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Home » Modern carving niche with small jobs

Modern carving niche with small jobs

Successful store-setup division steers company through building decline

May 19, 2010
Mike McLean

Todd Harnetiaux, founder and president of Modern Construction & Consulting Services LLC, says the company has managed to grow in one of the toughest markets for building contractors these days—retail construction.

Harnetiaux, a 25-year veteran project manager for Spokane contractors such as Lydig Construction Inc. and Baker Construction and Development Inc., set out on his own in 2008 and has had to adjust to an overall decline in retail construction by thinking small.

"We manufactured a niche because nobody was building," he says. "A lot of retailers are refreshing old stores instead of building new.

They are redoing interiors, modifying signage, repainting, redesigning their isles, and doing other upgrades."

Some of those jobs are valued at only about $2,500, but by going after them, Modern Construction aims to have its foot in the door when the economy improves and such retailers want to do bigger projects, Harnetiaux says.

"I'm watching for companies for which Modern Construction can become a preferred contractor," he says.

For example, Modern Construction is doing interior work on up to 150 Walgreen's stores in Washington, Idaho, Nevada, and Utah.

That work could total $1.6 million for the nearly three-year-old company that's based out of Harnetiaux's residence on Spokane's South Hill.

He says Modern Construction, which currently has 10 employees, is ensuring its future by capitalizing on a number of small jobs, rather than a few big jobs, with a number of retailers.

"Walgreens is going to make my year, but I can't put all my eggs in one basket," Harnetiaux says.

Modern Construction also has landed work by focusing on clients such as T-Mobile USA Inc. and Discount Tire Co., which Harnetiaux says aren't as susceptible to recession-induced sales drops.

Harnetiaux declines to disclose Modern Construction's revenues, but says this year's revenues will be three times that of last year, largely due to the success of its store-setup division. That division handles remodels, and rebranding, setting up fixtures, installing walk-in coolers and freezers, in-store repairs, building additions, and general construction.

In addition to the store-setup division, Modern Construction operates consulting and construction divisions, drawing on Harnetiaux's project-management background, he says.

The consulting division works with project owners, subcontractors, suppliers, and agencies starting with the feasibility stage of a project.

The construction division handles new buildings, site development, additions, and tenant improvements. Through that division, Modern Construction currently is working on bids for some government projects, Harnetiaux says.

While the store-setup division currently is the strongest of the company's three divisions, he says it's important to be prepared to shift resources.

"If you're not thinking about next year, you're not thinking about success," he says.

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