“In the recent economic downturn, a lot of companies left the marketplace. We’re looking at what we do better and how we can set up for the next round of challenges.” —Michael Ghilotti
Ghilotti Brothers, Inc. (GBI) has been voted Best Contractor/Builder in the North Bay for the second time. This wasn’t a random happening—after winning last year, the company set a goal of continuing to get better and winning the award again. “It means we’re consistently doing something that exceeds expectations,” explains Michael Ghilotti, president.
The company was started in San Rafael in 1914 by James Ghilotti (grandfather to Michael and his brother/business partner Dante), a stonemason who emigrated from Italy after California’s 1906 earthquake. Today, GBI is a midsize company with approximately 275 employees. Two other major North Bay construction companies were also founded by James’ descendants as the company grew and diversified through the years.
With its centennial approaching, GBI’s management is composing a strategy for the company’s next 100 years of business. “We had our annual company meeting with management and administration, Vision 99, named to honor our founding in 1914,” Ghilotti says. “We reviewed the results against our goals for 2012 and then used that information to set new goals for 2013. We also looked at setting long-term goals and strategies."
GBI’s management is also putting some thought into an appropriate celebration for its centennial, but its focus is clearly on setting the foundation for the future. “The challenge is to remain a family business in an anti-business, anti-growth environment,” says Ghilotti. “In the recent economic downturn, a lot of companies left the marketplace. We’re looking at what we can do better and how we can set ourselves up for success in the next round of challenges in the industry.”
With the sun setting on Initiative 1B, a $19-billion bond measure that funded California infrastructure projects (including Caltrans’ numerous Highway 101 corridor improvements on which GBI participated), the company is now looking at alternative sources of revenue to fill that gap (funding ended in December 2012). Less government spending means undertaking more private residential and commercial work. The company is also increasing its geographic reach beyond its traditional nine county Bay Area work regions. It’s always partnered with other companies, and its new strategy includes increasing joint ventures and teaming agreements to bid and perform work. “We want to be more collaborative and more dynamic,” he says.
One of he big initiatives that came out of the Vision 99 meeting was a ground-up, new approach to change GBI’s safety culture. “Construction is an extremely dangerous industry. [In April], a drunk driver crashed into the back of a cone truck on Highway 101 in Corte Madera just a minute after the guys got out of the back,” he notes. “Our employees take huge risks every day. With our effort to reenergize our private work sector comes a significant improvement in our safety culture that’s absolutely necessary. We’re looking at a whole new level of accountability, with everyone watching out for everyone.”
Among the company’s current and upcoming projects are two interchanges in Petaluma including construction of a new bridge over the Petaluma River; two highway projects adding carpool lanes in Novato; final stages of the ongoing Doyle Drive improvements in San Francisco; and the massive new casino/resort in Rohnert Park.
“There’s definitely a sense in the construction and business world that we’ve weathered the storm. It’s been a brutal four or five years, but I think we’re starting to turn the corner. Everyone is cautiously optimistic that the worst is over.” Acting on that optimism, GBI has recently added staff as well as 12 interns for the summer, Ghilotti says.
