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Summer 2009
Developers Journal www.usdevelopersjournal.com
NATIONAL ASSOCIATION OF TOWERS Austin CanyonERECTORS Corporation UpAT You AttitudeIt M'sakes llothe Difference THE MAGAZINE FOR CONSTRUCTION EXECUTIVES
Austin Canyon Corporation National Association of Tower Erectors he responded to the situation would determine how everyone would respond and, ultimately, where the company would go. “This is what a leader does,” said Nazar.
Attitude Makes All the Difference Produced by Victor Martins & Written by R.C. Anderson “The current market conditions may cause fear, but it’s what you do in response that matters,” said Mike Nazar, president of the Austin Canyon Corporation. Nazar has embraced this philosophy since the beginning of the economic slow-down. “When we saw the market conditions drop, we went through a period of fear. I realized as the leader, we had to find a way to turn the company attitude around.” To accomplish this, Nazar and his team “ramped up and started submitting bids to [increase their work load].” Historically, Nazar’s company did not secure a significant amount of work by bidding against other general contractors, but rather by negotiating or providing design-build services. However, Nazar “realized [he] needed to take the reins and be as aggressive as [he] could to keep [his] head above water.” Nazar knew that how
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After Nazar decided on a course of action, he held a meeting with all his employees and advised them to act as if Austin Canyon Corporation was an employee owned company. “Look everywhere for new work or good ideas to make the business better and more profitable; act as if our tomorrow is dependent on it,” Nazar said. One good idea which flowed from this team-based brainstorming effort was a temporary conversion to a four day work week for some of his staff. Another was for employees to perform certain tasks themselves, rather than outsourcing to subcontractors. “We really went after [business] in a positive way and the energy really changed. We’re doing good work for less cost, but we’re working.” After being in business for 23 years, Nazar has learned it’s not about fear, but facing the fear with courage and creativity to provide better management. Although Nazar has always been a proponent of market adjustments such as the current one, he wishes they would occur more gradually. However, he hopes the downturn will “prompt people to return to older values” and recapture the attention of the business community to spur a return to integrity, rather than the current philosophy of “make a quick buck whenever possible.” Overall, Nazar maintains confidence in the U.S. as well as the economy and believes it will rebound in the next couple of years. When Austin Canyon was started in 1986 it had annual revenue of $673,000. Nazar now brings in $7 million to $15 million each year and isn’t in a
rush to change. “A lot of people [correlate] being successful with being big. Although I sometimes feel the ego pull to be a ‘big contractor,’ I don’t really need to be bigger. I’m fine where I am.” The company operates with just eight employees who are more like a family, taking trips and eating lunch together. Employees receive bonuses every year for their hard work and participate in a Simplified Employee Pension program that’s been in place since
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Austin Canyon Corporation 1988. “I take a lot of stock when successful business people, whom I think of as mentors, say I have a sound [business] model. [I am] especially [proud] of the fact that we have no debt,” he said. Nazar is proud to work at a place where he can “participate in every project and not be the guy working at the top who has no idea of what’s really going on [in the field and office].” One reason Nazar has become so successful is because he believes in the value of client relationships. “Every relationship we start begins with trust. This is why we stay the size we are, because I can go to meetings and keep track of projects [and the client’s satisfaction].” This attention to the client relationship has translated into repeat work. Recently, one of Austin Canyon’s first clients from 23 years ago awarded the company another Medical Clinic project. “No project is a success unless our clients are happy with the product. [If something is wrong], we go in and fix the problem because we care about the relationship not just the warranty obligation,” said Nazar.
Clients are not the only ones Nazar enjoys working with. He also gains personal satisfaction from working with architects, engineers, and subcontractors on team-based projects. “I love the dynamics of working with a team from the start of the design process to the end of a job,” he said. Austin Canyon has completed several projects in this way such as a dance studio, medical buildings, banks, credit unions, schools, churches, public office buildings and interior finish work. “If we were to have a niche, it would be in working on team based projects and providing an extraordinarily high level of service to our clients. We love what we do and our passion is evident to everyone we have the privilege to work with.” Three of his most meaningful clients and project experiences were the Austin Regional Clinic, Shoreline Christian Center and 524 Lamar. Austin Regional Clinic, the longest running relationship of the three, is committed to providing satellite clinics in Austin to bring their medical services into communities separated by long distances from traditional medical facilities. Austin Canyon has constructed over 30 satellite clinics, all on a team approach, and continues to serve the client on current projects.
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Camp and Special Olympics. The company also supports high school sports programs, local gardening opportunities for children and scholarship programs. His favorite contribution, however, was to the neighborhood Northwest Little League whose one-story building needed an expansion. Nazar and his team removed the roof and added a second story to create a new board room and observation deck for free. By working in the evenings and on the weekends, the Austin Canyon Corporation’s employee team completed this project in approximately one month. “Children are an investment in our future,” he said. In all, Austin Canyon has contributed to at least 10 to 12 children’s charities and College Scholarship programs since the company’s creation. Nazar would like to continue to improve his Austin Canyon’s efficiency, but plans to do so in a manner that does not lose the connections he has made with people. “Technology has
The company also has a long term relationship with Shoreline Christian Center from working on numerous projects. Recently, Austin Canyon provided Design-Build services to construct a new Youth and Children’s Ministry building. The first phase of the project has just been completed. “These are among the top people we have ever worked for in 23 years. They know we will get the job done and take up for their best interests.” 524 Lamar is well-remembered because it was significant both architecturally and geographically, yet it had difficult aspects. It was an important project for Austin Canyon due to its size, but also because it was in a very dynamic, recognized and expanding area in Austin. “This was a great client but a tough job. I grew up and learned a lot about managing a growing company on this project. The project finished successfully and we still have a working relationship with this client today,” said Nazar. Austin Canyon does more than everyday commercial work. Nazar also contributes time and money to several organizations and charities. Nazar has donated money to send children to the Sunshine
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Austin Canyon Corporation made great improvements to portions of our business, however, it has the potential to destroy a relationship if you don’t maintain the ‘touch’ of human communication and trust. It would be nice to be more efficient and tweak our model to get better at what we do so we can all live a better quality life at home with our families, but it is not my goal to turn this into a $50 million company just for the sake of being bigger.” Regardless of what direction his company takes, Nazar will remain at the forefront, leading in spite of fear, rather than because of it .
C O M PA N Y A
Establish President:
Austin Canyon Corporation contracting firm providing a management capabilities Company Note: When Austin Ca annual revenue of $673,000. N to $15 millio
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AT A G L A N C E
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is an award-winning general full spectrum of construction s and design build services. anyon was started in 1986 it had Nazar now brings in $7 million on each year.
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Austin Canyon Corporation Winter 2009
5806 Mesa Drive Suite 260 Austin, Texas 78731 U n i t e d S tat e s www.austincanyon.com
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