Ahead of the game

Source: Construction Exec

Date :13/11/2007 10:10:01

The Ferma Corporation is busy carving a new chapter in its history with some of the most innovative practices in the market.

Written by Ben O’Hanlon & produced by Sean Bakke

Founded by four brothers in 1963, Ferma Corporation has passed through three generations of family to become a leading provider of demolition and engineering services.

Today the torch rests with Mark Ferrari, company President and grandson to one of the original four. Mark took-over three years ago and has been focusing on regaining the competitive edge that, he says, had narrowed in previous years: “Three years ago we were at a level playing field with our competitors – they’d caught up with us.

My job has been to continue to move us forward, to build the infrastructure to let us grow.” And you can’t argue with the results to date; Ferma has achieved impressive sales levels, low staff turnover and a long list of happy customers.

The Complete Service

Ferma is keen to brand itself not simply as a demolition company. In fact its services are far wider ranging; from excavation and site preparation through to laying underground piping. Ferrari claims that its broad range of activities has been central to the company’s success:

“We’ve been able to sustain our size by being very good in a lot of areas. When one market dries up we can focus on another area.” This also links in with a firm commitment to customers, minimizing the need for additional subcontractors and the potential for problems by offering a complete service.

One of Ferma’s most successful projects was the demolition of Stanford University’s 86,000 seater stadium in 2005. Given a tight schedule of twelve days to complete the work, staff had to deal with bad weather conditions as well as their normal day-to-day operations. They worked 16 hours a day across two shifts to ensure the work was completed on time. In fact, it was completed three days early and under budget.

Excellence in innovation

Innovation is important to any company, but to Ferma it is fundamental to its corporate philosophy and, I sense, to its success. “We’ve always been pioneers – the brothers were always ahead of the curve”, says Mark. Not much has changed - over the past few years Ferma has invested heavily into researching and developing custom recycling machines, used to separate and break down the materials they demolish whilst still on site.

This includes aluminum, steel, wood and concrete, all ready to be reused. Some 500 truckloads of these materials were hauled away from the Stanford job alone; only about five per cent of that made it to a landfill site.

Aside from the huge environmental benefit, the company has been able to drive down costs associated with transporting and disposal of materials. The innovative recycling machines certainly highlight Ferma’s achievements in remaining competitive – I’m told staff regularly contend with video cameras stealing a look over the fence.

This competitive edge is particularly important given the impacts of changes in the housing market. Where any given job might have attracted two or three bids in the past, now there might be up to twelve other companies vying for the work.

But it’s not just about keeping in front, more about leading the way. “We want to create a model showing the right thing to do – setting the standards for other companies to follow”, says Mark. It’s an ambitious vision, but one that’s largely been realized. Notwithstanding its environmental contribution, Ferma has an impressive safety record; they’ve had no serious accidents to date. Not bad for a demolition company that’s been in business forty-four years.

The core model goes beyond safety and environmental responsibility to encompass just about all aspects of the organization; from their policy on minimizing paper usage to the technological revolution that Mark has been instigating in an attempt to deliver greater efficiency. Site technicians are provided with real-time communication in the form of handheld computers - an attempt to give employees access to the most accurate, up-to-date information.

Personal Commitment

There’s also a core focus on people, a welcome legacy of Ferma’s family roots. And in an industry where delays can have serious financial consequences Mark views honesty as an essential pre-requisite for good customer service. “It’s so important to be realistic”, he says. “If I tell you we’re going to do a job in three weeks then we’re going to get it done. We’re not out to do one job - it’s about repeat business.”

The staff too are still treated as ‘one big family’, even though busy periods can see numbers rise as high as 400. Consequently, turnover is very low with some staff members boasting over thirty years of service.

At the centre of Ferma’s ability to offer an efficient, timely service is its fleet of trucks located in Redwood City and its equipment facility at Newark. The latter caters for the repair, maintenance and storage of just about anything the company might need to complete its work. In limiting outsourcing, Ferma is able to keep the resources it needs at its fingertips and to guarantee the quality of its equipment.

It re-affirms the commitment to safety and customer service. Mark acknowledges that the company could rent its trucks cheaper externally but sums up the company’s philosophy well: “If we have a job to do then day or night we need to know we can do it. By owning our own equipment we control our own destiny.”

All this underlines Ferma’s long-term commitment to continuous improvement. By constantly re-inventing itself, by foreseeing and reacting to future trends, by pursuing innovation and operational excellence, it’s able to build sustainability into its very core.

The company has come a long way from its humble roots – but Mark Ferrari is just as ambitious about the future. “I’m really excited about everything we’re doing”, he says. “It’s about getting the core model right and then pushing it out.” With operations stretching the length of California and plans to expand into Nevada, the future looks bright.