Columbus Construction LLC is a privately owned construction firm

Columbus Construction LLC is a privately-held construction company that was established in 2009. (Columbus Construction, 2017). James J. Campenella founded the firm. His father and grandparents were also architecture veterans, so the company reflects three decades of expertise in the industry (Columbus Construction, 2017). Customers will use the company's construction management services. It also offers consulting services to customers on their programs. Columbus Construction Company is headquartered in Philadelphia, Pennsylvania at 1930 South 25th Street. The firm has a large number of customers. It provides services in the following sectors including art, senior living, education, healthcare, hospitality, and religious institutions. This paper is an analysis of Columbus Company LLC’s SWOT Analysis, Market Analysis, and PEST Analysis.

Organizational Structure

James J. Campenella, the founder of Columbus Construction Company, worked in his father's construction company before creating his own. He gained extensive skills in the industry. His knowledge and experience in the construction industry have enabled him to lead his team towards success. Campenella is the managing member of the firm and makes the strategic decisions unit. He is in charge of all the department managers. On the other hand, the department managers are in charge of the staff and ensure that they meet the objectives of the company.

The office administrator, Cindy Thompson is tasked with project monitoring. She supervises the planning, scheduling, and the performance of the projects. The marketing department is led by Alyssa Martin. Her work is to maintain the company’s website and its brand. She also markets and advertises the business on social media. The Head Estimator of the company is Joe Wagner. He is in charge of the Lead Estimator, Eric Germo who has an Assistant Estimator, Ashley Montagna. They deal with subcontractors and ensure that their work is defined. They are in charge of the other staff in the department.

There are three Project Managers in the company including Roberto Marz, Brooke Liquidist who is also a superintendent, and Joe Wagner who is also the Head Estimator. They ensure that the projects are completed on time. The Chief Financial Officer, John P, manages the Finance department. The project accountant, Bruce Gaskin, is under the supervision of the Chief Financial Officer. He is in charge of all the accounting processes in the company. The Bookkeeper reports to the Project Accountant.

The Superintendent supervises the projects’ sites led by the Senior Superintend is Greg Lendzioszek. He oversees the construction of major commercial projects. Ian Branciszeski and Brooke Lindquist who is also a Project Manager, are the site Superintendents. According to LinkedIn, the company’s workforce ranges from 11 to 50 employees (2017).

Figure1. Organizational Structure of Columbus Construction



How Columbus Construction Company Operates

Columbus Construction Company offers innovative construction management services to its customers. The company aims at satisfying the diverse needs of its clients through creativity and innovation (Columbus Construction, 2017). It works as a team to ensure that it constructs projects that are custom made to each client’s requirements. Every project is assigned a team that works closely with the customers to ensure that they understand the needs of the client. The company offers several types of services to its clients.

Preconstruction

The company uses modern technology and tools to analyze the upcoming projects. The team that is assigned a project carries out Site Analysis to ensure that all its requirements are considered (Columbus Construction, 2017). Site Analysis helps in establishing the best way to use the available resources. The company also assists the clients in designing the projects. They work hand in hand with the engineers and the architectures. They also estimate the budget of the project. The company comes up with a cost-saving method, which helps reduce the customers’ burden.

Construction

Columbus Construction Company has expertise in the construction industry gained in over three generations. This experience has helped the company to become an industry leader in innovation, efficiency, and effectiveness (Columbus Construction, 2017). The Superintendents ensures that sites are working perfectly well by supervising the workers on a full-time basis. They also help in checking that material usage is controlled and thus reduces the overall costs. The Estimators work closely with the subcontractors. They ensure that there is a precise definition of the work that is supposed to be done by subcontractors. They prevent time wastage and thus ensure that projects are completed as per the schedule. The team working on the projects update the clients on the progress of the project as frequently as necessary.

Designing Projects

The company uses engineering and architectural skills to create the best designs for its customers (Columbus Construction, 2017). The design team uses creativity and innovation to create project designs that satisfy the needs of the customers. To generate quality designs, the team is required to use their communication and teamwork skills effectively.

Industry Analysis

The construction industry in the City of Philadelphia is growing. In 2016, the industry experienced a boom (Romero, 2017). The number of construction permits in Philadelphia increased by 20 percent in 2016 (Romero, 2017). The economic development in the city also contributed to the boom in the construction industry. The city issued 91 permits to build towers over the last five years (Romero, 2017). By the end of the first month of 2017, the city had already issued five permits to create more towers (Romero, 2017). There has been an increase in the number of permits issued to develop mansions. In 2016, Philadelphia issued thirty-seven licenses to create the Strawberry Mansion (Romero, 2017).

A growing population leads to an increase in the demand for construction services. The population grew from 1,526,006 in 2010 to 1,567,872 in 2016 (The Pew Charitable Trusts, 2017). This surge has increased demand in the construction industry in Philadelphia. Increase in the number of jobs in Philadelphia has also increased the demand in the construction industry. At least 40,000 jobs were created in the city in the five years preceding 2016 (The Pew Charitable Trusts, 2017). Research also shows that 56% of the income earners pay 30% or more of their income as rent or mortgages (The Pew Charitable Trusts, 2017). Therefore, the industry has potential to expand. Small businesses like Columbus Construction should take advantage of the growing market to expand their operations.

SWOT Analysis

Strengths

Weaknesses

The company has gained significant experience in the industry

The company has established its client base through quality work

Experienced workforce



Minimal use advanced technology

Opportunities

Threats

Business expansion as the demand for construction services is increasing

Marketing



Increased competition in the industry



Strengths

Experience In The Industry

The company gained experience in the industry. The founder’s grandfather and father were in the construction industry before the formation of Columbus Construction Company. The founder worked in his father’s construction company and gained many skills. This experience helped the founder in understanding the industry. It also gave the company an advantage over its competitors. The company has expertise in the construction of institutional, commercial, residential, and industrial projects.

The Company Has Established Its Client Base Through Quality Work

Having been in the industry for more than eight years, the company has been able to grow its clientele (Columbus Construction, 2017). It has clients from various economic sectors such as health, education, senior living, hospitality, and religious. The company offers professional services to its clients and thus ensures that they come back. It aims at guaranteeing that customer needs are met. Also, the company has a marketing department that advertises and builds its brand.

Experienced Workforce

The company hires professionals who can work towards attaining the set targets. It recruits exceptional employees who can deliver quality work (Columbus Construction, 2017). It also offers competitive remuneration packages to its employees and thus motivates them to work hard.

Weakness

Advanced Technology

The construction industry has become very competitive as many companies use advanced technology in their processes. The company has not embraced the use of modern technology fully. Advanced technology is very efficient when it comes to the creation of project designs. Technology helps in reducing costs and increasing accuracy in construction. If the company wants to stay ahead of the competition, it has to use the modern, advanced technology in its critical processes.

Opportunities

Business Expansion As The Demand For Construction Services Is Increasing

A growing demand for residential, commercial, institutional and industrial buildings has led to increased activity in the construction industry in Philadelphia. The company has an opportunity to expand its client base and grow its earnings by leveraging on the ballooning demand in the market.

Marketing

The company can use the available marketing and advertising platforms to build its brand name. This can be done through social media platforms, mainstream media, its website and all others channels. It can also market itself through advocacy and word of mouth by ensuring that all clients are satisfied.

Threat

Competition

The construction industry in Philadelphia is very competitive. The sector has large companies with more significant market shares than others. The competitors use advanced technology, which gives them an edge. Columbus Construction LLC will have to come up with creative and innovative ways of doing business to stay ahead of the competition.

Competitive Analysis

The company has the opportunity to expand its business. InTech Construction, LLC, and Turner Construction Companies are the primary competitors in the industry. The companies have been in existence for more than 30 years and have a broad customer base (Oliver, 2017). They have increased their client bases through extensive marketing and client satisfaction.

The weaknesses of the companies lie in the fact that they have a small number of employees compared to their client base. According to Oliver, InTech Construction LLC has 120 employees while Turner Construction Co. has 160 (2017). This means that the companies mostly rely on subcontracted labor which may be unreliable thus compromising their reputations.

Columbus Construction LLC has an advantage in the industry as it hires high performing individuals. The company ensures that the needs of the clients are met by a team of qualified and professional workers. Each customer is assigned a team that works closely with them to ensure that the end project satisfies the client. Marketing will allow the company an opportunity of building its brand name. Marketing will help the company in increasing its share of the market.

PEST Analysis

Political

The local government in Philadelphia has been issuing permits for construction of new buildings. It has increased the number of permits for the creation of towers and strawberry mansions (Romero, 2017). This is an excellent opportunity for the key players in the construction industry to expand their businesses. The increased number of permits encourages growth in the industry and the economy at large.

Economic

The annual growth rate of the job market in Philadelphia is estimated to be 2.19%. According to Sperlings, in 10 years, the growth rate in jobs is expected to be 37.47% (2015). An increase in employment grows the demand in the construction industry as people look for residential houses in the city. The estimated increase in demand translates to growth in the construction industry.

Social

Philadelphia's population has increased over time. The cumulative growth rate in the last ten years has been more than 5% (The Pew Charitable Trusts, 2017). This has increased the demand for buildings in the city, which has transformed into the growth of the construction industry.

Technological

Technology determines how construction companies design, plan, and build their projects. Advanced technology reduces human errors in projects and thus increases their efficiency. Advanced technology saves the company and customer unnecessary costs. Some companies in the construction industry use sophisticated software and hardware in their operation. This has increased their efficiency, accuracy, and timeliness in the execution of projects. Technology continues to improve and thus providing companies with the opportunity to grow their efficiency.

Conclusion

Columbus Construction Company operates in the Construction industry in Philadelphia. This sector has potential to expand due to the growing population and the increasing employment rate. The company should capitalize on their strengths including experienced workers, an established client base, and adequate expertise in the industry. It should also work to eliminate its primary weakness in the fact that it lacks advanced technological equipment and processes in its operations. The company must develop strategies that leverage the opportunities for expansion, potential, and marketing. Competition from larger companies is its main threat and should be factored into any strategic decisions.



















References

Columbus Construction LLC. (2017). About Us. Retrieved on 13th December 2017 from https://www.columbusconstructionllc.com

LinkedIn. (2017). About Columbus Construction, LLC. Retrieved on 13th December 2017 from https://www.linkedin.com/company/columbus-construction-llc

Romero M. (2017). Report: Philly saw 20 percent increase in new construction in 2016. Retrieved on 13th December 2017 from https://philly.curbed.com/platform/amp/2017/1/26/14400236/philadelphia-new-construction-trends

Oliver S. (2017). Largest contractors in the Philadelphia region. Philadelphia Business Journal. Retrieved on 16th December 2017 from https://www.bizjournals.com/philadelphia/subscriber-only/2017/06/02/contractors.html

Sperlings. (2015). Philadelphia, Pennsylvania. Retrieved on 13th December 2017 from http://www.bestplaces.net/economy/city/pennsylvania/philadelphia

The Pew Charitable Trusts. (2017). Philadelphia 2017: The state of the city. Retrieved on 13th December 2017 from http://www.pewtrusts.org/en/research-and-analysis/reports/2017/04/philadelphia-2017