and love of metal-working back to 

Baldwinsville 

in April 2008. He founded Mattessich Iron, LLC, now located at 1484 Route 31, Memphis.

Mattessich started out with a 4,000-square-foot fabrication shop. He upgraded equipment 

and vehicles and started hiring well-versed welder/fabricators. The first projects were ornamental repairs, some mechanical repairs and equipment repairs.

“A lot of repair work and some construction,” Mattessich said. “It was daunting but also exciting and refreshing after leaving the military.”

He started out on his own.

“I added two people the first year, and two more after two years,” Mattessich said. “Once I gained a few employees, I used the Syracuse Builders Exchange to find public bid opportunities. I phased out repair work and equipment modification, leading me to the commercial and industrial fields where I wanted to be.”

Mattessich employs a full-time mechanic, multiple field crews and runs a night shift during the busiest times. Critical to the smooth operation of the business and project rollout is his management team including himself, wife and vice president Danielle Mattessich and Operations Manager Kelly Ormsby, an Army veteran.

“He’s a 40-year steel man, and I had an inclination he could fill our newly created operations manager role,” he said.

Danielle graduated from State University of New York Environmental Science and Forestry with a Bachelor of Science degree in 2011.

“After graduation, I was hired by a local company as a project manager/environmental scientist, where I specialized in groundwater remediation clean-ups,” Danielle said. “While at the environmental company, I also worked on meth lab clean-ups for the NSYDEC and train derailments for CSX. As much as I enjoyed the field, I decided to make the move to Mattessich Iron in 2013.”

She said the creation and follow-through of company systems and policies are major focus areas for her.

“These have ranged from human resource policies and contract administration to operational policies such as inventory tracking and product shipment,” she said, adding that when she joined Mattessich Iron, Mike was finding the work, estimating, managing each project and recruiting the talent. “At first, our priority was to use my accounting and project management background to set up systems and start developing answers to the ‘how-to’ questions to streamline processes.

“Today, I play defense in operations by maintaining efficiency and tracking costs. I also create the company’s annual budgets and manage monthly finances.”

“Danielle brought a heightened level of planning and organization to the business,” Mattessich said. “Her professional background in environmental contracting has improved the company’s efficiency in legal considerations, human and business resources, manpower and financial matters.”

Ormsby said he started his career at Solvay Iron.

“I started as a second-shift foreman in the fabrication shop and worked my way up to president of the company,” Ormsby said.” I have done it all – from sweeping the floors to signing the checks – and I believe that no job is more important than the other: They all must work in harmony.

“I was a shop supervisor, field supervisor, director of operations, vice president and president. In 2004, I started Ormsby Iron Works, Inc., and ran my company until the economy fell in 2009. I closed the company in 2010, went back to Solvay Iron until it closed in 2013, then started Ormsby Iron, LLC, and ran that until I had a stroke in 2016. After recovering, I came to Mattessich in March 2019.

“I have multiple welding certifications, I have a CDL tractor-trailer and crane operator license.”

Ormsby is the operations manager and chief estimator.

“I put together 90 percent of all projects we quote,” he said. “I also hire out-source detailers, process shop and field drawings and schedule shop production. I perform project management until the job hits the field. Mike Mattessich takes it from there. He takes care of all field meetings, field measuring and field troubleshooting.

“Mike and Danielle Mattessich are the most honest and willing people I’ve ever worked with,” Ormsby said. “They are the first to accept fault and reason for every issue the company faces and work through the problem with the source. Their willingness to listen to their employees, take all the information and make the best decision for the company tells me Mattessich Iron will be around for years to come.

“With the path Mattessich Iron is on, I see the company being the go-to fabricator-erector in Central New York, taking the lion’s share of the market for this area for structural and miscellaneous steel.”

Mattessich said Ken Millward, maintenance mechanic, keeps the vehicles, trucks, lift assets and machinery in good working order, and performs periodic maintenance on shop machinery.

“He also makes site visits to fix equipment in the field,” Mattessich said.

Mattessich said things may be humming now, but in the beginning, it took many bids to start landing jobs and building relationships with general contractors.

“In 2017, we moved to our new facility, complete with two floors of newly built offices, inventory and break room space,” Mattessich said. “The original offices and plant floor were too crowded, and the existing property didn’t allow for expansion.”

He said the new shop floor expanded from 4,000 square feet to 14,000 square feet, providing more workspace and room for machinery to help keep up with the growing number of projects.

“We added a maintenance department, in-house estimator, in-house drafters with 3D capability and increased our project manager positions to offer greater efficiency, capability and quality for our customers,” he said.

He credits his top-notch staff; how does he find them?

“Generally, I interview everyone,” Mattessich said. “Our employees are the most important facet of the business. Talent is good, but I think attitude is more important than talent. You can train anyone to bolt, weld or run a forklift, but you can’t train attitude. I look for positive, team-oriented people who have a good work ethic.

“I’m also proud to employ a number of veterans,” Mattessich said. “Our employees are the backbone of the business.”

Mattessich said the military taught him not to ask subordinates to do anything he wouldn’t do himself.

“I work hard to make sure employees don’t feel out of place with something we ask of them,” he said. “Our people are our most important resource. We can rent or buy anything we need, but not our staff. They are running the machines and equipment. They are making the business a success.”

Mattessich said he tries to talk to every employee at least once every week in the field, shop, and office.

“It’s really important to me that our team members get the attention they deserve and our appreciation for what they are doing for our group,” he said. “I ask them in the field and in the plant if there is anything, any equipment, that will help them do a better job. Do they need anything more to work better in the field, fabricate better, improve quality control?

“I talk with our mechanic to find out what’s giving him problems and get those things replaced. I try to get out and help with installs during our busiest months. It helps maintain team cohesiveness.”

Mattessich said shop fabricators receive the steel from the mill and cut, drill, bend, weld, polish or paint the material following shop drawings and construction prints.

Mattessich Iron provides complete design and fabrication of all ferrous and non-ferrous metals, offering in-house design, fabrication, finishing, delivery, and installation of all work, performing private and public work in all but the most remote corners of New York state.

Mattessich is well-versed in structural steel and miscellaneous metals fabrication, including – but not limited to – beams, columns, decking, ladders, stairs, handrails, bollards, mezzanines, catwalks, and general weld repairs, more specifically:

  • Designing: AutoCAD 2-dimension, Advanced Revit 3-dimension, delegated design review, stamped engineer review and AISC standard connections and calculations
  • Metal Joining: GMAW (MIG), GTAW (TIG), SMAW (ARC), brazing and soldering
  • Reducing: Plasma cutting and oxy-fuel cutting up to 1-1/4” thick, bandsaw cutting up to 18” x 22”, shearing up to 3/8” thick by 12 feet long, 110-ton hole punching up to 1-1/4” thick
  • Shaping: Metal turning, 300-ton press brake forming up to ¾” thick on a 12-foot bed, threading, tube and pipe bending and notching
  • Finishing: Timesaver drum polishing up to 36” wide; painting, powder coating; galvanizing and anodizing

“Field crews receive the end product and maneuver it to the work area and use forklifts, cranes, material lifts, chainfalls, winches and other rigging devices to erect each item,” he said. “They assemble pieces according to erection drawings and contract plans.”

He said a typical job runs from $2,000 to $2 million.

Looking forward, Mattessich is considering automating beam and column work by adding CNC machines and possibly having to expand the plant and office space and increase field crew members.

“I think operations could still use improvement,” Mattessich said. “Now that we have quality heightened and procedures established, we have the luxury of focusing on streamlining and automating.”

Mattessich said the project of which he is proudest is Batavia Downs Casino.

“We did a spiral staircase with a structural circular cutout and-two-sided picket rails around the opening” he said. “It was a product of my own design, detailing, layout and eventually installation, and the result was that it all went together almost perfectly.”

He also is proud to be part of bringing to life a national-level facility: National Veterans Resource Center in Syracuse.

“It makes me proud as a veteran to have bid and executed a project that is for veterans, military personnel and those training to join the military,” Mattessich said.

He said another proud moment was completion of Mattessich’s part of the work in building LeMoyne College’s stadium.

“We did that during one of the first years in business,” he said. “I felt like I was in over my head, but I was working with a general contractor I was comfortable enough with to join the project. We worked great together.”

Mattessich said he has been lucky; the pandemic has not affected his company’s supply or workload.

“We chose to shut down operations for several weeks until the state could provide us with guidance,” he said. “I wanted to keep our employees safe. I am skeptical about budget impacts on projects a year or two out; schools, prisons, government buildings, colleges, apartment complexes and most other commercial and industrial entities will likely maintain reduced mid-term budgets.”

Mattessich said though he is a hands-on supervisor, his responsibilities have shifted greatly since his boots hit the ground 12 years ago.

“We started with keeping our heads above water and then moved toward more long-term planning,” he said, adding that he’d like to expand Mattessich’s presence in the North Country and Southern Tier regions, paying close attention to bid invitations from qualified general contractors there and developing competitive quotes.

“I want to exit my career having built a national-level fabricating business,” Mattessich said when asked about what legacy he wants to leave. “I want to have a positive impact on the central New York community. I thought success would mean after 10 years or so, I would have five employees and be fortunate enough to be able to pay the bills.”

Twelve years out, Mattessich Iron employs 30 to 40 people throughout the year and is on track to do $7 million in sales this year.

“We are a service-disabled, veteran-owned business seeking invitations to bid from qualified general contractors, designers and owners in order to establish a successful working relationship with superior service,” he said, adding that in 10 years, he would like to capture 20 percent market share for steel fabrication in central New York and the surrounding regions.

For more information, contact Mattessich Iron at 315.638.1419 or visit mattessichiron.com.

Like Father, Like Daughter; Steel Sales, Inc., a Second-Generation Company, Builds on Customer Trust

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By: Tami Scott

When Brenda Westcott was a young girl, she was engaged in her father’s business — but only after hours. And only for recreational purposes. Once the doors were closed for the day, she’d enjoy the space as her very own indoor skate park. Aside from her time zipping around the facility on four wheels, her interest was nil. Little did she know that as an adult, her father’s business would become her passion, her purpose, and eventually her own — just as it was her dad’s during his prime.

Entrepreneur Donald Westcott founded Westcott Steel Co., now a second-generation steel fabrication company, almost 50 years ago in Sherburne, NY, where it still produces today. His daughter joined him in 1988.

“After I graduated high school and I was not ready to go to college, my father insisted I come work with him,” she said. “This was the best decision I have ever made.”

Just nine people (including Westcott) comprised the business then; she was charged with accounting. 

“The first task I tackled was to computerize all bookkeeping, 

Steel Sales

sales, and inventory processes in the business,” she said.

From there, Westcott focused on expanding her knowledge and hands-on experience about steel products, welding procedures, and job estimation within the company.

“It was challenging being a woman in a man’s world at the time, but as I continued to learn, our customers came to respect my knowledge regardless of my gender.”

Over the years, the Westcott family business evolved from being a manufacturer of metal products such as wood stoves and garbage dumpsters to the fabrication and erection of grandstand/bleachers and metal buildings throughout New York, Pennsylvania, and other northeastern states.

In 1991, the company began stocking steel, stainless, and aluminum products to distribute to its wide and varied customer base of contractors, agri-businesses, maintenance departments, municipalities, aggregate industries, other welder/fabricators, and the general public.

Two years later, the father/daughter duo developed a succession plan for Donald’s retirement and for Brenda’s desire to continue the family tradition of working with steel but not managing field erection crews. Hence, the creation of Steel Sales, Inc., designed to focus strictly on distribution and custom fabrication of metal in-house only.

“From the inception of Steel Sales, Inc., it was known between my father and me [that] the business would become fully owned and operated by me within 10 years,” Westcott said. “By January 2001, my father had stopped all daily involvement in Steel Sales; his focus and desire were solely on his lease/build company.”

Operating as a WBE/DBE Company

A year after acquiring Steel Sales, Inc., in 2002, the New York State Department of Economic Development granted Steel Sales, Inc. certification as a Women Business Enterprise (WBE). In 2015, the New York State Department of Transportation certified the business as a Disadvantaged Business Enterprise (DBE).

Before, during, and since these designations, Westcott has grown the business and made significant changes. She has expanded the product line to include more than two million pounds of steel, stainless, and aluminum in a variety of structural shapes, pipe/tube, sheets, and plates in stock.

Its fleet of trucks and outside sales team serves 18 surrounding counties. Its estimating team, in addition to its inside sales team, provides takeoff services for larger jobs and in-house AutoCAD and SolidWorks shop approval drawings.

The company has a little more than doubled in size, from employing just 14 people in 2001 to a current number of 30. Its gross sales have quadrupled in the last 10 years.

Though Donald has long since retired, his daughter, mindful of the insight he gained and shared, implemented his savvy business spirit.

“My father taught me to work hard, always keep a “never give up” attitude, and be willing to change based on the needs of the customers you serve,” Westcott said. “I believe our reason for success and what sets us apart from our competition is staying focused on customer service. Our experienced, hardworking team makes this their No. 1 priority every day regardless of the size of the customer.”

Services Abound

Due to the company’s diversified customer base, it offers a unique combination of fabrication abilities and quality products. Specifically, it’s equipped to shear ½” x 12’ mild steel, saw up to 18” x 20”, roll ½” x 8’ mild steel, and bend ½” x 12’ mild steel. It also offers a variety of punching, drilling, milling, and welding services — by certified welders — of all metals, along with pipe threading for ½” to 4” pipe and rebar bending from ⅜” up to 1 ½” diameter. The company also has a High Definition CNC plasma table 8’ x 24’ with the latest True Hole technology.

Customers can also count on Steel Sales, Inc as an authorized Wearparts center for Hardox™, a premium wear plate; a distributor of ADS™/Hancor™ plastic culvert pipe, drainage pipe, sewer pipe, stabilization fabric, and septic changers; CONTECH™ metal culvert pipe, multi-plate pipe arches, and aluminum box culvert; and TENCO™ plow parts. It also offers metal roofing/siding from ABC™ with a large choice of colors and grades, cut to an exact, customized length.

In 2010, it introduced a product line including sander chains, tire chains, snowplow blades, snow plow wear parts, and construction edges. The sander chains are fabricated at the Sherburne facility with one-week maximum lead times.

Its Mission is Simple

Westcott describes the Steel Sales, Inc. mission as simple: “Build and Maintain Long-Term Relationships with Our Customers.” This is achieved through trained, motivated, and friendly staff members who are dedicated to serving the company’s entire customer base.

“Every day is a challenge and no two days are the same, which is what I enjoy,” she said. “I intend to continue our constant improvements and continue to answer our customers’ needs with my outstanding team, which is my family, not just employees, for many years to come. We are all passionate about serving those who keep us going.”

Building Plan or Building a Career; Donna Tupper, Infinity Northeast, Inc. wants the younger generation to consider construction as a career.

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By: Molly English-Bowers

It may surprise some that the “construction worker” ranks third on Indeed.com’s projection of in-demand jobs for the next five years. But not Donna Tupper. The President and Owner of Infinity Northeast Inc. wants to spread the word that construction is a rewarding career.

“It’s a great industry,” Tupper said. Our conversation took place while Tupper was driving to Syracuse from North Carolina where Infinity Northeast is commencing development projects. “There’s a lot of opportunity in construction and the younger generations may not know this.”

With 36 years of experience in the industry, Tupper is making it her mission to inform young men and women about those opportunities. “My goal is to reach all younger generations, not gender- or ethnic-specific.” She has spoken at groups including Small Business Administration Women in Construction, New 

England Regional Council of Carpenters, and Girls World Expo.

The latter is a 21-year-old national program that aims to connect girls to resources and partners in their communities to help them realize their potential. Syracuse has been a host to the organization in 2018 and 2019 and Tupper spoke, hoping to inform and educate those in attendance. “The girls come to look at opportunities that are available,” she said. “If you have no idea about construction, how would you know the opportunities that are out there? We try to explain what is out there and the vast avenues for girls to become involved in the construction industry.”

According to the Bureau of Labor Statistics, about 68 percent of high school students attend college, but 40 percent of those do not graduate, leaving a lot of time wasted and money owed. In addition, 37 percent of currently employed college grads are doing work for which only a high school diploma is required. It is that population Tupper wants to reach.

“Kids don’t know that construction opportunities really exist,” she said. “It’s as strong as the medical industry. The demand for medical facilities and housing is not going to diminish, regardless of politics. For those who find themselves unemployed during this difficult time, if you put in a little hard work, you will be financially stable with a solid career. Have no fear and take a chance in construction.”

Locally, trades are primarily taught at BOCES. Trade schools teach hands-on skills for specific careers, such as welding, auto mechanics, plumbing and carpentry. Among the benefits of a trade school education is the reduced time it takes to graduate, more affordable tuition costs, smaller class sizes, hands-on training, and job placement services.

Career Change

Even though Tupper’s degree is in science, she took a chance on a new career after the birth of her first daughter. With limited options for childcare and a husband that often worked out of town, she considered her options.

“I quit my job and went into housing management for real estate companies,” she said. She began cleaning houses that had been vacated by traveling executives while they worked in Central New York. “The properties were vacant, and I could bring my daughter with me while I worked,” she said.

Real estate companies began asking Tupper if she could do more than clean; she started out painting, then flooring, doors, and woodwork. “I had an all-girl crew and we worked afternoons and evenings. That was 36 years ago,” she said. “It was gradual, and I had a lot of challenges with men. I was blonde and 22 when I started, and they thought I was naïve and inexperienced. Now, after years of hard work, I do not have to prove myself to anyone, and I do not take every project that I am offered. I work with a number of clients that believe in the professionalism and respect of the industry.”

Tupper is the president and sole owner of Infinity Northeast, incorporated in 2008. She is a member of the Syracuse Building Exchange and a signatory to Northeast Regional Council of Carpenters Local 277. Infinity Northeast Inc. is also a New York State and Tennessee Certified WBE (Women-owned Business Enterprise). The main office is located at 6090 E. Taft Road, North Syracuse, with satellite offices in Murfreesboro, TN., Naples, FL., Orlando, FL., and on Thompson Road in Syracuse.

The office in Tennessee has made it possible for Tupper’s oldest daughter, Jessica T. Graham, to work for her mother as Senior Project Manager. She is educated in law and previously worked for the state of Tennessee. “She left her job and has been working with me for a number of years,” Tupper said. Tupper’s middle daughter, Stephanie K. Baker, is the Director of Human Resources and Union Benefits. She is educated in mental health and, also left her career to work with her mother. 

It is vital to Tupper the employees and subcontractors of Infinity Northeast, are members of trade unions, such as Carpenters Local 277. For that reason, if she were to take on an apprentice, he or she would need to join the union. “I would have no problem having them learn in-house.” The in-house trade work includes architectural, mill work and finish carpentry. Tupper hires subcontractors for other trade work when contracted as a general contractor.

After working in the field for nearly four decades, Tupper has discovered what she enjoys building. “I like repetitive work—casinos, high-end hotels, military barracks,” she said.

Among Infinity Northeast’s projects are: SUNY Upstate Health and Wellness Center, Syracuse, NY; Athenex Pharmaceutical Manufacturing, Dunkirk, NY; Resorts World Catskills, Monticello, NY; Del Lago Resort, Tyre, NY; and Seneca Nation Cultural Center, Salamanca, NY. Infinity also did the rigging and set-up for Woodstock ’94, located in Saugerties, NY.

She has also ventured into the latest in upscale family fun, “multi-tainment” centers containing bars, restaurants, movie theaters, high-end bowling alleys, laser tag and the like. “Ten years ago I did a research study for the Oneida Nation that found that if there is a gambler in the family, if you want them to come and stay at the resort, you need something for the other individuals in the family.” Tupper is associated with the development of UltraStar Multi-tainment and pursuing an interest in IRL Companies, which purchases distressed shopping malls throughout the United States to renovate and re-create their usage.

One reason Tupper was driving back from North Carolina was she had checked in on UltraStar, multi-tainment facilities in Cherokee and Murphy, both in the western mountains of the state. “I am pursuing the owner of Resorts World Catskills to put in a multi-tainment center. It’s close enough to New York City to attract customers and it would eliminate or reduce children being in areas of a casino where they shouldn’t be.”

Tupper is in the process of purchasing land in North Carolina to construct single-level, high-end housing for ages 55-and older. “These homes are for people who are looking to buy a single-level structure with a couple of bedrooms and no maintenance, in a gated community” she said. “I have decided I am done with Central New York weather and my work can be performed anywhere.”

Then there is the medical field, for which construction work will always be in demand. “I am in the planning stages of owning and developing a medical center in Naples, FL. Owner-Development is the highest level you can go in the building construction industry.”  Given Tupper’s track record, she will succeed. “I never sit still.”

But she is also looking toward the future when she will retire and hand over the company to her daughters. “I’m 58 years old,” she said. “If my daughters allow it, I will drop dead working, because this is what I love to do. I love the industry, but I needed something more for future stability. My plan is to find property, develop projects and own them. That’s how I’m going to survive. I don’t want my children to worry about the future and having to support me or the stability of the company.”

At the same time, Tupper realizes the next generation needs to be exposed to construction as a career, especially as professionals near retirement age. “Most of my crew is over the age of 40,” she said. “I love my industry and I have huge passion for it. I don’t want to market my company; I want to market my story so maybe other people and younger generations will consider getting into the business. Anybody can start a company, you must work hard, stay focused and if it’s something you enjoy, it’s not like work. The money will just come.”

“Always remember, Be Honest, Be Kind and Live Life with Integrity.”