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The Newzz – Your Source For Everything Bozzuto Construction

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From the Desk of Our President:
Is the Construction Industry Ripe for Disruption?

Summer 2018

As customer preferences evolve and change, businesses across all industries are faced with the pressure to innovate and offer the next best thing. Within the construction industry, we have watched the pace of production and innovation increase minimally over the years, which raises concern as to whether our industry is ripe for disruption.

First, let’s define disruption. “Disruptive Innovation” was first coined by one of the most influential business theorists in modern history, Clayton Christensen. Christensen defines the phrase as… “a product or service that takes root initially in simple applications at the bottom of a market, and then relentlessly moves up market, eventually displacing established competitors”.

This sounds really complicated. In practice, disruption of industries is the result of innovation which creates a new market or value proposition and displaces traditional and existing industry leaders and brands. Another point Christensen notes is that disruption generally comes from outside the industry. Interesting.

Take Blockbuster and Netflix for example. Blockbuster, worth $5 billion in 2002, stuck with their brick-and-mortar business model of renting video tapes rather than adapting to other entertainment delivery methods, causing them to file for bankruptcy in 2010. On the other hand, Netflix, once a mail-order video rental model, adapted by using evolving technology to stream its content to consumers. By the way, Netflix is now worth $147 billion.

So, what factors could cause this same type of disruption within the construction industry?

There are a number of factors that could contribute to disruption within our industry. A major one is the continuous shortage of skilled labor. However, this has been a popular topic of discussion since I started in this business, so why is it different this time? First, the supply of immigrant labor is slowing. Our industry has been held up by hard working immigrant labor for many generations from all over the world, from Irish and other European, Asian and African ethnicities and more recently to Hispanics. Without immigrant labor to backfill the aging construction workforce, where will we turn? Note that surveys of high school students show that construction generally ranks very near the bottom of the list of desired careers.

Another factor is the lack of productivity gains within our industry. Despite better products, tools and equipment, production gains have been nearly non-existent for decades. This may be caused by increased regulation coupled with poorly trained workers resulting in lower personnel skill levels, and overall fragmentation of the industry. This lack of increase in productivity gains could make our industry interesting to technology companies and Wall Street looking for an investment opportunity.

Finally, BIM (Building Information Modeling) / Virtual Design has finally made it possible to convert the thousands of pages of documents it may require to build one building, into a single model. If all participants in the building process, including Architects, Engineers, Contractors, Subcontractors, Suppliers and Interior Designers, are working from the same file, clashes will be detected, conflicts will be eliminated, and change orders will be left to varying site conditions or changes to owner desires. Most importantly, this will allow for much more off-site manufacturing of pre-fabricated building components. Think Ikea.

So, do I think our industry will be disrupted? Will the traditional players be largely eliminated?

No. But I do think that if companies don’t dramatically increase their focus on innovation, they will likely become irrelevant.

At Bozzuto, we are investing heavily in Virtual Design and refining an internal process that will make project outcomes much more predictable, reducing waste, changes and uncertainties while saving costs. More to come on this and other ways we can innovate the construction process in the future…

 
Mike Schlegel
President of Bozzuto Construction
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In the News: AVE Blue Bell is Underway

Bozzuto Construction was recently selected by Korman Communities and CornerstoneTracy, LLC to build the AVE in Blue Bell, PA. Designed by Bernardon, this four-story, 270-key building will feature luxurious furnished and unfurnished suites for guests seeking flexible-stay accommodations. Amenities will include a fitness facility, an outdoor resort-style pool, café, a massage room, and multiple entertainment and collaboration spaces. “The AVE in Blue Bell is the second project we will build with the Korman/CornerstoneTracy/Bernardon team,” said Dave Mandes, Senior Vice President of Bozzuto Construction. “We are excited for the opportunity and look forward to working together again!” The AVE is scheduled for completion in the summer of 2020.

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Project Spotlight: Monarch at Waugh Chapel Celebrates Topping-Out

Bozzuto Construction recently hosted a luncheon on the Monarch at Waugh Chapel project site in Gambrills, MD to celebrate the topping-out for one of four new residential buildings. “The team has completed dry-in for the first quadrant and two of the buildings are still being framed,” said Bozzuto Vice President, Jeff Grant. “Overall, we are on-schedule and tracking well for a summer 2019 completion.” Owned by Bozzuto and Reliable, and designed by Martin Architectural Group, this new 313,116 square foot market-rate community will offer 246 apartment units and resident parking. Featured on-site amenities include a fitness center, clubhouse, and an outdoor pool.

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In the Community: Habitat for Humanity National Women Build

For the third year in a row, the Bozzuto Construction Company Women’s Group were among the thousands who participated in Habitat for Humanity’s National Women Build Week. Founded more than 27 years ago, this volunteer program brings women together to restore the homes of hardworking families in local communities. This year, the Bozzuto team helped a family of four lay flooring, install siding, and pour concrete footers for their new home. To learn more about Women Build and how you can get involved, please click learn more.

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Employee Spotlight:
Jennifer Dmytryshyn, Senior Estimator


Bozzuto Construction would like to recognize our Senior Estimator, Jennifer Dmytryshyn for her contributions to the company over the past 12 years. Jennifer interned at Bozzuto before accepting a full-time position as a Project Engineer after graduating from college. From there she progressed to Assistant Project Manager and was promoted to Project Manager before transitioning into Preconstruction Manager, then Estimator—which led to her current senior role.

From managing bid processes, milestones, and budget production to working alongside executive leadership determining project risks and approaches, Jennifer oversees the details that are vital to a successful project start. For the past two years alone, she has led the company’s bid efforts for a portfolio of projects varying in scope and valued in excess of $2 billion.

In addition to her responsibilities as Senior Estimator, Jennifer leads our Subcontractor Default Insurance Committee where she analyzes subcontractor exposure across all Bozzuto Construction projects. As a previous intern, she also eagerly volunteered to become a leader for our internship program—administering various experience-enhancing tasks that provide interns with a snapshot of preconstruction.

Jennifer earned her Bachelor’s in Civil Engineering at the Virginia Polytechnic Institute and State University. Outside of work, her daughter and son (both under the age of five) keep her busy with swim lessons and other activities. A lover of fitness and nutrition, she also enjoys meal prepping and staying fit with a combination of lifting and HIIT style workouts.

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