bigger is better do it yourself - star-lo

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THE MAGAZINE FOR THE PEOPLE WHO BUILD AMERICA THE MAGAZINE FOR THE PEOPLE WHO BUILD AMERICA www.construction-today.com SUMMER/FALL 2007 www.construction-today.com SUMMER/FALL 2007 CARDINAL CONSTRUCTION INC. Hunt Construction Group thrives on Florida’s large-scale resort, hotel and condo projects. Bigger is Better Hunt Construction Group thrives on Florida’s large-scale resort, hotel and condo projects. Bigger is Better Iowa’s Cardinal Construction says it works to ‘bring the general back in general contractor’ by self-performing most of its jobs. Do It Yourself Do It Yourself Iowa’s Cardinal Construction says it works to ‘bring the general back in general contractor’ by self-performing most of its jobs.

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Page 1: Bigger is Better Do It Yourself - Star-Lo

THE MAGAZINE FOR THE PEOPLE WHO BUILD AMERICATHE MAGAZINE FOR THE PEOPLE WHO BUILD AMERICA

www.construction-today.com SUMMER/FALL 2007 www.construction-today.com SUMMER/FALL 2007

CARDINAL CONSTRUCTION INC.

Hunt Construction Group thrives on Florida’slarge-scale resort, hotel and condo projects.

Bigger is BetterHunt Construction Group thrives on Florida’slarge-scale resort, hotel and condo projects.

Bigger is Better

Iowa’s Cardinal Construction says it works to ‘bring the generalback in general contractor’ by self-performing most of its jobs.

Do It YourselfDo It YourselfIowa’s Cardinal Construction says it works to ‘bring the generalback in general contractor’ by self-performing most of its jobs.

Page 2: Bigger is Better Do It Yourself - Star-Lo

hen Star-Lo Electric was founded in 1963, itperformed a broad range of services includingcarpentry, cabinet work, plumbing and electri-

cal. However, the main focus quickly switched to electricalcontracting for one reason only.

“Tell me something that doesn’t work with electricity,”asserts President Joe Stark. “If you look around, whether it be solar power, wind power or hydro power, there arealways going to be wires that carry electricity. We’ll neverbe out of demand.

“[Plus,] it’s a great trade; it’s a fun trade,” he continues.“You’re not putting in outlets all day long.You’re working on big [uninterruptiblepower supply] systems; you’re workingon one- or two- megawatt generators.You’re wiring up things that make theworld operate. It’s never boring.”

Twenty years ago, the Whippany, N.J.-based company was producing $400,000 ayear in sales. At the time, Stark’s father

was running the business, which was then called StarkElectric. When Stark and his brother, Ted, took over leader-ship after their father retired in 1987, he changed the nameand dove headfirst into retail.

“We decided to get into the corporate end of retail,” heexplains. “Instead of doing a toy store, we were doing theToys “R” Us headquarters. Instead of a bank, we starteddoing CitiBank data centers.”

Now, Star-Lo, which correctly boasts $100 million inannual sales, has its own communications, service andmaintenance divisions.

“So, milestone-wise, we crawled; we walked; we jogged alittle bit; and then we ran, all the time never taking moneyout of the business, but dumping it back in to fuel ourgrowth,” Stark says.

In the WorksStar-Lo provides voice, data, construction services anddesign engineering for its clients. “We actually do our owncommunications” Stark explains.

“At the same time, if we had to put in underground con-

CONSTRUCTION TODAY QUARTERLY ■ SUMMER/FALL 2007

Star-Lo is currently workingon the Prudential Stadium inNewark, N.J., for the NewJersey Devils hockey team.

Star-Lo Electricwww.star-lo.com2006 sales: $100 millionHQ: Whippany, N.J.Employees: 500Service: Electrical contractorJoe Stark, president: “[Themarket] is getting very competi-tive; you need whatever edge ittakes to take yourself to the topof the heap.”

An Army of Electricians

STAR-LO ELECTRIC

Ever since electrical contractor Star-Lo Electric set its sights on public projects, President Joe Starksays he has operated his company like a well-oiled military machine.

WBy Kathryn Jones

Page 3: Bigger is Better Do It Yourself - Star-Lo

duits, we would do the excavation and wewould build the manholes.” The companyhas its own equipment fleet, so “any realmof electrical [contracting] from the streetright up to the outlet, we do it,” he adds.

One-Stop ShopStark says being a one-stop-shop electri-cal company benefits general contrac-tors because most electrical contractors“wouldn’t pour the concrete pads for thetransformers. So, by rights, we are sav-ing the general contractor money bybeing one-stop.”

The company is finishing up a $9 mil-lion contract for LefCourt Tower inNewark, N.J, which is a 37-story officebuilding being converted into high-endapartments. Star-Lo “did generator back-up for all the life safety on that build-ing,” Stark says.

He adds that aside from encounteringasbestos, the project was “a logisticalnightmare. [We had to get] the powerfeeders up 37 stories through an existingbuilding where nothing lined up fromfloor to floor,” Stark says.

“The outside walls were not sealed, so

water would be leaking in, and youcouldn’t put wire in until they had itsealed again. The building is absolutelygorgeous, but it needed a lot of TLC.”

Prudential StadiumStar-Lo is currently working on thePrudential Stadium in Newark, N.J., forthe New Jersey Devils hockey team. Star-Lo Electric is performing a $39 millionelectrical job, which entails bringingpower in from the street and outfittingthe whole arena with a state-of-the-artlighting system.

In addition, the company’s communi-cations division is providing $4.5 millionin audio and visual services. The stadiumis slated to be completed October 2007.

Going Into BattleStark says he sends his employees ontoprojects the way a military commanderwould send his troops into battle.

“Electri cal contracting is somewhatparamilitary,” he notes.

“Thinking as a five-star general – whichwould be me – I have a two-star general,major captains, sergeants and privates.

“Out of 500 men, I have 80 or 90 asmy base core. They’re the ones that whenyou hire extra men for the haul, thoseare the guys you trust your company to.If I need 15 extra guys on the job, I haveto have a trusted employee, someonewho knows the workings of my compa-ny, who can explain to the extra 15 guyshow I want the job done.”

The market is “getting very competi-tive,” he explains. “You need whateveredge it takes to take yourself to the topof the heap.”

Star-Lo Electric is a union contractor,and, Stark admits, “Union people areexpensive, [but] we pride ourselves onbeing outstanding mechanics. People say,‘Why should I build with union?’ Well,because you’re getting the best men andquality of work in the industry.

“It’s hard to compete in an ever-chang-ing market that is shying away fromunion contractors,” he continues. “Youhave to show them that they’re not reallysaving money by veering away fromunion contractors, because you are goingto give them so much more, and we’veproven that.” ■

STAR-LO ELECTRIC

Published by Schofield Media Ltd. Tel: 312.236.4090 Fax: 312.236.4266On behalf of Star-Lo Electric © 2010 Schofield Media Ltd. All rights reserved.