Business Review USA & Canada June 2016

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JUNE 2016 WWW.BUSINESSREVIEWUSA.COM WWW.BUSINESSREVIEWCANADA.CA TOP10 THE RISE of electric car manufacturing in the US franchises that appeal to millennials in 2016 .... OpenTable CE O Christa Quarles Executive profile of

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Transcript of Business Review USA & Canada June 2016

Page 1: Business Review USA & Canada June 2016

JUNE 2016WWW.BUSINESSREVIEWUSA.COM WWW.BUSINESSREVIEWCANADA.CA

TOP10

THE RISEof electric car manufacturing in the US

franchises that appeal to millennials in 2016

....

OpenTable

CEO Christa Quarles

Executive profile of

Page 2: Business Review USA & Canada June 2016

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Page 3: Business Review USA & Canada June 2016

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 | [email protected]

Hello and welcome to the June 2016 edition of

Business Review USA & Canada

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E D I T O R ’ S C O M M E N T

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FEATURES

CONTENTS

LEADERSHIP

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TECHNOLOGY THE RISE OF ELECTRIC CAR MANUFACTURING IN THE US

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TOP 10 FRANCHISES THAT APPEAL TO MILLENNIALS IN 2016

OPEN TABLE CEO CHRISTA QUARLES: AN EXECUTIVE PROFILE

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30DavisREED Construction

CONSTRUCTION

30 DavisREED Construction Inc: Pendry Hotel Project

42 Walsh Construction Loma Linda VA Hospital

HEALTHCARE

54 PAML (Pathology Associates Medical Laboratories)

COMPANY PROFILES

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PAML

Walsh Construction

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TECHNOLOGYTECHNOLOGY

The rise of electric car manufacturing in the USBusiness Review USA explores the relationship between America and electric vehicles, and whether the industry has the potential to expand

W R I T T E N BY: A L I C E YO U N G

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The rise of electric car manufacturing in the US

W R I T T E N BY: A L I C E YO U N G

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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

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 StatesThere are currently thirty-five electric

car manufacturing companies in the

TECHNOLOGY

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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.

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

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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

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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 F A C T U R I N G

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 energy-

efficient 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

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

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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 F A 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

W R I T T E N BY: A L I C E YO U N G

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CEO Christa Quarles: an executive profile

W R I T T E N BY: A L I C E YO U N G

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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

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

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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

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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

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

LEADERSHIP

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Caption to the image

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

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

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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

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

LEADERSHIP

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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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Franchises that appeal to millenials

in 2016

TOP 10

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Written by: Alice Young

Franchises that appeal to millenials

in 2016

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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.

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.

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TOP 10

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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.

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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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.

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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TOP 10

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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.

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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7-Eleven is the world’s number one convenience store, with over 58,000 locations worldwide. With a proven business model and a fast startup time, 7-Eleven is one of the safer franchise bets. 7-Eleven offers ubiquitous appeal while attempting to tap into the millennial market-offering fresh fruit and other items, such as cell phone accessories, instead of simply junk food.

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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7-Eleven is the world’s number one convenience store, with over 58,000 locations worldwide. With a proven business model and a fast startup time, 7-Eleven is one of the safer franchise bets. 7-Eleven offers ubiquitous appeal while attempting to tap into the millennial market-offering fresh fruit and other items, such as cell phone accessories, instead of simply junk food.

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

Written by: Sasha Orman Produced by: Tom Venturo

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

Written by: Sasha Orman Produced by: Tom Venturo

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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

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.

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Westin Desert Willow in Palm Desert, CA - surrounded by lush greens from the municipal golf course

DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

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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

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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,

Westin Desert Willow in Palm Desert, CA - surrounded by lush greens from the municipal golf course

C O N S T R U C T I O NDAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

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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

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

Hilton Waterfront currently under constructionday’s work begins

DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

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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

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

DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT C O N S T R U C T I O N

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DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

like this that are challenging.”

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

Key Personnel

Derek DavisPresident

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 pre-

construction, 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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DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT C O N S T R U C T I O N

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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 DalryExecutive Vice President

Dan Dalry has more than 30 years of experience leading the pre-

construction, 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.

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“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” – Mike Lyons, Senior Project Manager

DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

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“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” – Mike Lyons, Senior Project Manager

C O N S T R U C T I O NC O N S T R U C T I O NDAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

Page 40: Business Review USA & Canada June 2016

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.”

4 0 J u n e 2 0 1 6

DAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

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.

SEATTLE | PORTLAND | OAKLAND | LOS ANGELES | SAN DIEGO

Contact George Burrough: Tel 858-530-9165 or [email protected]

Key Personnel

Erik KissnerVice 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 pre-

construction stages has resulted in clients saving more than $17 million

in construction costs.

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C O N S T R U C T I O NDAVISREED CONSTRUCTION INC: PENDRY HOTEL PROJECT

Company Information

N A M E

DavisREED Construction

Inc: Pendry Hotel Project

I N D U S T RY

Hotel construction/

contracting

H E A D Q U A RT E R S

12250 El Camino Real,

Suite 325, San Diego, CA,

USA, 92130

F O U N D E D

2002

E M P L O Y E E S

75

B U D G E T

$ 80 million

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.”

A future for the Gaslamp

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.

“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.”

Page 42: Business Review USA & Canada June 2016

How Walsh Construction is helping VA Loma Linda achieve a higher

standard of veteran health care via the new Ambulatory Care Center

Written by: Sasha Orman Produced by: Tom Venturo

A NEW FUTUREfor the VA LOMA LINDA HEALTHCARE SYSTEM

Page 43: Business Review USA & Canada June 2016

How Walsh Construction is helping VA Loma Linda achieve a higher

standard of veteran health care via the new Ambulatory Care Center

A NEW FUTUREfor the VA LOMA LINDA HEALTHCARE SYSTEM

Page 44: Business Review USA & Canada June 2016

Walsh Construction is a 118-year 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.

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

WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

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WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

Page 45: Business Review USA & Canada June 2016

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.

WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL C O N S T R U C T I O N

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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

WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL C O N S T R U C T I O N

Page 46: Business Review USA & Canada June 2016

WALSH CONSTRUCTION LOMA L INDA VA HOSPITALWALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

Page 47: Business Review USA & Canada June 2016

C O N S T R U C T I O N

“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

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, best-of-the-best equipment to provide these services.”

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WALSH CONSTRUCTION LOMA L INDA VA HOSPITALWALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

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WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

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.

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.

Page 49: Business Review USA & Canada June 2016

WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL C O N S T R U C T I O N

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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,”

Page 50: Business Review USA & Canada June 2016

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

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WALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

Page 51: Business Review USA & Canada June 2016

C O N S T R U C T I O N

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

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C O N S T R U C T I O NWALSH CONSTRUCTION LOMA L INDA VA HOSPITAL

Page 52: Business Review USA & Canada June 2016

From the fundamentals of plumbing to the most complex systems, H.L. Moe Co., Inc. commits to providing

unparalleled service and skill bringing innovation and integrity to each project we complete.

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Success… By Delivering Outstanding Performance!

7337 Varna Avenue, North Hollywood, CA 91605fax 818.982.2571 | email [email protected]

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.

www.circulatingair.com818-764-0530

Page 53: Business Review USA & Canada June 2016

C O N S T R U C T I O N

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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.”

The Walsh difference

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.

Company Information

N A M E

Walsh Construction Loma

Linda VA Hospital

I N D U S T RY

Construction

H E A D Q U A RT E R S

929 W. Adams,

Chicago, IL, USA

F O U N D E D

1898

E M P L O Y E E S

8,000

B U D G E T

$ 121 million

Page 54: Business Review USA & Canada June 2016

PAML: EXPLORING THE FUTURE OF DIAGNOSTICS AND SERVICECEO Francisco Velázquez discusses the latest developments and designs moving PAML forwardWritten by: Sasha Orman Produced by: Tom Venturo

Page 55: Business Review USA & Canada June 2016

5 55 5

PAML: EXPLORING THE FUTURE OF DIAGNOSTICS AND SERVICECEO Francisco Velázquez discusses the latest developments and designs moving PAML forwardWritten by: Sasha Orman Produced by: Tom Venturo

Page 56: Business Review USA & Canada June 2016

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

PAML

5 6 J u n e 2 0 1 6

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.

STAY ING CURRENT IN A D IG ITAL WORLD“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 self-

Laboratory

Page 57: Business Review USA & Canada June 2016

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.

PAML H E A LT H C A R E

w w w. p a m l . c o m 5 7

“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

Laboratory

Page 58: Business Review USA & Canada June 2016

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Sarstedt is a proud business partner of Pathology Associates Medical Laboratories.

800-257-5101 . [email protected] . www.sarstedt.com

Page 59: Business Review USA & Canada June 2016

H E A LT H C A R E

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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 THPAML 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

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

PAML President and CEO

Dr. Francisco Velázquez

Page 60: Business Review USA & Canada June 2016

PAML

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poor quality, it doesn’t matter what you have—you’re not going to create a long term relationship.”

LOOKING FORWARD“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

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

Page 61: Business Review USA & Canada June 2016

PAML

Laboratory

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6 2 J u n e 2 0 1 6

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

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

PAML

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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,

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

H E A LT H C A R EPAML

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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

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

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PAML

PAML Employees during Lab Week

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H E A LT H C A R E

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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.”

Company Information

N A M E

PAML (Pathology

Associates Medical

Laboratories)

I N D U S T RY

Healthcare

H E A D Q U A RT E R S

Spokane, WA - USA

E M P L O Y E E S

1680

E S TA B L I S H E D

1957

PAML