BRUSA September 2015

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WWW.BUSINESSREVIEWUSA.COM

SEPTEMBER 2015

WORLD FAMOUS

ENTREPRENEURS IS THE MOST FUNDED COMPANY IN THE STATES

COMPANY OF THE MONTH KALEIDA HEALTH Oishei Children’s Hospital Project



DIRECTOR’S LETTER

WITHOUT QUESTION, 2015 has been a year of uncertainty: From historic

drops on the stock market to threats of a new recession, the American economy is, admittedly, not at its strongest. FORTUNATELY, CORPORATE AMERICA ISN’T SITTING STILL.

This month’s Finance piece focuses on the mythical “unicorn,” a term used for tech startups that have been valued at $1 billion (or more) prior to funding. Using information collected from Quid and an analysis provided by Fortune, we break down the top sectors that are on the receiving end of VC funding. We also take an in-depth look at omni-channel marketing, exploring how this effective method may result in more negative results for mobile phones than expected. Finally, we explore the top 10 most famous entrepreneurs, and how their business acumen has resulted in A-list celebrity-status. It is through these leading entrepreneurs and companies that the U.S. economy will undoubtedly thrive, and this issue is a celebration of this strength.

Jennifer White

Director of Content jennifer.white@wdmgroup.com

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CONTENTS

FEATURES

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MARKETING Mobile in the middle

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FINANCE The truth behind unicorns

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TOP 10 10 Entrepreneurs Who Found Fame From Their Business

COMPANY PROFILES CONSTRUCTION 28 Kaleida Health - Oishei Children’s Hospital Project 38 Crabtree Pipeline Project 48 DPR ConstructionBioMarin Expansion Project

58 Turner Construction Cleveland Clinic Cancer Building

SUPPLY CHAIN

48

DPR Construction

58 Turner Construction

66 Worldwide Express Corporate

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THE TRUTH BEHIND UNICORNS In the past year, venture capitalists have invested over $64 billion tech startups with a valuation of $1 billion or more—is the worth of these so-called unicorns fable or fact? W R I T T E N B Y: J E N N I F E R W H I T E

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FINANCE San Francisco-based analytics company Quid recently screened its proprietary database of companies that received at least $5 million in venture capitalist money from June 2014 to June 2015. As noted by Fortune.com, the company identified a total of 2,233 heavily-funded startups across a range of industries. These so-called “unicorns,” or tech startups with a valuation of $1 billion or more, continue to peak investor interest: Funding for private technology firms leapt 25 percent from the last year, and 92 percent compared to two years ago. The following sectors were the most heavily funded in the U.S. over the past year. 1. Business & Financial Tech | $11.3 billion There was no competition for the business & financial tech-focused unicorns: Investors were more than happy to spread their generosity, providing 388 startups with funding and solidifying the sector’s spot as the most funded. Among the 388, one company did stand-out: YourPeople, a payments & processing company based in San 8

September 2015

Francisco, which has received $598 million in investments, placing it as the No. 1 most funded company within this sector. Doing business as Zenefits FTW Insurance Services, the organization operates a cloud-based HR automation platform for small- and medium-sized businesses. • Top funded company: YourPeople • Most recent valuation: $5 billion 2. Urban Mobility & Vehicles | $9.1 billion According to Fortune, 121 unicorns received funding for work within the urban mobility & vehicles sector and without question, the sub-sector that received the most funding was travel & cars: Out of the $9.1 billion allocated to this sector, $8.8 billion was invested specifically within the popular category. The company catapulting the sector to the No. 2 spot? Uber Technologies, Inc., which has received $6 billion in funding since its inception and was valued in July 2015 at approximately $51 billion.


THE TRUTH BEHIND UNICORNS

According to the Wall Street Journal, Uber’s fast-paced rise above the $50 billion mark illustrates the brand’s “aggressive global expansion into more than 300 cities,” proving that the value and quantity of this unicorn will continue to increase. • Top funded company: Uber Technologies, Inc. Most recent valuation: $51 billion

3. Biotech & Pharma | $8.9 billion Of the 301 biotech & pharma companies funded by U.S.-based VCs from June 2014 to June 2015, 180 identify specifically with the pharmaceutical, therapeutic & gene therapy sub-sector. At the top of this list is Intarcia Therapeutics, Inc., which has received $906 million in investments since launching.

Pinterest was the most funded social media app from June 2014-June 2015, receiving $1.9 billion


FINANCE

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Palantir Technologies


THE TRUTH BEHIND UNICORNS

Incorporated in 1995 and headquartered in Boston, Intarcia Therapeutics has a strategic partnership with Quintiles, Inc. and Servier. The company was formerly known as BioMedicines, Inc. and changed its name to Intarcia Therapeutics, Inc. in September 2004. • Top funded company: Intarcia Therapeutics, Inc. • Most recent valuation: $5.5 billion 4. Advertising & Media | $8.7 billion When analyzing the advertising & media sector, it isn’t very surprising to learn that social media apps & content was the stronger of its two sub-sectors in terms of investments ($6.5 billion compared digital media, marketing & sales, which earned $2.2 billion). It also doesn’t come as a shock to learn that Pinterest received such a high amount of funding ($1.9 billion)— but where are all of the others sites? Of the 344 companies referenced, only Pinterest and InsiderSales.com had received enough funding to be mentioned.

• Top funded company: Pinterest • Most recent valuation: $11 billion 5. Big Data | $6.4 billion The 231 companies to be funded under the Big Data umbrella were split between infrastructure & machine learning (161 companies at $4 billion) and data center & cloud applications (70 companies at $2.5 billion). The most noteworthy? Palantir Technologies, which creates datamining software for large corporations and government entities – it’s even backed by the CIA – and has received an estimated $1.1 billion in VC funding to-date. Recently valued at $20 billion, the secretive startup has secured its place as the fourth most valuable venturebacked company in the world. • Top funded company: Palantir Technologies • Most recent valuation: $20 billion Sources: Bloomberg Fortune The Wall Street Journal Quid

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MARKETING

MOB

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As omnimost effe marketin

W R ITTE N BY SHO PU LAR.C 12 September 2015


BILE IN THE

MIDDLE

-channel is proving to be one of the ective – and intrusive – means of ng, mobile may get the blame.

: N A V N E E T LO I W A L , C E O O F COM 13


MARKETING OMNI-CHANNEL IS REDEFINING 21st century marketing because it has created a more results-oriented way for branders to reach and relate to intended audiences – one that offers a stronger intuitive connection with the consumer, and greater interactivity and collaboration among buyers and sellers than ever before possible. And no single tool within this new marketer’s palette is better poised to direct the dialogue than mobile, and in particular smartphone devices. The mobile invasion Mobile truly is the lynch pin within the omni-channel environment. It is the predominant way for retailers to interject into the consumer’s mindset in-store, making it the most powerful medium for reaching in-state, on-the-go shoppers (with the possible exception of aisle display and end-cap interactive advertising). In a recent survey, close to half of shoppers admitted to browsing retailers’ own sites or apps in-store. [1] Because most of these mobile shoppers are highly mindful of activity on their smartphone versus other devices, it is the most interruptive tool 14 September 2015

within a brander’s arsenal. Research has revealed that mobile usage can literally “double the value of in-store visit.” [2]. Also, according to Google, smartphone devices have “given retailers more opportunities to build brand loyalty: 51 percent said they used digital devices to look for additional information after buying.”[3] This ability for branders to now reach consumers at sequential points of influence across their lives and their shopping experience has irrevocably changed the marketing equation. The days of linear advertising simply


no longer exist, and retailers who fail to utilize myriad channels – simultaneously – to reach desired targets will sadly lose competitive advantage. While multiple digital tools within the omni-channel spectrum have emblazoned the marketplace, mobile in particular is at the heart of this new marketing world order because it has the opportunity to impact nearly every aspect of the retail experience. Consumers It’s empowering them with more

information and up-to-the-minute purchase opportunities. Retailers It’s opening up a bonanza of untapped revenue generators that challenge them to better optimize each link within their profit cycle. And at the center of this omnichannel marketing evolution sits the mobile phone because it meets the needs of both parties in a reciprocal fashion. Optimizing omni-channel 15


MARKETING

Not only does omni-channel mobile marketing encourage increased spending, it also helps to stretch the discretionary dollar further, a feel-good by-product of the mobile revolution that’s healthy for the American economy and retail industry overall. Below are four observations that will shape marketing strategy as it relates to the omni-channel spectrum and mobile’s place within this increasingly intricate new communications horizon: 16 September 2015

1. Holding the dialogue in real-time is becoming increasingly critical, as decisions are made and influenced on the fly. Shoppers will gravitate to retail brands that demonstrate genuine caring about their lifestyle, shopping preferences, and desired means of communication. Thanks to today’s busy lifestyle, the average consumer is typically shopping when they are already energy and time-strapped. By engaging with them via apps, text


TRENDS SHAPING MOBILE COMMERCE IN CANADA

messaging and email, as a complement to in-store kiosks and other prominent “out-of-home” marketing channels, merchants have a greater opportunity to derive a meaningful dialogue that can direct purchase behavior in the moment. 2. The conversation must be truly two-way. Because the omni-channel environment is highly interactive, brand marketers must be listening far more than they’re talking. This requires a

dual dialog with built-in mechanisms to monitor the conversation. It also mandates that marketers respond with more agility around the way sales and marketing messages are created. Each communication needs to deliver measurable value for the consumer. Consumers – by design – have overwhelmingly adapted mobile as the two-way communication tool for these purposes; after all, we broadcast messages and instant message via our smartphones because the technology 17


MARKETING is quick and easy and the devices are always with us, wherever we go. 3. The omni-channel medium the consumer chooses is dependent on time, location, and necessity, but “the message” must transcend these boundaries. Channel preference is conditional based on user behavior, but what must remain consistent – regardless of whether it is being transmitted online, via mobile or across more static, traditional marketing channels – is the quality of the message across the selected channel. As long as it is effectively delivered to qualified audiences in

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a timely fashion, marketing content that is aligned with a brand’s unique value proposition and that provides unified equity, across the marketing spectrum, will set the retailer up for greater success. 4. With omni-channel, it’s easier to monitor shopper activity outside of the store and to effectively target consumers to come into the store. Mobile is the at-the-ready technology that will make this possible. As reported in RetailWire, “thanks to beacons, geo-fencing and other quickly-maturing technologies, it has become much easier for marketers


MOBILE IN THE MIDDLE

to monitor where customers are shopping and to customize those shopping experiences based on specific locations.”[4] Because there are multiple channels that consumers actively use, the volume of feedback from these varied touch points is now greater than ever, providing merchants with a robust set of metrics by which to calibrate marketing offers and customize their sales outreach. But, it’s mobile that is truly at the heart of this equation because no other medium can accompany the consumer on his or her purchase journey in quite the same highly interactive way – offering a real time pulse point that can Engage the shopper, Elicit information, and Influence decision-making all at the same time. Omni-channel mobile marketing and beyond Advances in omni-channel marketing are truly a multi-dimensional “gift” to national retailers because it gives them more integrated branding opportunities and cost-effective delivery methods literally at their fingertips. And it allows them to hand feed their messages, with greater

laser precision, to intended targets. There is a method of access for nearly every retailer to easily reach a highly qualified and segmented consumer. From laptops, to wearable devices, to smartphones, e-billboards, live chat, social media and more, the possibilities are almost endless – and attainable in a budget range to accommodate most every brander’s price point. As long as the quality of the message remains worthy of the medium, the omni-channel environment is going to “open” up the marketplace for businesses on a whole new level – and in a sense will help to level the playing field to create a more inclusive overall commerce environment. Merchants have good reason to polish their storefront shingle. The marketing landscape is more alive and diverse as it has been in decades and mobile, given its ubiquity, is the player up at bat with the strongest opportunity to deliver relevant, contextualized information to a hungry marketplace. Navneet Loiwal is the CEO of Shopular.com, a free mobile shopping app for Apple and Android. 19


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Entrepreneurs Who Found Fame From Their Business Business moguls who became famous from their entrepreneurial work Written by: Eric Harding

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They say success breeds success. Being an entrepreneur is more than just about how much money you’re able to make, it is also about putting others in a position to succeed. Some traits that all successful entrepreneurs seem to have in common are leadership, innovation, passion, willingness to take risks and being unfazed by setbacks. And as it turns out, those who portray these characteristics at the highest possible level, wind up being house-hold names. While this isn’t a ranking, below you will find a list of the world’s most famous entrepreneurs who became wellknown from their various businessness efforts.

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A computer programmer and Internet entrepreneur, Mark Zuckerberg is best known as chairman and CEO of Facebook. The most famous of the five co-founders of the social networking site, Zuckerberg has a net worth of approximately US$38.6 billion. Named one of the 100 wealthiest and most influential people by Time magazine, and at age 28, he was the youngest person on the Fortune 500 list in 2013.

Mark Zuckerberg

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Oprah Winfrey

The wealthiest African American of the 21st century with a net worth of over $3 billion, Oprah Winfrey is known by many as the most influential woman in the world. Aside from her world-renowned 22 September 2015


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television show, Winfrey has also had success with her own cable network, OWN, as well as her media company Harpo Productions. In 2014, Winfrey’s self-help seminar “The Life You Want” tour sold out stadiums around the country. As the only African-American woman on The Forbes 400 Richest Americans list, Winfrey has also donated hundreds of millions of dollars to educational causes, such as scholarships to Historically Black Colleges and Universities (HBCUs), as well as her all-girls school in South Africa.

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Hugh Hefner

An American adult magazine publisher who is mostly known for being the founder and CEO of Playboy Enterprises, Hefner is worth over $43 million. Creator of the adult magazine Playboy, the brand also includes a vast publishing, television and Internet empire. Since the 1990s, Hefner began devoting a lot of his time toward his philanthropic and civic projects, such as starting the Playboy Foundation to begin handing out the Freedom of Expression Award, which is given annually at the Sundance Film Festival. In recent years, Hefner has received awards for both the publishing industry as well as his contributions to society.

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Warren Buffet

Described by some as the most successful investor of the 20th century, Warren Buffett is an American entrepreneur, investor and philanthropist. He is most known as chairman, CEO and the 23


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largest stakeholder of Berkshire Hathaway, a multinational conglomerate holding company that owns Geico, Fruit of the Loom, Helzberg Diamonds among others, with significant minority holdings in American Express, Coca-Cola and more. Buffett is consistently ranked among the wealthiest people in the world, taking the No. 1 spot in 2008 and placing third in 2015 with a net worth of $67 billion. In 2006, Buffett announced he would donate his entire fortune to charity, which is the largest charitable donation in United States history at an estimated $62 billion. In recent years, Buffett has also purchased Heinz, Burger King and a portion of Anheuser-Busch. In 2013, he was ranked No. 15 on

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Forbes magazine’s World’s Most Powerful People list.

06

Richard Branson

An English businessman and investor, Richard Branson is mostly known as the founder of Virgin Group, which is made up of over 400 companies. His entrepreneurial projects began in the music industry, as he founded Virgin Records in 1972. Branson later launched Virgin Atlantic airline in 1984. Today, Virgin Group has companies in over 30 countries, including Australia, the United Kingdom, the United States, Canada, Asia, South Africa and other parts of Europe. In 2009, Branson found


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himself on Forbes’ “World Billionaires” list with $2.5 billion in self-made earnings, which includes two private islands. He has an estimated net worth of $4.9 billion.

general secretary of the Soviet Union Mikhail Gorbachev. His other best-selling books include Unlimited Power and Awaken the Giant Within. Today, his net worth is estimated at $480 million.

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04

Tony Robbins

A motivational speaker, personal finance instructor and life coach, Tony Robbins is best known as an author of self-help books. Popular for his publicized “firewalk” seminars where participants walk over hot coals, Robbins has coached several world leaders including Princess Diana, U.S. presidents George H.W. Bush and Bill Clinton, as well as former

Elon Musk

Born in South Africa, Musk is best known as the CEO and product architect of Tesla Motors. He’s also the founder of PayPal, founder, CEO and CTO of SpaceX, as well as chairman of SolarCity. He made headlines when SpaceX launched a rocket that wound up being the first commercial vehicle to reach the International Space Station. Most recently, Musk released a new idea of

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transportation called Hyperloop, which in five to eight years down the line will allow people to commute between major cities through tubes at 1,126.5 kilometres per hour. Today, Musk has a net worth of $13.6 billion.

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Donald Trump

Best known as a real estate mogul, Donald Trump is the chairman and president of The Trump Organization, owner of Trump Plaza and the founder of Trump Entertainment Resorts. When he opened the Grand Hyatt in New York in 1980, Trump became one of the city’s most famous developers. Today, he has become an American celebrity as

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host of the television show The Apprentice, in addition to his recent candidacy for President of the United States in 2016. His net worth is $4.1 billion.

02

Mark Cuban

Owner of Landmark Theaters, Magnolia Pictures and the National Basketball Association’s (NBA) Dallas Mavericks, Mark Cuban is the definition of a self-made billionaire. His first business was a consulting company called MicrosSolutions, which he eventually sold to the firm CompuServe for $6 million in 1990. He later created Broadcast.com,


T O P 1 0 E N T R E P R E N E U R S W H O F O U N D FA M E F R O M T H E I R B U S I N E S S

which went public in 1998 and had its stock rise to $200 a share before selling to Yahoo! for nearly $6 billion. In 2000, Cuban purchased the Dallas Mavericks for $285 million and saw the franchise win its first NBA championship in 2011. Today, Cuban is also famous for his role as an investor on the hit television show Shark Tank.

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Bill Gates

Best known as the co-founder of Microsoft, the world’s largest PC software company, Bill Gates is also a business tycoon, philanthropist, investor and inventor. Gates first earned a place on Forbes’ World’s Wealthiest People list back in 1987, and then took the top spot each year from 1995-2014. Currently the richest man in the world, Gates’ wealth more than doubled between 2009 and 2014, as he has an estimated net worth of $78.9 billion.

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Kaleida Health/ John R. Oishei Children’s Hospital The New John R. Oishei Children’s Hospital: A beacon of excellence in children’s care

As the largest healthcare provider in Western New York, Kaleida Health is continuing to make patient care more effective and efficient by building a brand new children’s hospital on the Buffalo Niagara Medical Campus Written by: Stephanie C. Ocano

Produced by: Tom Venturo


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Interior Bridge

“Construction of the hospital remains on schedule, with doors set to open in late 2017” 30

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ith a mission to advance the health of the community, Kaleida Health’s expert, compassionate healthcare professionals are committed to providing the best possible outcomes and experience for more than one million sick or injured patients each year. As the largest healthcare provider in Western New York, Kaleida Health serves the area’s eight counties through its hospitals – Buffalo General Medical Center/Gates Vascular Institute, DeGraff


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Memorial Hospital, Millard Fillmore Suburban Hospital, and Women & Children’s Hospital of Buffalo – two long-term care facilities, more than 80 outpatient clinics and home health care through the Visiting Nursing Association of Western New York, Inc. For more than 120 years, Women & Children’s Hospital of Buffalo has been the regional center for comprehensive, specialized pediatric and women’s health services.

President, Women & Children’s Hospital of Buffalo, Vice President, Kaleida Health

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Kids put pennies in concrete as part of a fundraiser for Stone’s Buddies, a program for chronically ill children

In an effort to streamline patient care, expand services and treat more patients in an ambulatory setting, Kaleida Health embarked on the journey of building the new John R. Oishei Children’s Hospital on the Buffalo Niagara Medical Campus. Mickey Mariacher, Director of Construction Management, manages the day-to-day construction operations. As the contact person representing the new hospital for all matters with contractors and the architect, Mariacher discussed the hospital’s vision, the challenges of building in a weather-difficult region and the 32

September 2015

impact one hospital will have on Western New York and beyond. The vision “In order to provide the best care, it was deemed necessary to build a completely new building,” Mariacher said as she watched a 200-foot crane lift a piece of steel during the interview. “The previous facility was an aging conglomeration of buildings that were assembled over the years, and as such, there were some convoluted hallways and difficulty navigating from one building to another. In this new building, we were able to get all of


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NICU Draft Render

the services that we had in the 600,000 square foot Women & Children’s Hospital of Buffalo to fit economically and efficiently into the new hospital’s 425,000 square feet.” Discussions for a new hospital began back in 2012, and the design process took nearly two years. A historic $10 million donation from the John R. Oishei Foundation was announced at the new hospital’s groundbreaking ceremony in August 2014. In line with its mission to serve as a catalyst for change in the region, The John R. Oishei Foundation chose to become the lead supporter of the hospital to ensure families continued to have immediate access to specialized health services. Since then, the hospital has received nearly $50 million in funds. Following the groundbreaking, the team for

“This hospital will benefit hundreds of thousands of people for many years to come” – Mickey Mariacher,

Director of Construction Management

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K A L E I D A H E A LT H / J O H N R . O I S H E I C H I L D R E N ’ S H O S P Turner Construction Company began the Building Information Modeling (BIM) process, which used a 3D software program to construct the building in an effort to avoid potential clashes and facilitates coordination between all disciplines before they step foot on the site. Construction of the hospital remains on schedule, with doors set to open in late 2017. “Our vision for the new hospital is to be the innovator, the highest quality, highest value provider and partner, and the regional referral Jody Lomeo - President center for women and children’s health care,” said and CEO, Kaleida Health and Great Lakes Health Mariacher. System of Western New The 12-floor, 183-bed, free-standing facility York

Phone: 716-362-9720 Fax: 716-875-4929

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will be adjacent to the University of Buffalo School of Medicine and will offer hands-on experience for medical students. An emergency room will be equipped with four trauma rooms. A neonatal intensive care unit will provide aroundthe-clock support for the sickest children, and dedicated labor and delivery rooms will be designed to offer the best care possible. With overarching design elements intended to be “kid-friendly,” the hospital will encompass light and open spaces, greenery inside and outside the building, color-themed floors, and a “beacon of light” from the ground to the roof on one corner of the hospital that will be visible from miles away. “We are the only children’s hospital in Western New York,” explained Mariacher. “We’re looking for [the hospital] to be a building that, through its design elements, offers comfort to you as you walk in with a sick child.”

along the way, but Mariacher is well prepared to handle these and see the project to the end through efficient coordination. “Design takes several years, and construction takes several years, and it’s not uncommon during the construction process for new trends, innovations and equipment for operations to dictate the need for a change,” said Mariacher. “Change while you’re in the middle of building is always a challenge, but it is something we are able to handle successfully.” One of the challenges Mariacher and her team have faced is the harsh winter climate New York offers. The winter of 2014 saw freezing temperatures well below 0 degrees, and this year’s winter is expected to be the same. In order to offset this, a temporary wrap is placed around the building that can retain heat throughout the interior, allowing construction to continue. “We heat it to at least 40 degrees, which allows us to continue to work Overcoming challenges through the winter,” said Mariacher. With a construction project of this “So, while we spend a little money magnitude, worth $270 million, there on heat and the wrap, we gain are bound to be some roadblocks everything back by being able to w w w. k a l e i d a h e a l t h . o r g / C h i l d re n s / o i s h e i /

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K A L E I D A H E A LT H / J O H N R . O I S H E I C H I L D R E N ’ S H O S P

Mickey Mariacher and CEO Jody Lomeo putting pennies in concrete that will be used in the foundation. This is part of a fundraiser for Stone’s Buddies, a program for chronically ill children at the Women & Children’s Hospital of Buffalo

work through those three or four months.” Safety is also another concern that is always on the forefront of everyone’s minds during a construction build. Oishei Children’s Hospital is being built next to an existing hospital that is still in operation, which offers its own set of unique challenges—such as 36

September 2015

accessibility to an adjacent helipad. “We had a lot of coordination between our crane operator and our pilot that mans the helicopter flights of sick patients to our helipad,” shared Mariacher. “Our tower crane is over 200 feet high, and the new hospital is only maybe 100 feet away from the existing hospital which is also 200 feet high. We spent about


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six months coordinating a protocol so that when a helicopter is approaching with a patient, we can get the crane operator to set his load down and move the boom out of the flight path.” Daily toolbox talks, fire drills and pre-planning also go into offsetting any potential risks that might possibly occur.

Company Information INDUSTRY

Construction HEADQUARTERS

Signaling the future “When you have an opportunity to go from an ageing building that’s perhaps outlived its efficient life, and you step into a new colorful, glass, shiny building with lots of plants, liveliness and artwork, I think that improves everybody’s day,” shared Mariacher. Mariacher knows the value of a children’s hospital. She understands the worry of a parent and the fear of a child that comes from being sick. That’s why she and the team at Kaleida Health have worked hard to create an inviting yet technologically advanced hospital that is “a special place” for those who need it most. The John R. Oishei Children’s Hospital will attract the best and the brightest doctors, will support a growing community and will be a beacon of hope for women and children in Western New York and beyond. “We want this to say, ‘Bring your children here; we can take care of them,’” said Mariacher. “This hospital will benefit hundreds of thousands of people for many years to come.”

1422 Euclid Avenue, Suite 1400 Buffalo, New York, USA FOUNDED

2012 EMPLOYEES

350 REVENUE

$270 M

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The City of Raleigh Public Utilities Department

Undermining Overflow

Construction Projects Administrator Eileen Navarrete discusses the long-term benefits for residents along the Crabtree Pipeline Project. Written by: Robert Spence Produced by: Tom Venturo 39


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Setting the shoring for the microtunnel receiving pit at Hodges Street

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ocated in the heart of North Carolina, the City of Raleigh is undertaking a massive new project intended to curb wastewater overflow in the Crabtree Creek Basin. The Public Utilities Department has commissioned the Crabtree Basin Wastewater System Conveyance Improvements Project, 40

September 2015

a three-phase plan that will improve the wastewater collection system within the Crabtree Creek drainage basin. The goal is reduce inflow and infiltration (I&I) to accommodate increases in wastewater flow during wet weather events while preventing sanitary sewer overflows (SSOs). According to Construction Projects Administrator with the City


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of Raleigh Eileen Navarrete, PE, the last several years have seen more than 70 percent of its sanitary sewer overflow volume in the Crabtree Creek area. “Our service areas include three drainage basins and Crabtree is the largest in terms of flow. This basin generates almost half the flow we see every day at our facilities and treatment plant.” The $70 million initiative, which is part of the City’s 10-year, $1.3 billion Capital Improvement

“We’re spending people’s hard earned money. Our purpose is to invest it wisely” – Eileen Navarrete

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Plan (CIP), aims to provide a long-term solution to handling peak wet weather flows, as well as influx in population growth throughout eastern Wake County. Project status The Crabtree Creek drainage basin occupies an approximate area of 93,000 acres in Wake and Durham Counties, with about 85,000 acres in Wake County alone. The City has already completed the first phase of the project: rehabilitating an existing pipeline and installing approximately 21,000 feet of 60” and 72” gravity sewer interceptor from the US 64/264 bypass ramp at I-440 northwest to the east side of Capital Boulevard. The second phase of the project, which is currently underway, will include installing approximately 20,000 feet of 54” gravity sewer interceptor from Capital Boulevard to the north side of I-440 near Glenwood Avenue. Due to the nature of the work and the area, the second phase is expected to cause far more disruption than the first. “Phase two utilizes a very sizeable pipe that goes through residential, commercial and city property,” said Navarrete. “Because of this, we’re using several trenchless methods including microtunneling technology.” Designed by a team at Hazen and McKim & Creed, there are eight tunneling locations along the route. Open trench construction will begin in early

Microtunneling at New Burn Avenue

Workers in the microtunnel launch pit at Hodges Street

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View of the Hodges Street work site


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2016 and last 24 months, with the project moving from east to west. Phase three will involve improvements and expansion at the Crabtree Lift Station, which is near the intersection of US 64/264 bypass at I-440. Inner workings Recommenced by the City of Raleigh Sanitary Sewer Capacity Study, the Crabtree Pipeline Project is expected to bring significant benefits to community residents. Along with minimizing overflows, which can negatively impact public health and water quality, the project will accommodate further growth and help ensure that the wastewater collection system within the Crabtree Creek drainage basin can handle future projected wastewater flows. It will also protect surface water, which can become polluted

with overflows. Additionally, Phase II is funded through the North Carolina Clean Water State Revolving Fund (CWSRF). The funding is a loan with an interest rate of approximately half of a municipal bond. The interest rate difference will save the ratepayers millions of dollars in interest over the life of the loan. Among other things, careful planning has been fundamental for the City of Raleigh to ensure the project goes well. According to Navarrete, the City has spent a significant amount of time and money on geotechnical engineering, an investment that has already paid for itself several times over. “We’ve definitely done a lot of homework on the cost effective options that will provide us with a great product. On projects like this, it’s really important for us to buy in for the technical reasons. We did a lot of

“We’re not looking to put the cheapest material in the ground, but we’re also not looking to put the most expensive and assume it’s the best option. We’re very interested in learning about the task at hand” – Eileen Navarrete, Construction Projects Administrator w w w. c r a b t re e p i p e l i n e . c o m

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T H E C I T Y O F R A L E I G H P U B L I C U T I L I T I E S D E PA R T M E

Drilling the rock in the microtunnel launch pit at Hodges Street

homework beforehand on different technologies and solutions that fit this situation.” Although the project is expected to affect many citizens in the area, the City wants to ensure the most effective options are implemented. “We’re not looking to put the cheapest material in the ground, but we’re also not looking to put the most expensive and assume it’s the best option. We’re very interested in learning about the task at hand,” 46

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said Navarrete. “We’re spending people’s hard earned money. Our purpose is to invest it wisely.” “Our goal is to invest money in the appropriate places with the right materials and the right methods. We have to be able to stand up in front of our citizens and tell them we did it the right way,” added Navarrete. Going the extra mile The City’s choice in contractor, Bradshaw Construction Company,


ENT

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has played a major role in moving the project forward along with Moffat Pipe, who is local to the area. “Moffat Pipe understands North Carolina rules, regulations and ordinances. They know the city and helped to make the project run smoother. They’ve been a big asset on this project,” said Navarrete. Because a significant portion of the project involves digging tunnels under city roads, Bradshaw has been paramount in providing their expertise in microtunneling, helping to minimize disruptions for residents. “The location of this project is going to affect lot of citizens. Bradshaw’s expertise in the technology was critical for us to get this done and ensure the less amount of disruption possible,” Navarrete said. Taking it to the next level, the City hired a media consultant to ensure the public is well informed and updated. “We’ve invested a lot of time and effort into a communication plan for the project to ensure citizens are kept in the know,” said Navarrete. “French West Vaughan helped us immensely through this project, assisting in putting together brochures as well as local media outreach. They’ve helped shaped the project and made it important for the City and citizen and the environment.” “Positive things for the City of Raleigh are coming,” Navarrete concluded.

Company Information INDUSTRY

Public works HEADQUARTERS

222 W Hargett St Raleigh North Carolina USA FOUNDED

1913 EMPLOYEES

642 REVENUE

N/A

w w w. c r a b t re e p i p e l i n e . c o m

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DPR Construction

BioMarin and DPR Construction collaborate to build greatness Discover how BioMarin and DPR have combined talents to expand a research and development facility, achieving greatness along the way Written by: Cutter Slagle

Produced by: Tom Venturo


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DPR CONSTRUCTION

D

PR Construction and BioMarin applied for a building permit in June 2014, joining forces to expand BioMarin’s research and development facility in downtown San Rafael (ultimately bringing the developmental sciences group to BioMarin’s main administration campus). The project officially broke ground on the development in August of that same year—and it’s been on the fast track ever since. BioMarin Principal Engineering Project Manager Jim Redenbarger recently spoke about the collaboration and how BioMarin 50

September 2015

originally acquired DPR Construction’s assistance, stating: “DPR is known for doing excellent work and proved that they were best suited for this project.” “This type of project is in DPR’s core market,” DPR Construction Project Manager Tim Kueht said. “We are always searching for different projects that allow us to be collaborative and push forward in the industry, versus staying with old and traditional practices. We enjoy working with partners, subcontractors, and various people in the community to develop a relationship and joint understanding


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of the work process in order to complete a project.” While a structure to this degree often takes at least three years to complete from design to develop to build out, the center is slated to be finished in December 2015—just 18 months after starting. The factors behind this turnaround time can be contributed to a range of qualities, but collaboration is the one that seems to be the most significant. “When it comes to building, everyone is ready to go—every member of the team is completely onboard,” Kueht stated.

“We are always searching for different projects that allow us to be collaborative and push forward in the industry” – DPR Construction Project Manager Tim Kueht

Tackling challenges to the expansion This expansion project has been put into motion to create a facility that will accommodate all research needs. Most importantly, this is a solid w w w . d p r. c o m

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GHILOTTI CONSTRUCTION

IS PROUD to have Partnered WiTH DPR CONSTRUCTION ON THE Biomarin Headquarters project

WWW.GHILOTTI.com

CLSB #644515

CORPORATE OFFICE (707) 585.1221 - MARIN OFFICE (415) 256.1525 - AMERICAN CANYON OFFICE (707) 556.9145 - LIVERMORE OFFICE (925) 583.0979 - SUNNYVALE OFFICE 408 -636- 2938


DPR CONSTRUCTION

design that can help accomplish a magnitude of goals, including the ability for departments to be switched out and restacked and even turned into laboratories. Also due to this expansion, more collaboration within the building will be able to take place. Redenbarger noted that the various features of the building will be a way to bring people together. “This expansion is already proving its worth,” he stated. “Science equals change, and we are accommodating that change with this building.”

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The building is located in a very urban setting and there have been a few challenges—challenges that Redenbarger, Kueht and their respective teams have been able to overcome. For example, schedules have proven to be particularly daunting, as has the task of getting all of the right materials in order and in a timely manner. Then there’s finding the manpower—both Redenbarger and Kueht agreed that it’s not just about getting people, but the right people for the right job. “This entire project is a highly w w w . d p r. c o m

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DPR CONSTRUCTION collaborative effort,” Kueht explained. “It takes everyone involved to help achieve overall goals.” Whether it’s been the challenge with the foundation, the various bay conditions or the different restrictions that were put into place, the team has been able to work together to overcome them. “DPR is very good at identifying challenges early on—sometimes even before they happen,” Redenbarger said. “They’ve resolved issues, which has ultimately saved the project time and money.” There is a central utility plant on the roof of the building that has been quite demanding due to the fact that a lot of equipment has to fit into

CNS Mechanical, Inc. Plumbing/Piping

Our company provides complete plumbing and process piping services for commercial, industrial, and institutional facilities. Serving the greater San Francisco Bay Area, we are a licensed and certified commercial plumbing contractor signatory with Local Union #38. We look forward to the opportunity to work with you in the future as we are confident that we can provide the quality workmanship you are looking for. If you have any questions, please don’t hesitate to contact us . 36 Chrisdumar Lane | Petaluma, CA 94952 | 707.776.4552 | www.cnsmechanical.com


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such a tight space. It’s important for employees to work safely in the small quarters. This is where technology and having a model of the building came into great assistance. Technology and the assistance of BIM Both Redenbarger and Kueht have acknowledged the importance of Building Information Modeling (BIM) and how this type of technology has not only assisted all involved parties with efficiently handling the expansion, but also allowing workers to stay on track to complete the project on schedule. “Because of BIM, everyone has access to the model and all of the building information,” said Kueht “The designing and detailing information we have can be pushed through instantly, meaning BIM saves us a lot of time; BIM allows us to have a quicker and more efficient process. “With BIM, we are accurately building with the most current information,” he added. “We are finally able to see the value of technology, as well as understand it and like it.” Redenbarger agreed with Kueht’s positive feedback regarding BIM, adding, “BIM allows us to identify areas that need improvement so that we can then advance our skills and approach and move forward. We’re completely sold on the BIM process. It enhances the collaboration for all players on the project—everyone wins.” Both Redenbarger and Kueht plan to continue using BIM going forward in their careers.

“This entire project is a highly collaborative effort; it takes everyone involved to help achieve overall goals” – DPR Construction Project Manager Tim Kueht

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When asked about any other technological techniques being utilized, Kueht said, “We use the latest technology that is available, leveraging it and taking it the next level to produce faster and more accurate results.”

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Commitment to achieving milestones As with any project, one of the biggest—if not the biggest—goals is to deliver the build on time and on budget. And so far, this hasn’t been an issue with this expansion. As stated earlier, completion is looking


CONSTRUCTION

Company Information INDUSTRY

Construction Global HEADQUARTERS

945 Front Street, San Francisco, California , USA, 94111 FOUNDED

1990 EMPLOYEES

1860 REVENUE

$2.9 billion PRODUCTS/ SERVICES

Construction

to wrap up by year’s end; this is an aspect that everyone should be proud of accomplishing. “That’s our goal,” Kueht started, “to have everyone involved in the project walk away completely satisfied and proud of their work from all aspects. It’s important that everyone is happy and had a good time being part of the project.”

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Turner Construction

Expanding the Cleveland Clinic A prestigious, $276-million multidisciplinary cancer building is the latest project on Turner Construction’s extensive roster Written by: Eric Harding Produced by: Tom Venturo


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TURNER CONSTRUCTION

A

company with over 100 years of success based on the core values of teamwork, integrity and commitment, Turner Construction has announced one of its next major projects: expanding the Cleveland Clinic Cancer Building. This will result in a seven-story, 377,000 square foot multidisciplinary cancer center that will unite treatment teams and house all outpatient cancer care at Cleveland Clinic’s main campus. The hospital’s $300 million investment will optimize patient experience and physician collaboration, and will include 60

September 2015

designated space for expanded clinical trials, academics and research. The facility is part of Cleveland Clinic’s master plan to build a more open and welcoming campus for patients and visitors, while accommodating future growth. “The new Cleveland Clinic cancer building will allow us to centralize the cancer care we provide, creating a seamless, personalized experience for patients from throughout the region, nation and world who turn to Cleveland Clinic I their time of need,” said Brian J. Bolwell, M.D., Chairman of Cleveland Clinic’s Taussig Cancer Institute in a press release last


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year. “Whether treated at our main campus or at one of our centers throughout the region, patients will benefit from this more integrated, collaborative approach, which is essential in making progress against cancer.” And just like its company motto of “Rising to Meet the Challenges of a Future Bright with Possibility,” Turner Construction took on the project. Turner is a leading builder in diverse market segments. The company has also earned recognition for taking on large complex projects, encouraging innovation, embracing new

technology and making a difference for clients, employees and the community. With a vision of being the highest-value provider of global construction services and technical expertise, Turner has a staff of 5,200 employees who work on over 1,500 projects every year. In addition, it offers clients the accessibility and support of a small, local firm while having the stability and resources of an international organization. Turner understands its main asset is the people it serves. In order to be successful, the company must be rewarding place to work

w w w. t u r n e r c o n s t r u c t i o n . c o m / o f f i c e - n e t w o r k / c l e v e l a n d

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The Construction Resource Company Industrial First, Inc. is a Diversified Specialty Construction Service Organization that brings together traditionally independent construction services under a single management group.

Cleveland Office: 25840 Miles Avenue Cleveland, Ohio 44146 216-991-8600 | fax: 216-991-2139 corporate@IndustrialFirst.com

www.industrialfirst.com


TURNER CONSTRUCTION

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for its employees. Therefore, Turner provides opportunities and encouragement to help its workers fulfill their potential while building a team atmosphere. With its core values of quality, honesty and hard work, Turner has some of the top ethical standards in the industry. The company is based on trust, and Turner is consistently the associated with having high standards of its service, quality, integrity and personal attention to its clients. Due to its stature, Turner has had the honor and privilege to lead some of the most high-profile projects in the world, including the Cleveland Clinic Cancer Building expansion. The new Cleveland Clinic Cancer Building will be located adjacent to the Crile Building — the signature building of the Cleveland Clinic, and will

w w w. t u r n e r c o n s t r u c t i o n . c o m / o f f i c e - n e t w o r k / c l e v e l a n d

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TURNER CONSTRUCTION

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provide easy access for surgeons and mirror the design of the nearby Cole Eye Institute. There will also be an emphasis on scenery, particularly for patients, which includes the use of natural light and outdoor courtyard views to comfort and calm patients receiving treatment. The additional rooms will be used to hold exams, semi-private chemo infusion sessions and various patient services to support healing and counseling. A nonprofit multispecialty academic medical center that integrates clinical and hospital care with research and education, Cleveland Clinic was founded in 1921 by four renowned physicians with a vision of providing outstanding patient care based on the three principles of cooperation, compassion and innovation. Located in Cleveland, Ohio, the Cleveland Clinic has pioneered several medical breakthroughs such as coronary artery bypass surgery as well as the first-ever face transplant in the United States. Ranked fifth among the nation’s best hospitals; first in cardiology and heart surgery in 201516 by U.S. News & World Report for the 21stconsecutive year, Cleveland Clinic also ranked 12th in the country in cancer treatment. Construction on the project began in 2014 with completion scheduled for early 2017, and it is expected to bring imaging services and other technology used to diagnose and treat cancer all in one place.

Company Information INDUSTRY

Construction HEADQUARTERS

1422 Euclid Ave suite 1400, Cleveland Ohio, United States FOUNDED

1902 EMPLOYEES

100 REVENUE

$300 million

w w w. t u r n e r c o n s t r u c t i o n . c o m / o f f i c e - n e t w o r k / c l e v e l a n d

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Worldwide Express

Express lane to the top This global logistics company continues to find success with the assistance of technology, partnerships and good old fashioned hard work Written by: Cutter Slagle

Produced by: Jason Wright


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WORLDWIDE EXPRESS

Annual Conference Awards Night with Mike and Mike from ESPN 2

L NCAA Final Four Sales Contest – Winners Weekend Kick Off

Annual Conference Welcome Reception 68

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ocated in Dallas, Texas, Worldwide Express’s “unique connection with customers” motto can be partly attributed to the success of the company. Founded in 1995, the global logistics company has effectively grown to become the largest authorized reseller of express shipping for UPS®. In a recent interview, SVP of Operations Mike Grayson discussed elements that have allowed Worldwide Express to differentiate from others in the industry, such as its strong business model, use of technology and positive relationship with franchisees. In the beginning . . . Originally a reseller of small parcel services for Airborne Express, which was then purchased by


SECTOR

Annual Conference Welcome Reception

DHL, Worldwide Express signed an agreement with UPS in 2008 on the small parcel side of the industry, an agreement that is still in effect today. The company is now one of just two that resells small parcel services for UPS. In 2008, Worldwide Express began working with LTL—Less Than Truckload—and now represents 65+ carrier partners, making them the largest privately held broker of LTL in the country. “The great news is there’s still more opportunity for growth in small parcel and LTL,” Grayson said eagerly.

“Our strategies for growth and improvement are driven by technology” – Mike Grayson,

Senior Vice President of Operations

Expressing satisfaction The company’s mission statement is simple and direct: to clearly exceed the expectations of its customers, franchisees and partners. And w w w. w w e x . c o m

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WORLDWIDE EXPRESS

Mike Grayson, SVP of Operations

make shipping simple. we manage your shipping while you focus on your business.

that’s exactly what Worldwide Express does, thanks to the assistance of its business model that empowers local franchise owners to develop caring relationships with its customers. Specifically, instead of using an agency model, Worldwide Express takes a different approach. “We’re going after the small- to medium-sized business owner who has eight to 30 employees, and we’re able to have a really unique connection with that customer because a lot of the challenges that they face as business owners are challenges that our franchisees face,” said Grayson. “We’re able to build on a real connection that already exists, because of common experience.”


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The importance of technology “Right now, ‘technology’ is a buzzword,” explained Grayson. “Our strategies for growth and improvement are driven by technology.” While Grayson noted that the Worldwide Express business is all about the movement of shipments —the movement of goods and services around the country and world— information regarding these shipments is becoming just as important. Simply put, technology improves the ability to work with customers. According to Worldwide Express, the ability to leverage technology is a key ingredient for the customer, due to the fact that they can track and trace the information of their packages. “People have the ability now to go online and track their shipment, to understand where an item is going and when it’s arriving. The transfer of information regarding those shipments has quickly become a critical part to supply chain management,” said Grayson. On the other side of the spectrum—the carrier’s side—technology assists with the reporting structure, streamlining the packaging process, including shipment rates, as well as other business intelligence pieces of the equation, such as a package’s average weight.

“Being able to provide access to information and data that is meaningful to a customer is key” – Mike Grayson,

Senior Vice President of Operations

But it all goes back to the customer. “Being able to provide access to information and data that is meaningful to a customer is key,” said Grayson. w w w. w w e x . c o m

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CEO, Tom Madine, and CFO, Rob Rose, pictured with Anthony Robles


WORLDWIDE EXPRESS

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In fact, the addition of technologies will allow for customers to become more productive and even help to improve efficiencies. Today, the customer spends a lot of time, energy and effort in a very manual world. These new technologies will aid in different areas that include claims processing, billing disputes and documentation retrieval. Worldwide Express is working to provide more automation and efficiency from electronic access to information.

new opportunities for both the small parcel side of the business and LTL. “Our sales people and account managers are out on the street every single day and in the offices of our customers,” Grayson explained. “Our team is trying to provide solutions from a logistics management standpoint in which these companies are run. We see first-hand how they move their product in and out the door.” “This won’t be changing any time soon,” he noted. “It’s a very effective approach for us.” Attracting new customers It is that local interaction that helps When it comes to retaining to set Worldwide Express apart from customers, Worldwide Express uses other companies in the industry, as a face-to-face approach, meaning they’re physically observing how it’s not transactional. these businesses are processing Grayson described Worldwide shipments and freight. Therefore, Express as a “feet on the street” appropriate solutions can be type of company. By knocking on provided that are real, practical and doors and making cold calls, the add value. team is constantly searching for As for attracting new employees,

“It’s important that we continue to represent the brand in a positive way” – Mike Grayson, Senior Vice President of Operations w w w. w w e x . c o m

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WORLDWIDE EXPRESS

Annual Conference Meeting Sessions

Worldwide Express often gets a mix Depending on how long an employee of new college graduates and already stays with the company, certain established sales professionals. levels of training take place, ranging 74

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SECTOR

from basic sales training to more progressive and sophisticated techniques in their ACE training, which stands for Advanced Concepts and Excellence. “It doesn’t matter what field they’re pursuing in the industry, from managers to freight coordinators. Anybody and everybody in the organization gets some type of training,” Grayson explained. Driving the business forward As for the future of Worldwide Express, Grayson believes the business will continue to stay on track, and to have a heavy focus on UPS. “It’s important that we continue to represent the brand in a positive way,” he said. Furthermore, Grayson believes there’s plenty of room to grow and educate the existing team, as well as find more opportunities in the LTL space. “As a main driver for us, it’s important to continue to learn how to understand customer needs and pair those needs with solutions,” Grayson said. In the future, the main focus for Worldwide Express is to understand the opportunities that lie within each customer and then utilize its expertise to provide solutions. “For us, the business is and will continue to be about relationships. How we treat our carrier partners and our customers is our primary focus. Nothing should ever trump the importance of those relationships.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

2323 Victory Ave. Suite 1600 Dallas, Texas United States, 75219 FOUNDED

1995 EMPLOYEES

375 REVENUE

$500 million

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