Despite the construction industry being hit hard by the recession, A. Pappajohn Co. has weathered the storm well.
This year, the Norwalk-based construction company is celebrating its 20th anniversary. “It”™s very exciting,” said Gus Pappajohn, CEO of APC. “We look at it as an admirable goal when you look at the economy right now.”
During the height of the recession between December 2007 and June 2009, the construction industry lost 1.8 million jobs, according to the U.S. Bureau of Labor Statistics.
In Fairfield County there were 18 percent fewer construction companies in 2010 than in 2006, according to the U.S. Census Bureau. Of the companies that survived, staffs were reduced by 31 percent.
APC manages and builds projects primarily in Connecticut but also throughout the tri-state area. The company has managed many high-profile projects ranging from public works projects to new medical facilities. Keeping with current market trends, many of the company”™s recent projects have been construction of mixed-use apartments or repurposing out-of-date commercial real estate.
Though the real estate market has been improving, Pappajohn said new projects are rare and sometimes unjustifiable for construction companies.
“If the vacancy rate reduces, the demand will come up,” Pappajohn said. But there aren”™t many large prospective tenants moving to the area, he said.
Nonresidential construction is often dependent on a thriving economy and government spending.
APC”™s most recent projects include the Darien YMCA, Maplewood Senior Living”™s new community at Darien, Maritime Yards, the Norwalk Community Health Center, Saugatuck Center Westport and Stepping Stones Museum for Children.
The company offers aggressive pricing, which has allowed the business to stay competitive, Pappajohn said. With fewer projects to compete for in general, pricing and good relationships are key, Pappajohn said.
Though APC has been able to survive and maintain its business, it has also had to cut down on its workforce, like many other construction companies.
When APC started in 1992, it had six employees and $600,000 in gross sales. When the Fairfield County Business Journal covered the company”™s 10-year anniversary, it had grown to 38 employees with roughly $35 million in gross sales.
Now, 10 years later and after a recession, Pappajohn has 22 employees but still anticipates at least $35 million in gross sales by the end of the year.
Though there have been cuts, Pappajohn said the success of the company starts with its employees, clients and relationships with its subcontractors. By maintaining a flexible and fluid work process on each project, the company has been able to secure repeat customers and maintain a manageable volume of work, he said.
“We are thrilled to be where we are today and our success is largely due to our people,” he said in a prepared statement. “We are all team players who take personal pride in what the company has accomplished and in the integral roles each of us has played in these endeavors.”
