Alan Cottrill, CEO, Avant Construction Group
In an interview with Invest:, CEO of Avant Collaborative Construction Alan Cottrill talked about the firm’s significant achievement in strengthening relationships with downtown developers, enhancing project stability, and fostering new opportunities. He emphasized the pivotal role of client relationships in project success and noted a strong demand for adaptive reuse services in downtown Jacksonville.
What have been the main milestones or achievements for Avant over the last 12 months?
Our most significant accomplishment lies in the enduring business relationships we have cultivated. Our clients are the most active developers in the downtown core market. Therefore, our ongoing collaborations with them and the projects we undertake for these developers foster deeper and more robust relationships. This, in turn, leads to an increase in project opportunities and enhances our stability as an organization.
What role do client relationships play in the successful outcome of your projects?
One could argue they are the most important component to the success of projects and your business. There is a Harvard case study that reports that in the next century 85-90% of work will come from business relationships. In the past, it was commonly believed that an online presence was sufficient to guarantee business success; however, this perception has shifted. People are more likely to do business with those they have a personal connection with and feel a sense of reciprocity. This is crucial for project success as it establishes the tone of communication throughout the project. Technological advancements have created the illusion that reaching more people online eliminates the need for building strong relationships with existing clients. However, this is a misconception. It is still vital for us to prioritize relationship-building as we often negotiate directly with clients or are invited to participate in projects based on our existing connections.
Which of your services are seeing the most demand?
Currently, our primary focus is on adaptive reuse. We have numerous projects in the pipeline for downtown areas, where we transform dilapidated buildings into functional spaces with new purposes. Through this method, we revitalize downtown areas, making them more vibrant and dynamic. Often, our clients undertake multiple projects simultaneously, and we are fortunate to be a part of many of these initiatives.
Overall, the vast majority of our work encompasses renovation and restoration projects. This focus aligns with the ongoing developments in Jacksonville’s downtown area and the adaptive reuse projects in our pipeline. Consequently, I would estimate that approximately 80% of our work falls within the renovation and restoration domain.
We also do some consulting, but it constitutes a small portion of our work, as it primarily involves providing services to a limited number of clients. However, it serves as a significant relationship builder and often leads to additional assignments and projects. Traditionally, our industry referred to this role as “owner’s rep services,” but we have limited involvement in that area. However, opportunities for such services do arise. Even in those instances, our role typically evolves into a more collaborative partnership rather than strictly adhering to an owner’s rep service model.
What trends are emerging in the industry?
Our focus has unexpectedly shifted toward the downtown market, making restoration projects a central part of our operations. While there are several billion dollars’ worth of new construction projects in this market, renovation and restoration work constitute a relatively small percentage of the total.
Are there significant challenges facing the industry at the moment?
The shortage of skilled labor is a significant challenge, particularly for a region in a transient state. Unlike established markets, such as Boston, Philadelphia and Manhattan, where generations of families work within trades, there is a need for younger skilled trade development in this area. However, this challenge presents opportunities due to the implementation of new methods in the industry.
Interest rates, while challenging, can positively impact projects by trimming unnecessary expenses and preventing overwork, but prolonged high interest rates can negatively affect project progress. Commercial projects, unlike residential construction, have a longer lead time. Some projects that were halted a year and a half ago have yet to restart and may not resume for another year. This results in an overall project lag of two and a half to three years. Lower interest rates would enable clients to revisit and potentially restart these projects.
What are your main priorities for the near term?
A significant challenge for the future is addressing skilled and unskilled labor shortages. Our approach, guided by the “right seat, right person” logic, prioritizes finding the right candidates for existing positions rather than creating new positions for those we deem suitable. This strategy applies to both skilled and unskilled labor.
