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WWW.BUSINESSREVIEWUSA.COM

WWW.BUSINESSREVIEWCANADA.CA

TOP10 franchises

that appeal to millennials in 2016 ....

THE RISE

of electric car manufacturing in the US

Executive profile of

OpenTable

CEO

Christa Quarles

JUNE 2016


Nutrition

Consumer Care

Ingredients You Can Trust

Lonza offers evidence-based health ingredients to the food, dietary supplement and pharmaceutical markets. Products carrying the following quality seals on the packaging show the end-consumer that they contain high quality ingredients from Lonza Ltd, Switzerland. Lonza’s nutritional quality seals signify: – Evidence-based ingredients you and your customers can trust – Regulatory and scientific support – Reliable service

Lonza Inc. Allendale, NJ, USA Tel +1 800 365 8324 contact.allendale@lonza.com

www.lonzanutrition.com

All product information corresponds to Lonza’s knowledge on the subject at the date of publication, but Lonza makes no warranty as to its accuracy or completeness and Lonza assumes no obligation to update it. Product information is intended for use by recipients experienced and knowledgeable in the field, who are capable of and responsible for independently determining the suitability of ingredients for intended uses and to ensure their compliance with applicable law. All trademarks belong to Lonza or its affiliates. © 2016 Lonza


EDITOR’S COMMENT

Hello and welcome to the June 2016 edition of Business Review USA & Canada

T H E T H E M E O F T H I S month is building, with features

on the Walsh Group’s VA Loma Linda Project, which will provide vital healthcare for veterans, plus David Reed Construction. This issue also boasts a report on Pathology Associates Medical Laboratories, also known as PAML. Before all of that, the magazine is fronted by a corporate profile on OpenTable CEO Christa Quarles, a piece on the rise of electric car manufacturing in the US, and the top 10 franchises appealing to millennials in 2016. Enjoy this issue, and do feel free to tweet your feedback to @BizReviewUSA and @NellWalkerMG

Nell Walker | Editor nell.walker@bizclikmedia.com

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CONTENTS

FEATURES

TECHNOLOGY THE RISE OF ELECTRIC CAR MANUFACTURING IN THE US

14 LEADERSHIP OPEN TABLE CEO 4 April 2016

CHRISTA QUARLES: AN EXECUTIVE PROFILE

TOP 10

FRANCHISES THAT APPEAL TO MILLENNIALS IN 2016

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30

DavisREED Construction

COMPANY PROFILES CONSTRUCTION 30 DavisREED Construction Inc: Pendry Hotel Project

42 Walsh

Construction

42 Walsh Construction Loma Linda VA Hospital

HEALTHCARE 54 PAML (Pathology Associates Medical Laboratories)

54 PAML 5


T ETCE CHHN NO OLLO GOYG Y

The rise of electric car manufacturing in the US

Business Review USA explores the relationship between America and electric vehicles, and whether the industry has the potential to expand

WRIT TEN BY: A LICE YOUNG


TECHNOLOGY OPTIMISTIC EXPERTS ARE making the case that manufacturing in general is enjoying a comeback in the United States. Rising costs of manufacturing in China, coupled with a desire to produce goods near potential consumers, are just some of the many reasons why manufacturing companies are either deciding not to offshore manufacturing plants or move offshore manufacturing plants back to the US. At the same time, others point to the fact that while many companies are returning, others are opting to leave for one or more reasons. Naturally, general manufacturing trends have an impact on the electric car industry. While many electric cars are still made abroad, current trends and statistics clearly show that this industry is doing better than ever in the States. However, a question that is on many people’s minds is whether or not improvement in this sector constitutes a comeback. The following overview provides a detailed look into electric car manufacturing in the United States, offering a summary of how many and what companies are building electric cars in the country, what the advantages are of doing so, and why 8

June 2016

current trends indicate that the US has a way to go before it becomes an electric car manufacturing hub. Electric car makers in the United States There are currently thirty-five electric car manufacturing companies in the


R I S E O F E L E C T R I C C A R M A N U FA C T U R I N G

United States. These include large, well known industries such as Tesla Motors, Chrysler LLC and American Honda Motor Co., plus lesser-known companies such as Zap Jonway USA and Electric Vehicles International. California has, by far, more electric car companies than any other state

in America, which is not surprising considering the fact that it is also the largest regional market in the country. Other states that are home to two or more electric car manufacturing plants include Indiana, Florida, and Virginia. Tesla is perhaps the best known electric car manufacturer in the world. 9


TECHNOLOGY

While the company has only sold a measly 110,000 electric cars since 2008, its recently-announced Model 3 has already generated over $13 billion in revenue, despite the fact that production will not be completed until 2018. Tesla’s image is almost certain to help the company stand out from the competition, even as competitors begin building electric cars that match Tesla’s range. Even so, the number of car manufacturers in the country is quietly growing. Faraday Future released its first electronic concept car in January 2016, and has recently begun 10

June 2016


R I S E O F E L E C T R I C C A R M A N U FA C T U R I N G

building a $1 billion manufacturing plant in Las Vegas, Nevada. The company plans on releasing its first electronic cars for sale to the public in 2018. Rumors abound that Apple is developing an iCar at the company’s Sunnyvale campus. While Apple has not confirmed that it is doing so, Tesla CEO Elon Musk recently stated that it is an “open secret” that Apple is building an electric car. Ford’s Don Butler, the executive director of the company’s connected vehicle department has stated that he not only believes Apple is building such a vehicle but that he welcomes the company’s competition in this field. Uber recently made waves by announcing that it has opened a facility in Pennsylvania to research the construction of driverless electric cars. It is clear why the company would make such a move; providing such cars to the public would cut

costs significantly, thus increasing Uber’s bottom line and customer base. US Government involvement in the electric car industry US President Barack Obama’s interest in energyefficient products and services is well known. During his term as president, the US Department of Energy has begun offering ATVM loans to qualifying car and car parts manufacturers who needed financial assistance to manufacture energy efficient cars. Both Nissan and Tesla have greatly benefited from this program, as it has enabled both companies to increase electronic car manufacturing and boost sales in the US. President Obama’s EV Everywhere Grand Challenge was launched in 2012 with the goal of bringing together America’s best scientists, engineers and businesses with the end goal of drastically lowering the cost of buying electronic vehicles. The DOE 11


TECHNOLOGY

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R I S E O F E L E C T R I C C A R M A N U FA C T U R I N G

is working on ways to significantly improve battery production, enable cars to run further on a single charge, and is researching cost effective materials for the construction of electronic vehicles. The end goal of these initiatives is to help car manufacturing companies build electric cars that are comparable in price to today’s gas-powered vehicles by the year 2022. Is it a comeback? A growing interest in electric cars, be they regular cars or driverless cars, is likely to increase customer demand. Trends indicate that a growing number of companies are showing an interest in manufacturing electric cars, which could conceivably lead to businesses setting up manufacturing plants in the United States. However, it should be noted that many potentially large electric car manufacturing plants will most likely not be built in the country. Tesla’s Elon Musk has already stated that he is considering building a new production plant in Europe. Google, which has been developing electronic driverless cars for several years, has put out job ads for operations managers and other manufacturing

related positions; however, many of the listings require that applicants have experience working in Asia, indicating that the tech giant may be planning on manufacturing cars in an Asian country and then importing them into the United States. Politics, which always has an impact on manufacturing, is currently not helping the electronic car industry. There is still a great deal of political gridlock which, coupled with the uncertainty surrounding the 2016 presidential election, is likely to discourage new manufacturers from starting plants in the United States at this time. The US has much to offer as a manufacturing hub for electric cars. It has a large number of potential buyers, plenty of professionals for companies to employ, generous incentives from state and local governments, and even assistance from the Federal government. However, there are downsides to building electric cars within the country, and whether or not industry growth in this field will ever turn into a fully-fledged comeback remains to be seen.

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LEADERSHIP

CEO Christa Quarles: an executive profile Following OpenTable’s recent adoption of Christa Quarles as CEO, Business Review USA looks back on her illustrious career

WRIT TEN BY: A LICE YOUNG


LEADERSHIP CHRISTA QUARLES WAS named CEO of OpenTable by The Priceline Group in late 2015, after serving as OpenTable’s CFO, and then interim CEO when former CEO Matt Roberts became the Chairman of the company. Quarles served as the Chief Business Owner for neighborhood-based social network Nextdoor, where she oversaw general business development and intelligence as well as other business functions like the human resources and legal departments, and shaped the company’s business models. Nextdoor differentiated itself by having users’ posts only be visible to people in the immediate neighborhood, effectively making it the first private social network that stood out from competition; Quarles oversaw the dawn of revenue streams within the company – like the sale of household items and offering personal services in a manner similar to Craigslist – except Nextdoor promised more security and privacy. Quarles has extensive experience with digital businesses that constantly evolve, and modernizing Web 1.0 businesses. She also has significant leadership experience in the gaming industry, having served as SVP and 16

June 2016

general manager for Disney Interactive where she led their mobile and social games divisions, and also as CFO of casual gaming giant Playdom prior to its acquisition by Disney. Before


C H R I S TA Q U A R L E S

working for Playdom and Disney, she spent ten years as an equity research analyst specializing in the internet sector at Thomas Weisel Partners (now Stifel Financial), and also served

as a managing director and senior equity research analyst for the same firm and its affiliated partnerships, having covered the internet sector since 2000. Holding a CFA designation 17


LEADERSHIP

Caption to the image

along with a bachelors in economics from Carnegie Mellon University with honors and an MBA from Harvard, Quarles received recognition from Greenwich Associates, Forbes, and Starmine for her analyst work in the digital space. She then joined Playdom as CFO in 2009 and saw the company through its IPO, before helping sell 18

June 2016

the company to Disney for $760M immediately after acquiring and integrating seven companies for Playdom at a clip of one company per month. Throughout her career spanning different industries in the digital space, Quarles’ leadership style has been uniquely reflected in her ability to


C H R I S TA Q U A R L E S

identify when, how, and where companies in the digital space are about to break and what can be done to save them. Her chief strategies for steering digital companies towards change are supporting fast growth by reactively leaning in, paying attention to how often companies

temporarily break (but don’t completely fail), and subsequently drawing a clear line between the finders and fixers of discrepancies. Quarles advocates avoidance of generalized solutions since no two companies will ever experience growth the same way, and her past successes have relied on four closely 19


LEADERSHIP

monitoring key areas during growth: headcount, revenue, users, and geographic expansion. Quarles’ HR philosophy that has contributed to the successes of the companies she has run is hiring passionate people, whether they are passionate about the company itself 20

June 2016

or simply their role in the company, and she can determine this in the first seven minutes of the interview. She believes that a passionate employee will be happier and more productive than one who doesn’t care about the company or the job: workers must love solving the problems they are hired to


C H R I S TA Q U A R L E S

solve rather than what the company sells so that they are not just another number in the headcount. She has plans to bring OpenTable to new heights by reshaping how its users go out to dinner with mobile payments, personalized recommendations, premium reservations, and other updates that will keep the company at an advantage over the start-ups that continue to make tasks like placing reservations and orders more convenient and personalized. Ms. Quarles plans to especially focus on the review aspect of dining out per the user analysis of her growth strategy, as online reviews have become crucial to businesses of all sizes to get recognized and address problems. Drawing upon her vast background in business intelligence and strategic growth management, OpenTable’s business model is expected to see more changes under Quarles’s leadership, with goals of getting more user interaction and driving more business to restaurants that use OpenTable but also utilizing being a part of the Priceline Group. Quarles plans on making OpenTable universal through Priceline’s technology and

global travel aspects, vastly expanding from the eight countries the company currently operates in so that all users who are global travelers can seamlessly become global diners no matter what territory or market they are in. She is also harnessing the power of social media and search engines by forming key partnerships with Instagram and Google, so that photos of food and restaurants will integrate with OpenTable reviews straight from the users and simply entering a restaurant’s name in Google will result in a button that lets the user make a reservation through OpenTable. Quarles will be adopting additional revenue streams for OpenTable as well, such as paying a premium for reservations at restaurants that fill up quickly, and she has been experimenting with surge pricing akin to Uber. An integral component of her leadership philosophy includes working towards and even being affirmed by problems: that failures are one-directional and indicative of stagnation rather than innovating and drastically improving internal processes.

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TOP 10

Franchises that

appeal to millenials

in 2016


Written by: Alice Young


TOP 10

BUSINESSES ARE SHIFTING more and more towards an increasingly tech-driven consumer. Although appears that everyone from ages eight to 80 has a smartphone, the largest consumer market is the millennial. In fact, by 2017, millennials will have more spending power than any other generation. They’re interested in sustainability, supporting local business, a balanced work/play lifestyle, and of course, all things social media and tech.

Here are the top 10 franchises that are having the most success in appealing to millennial values and interests.

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June 2016

1 Jimmy John’s tops this list as one of the most consistent and fastest-growing franchises in the country. Jimmy John’s adds hundreds of new stores every year, a number that has been growing exponentially throughout the last decade and more. Aside from the average annual sales of $1,367,810, it’s the setting of current trends that appeal to millennials: Jimmy John’s website has a ‘Sustainability’ tab prominently featured at the top, complete with the local suppliers of its food. Consumers have never been more interested in where their food comes from, and for a fast food chain to willingly give out this information is a smart business move.


TOP 10 FRANCHISES

2 Technology is at the forefront of the young American’s life, which is why it’s also at the forefront of Anytime Fitness, the gym club franchise founded in 2002. Clubs are able to stay open for 24 hours a day while remaining unstaffed during their low-traffic hours, mostly due to a proprietary entry system as well as security and surveillance technology. The number of people with gym memberships has continued to rise, from 32.8 million in 2000 to 54.1 million in 2014. Millennials in particular look for the convenience of anytime access as well as a healthy lifestyle, both of which Anytime Fitness provides.

3 There are more than 2400 Supercuts locations around the country – more importantly, you don’t need an appointment to get a haircut at any of them. The company does, however, offer the ability to check into an appointment online, which taps into the millennial marketplace perfectly. They are less likely to want to make reservations, and with the way hairstyles are changing to a more clean-cut and dapper style, more people are looking to get their hair cut more often. By offering a value-driven and quality experience, Supercuts hopes to acquire customers for life.

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TOP 10

4 The household name known all around the world, McDonald’s has experienced a recent resurgence in the past two years as it has attempted to refocus itself. The launch of a breakfast-all-day option led to a large increase in sales in the U.S. and around the world. Although McDonald’s was never at risk to lose a lot of money, the menu changes all the time, and emphasis on salads and other options has made it a much more appealing restaurant choice for millennials and other consumers.

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June 2016

5 The balance of family life, work, and play is not just on the minds of millennials – it’s a constant battle for people of all ages. Hampton by Hilton aims to be the hotel for those on business or pleasure trips, offering free Wi-Fi and free breakfast as well as meeting spaces and gyms to its guests. The fact that Hampton is backed by the success of the Hilton Worldwide brand (who acquired it in 1999) means investors can most likely rest easy as they appeal to young professionals.


TOP 10 FRANCHISES

6 The UPS Store is the world’s largest franchisor of its kind. Shipping, printing, and postal centers might seem antiquated, but The UPS Store has mastered its corner and continued to grow despite a drop in stores a few years ago. With the growth of millennial-driven websites like Etsy and Pinterest and even sales on Instagram, people have been shipping goods more than ever. They aren’t afraid to look towards the future of technology, either – more and more of their stores are offering 3D printing options which some believe are the future of design and delivery.

7 Millennials are getting married later than other generations, which gives the largest market in the US more time to travel. Cruise Planners utilizes an app-based approach along with the brand recognition of American Express to attract millennials. These include the ability of customers to use their credit card points on trips that they book with Cruise Planners owners.

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TOP 10

8 No one knows for sure quite how long the pretzel has been around – perhaps since the 7th century – but Auntie Anne’s has found a way to make it modern. With a heavy emphasis on social media campaigns and membership benefits, including a rewards app, Auntie Ann’s is tapping into the millennial market – 90% of millenials are using social media. Plus, because of the simplicity of pretzels the company is able to boast that its food has ‘simple ingredients’, a desire of more and more young consumers.

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June 2016

9

7-Eleven is the w one convenience s 58,000 locations w proven business m startup time, 7-Ele safer franchise bet ubiquitous appeal to tap into the mille offering fresh fruit such as cell phone instead of simply j


9

world’s number store, with over worldwide. With a model and a fast even is one of the ts. 7-Eleven offers while attempting ennial marketand other items, e accessories, junk food.

TOP 10 FRANCHISES

10 The number of vehicles on the road continues to climb despite the fact that more people are moving to cities. It was as high as 260,350,938 in 2014. These cars need to get serviced somewhere, and the drivers want them to be serviced fast. Jiffy Lube is the place many millennials go to get their oil changed or for light repairs, because it’s fast and convenient. Brand recognition is one of the key factors for drivers servicing their car, and Jiffy Lube is the number one brand.

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The ch

Writt


hallenges and benefits of the Gaslamp District’s latest luxury destination, the Pendry San Diego

ten by: Sasha Orman Produced by: Tom Venturo


D AV I S R E E D C O N S T R U C T I O N I N C : P E N D RY H O T E L P R O J E C T

Westin Desert Willow in Palm Desert, CA - surrounded by lush greens from the muni

davisREED is in the top 200 general contractors with seven locations nationwide and 14 years in the business. davisREED believes in preserving the values of a small company while having the power, breadth, and strength to match any 32

June 2016

of the larger firms. Its breadth of experience spans five-star resorts to public works, with senior leadership overseeing every project to ensure added value and flawless execution.


CONSTRUCTION

icipal golf course

From its shops and restaurants to Petco Park and a convention center overlooking the Marina, Downtown San Diego is a vibrant hub of culture, commerce and tourism that has expanded and modernized rapidly over the past decade. The

city is still on the rise, with projects like the Pendry Hotel elevating San Diego’s Gaslamp District even further as a top nightlife and travel destination. Designed by ACRM Architects, w w w. d a v i s re e d i n c . c o m

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D AV I S R E E D C O N S T R U C T I O N I N C : P E N D RY H O T E L P R O J E C T

Hilton Waterfront currently under constructionday’s work begins

and developed by The Robert Green Company, the Pendry San Diego will be the first entry in a new ultra-modern and style-oriented luxury imprint from Montage Hotels & Resorts. To ensure the success of this $135 million flagship project, The Robert Green Company has entrusted its production to the design-build and construction specialists at davisREED. The right contractors for a complex project “Lifestyle hotels are generally 34

June 2016

known for their vibrant lobbies, bars and F&B, but not for their service or guest rooms,” said Montage Hotels & Resorts CEO Alan Fuerstman, when announcing the concept behind Pendry San Diego and the Pendry Hotels experience. “We’re going to combine the two. We’re going to have very active and exciting public spaces, coupled with a luxury experience in the guest rooms.” The architecture reflects this concept, with a design intended to evoke a blend of “London hip, New


CONSTRUCTION

Hotel Solamar in San Diego Gaslamp - neighbor to the new Pendry

York-paced and California healthy.” The 15-story Pendry San Diego will feature 317 guest rooms—including 36 customized suites—as well as two restaurants, a lounge and beer hall , a fitness center, spa, 3rd level pool deck, and 22,000 square feet of meeting space. This concept also extends to the exterior design, an eclectic combination of contrasting plaster and brickwork facades to create an illusion of several buildings within the single structure. Proper execution of this design requires the right contracting firm—

one with the experience and funding to handle a complex large-scale hospitality project, but the flexibility and creativity of a lean and hungry upstart. This is the space in which davisREED Construction Inc. excels. “We’re not just out there doing cookie cutter projects,” said Mike Lyons, Project Manager for the Pendry San Diego project. “We’re a small contractor that does big and complex projects. We have small focused teams, but we do a lot of work and we like to take on projects w w w. d a v i s re e d i n c . c o m

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D AV I S R E E D C O N S T R U C T I O N I N C : P E N D RY H O T E L P R O J E C T

like this that are challenging.”

Key Personnel

Derek Davis President Derek Davis is president and shareholder of davisREED Construction. In this capacity he will provide the team with overall and executive oversight from Notice to Proceed through Contract Closeout. Derek has more than 30 years of experience leading the preconstruction, estimating, and cost modeling on numerous hospitality projects throughout the United States. Over the last decade, he has concentrated his energies on luxury projects, such as Four Seasons Palo Alto, Ritz Carlton in Rancho Mirage and the Biltmore in Santa Barbara, as well as various multi-family and concrete podium projects.

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June 2016

Emphasizing safety in a busy cityscape Thousands of people walk the streets of San Diego’s Gaslamp District, and that number increases exponentially during special events—and the city’s hospitable weather means that events are happening often, from Padres games to Mardi Gras to San Diego Comic-Con. Working in a tight area surrounded by pedestrian activity, davisREED faces significant safety challenges. The contracting team looks to efficiencies like prefabricated plumbing fixtures, panelized exterior walls that are constructed offsite. We also utilize third party safety inspection services to make certain that safety is kept at the forefront. “If you do safety in house, a lot of times you may not really be looking as close as you need to, so we outsource our safety inspections to keep us on our toes,” said Lyons, explaining that those whole project inspections started out every two


CONSTRUCTION

weeks and have increased as the project becomes more complex nearer to completion. “Then we’re very active in not only just going through the reports and looking at the findings of our third party inspectors, but also taking it to a point of responding and closing out those reports to make sure we’re doing everything we can to be safe,” he added. “We haven’t had major problems on the project with safety, because we’re constantly looking at it.” Working with the city Safety also requires careful coordination with subcontractors, trade partners, the city and surrounding businesses to keep construction on schedule without disturbing special events taking place downtown. “The ball park did not want us pouring concrete on day games,’” Lyons explained. We also had to avoid street activities during major convention center events or Gaslamp street parties like Marti

Key Personnel

Dan Dalry Executive Vice President Dan Dalry has more than 30 years of experience leading the preconstruction, estimating, and cost modeling on numerous hospitality projects throughout California. Over the last decade, he has concentrated his energies on luxury projects, such as Four Seasons Palo Alto, Ritz Carlton in Rancho Mirage and the Biltmore in Santa Barbara. Dan is adept at building strong professional relationships with owners, clients, engineers, designers, and subcontractors in order to facilitate a professional and open process as well as to deliver a quality structure.

w w w. d a v i s re e d i n c . c o m

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D AV I S R E E D C O N S T R U C T I O N I N C : P E N D RY H O T E L P R O J E C T

“If you do safety in h you may not really be you need to, so we o inspections to kee

– Mike Lyons, Senio


CONSTRUCTION

house, a lot of times e looking as close as outsource our safety ep us on our toes�

or Project Manager


D AV I S R E E D C O N S T R U C T I O N I N C : P E N D RY H O T E L P R O J E C T

Key Personnel

Gras “So we’ve got our calendar marked up with events, and we try to optimize the sequence our work so that, for example, we have a pour date on Thursday because Friday we can’t be out there. That’s been a challenge, going through the calisthenics of addressing the needs of the people that occupy the areas where we’re working.”

Erik Kissner Vice President Dennis Stephan is a Professional Engineer who has more than 30 years of experience leading the pre-construction, estimating, and cost modeling on numerous projects throughout Northern California. Dennis is adept at building strong professional relationships with owners, clients, engineers, designers, and subcontractors in order to facilitate a professional and open process as well as to deliver a quality structure. His guidance during the procurement and preconstruction stages has resulted in clients saving more than $17 million in construction costs.

SEATTLE | PORTLAND | OAKLAND | LOS ANGELES | SAN DIEGO

Condon-Johnson & Associates is a leader in geotechnical construction on the West Coast and are underpinned by their core values of being a reliable, innovative, and honest family-owned Construction Company. Contact George Burrough: Tel 858-530-9165 or gburrough@condon-johnson.com

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June 2016


CONSTRUCTION

But davisREED has risen to that challenge, even when staying on schedule means working overtime and increasing manpower to overcome the delays of city work. “Every once in a while we have to spend a little and work overtime to make a pour a day sooner,” said Lyons. “But we’d rather spend that money and pull forward than lose days.”

Company Information NAME

DavisREED Construction Inc: Pendry Hotel Project INDUSTRY

A future for the Gaslamp

Hotel construction/ contracting

This dedication and careful planning has paid off, with the Pendry San Diego on track for completion and additional restaurant build-outs by mid-November.

HEADQUARTERS

12250 El Camino Real, Suite 325, San Diego, CA, USA, 92130

“It fills a gap in the middle of downtown—it’s smack dab in the middle of the Gaslamp district, two blocks to the convention center and two blocks to the ball park,” said Lyons. “It’s kind of a standout here in the middle of downtown, a building this size. It’s a place to come and enjoy all the entertainment and it’s a really key focal point of downtown San Diego, a cornerstone that’s going to connect it all.”

FOUNDED

2002 EMPLOYEES

75 BUDGET

$ 80 million

w w w. d a v i s re e d i n c . c o m

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A NEW FUTUR

for the VA LOMA LIN

HEALTHCARE SYST

How Walsh Construction is helping VA Loma Linda achieve a standard of veteran health care via the new Ambulatory Care Written by: Sasha Orman Produced by: Tom Venturo


RE

NDA

TEM

a higher Center


WA L S H C O N S T R U C T I O N L O M A L I N D A VA H O S P I TA L

Walsh Construction is a 118year old family-owned company providing design, build, finance, operation and outfitting services. The company operates across 19 regional offices and is ranked as the 5th largest healthcare general contractor by Modern Healthcare. 44

June 2016

In California’s Inland Empire, an important health care service upgrade is underway. In 2013 the U.S. Department of Veterans Affairs (VA) started work on a new major health care facility—a 271,000 square foot Ambulatory Care Center (ACC) for the VA’s Loma


CONSTRUCTION

Linda campus—by selecting Walsh Construction Company (Walsh) as its general contracting and design-build firm. With cutting edge technology and innovative design, the ACC is poised to stand as a new model of healthcare standards in the VA system.

A one-stop shop for VA health care The ACC will drastically expand the scope of the VA Loma Linda Healthcare System (VA Loma Linda), providing a facility built specifically with outpatient care w w w. w a l s h g ro u p . c o m

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WA L S H C O N S T R U C T I O N L O M A L I N D A VA H O S P I TA L


CONSTRUCTION

in mind. The completed structure will be equipped with cutting-edge MRI and CT imaging technology, equipment for laparoscopic and endoscopic surgery, and top shelf tools for outpatient procedures such as dental and oral surgery, along with comprehensive medical and dental training for staff at the top of their game. With further space for primary care, general dentistry, physical medicine and rehabilitation, the completed ACC aims to be a one-stop shop to meet

the needs of outpatient veterans. “These services are not being provided currently for our veterans, with the VA having to outsource them to many other different services within the Inland Empire,” says Michael Zari, Walsh’s California Program Manager. “Now they are all being consolidated into one area, and using state-of-the-art, bestof-the-best equipment to provide these services.”

“Even though we have business groups, we don’t work in silos—we work hand-in-hand with all business lines, and that collaboratively lends itself to a better project,” – Michael Zari, Walsh’s California Program Manager

w w w. w a l s h g ro u p . c o m

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WA L S H C O N S T R U C T I O N L O M A L I N D A VA H O S P I TA L

Moving outpatient care to the ACC will also benefit VA Loma Linda as a whole, allowing the existing site to expand its inpatient, specialist and emergency services—and with expanded parking and shuttle services, the two medical centers will be tightly connected. With these facilities operational, the VA moves closer to ensuring that veterans are able to receive the treatment they need, when they need it most. 48

June 2016

High tech for higher standards Technology is a theme throughout the ACC project. With various mobile devices, workers are able to complete working logs and daily reports on site. Then with the help of tech-based programs, BlueBeam and SharePoint, the Walsh team is able to welcome collaboration with subcontractors and partners at every step of the building process.


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“Everything’s in live mode, so once it’s uploaded everyone can see what’s going on: RFIs, drawings, updates,” says Zari. “We perform our punch list on BlueBeam, and that punch list is then shared immediately. It goes out to a list of recipients that were involved in that room, or that section of the building. It’s streamlining the process, and it’s very helpful for the trade partners as well as for the Walsh team.”

Finding human interest in workplace safety “Safety is our main priority,” Zari says. Walsh emphasizes that with a number of techniques like safety checklists, Friday staff safety lunches, and devices intended to transform safety in relatable reality. “We have family boards where we all put pictures of our families,” w w w. w a l s h g ro u p . c o m

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WA L S H C O N S T R U C T I O N L O M A L I N D A VA H O S P I TA L

says Zari. “Our trade partners and subcontractors have also participated, and we say: those are the reasons why we work safe and are going home safe. We post these in public areas to remind everybody of the fact that people are going home back to their families and loved ones—that this is just a job and we need to keep them safe.” The success of this effort speaks for itself. By the start of April, Walsh had accrued 500,000 man hours on the Loma Linda VA project without accident or injury. “Not even a band-aid,” Zari adds. “That’s absolutely incredible, and that’s something to be celebrated.” Insightful design The ACC is also incorporating an assortment of thoughtful design and aesthetic elements, with a consideration to sustainability that extends throughout the construction process. “We’re striving to be as net zero and friendly to the environment as possible,” says Zari, noting that Walsh has implemented such 50

June 2016


CONSTRUCTION

measures as full sorting of ferrous and non-ferrous materials from the project’s start. “It’s very easy to achieve in southern California, because a lot of companies are already set up to help us. We track and manage to ensure the items are making it to the right locations.” Highlights of the ACC’s elegant design elements include a buckling restrained brace (BRB) frame system, used to create a lighter and more stable building with higher floor-to-ceiling heights, giving the facility more freedom to move walls and redistribute space in the future. Elsewhere the gravity flow-based HVAC system captures the chill of nighttime temperatures to more efficiently cool the facility during hot desert days, while an emphasis on natural light wherever possible imbues the facility with a calming sense of warmth and comfort. “The view of the mountains is unobstructed—it’s gorgeous, and whenever you can see the outdoors and see beautiful surroundings, it provides you with more of a calm setting,” says Zari. “You get this w w w. w a l s h g ro u p . c o m

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Established in 1965, with 51 years of experience, Circulating Air, Inc. is a full service Mechanical Contracting Firm. As one of the largest union HVAC contractors in Southern California, we have the bonding capability to bid any size project you may have. Circulating Air, Inc has earned a reputation as an integrated organization capable of executing complicated projects on time and within budget.

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CONSTRUCTION

Company Information NAME

Walsh Construction Loma Linda VA Hospital INDUSTRY

Construction HEADQUARTERS

929 W. Adams, Chicago, IL, USA FOUNDED

serene feeling when you’re walking in to your appointment. The VA allowed us to be flexible with the base design, and add that in so that the veterans can benefit from it.”

1898 EMPLOYEES

8,000 BUDGET

The Walsh difference

$ 121 million

A project like this requires a contractor that can handle its complexities and understand the importance of its success at a human level. As one of the largest family-owned general contractors in North America, with significant healthcare experience, Walsh Construction has the proven capabilities and experience to successfully deliver this project to the VA.

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PAML:

EXPLORING THE FUTURE OF

DIAGNOSTICS AND SE

CEO Francisco Velรกzquez discusses the latest d and designs moving PAML forward Written by: Sasha Orman Produced by: Tom Venturo


ERVICE

developments

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T

he strongest businesses are those that never stop improving. Laboratory and diagnostic solutions company Pathology Associates Medical Laboratories (PAML) has been consistently ranked one of the top reference laboratories in the country. But as PAML President and CEO Dr. Francisco Velázquez understands, such rankings are not permanent. As medical technology evolves, PAML works tirelessly to meet its clients’ changing needs and stay on top as a preferred source for the medical and allied health communities. S TAY I N G C U R R E N T I N A D I G I TA L W O R L D “We are living more and more in a digital world, as are our clients,” says Velázquez. This truth is a catalyst for PAML’s commitment to improve its in-house IT resources, while also building strategic partnerships to increase its range of high-tech capabilities from apps to self-service kiosks. “We are working diligently right now to be able to deploy self56

June 2016

Laboratory

service kiosks in a variety of our regions, because that is something that patients are becoming more used to—as are hand-held devices, which we have several pilots of across the country,” says Velázquez. “Our clients don’t have to go and look for information—the information will follow them and


H E A LT H C A R E

alert them wherever they might be.” Tackling customer service on another front, PAML recently updated its website and client portal in a move that significantly increased functionality and ease of use as well as brought the company’s client interface into the modern age.

“I think our website not only has increased in functionality but also has a more contemporary look,” says Velázquez. “It needed a refresh to stay current with the look and feel that customers expect from successful websites nowadays. It certainly has made it easier for people to communicate with us w w w. p a m l . c o m

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Broadest Fully Automated Infectious Disease Menu Streamline Your Laboratory Process Improve efficiency in your laboratory by consolidating the broadest fully automated menu for infectious disease testing on the LIAISONÂŽ XL Analyzer.

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H E A LT H C A R E

because of the functionality in the client portal that we have.” In addition to these current updates, PAML is also exploring ways to continue innovating into the future, including ways to automate its operations wherever possible in order to provide a smoother and more streamlined line of communication for clients. “We consumers are very critical of time,” says Velázquez. “Anything that adds steps, takes too long, or isn’t convenient, we are less tolerant of than we were a few years ago—and rightfully so. Automation and digital solutions go a long way toward addressing that.” ACCOUNTING FOR GROW TH PAML is no stranger to success: the company has experienced record growth in recent years, and this trend is not expected to end any time soon. Above anything else, PAML attributes this success to its simple focus on quality and customer service. “We don’t focus our conversations and negotiations with potential

PAML President and CEO Dr. Francisco Velázquez

clients on pricing,” says Velázquez. “We focus on quality and service— particularly, how can we help them achieve their goals? Of course we need to be cost effective, which we are, but we focus on synergy, on how complementary we are to you, and whether we are a good fit for what you’re trying to do.” There is a concrete logic to this strategy—while a low bottom line is always a factor, the adage that “you get what you pay for” is all too often true. At the end of the day what w w w. p a m l . c o m

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matters most is striking a balance between exceptional value and a high quality product. PAML’s efforts to achieve this balance have been instrumental in the company’s 98.5 percent customer satisfaction rating. “We have made a conscious effort over the last few years on quality and service,” says Velázquez. “If we have good service and superior quality, then the rest falls into place. But if you have service lapses or

poor quality, it doesn’t matter what you have—you’re not going to create a long term relationship.” LOO K I N G FO RWA R D “In terms of growth, we’re aiming at another record year. I think the numbers speak for themselves,” says Velázquez, noting that March 2016 marked the most successful month in PAML history in terms of volume. To maintain this steady and sustained growth, PAML

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Laboratory


PA M L

is employing several modes of development and expansion from its electronic capabilities to its testing repertoire. “In order for us to maintain a value proposition that is significant to clients, we have invested a fair amount of time, effort and

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money this year into expanding our laboratory capabilities,” says Velázquez. “We need to have a product that is consistent with the needs of our clients, and we’re working really hard on that. We are also continuing to expand our electronic capabilities by


H E A LT H C A R E

improving websites and portals, improving things that may not be as visible but are highly important like connectivity, and in a couple of regions we have expanded to work with regional systems which allows us to be part of our clients’ continuum of care and their value

proposition.� PAML is also as hard at work as ever to continue improving costs to provide better value for its clients. “We drop our own operating expenses about five percent or so at a minimum every year, which allows us to remain cost competitive,

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PA M L

PAML Employees during Lab Week

because our clients also face a lot of financial pressures,” says Velázquez. “It’s all part of our remaining in line with our clients— we have to ensure that paying for laboratory services does not become an issue for them because 64

June 2016

we’ve priced ourselves out of the market.” All of these efforts may take time, but each one carries PAML closer to its goal: to provide an exceptional level of service to its clients. It may not be the fastest way to grow, but


H E A LT H C A R E

Company Information NAME

PAML (Pathology Associates Medical Laboratories) INDUSTRY

Healthcare HEADQUARTERS

Spokane, WA - USA EMPLOYEES

1680 E S TA B L I S H E D

1957

it’s growth that will stand the test of time. “Our goal is not to be the biggest; our goal is to be the best,” says Velázquez. “If we grow as a result of that, then that is wonderful. But we’re not looking for numbers, we’re looking for relationships. That’s the approach we take, and that is why we keep growing.” w w w. p a m l . c o m

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Profile for Business Chief USA

Business Review USA & Canada June 2016  

Business Review USA & Canada June 2016