Allen Gast, Founder & President, Gast Construction Group
In an interview with Invest:, Allen Gast, founder and president of Gast Construction Group, said, the company is seeing a shift on project leads to the commercial sector, highlighting the shift from luxury residential to larger commercial projects. Gast also discussed the state of the construction industry in Palm Beach and South Florida. “Overall, the market is incredibly strong and we are still seeing new projects every week.”
What changes have affected Gast Construction Group the most over the past year, and in what ways?
It would have to be our shift in focus toward the commercial side. We are also a luxury residential builder, which, granted, there is still quite a bit of that going on. However, as a company, we have really started to focus more so on the commercial sector. Those projects for us have gotten larger. The commercial work is necessary because it serves as the backbone for all the residential work that has been happening over the last five years or so since COVID.
What is your overview of the construction and design-build industry in Palm Beach and South Florida?
It is still very strong, and that has continued without question. There have been a couple of small blips, with clients hesitating on new projects here and there, but those fall by the wayside pretty quickly, and then we move forward. Some of that hesitation has to do with concerns about potential tariffs and the economic impact of those. However, those concerns seem to be short-lived, and then we move on and are right back where we started. Overall, the market is incredibly strong and we are still seeing new projects every week.
What factors make Palm Beach an ideal location for Gast Construction Group, and how does the region differentiate from other markets?
We predominantly focus on this market here in Palm Beach and the surrounding counties. What works well for us is the fact that we are not a contractor trying to build the towers downtown, and we are not a contractor doing small renovations. We are a midsize firm that tackles midsize projects, and there seems to be a wealth of those types of projects in this area. We have found our niche, and within that niche, we have been incredibly busy for the last 14 years.
What are some strategic advantages that differentiate Gast Construction Group from its competitors in the region?
I think our relationships are the biggest factor. We have spent a considerable amount of time building relationships throughout the community. I believe this is a community that identifies companies, no matter the industry, that are good corporate citizens and give back through their time, dollars, and effort. We have made that a priority since the beginning, and those relationships pay off every day.
What projects and industries are driving growth, demand, and profitability for Gast Construction?
First off, affordable housing is going to be a huge market here in Palm Beach County. Warehousing has definitely been very strong, and I see that continuing. While we are not building any affordable housing projects at the moment, we do have two or three affordable housing projects in pre-construction right now, working with developers to see if the projects will pencil. There have been many attempts to build a considerable amount of affordable housing, with some degree of success, but much more is needed in this county. I really see that as something that will be a strong piece of our industry over the next decade in order to catch up to where we need to be. The need is there, and it seems like the municipalities understand that and are all working toward strategies to accomplish what is needed.
Additionally, religious and private school projects are both in high demand right now.
In what ways is the company integrating environmentally sustainable and green construction and development practices?
We take the approach that green is good, and if there are ways we can implement sustainable practices, we do. A lot of times, green practices are not as cost-effective as other methods, so sometimes it comes down to the ownership of the project and how far they want to take that, along with the design team. We have certainly done some LEED projects that were amazing. We did a LEED-certified warehouse not too long ago, for example. Those projects are out there, and I would love to see more of them being built; however, we do not see it as much as I would like.
What are the primary challenges facing the construction and development sector in Palm Beach and South Florida, and how is Gast Construction adapting?
While not new, skilled labor shortages are certainly an issue. This affects not only the quality of work but also the timeliness of work. One thing we have noticed is that projects are taking longer. Many subcontractors that hire tradespeople, in some cases, simply cannot find enough workers to staff everything adequately. This prevents projects from moving as swiftly as we are accustomed to. That is a major concern. For years, we have engaged with different organizations to help high-school students and younger individuals understand and identify the trades as a great profession. Only in the last couple of years do I feel there is a tide turning, where more young people are seriously considering the trades, especially as there is excellent money to be made in the trades. For a long time, the narrative was that one must go to college, and that was the only path. Unfortunately, this positioned the trades as a last-resort job, when in reality, those entering the trades graduate with no student debt and secure well-paying jobs.
What is the importance of ensuring high-performance, reliable, and durable development practices to ensure better and safer quality construction?
It is essential. We build to the design, and we provide our input throughout that process. However, at the end of the day, building sustainably so that we can utilize proven, effective materials is crucial. I do think we have come a long way. Houses that would have once been destroyed in storms are no longer in that position. Design teams have increasingly adopted resilient practices. While we do not necessarily drive the ship on those decisions, we do provide input whenever possible.
Have you noticed any significant changes from the design side in recent years in terms of what clients are expecting?
There are no examples that are drastically different at the moment. It is more about designing to new codes, updated flood elevations, and similar changes that have evolved over the years, and which are a regular part of the process. These adjustments result in more resilient projects. Many of our materials and methods have improved over time, so nothing stands out as a specific, groundbreaking example.
What is your outlook for Gast Construction Group in Palm Beach for the next two to three years?
Our goal this year was not necessarily to grow, as growth was inevitable, but rather to refine and sharpen our tools to become as efficient and effective as possible. We focused on ensuring our staff was well trained. Now, we aim to take that momentum into a growth phase. We believe there is room for us to expand in this market, and we do not foresee a slowdown. We want to be prepared, so we are actively preparing our team for that next phase.
As part of preparing a more trained and well-developed team, are you leveraging any new technologies to streamline operations and deliver better projects?
We are utilizing artificial intelligence in small ways, with the goal of broadening our knowledge and implementing it more extensively in the future. There are several companies working on AI applications in construction-related areas, and we are in discussions with some of them. We are keeping our eyes open, remaining interested, and waiting to see how the technology develops. We want to identify the most tangible and effective ways to integrate it quickly.
