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Johnstone Moyer Inc. :
Veteran leadership group maps out a path to success
Johnstone Moyer Inc. of San Carlos, CA, has emerged as a market leader in Design/Build, pre-construction, construction and post-construction services across multiple sectors. Written by Kevin Doyle Produced by Stephen Marino
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on’t be deceived by the relatively short history of Johnstone Moyer Inc. Well into its second decade of operation, the company’s management team boasts combined industry experience and wisdom that matches that of much older firms. The abundant knowledge of co-founders John Moyer and Bill Johnstone, who had worked together at a previous firm, was apparent during The Great Recession when JMI (Johnstone Moyer, Inc.) was still in its formative stage. “The company was very smart in the downturn and actually became more profitable,” notes Mike Smith, Vice President of Pre-Construction. “They (Johnstone and Moyer) put their salaries back into the company and invested in the two things that are important for any company – their people and the infrastructure.” Systems were improved, project management strategies were enhanced, and continual training was provided in preparation for an industry uptick. “We also invested in getting good people. We were able to maintain those people during the
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Johnstone Moyer Inc. | 4 downturn and not lose anyone. When the market came back, instead of being one of the casualties of the market change, JMI (Johnstone Moyer, Inc.) was ready to pounce and get in front of everything. Our clients saw that we were ready and organized to get to work. We knew what we were doing and word got around really quickly,” says Smith. With headquarters in San Carlos, CA, the company has emerged as a market leader and provides Design/Build, pre-construction, construction and postconstruction services in the multi-family, renovation and hospitality sectors. It maintains a
Johnstone Moyer Inc. | 5 second location in Irvine, CA and generates annual average project volume in the $200 - $300 million range. “Our largest growth into becoming a leader in our market has been in this last cycle, starting in 2011 or so,” Smith points out.
Top Projects The company typically has seven or eight projects running at any given time and has garnered multiple industry awards. Its Stonegate Condominium complex in San Mateo received the prestigious Gold Nugget Award, nominated in the Best
Infill, Redevelopment or Rehab Site Plan and Best Attached Housing Project categories. Projects currently under way include: Neptune Marina: This 526-unit $200m multi-family mixed-use project in Marina del Ray sits right on the waterfront. Upon completion it will have four buildings of four floors each with units ranging from studios to three bedrooms. “We’re just getting going on it and it’s going to be a beautiful project,” says Smith. 3093 Broadway: This 423-unit
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Johnstone Moyer Inc. | 6 project in Oakland features wood-framed Type III apartments over two stories of concrete podium. The lower level incorporates retail space and also maintains an historic showroom from the previous building on the site. Premier completed projects include: AC Hotel Oyster Point: The company will soon complete its second project for this Marriot subsidiary out of Spain. The 187-room, six-story wood frame building features a ground floor hospitality area, meeting rooms and a full-service bar and
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incorporates a curtain wall system looking out over the bay. The Foundry: Located in San Jose, the 238 apartments wrap around a five-story above ground parking structure. There are also five separate two-story walk-up structures. AC Hotel San Jose: The 210-room, seven-story hotel was the second AC property built in the United States, is located in the city’s downtown core and includes numerous hospitality amenities. Parker Place: Located in Berkley, this project of two buildings and 155 total units was constructed
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Operations and Challenges Smith says the biggest obstacle facing Northern California operations are securing manpower and qualified companies to work with. “We love doing Design/Build and we will take it depending on the market trend. If the market is way
“
JMI is very much about the
relationship in any given deal. Our ultimate goal is that everybody high fives at the end of a job and says ‘Let’s do another one.’ We’re not going to get that if we put a green team on something.
“
over a three-level subterranean parking garage. The main structure includes 18,000sf retail space for an anchor tenant. The façade of the previous structure was maintained and integrated into the new buildings.
- Vice President Mike Smith www.johnstonemoyer.com
Johnstone Moyer Inc. | 8 down and everyone is competing really heavily for work, maybe it doesn’t make sense to do Design/Build because there are some very qualified designers out there” Smith explains. “However, right now, it’s by far in the best interest of the owner. We’re locking in manpower because we’re getting into somebody’s pipeline, and we’re locking in costs and providing all those benefits that everyone already knows about,” he adds. The challenge, as a non-union company, is working with a small pool of sub-contractors in the Bay Area qualified in Type 3 and Type 5 construction. While JMI (Johnstone Moyer, Inc.) believes strongly in partnerships, Smith says the company also doesn’t “like putting all of our apples in one basket – we still want to distribute it a little bit.” California’s ever-changing Energy Code is an ongoing concern when it comes to Design/Build sub-contractors. “Making sure they are staying on top of what those code iterations are is a big deal and we’re trying to come up with creative ways to tackle those. The California energy code is probably one of the most onerous in the nation
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and when they do come out with a new iteration, there are subtle nuances,” Smith notes. Such as? “This year they have window switches for HVAC systems so if you leave your window open for five minutes, it automatically shuts off the HVAC,” Smith says. “So we’re learning how to deal with those economically while meeting the intent of the code in a way that isn’t going to cost the owner an arm and a leg and allows us to comply and build this project. Making sure our subs are staying on top
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“
When the market came back,
instead of being one of the casualties of the market change, JMI was ready to pounce and get
“
in front of everything.
- Vice President Mike Smith www.johnstonemoyer.com
Johnstone Moyer Inc. | 11 of this as well is critical.” Smith stresses JMI will always put the best team in the field and will never employ a sub-contractor that has no familiarity with the company, its culture and its method of operation.
Staying Safe JMI (Johnstone Moyer Inc.) works closely with a third party company to develop, maintain and enforce a robust safety policy. “All of our staff are heavily trained in safety and take the responsibility for it. We find that
having that extra layer with a third party coming in and doing random inspections and rating our sites works well. They’re neutral and they don’t have any biases toward the company. They’re going to tell it like it is and that’s what everybody needs, quite frankly, from a safety standpoint,” Smith says. The company’s Superintendents and Assistant Superintendents undergo constant training to remain current with protocols and procedures. And the company holds quarterly and annual safety recognition programs to recognize its safest teams.
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As a committed project partner that places the clients’ needs first with its “hands-on” approach, JMI (Johnstone Moyer, Inc.) has grown to the point that it can now be selective about the projects it chooses.
“
We love doing Design/Build
and we will take it depending on the market trend … Right now,
“
Moving Ahead
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“In the last few years we have definitely had to turn down projects. The principles will have a ‘go, no-go’ session any time a project comes through the door. We evaluate who the owner is, what the project looks like, who the stakeholders are, the times, and what we look like staffing wise. We make an educated decision if this is something we can take on or not. If we can’t we’re happy to give people a referral,” Smith says.
it’s by far in the best interest
“JMI (Johnstone Moyer, Inc.) is very much about the relationship in any given deal. Our ultimate goal is that everybody high fives at the end of a job and says ‘Let’s do another one.’ We’re not going to get that if we put a green team on something,” he concludes.
Company Name:
It’s a good place to be, determined by a course mapped out a decade ago.
of the owner.
- Vice President Mike Smith COMPANY INFORMATION
Johnstone Moyer Inc. Country: U.S. Industry: Construction Est: 2005 Premiere Service: Full-service construction company. President: John Moyer CEO: Bill Johnstone Website: www.johnstonemoyer.com
www.johnstonemoyer.com
Northern California 555 Old County Rd. San Carlos, CA 94070 Southern California 2102 Business Center Dr. Suite 130 Irvine, CA 92612 P: 650.570.6161 F: 650.570.6144 E: msmith@johnstonemoyer.com