Andrew McPherson, President, Seretta Construction Inc.

In an interview with Invest:, Andrew McPherson, president of Seretta Construction, talked about how the company essentially introduced tilt-wall construction to the Greater Orlando area and how it has grown as that construction method has been implemented in more sectors. He also underlined that interest rates are workable, and also discussed the importance of safety for the company. 

What are the most important contributions of Seretta Construction Inc. to the Greater Orlando region? 

We are in our 38th year of business. We predominantly do tilt-wall construction in sectors such as distribution, industrial, cold-storage, and multistory. We were one of the first full-time tilt-wall companies in the Greater Orlando market and in the state. When we first started, tilt-wall construction was infrequent and poorly done in Florida. Our main contribution is the development of a tilt-wall market where it used to be a masonry market. Back then, we spent a lot of time converting buildings because nobody wanted to take a chance on this method, but now tilt-wall is the go-to building method in Florida in everything from schools and retail to high-end architectural finishes. We played a big part in that over the years. A lot of the details and methodologies that we have come up with are now industry standards. 

What are the most important opportunities the company has identified in the Greater Orlando area? 

The market continues to grow. While tilt-wall used to be considered a purely form-and-function, warehousing-type construction method, now everybody understands the speed, durability, and strength that it offers. It is now being used in high-end retail, office buildings, and virtually every school in the state. Similarly, while 10 years ago cold-storage was built using insulated metal panels, nowadays most cold-storage facilities are insulated tilt-wall, which is something we do more than anybody in the country. The range of facilities that the tilt-wall construction methodology has expanded into is tremendous. Even homes are getting into tilt wall now.

How have changes in pre-construction processes aided the business of Seretta Construction? 

You can do takeoffs (listing and measuring materials to arrive at a cost estimate) a lot faster now. While previously everything was done by hand, now everything is digitized. We now have digitizers that allow you to click a point on a plan, get a dimension, and configure quantities. The speed with which things are done is unbelievable. The downside is that now everybody goes back and changes things many times. With the ease of takeoffs, people want all sorts of options. It is faster, but more irritating as you cannot just price it and move on, and everybody expects everything in a short window of time. From that standpoint, we have had great improvements in accuracy and speed as well as improvements that are not so great in terms of people’s demands. 

How have macroeconomic challenges like higher interest rates impacted the company’s business? 

I am not a believer that these interest rates are the death of the industry. I have lived enough to know that the current interest rates are workable. The United States has been addicted to free money for basically the last 10 years, so everybody feels these rates are enormous. Nevertheless, they are still low from a historical perspective. If you cannot run a business on these interest rates, you basically have a problem because they are not prohibitive. 

There are many young developers who have been in the industry for 10 to 15 years who have never seen bad interest rates. Nevertheless, developers are finally seeing that they can still be profitable and can still develop. There was a little hiccup with the rates, but things are coming back. The worst thing the Federal Reserve could do right now would be to lower the rates because inflation is close to where they want it to be but it’s not there yet. If they start lowering rates, that will spur activity, which will mean increased pricing. 

What challenges have workforce shortages presented for the Greater Orlando economy? 

The labor market has always been difficult, but the implementation of the E-Verify system by the Florida government has been a disaster for businesses. They need to find a way to allow people who want to work in the country to work legally instead of just banning everybody. The E-Verify system has made an already difficult labor market much more difficult. Florida is growing and this system is chopping people at the knees. The demand for buildings, hotels, and restaurants is clipping off workers. 

What projects have had the biggest impact on Seretta Construction? 

We have done a lot of firsts. At one point, we did the largest tilt-wall building ever built. We also had the first four- and five-story single-panel tilt-wall buildings that were ever built. Those projects gave us a lot of notoriety. We also were the first to do high tolerance floors when they came out in the early 1990s. That put us on the map as well because we were doing them successfully. We have always dived in and done whatever is out there. Sometimes it is financially successful and sometimes it is not, but it is always an opportunity to learn. 

What measures does Seretta Construction take to ensure the safety of workers and the public? 

Unlike what recently passed in Florida, where workers are not entitled to shade, water, or breaks, we work in the opposite way. As the heat builds up, we demand that our superintendents give our workers more breaks. Additionally, our safety directors are not people with a 30-hour OSHA class. They hold at least a bachelor’s degree in industrial safety, industrial hygiene, or an equivalent degree as well as professional certifications. Some of them even have a master’s degree in safety. 

Additionally, we have always provided shade tents. We do concrete work, so a lot of what we do is under the full sun. We keep these big, long tents available so our workers can get some shade or protect themselves from the winds and rain. Additionally, in order to avoid heat exhaustion, we implemented a system used by the military to cool down somebody who might get overheated. We are also always training in both English and Spanish to ensure that everyone gets it. 

What is the strategy of Seretta Construction to complete projects in a timely manner while maintaining high-quality standards? 

For timely completion, you must start off right. That means having your material list and getting ahead of stuff to prevent fires. The biggest part to me is planning. We have weekly planning sessions that include accounting, safety, general superintendent, and project managers. We go over each individual job to determine what is coming up, what is done, and what is needed. You need to be weeks ahead of yourself or you are in trouble. 

What are the items on Seretta Construction’s agenda for the next couple of years that you are excited about? 

Probably a change of leadership. My father started the business in 1987, and I was here from day one with him. Probably within the next year, we will have an in-house change of leadership. We always hire from within and promote from within wherever possible. Aside from that, we are contemplating offices in the Southwest and other things in the mid-Atlantic. 

What is the strategy of Seretta Construction to give back to the community? 

A big part of the company’s success is not just its quality, but the fact that we have been active in donations to communities. We support women and children’s needs, whether that is related to domestic violence, homelessness, healthcare for children and adults, or grief counseling for kids who have suffered the loss of a parent. We also give to animal shelters, manatee funds, the arts, and so on. 

We are also involved and active in the Tilt Up Concrete Association and the American Concrete Institute. It is very important to be involved in your industry on a national level as well as to give back to people through a wide variety of charities.