Construction company embraces its new normal

Even back in the boom, when Sarasota-based Southern Cross Contracting had construction work all over town, the firm's niche was projects outside the norm.

That approach, what Southern Cross President Steve Johnson calls the ability to do anything from renovating a school to hanging a door, is how the company is back on a growth track. Revenues were up 24% last year, from $6.1 million in 2010 to $7.6 million. While overall sales are half of what the company had in the boom, and the employee count has dropped from 22 to 11, Johnson projects similar annual sales growth in 2012.

Moreover, the growth mirrors a trend in the regional construction industry: With new projects in sectors like hospitality and retail spotty, if even alive at all, building owners have shifted to renovations. That's what Johnson, who has been in local construction for 20 years, sees these days. “The most difficult part,” Johnson tells Coffee Talk, “is owners are very wary of what they spend.”

That's why Johnson says his company's ability to embrace the challenging and odd renovation project has been key to navigating the recession. Some work involves multiple permits and applications, to the point where Sarasota city and county officials have jokingly asked Johnson why Southern Cross takes “all the pain-in-the-ass jobs?”

Replies Johnson: “I like it. It's part of who we are.”

Recent renovation projects the firm has worked on include the Diamond Vault on U.S. 41 in Sarasota, which was previously a West Marine boat accessories store, and the Hub technology business incubator. The four-story Hub building, on Fruitville Road in downtown Sarasota, was previously the headquarters for Century Bank. Southern Cross has also completed several local school and restaurant renovation projects.

Nonetheless, while the firm is as busy as it has been in a few years, Johnson says there are other hurdles to climb. For instance, the company recently listed its 6,000-square-foot building for sale because it doesn't have the staff to fill it. It hopes to buy a smaller building, or lease space. Johnson is also wary of hiring too many people again, in case the growth stalls.

“We are still trying to streamline and stabilize,” says Johnson. “We're not going to have another boom anytime soon.”