FormWorks Inc: Taking on challenges

Source: Exec Digital USA

Date :8/13/2008 11:44:14 AM

FormWorks’ Don Marks explains why he remains confident concrete will retain its place in the construction industry.

Written by Fiona Nicholson and Produced by Rich Gentile

There is no doubt that the president of concrete contractors FormWorks knows his company and his industry very well. Don Marks had his first experience of the concrete business in the early 1960s, when he was still at school.

The owner of FormWorks was a friend of his father and when he heard he was looking for a student to help out during the summer, Marks obliged. He didn’t know it at the time, but he had just begun his longstanding career within the concrete industry.

After college, he was employed at FormWorks for eight years or so, before running his own company for almost a decade. His next career move was to return to FormWorks.

At this time the company was turning over around US$8 million. It increased hugely over the years, to close in on US$100 million before dropping back to US$9 million after 9/11. Not surprisingly, the disaster had a negative impact on the industry. There were very few projects available, prices were cut and there was a lot of competition for what little business was available.

It was far from an ideal business scenario, but circumstances meant that FormWorks had to accept some projects at prices they would not have accepted previously. In some situations, this did not make economic sense, but it worked in their favor. When the market eventually improved, FormWorks found themselves in an even stronger position than before.

The challenges

While FormWorks is a successful company, it nevertheless experiences a number of challenges. The ever-increasing costs of construction are an ongoing cause for concern. Although the market is busy, the costs of materials, labor and insurance have risen.

Another problem is emerging for the Fort Lauderdale company. Some high-rise construction in the Florida market is being built using larger proportions of structural steel instead of concrete, simply because there have not been enough concrete contractors to handle the volume of construction.

Marks perceive this as a potential threat to his business, as there is possibility steel could become a preferred option, rather than a second choice. He is philosophical about potential problems, however, as he appreciates that the industry will always be a tough environment to operate in.

But if he allows himself one thing to be genuinely worried about, that is the very real concern about being able to pay his team enough to keep them, at a price that is economically viable for his business.

It does occasionally happen that a competitor can entice a crew away from their employer by increasing their wages. If this were to become a regular occurrence within the industry, he acknowledges it would cause him some sleepless nights.

Technology

Some businesses are driven by technology but Marks does not envision much impact on the concrete industry from this direction. However, he is keenly aware that the industry’s customs and procedures are not set in stone.

As a result, he ensures he keeps himself abreast of any advances by visiting the main trade shows regularly. The aim is to identify any changes that could be made to FormWorks’ operations, to ensure they continue doing the best job possible.

Safety

It would be reasonable to assume that safety measures that have always worked will continue to do so in future. In other words, if it isn’t broken, there’s no need to fix it. But FormWorks found to its advantage, that continuous improvement in this area could be extremely beneficial. The company took the decision to focus more attention on safety as a whole and they achieved a very satisfactory result: Insurance costs and accidents both reduced substantially.

Advantages

Despite the ongoing challenges and problems the concrete industry generates, it has its advantages.

“One of the things I enjoy about this business is that there’s a lot of variety on a day-to-day basis,” Marks says. “One way to handle that is to get involved with other concrete contractors, like through the American Society of Concrete Contractors. It’s helped me to see how other contractors are dealing with a problem or to see that there is no solution so I should just stop worrying about it.”

Some products go in and out of fashion, but Marks is convinced that concrete will remain popular. He believes that when it comes to choosing the best surface to walk on, concrete is hard to beat.