Miles-McClellan Construction Vice President Matt Recchiuti Discusses His Experience Working With Industrial Clients

The construction landscape is vast and diverse. While it certainly includes those impressive commercial skyscrapers, remarkable retail centers and highly anticipated residential complexes, there is one realm of the industry that doesn’t always get as much media attention but is equally as important – the industrial sector. Industrial construction includes manufacturing, distribution, factories, power plants and other specialized facilities. Industrial construction structures, and the many fields and industries they allow to do the important work they do, are the backbone of this country and lay the groundwork for economic growth and future innovation.

In this interview with Miles-McClellan Construction vice president Matt Recchiuti, he sheds light on his unique journey working with industrial clients and best practices for building excellence in the industrial construction sector.

Let’s Dive Into Matt Recchiuti’s Industrial Construction Journey:

What experience do you have working with industrial clients?

The majority of my career has been spent in the industrial sector. I’ve worked with Honda, The Scotts Company, Core Molding Technologies and Hirschvogel among others. Whether it’s a new build in a green field, or a renovation/addition in an existing facility, the planning and coordination to manage our construction schedule with the daily operations of our industrial clients, and meshing the two together, is what is the most satisfying.

Why do you like working with industrial Clients?

Over the past 19 years, I have been able to build long-lasting relationships with our industrial clients built on trust, respect and confidence in Miles-McClellan Construction and our team. They know that we understand their needs and unique requirements while also recognizing that production is king, and we are merely secondary in their daily planning and preparation. The challenges that exist in trying to coordinate a schedule and daily activities, while appreciating their management team’s priorities and deadlines is what makes my team’s job rewarding.

What do you bring to the table – why would a client want to work with you?

Experience!!! The myriad of projects that our team has completed in occupied facilities without stopping production allows us to bring about solutions and know how to solve their unique and ongoing needs to fit out their space, all while not sacrificing their goals and quotas. Understanding that even the most well thought-out plans will encounter hiccups or unforeseen challenges that add more complexity. Finding a way to navigate around those challenges and pushing toward the finish line is what makes our job exciting and rewarding.

Can you name an example of “how you saved the day” for a client?

We save the day with each and every time critical, “must be done by” scenario that we are presented with, when we find a way to complete the project on time when there doesn’t appear to be a chance in hell of hitting the schedule goal. Often, we are only given a week or a small shutdown window to complete our projects because production starts back up on a certain date. The scheduling of multi-shift, around-the-clock operations, which often includes scheduling activities by the hour, and coordinating all of the trades along with other ongoing projects, is where my team excels.

Specific advice for those in the construction industry working with industrial clients?

Understand that no job is impossible. There is usually always a way if you’re willing to look at alternative solutions and find a new way of doing something that is outside of the norm.

We are proud of our work within the industrial sector, and have seen firsthand how it helps the community and benefits society. If you have an industrial construction project or would like to learn more about our approach to industrial construction, contact us today!

2023 Q4 Economic Indicator

2023 Q4 Economic Indicator The follow excerpt it taken from the FMI 2024 North American Engineering and Construction Industry Overview, First Quarter Edition.

“Best case assumptions for our forecast is for a recession in 2024, likely sometime during the first half of the year. These expectations are based on a range of predictive economic indicators, but especially the inverted yield curve. The duration of the economic contraction will depend on the U.S. policy response, but as with historical cycles, the impact on the construction industry will likely be longer lasting.”

All the lead indicators presented in our Q4 2023 Economic Indicator continue to reflect a downward trend and support the statement made by FMI above. Additionally, what we are experiencing in the market only supports this story further.

  • We have watched private bidding opportunities almost completely dry-up. We attribute this to current interest rates, owners’ fear of a recession, and the sheer number of vacant office spaces available.
  • With less private bidding opportunities we have had to jump into the public bid market which makes up just over 90% of our total bid opportunities. For the first two months of 2024, in both Columbus and Charlotte, we have seen an average of 6-8 general contractors per bid list, when a year ago at this time there were only 2-3 bidders per list.
  • Our teams have also seen a wider geographic area of subcontractors bidding on projects. Previously our subcontract bidders were contained to the Columbus market. Now we are receiving bids from subcontractors we have never received bids from before, including out of state firms from West Virginia, Michigan, Indiana, and Illinois.
  • Additionally, the sheer number of bids that we are receiving per subcontractor trade has more than doubled. Previously, we would receive 2-3 bids per trade category, and now we are receiving 6-7, the only exception being mechanical, electrical and plumbing. We are still only receiving 2-3 subcontractor bids in these skilled trade categories, and we assume that is because of a shortage in skilled labor in Columbus driven by the number of large, technical projects.

Blueprints and Beyond: Industrial Construction That Shapes the Nation

Industrial Construction That Shapes the Nation

“I have been able to build long-lasting relationships with our industrial clients built on trust, respect and confidence in Miles-McClellan Construction and our team.”

– Matt Recchiuti, Miles-McClellan Construction Vice President and Industrial Construction Director

For over 46 years, we have been building excellence with construction projects of all sizes in a variety of industries. Throughout that time, some of our most memorable projects have been in the industrial sector.

Industrial construction involves building highly specialized structures and facilities for manufacturing, warehousing and fulfillment operations. At Miles-McClellan Construction, we regularly do work for clients in the industrial sector that includes food processing facilities, pharmaceutical facilities, automotive and aerospace manufacturing facilities, chemical and material input facilities, as well as warehouse and distribution center construction, research and development laboratories and more. These types of industrial projects are the backbone of American industry, and foster innovation, create employment opportunities and drive technological advancement.

Our experience in the industrial construction sector has taught us one important lesson – working in industrial environments is very unique for a variety of reasons. It often involves being surrounded by heavy machinery and equipment, and safety precautions are the top priority. Also, the construction team and the client must have open, transparent communication at all times to meet important deadlines and schedule demands. And usually, industrial construction projects are done in occupied facilities, which adds another level of complexity to these projects.

As the construction company with over 46 years of experience building excellence and exceeding client expectations, we are experts at overcoming construction obstacles and challenges. In the words of Matt Recchiuti, Miles-McClellan Construction Vice President, “There is usually always a way if you’re willing to look at alternative solutions and find a new way of doing something that is outside of the norm.” Let’s take a look at some of our most memorable industrial construction projects.

  • American Honda Midwest Consolidation Center

    American Honda Midwest Consolidation Center: Troy, OH

    • Project included work on a 500,000 SF domestic parts supplier distribution hub, an 80,000 SF mezzanine within the warehouse and 49,000 SF procurement operations support office.
    • We were able to incorporate many sustainable elements into this project, including a stormwater runoff that is redirected to a permanent pond that also serves as the sole water source for landscape irrigation, extensive use of light-colored concrete pavement and highly reflective roofing material to reduce heat island effect. Project achieved LEED Gold certification.
    • Project was completed a month ahead of schedule and on budget.
    • Received an ABC Excellence in Construction Award.
  • Honda Aircraft Co. World Headquarters and Research

    Honda Aircraft Co. World Headquarters and Research & Development Facility: Greensboro, NC

    • The campus has 2 buildings. The first building houses over 150 employees, boasts a flight operations room, and an opulent VIP/Lounge specifically designed for current and future customer arrivals. This building also received LEED Gold certification.
    • The second building is a 170,000 SF research and development facility. While this building is not part of the LEED Certification, we diverted 85% of waste from landfill on this portion of the project.

Do you have an industrial construction project coming up? Then contact our team and let’s discuss how working with Miles-McClellan Construction is the best way to make your project a success and build excellence!

Leader Spotlight: Miles-McClellan Construction project executive Kevin Joseph Reflects on the Positive Impact of Successful Renovation

Renovating Spaces and Transforming Communities – An Interview with Miles-McClellan Construction project executive Kevin Joseph

Change is good.

Many people will hear that phrase on numerous occasions throughout their lifetime. At Miles-McClellan Construction, we have seen the power of change firsthand through renovation projects that not only transform facilities and structures, but the communities that they call home. We not only change spaces, we change communities.

While change is good, it can also be challenging. Construction renovation projects require a talented team and smart construction solutions to successfully execute in a way that satisfies the client and contributes to impactful growth for the community. In this interview with Kevin Joseph, Miles-McClellan Construction project executive, learn about his unique experiences with renovation projects, particularly renovation projects in occupied facilities, and why he believes construction renovation is a powerful tool that not only creates safer, more beautiful spaces, but uplifts the spirit of a community.

Q: Why do you like working on renovations that take place in occupied facilities?

A: We appreciate working on renovations in occupied facilities because it presents unique challenges that test our problem-solving and project management skills. It’s satisfying to deliver successful projects while minimizing disruptions for the occupants. Additionally, the positive impact on these spaces, whether it’s creating a better work environment or improving a facility’s functionality, is highly rewarding.

Q: What do you and your team bring to the table when working in occupied facilities?

A: Our team brings a unique blend of expertise, adaptability and a good sense of humor to the table when it comes to renovations in occupied facilities. We thrive on challenges and are the go-to problem-solving partners. We understand the need for minimal disruption and are adept at keeping the atmosphere light and positive during the process.

Q: Can you provide an example of “how you saved the day” for a renovation and work project in an occupied facility?

A: One of our clients received a large, heavy delivery late on a Friday afternoon. They had no way to unload it or move the shipment into the building. Our on-site team was able to pull together labor from our other nearby sites to take care of the issue. This not only alleviated our client’s immediate concern but also showcased our ability to think on our feet and provide timely solutions, even in unexpected circumstances.

Q: Do you have specific advice for renovation clients?

A: Clearly define your goals, set a realistic budget and provide open communication. The reality of renovation projects is that unforeseen issues will happen. Working together, we can navigate the process more effectively and ensure a positive outcome for the job.

Is it time for impactful renovation in your community? Under the guidance of leaders such as Kevin Joseph and his dedicated team, construction renovation is not only good, but life changing. Contact us today and let’s make sure your next renovation project is a success.

We Change the Spaces That Change Lives

Wells Barn at the Franklin Park Conservatory

“We thrive on challenges and are your go-to problem-solving partners.”

Kevin Joseph, Miles-McClellan Construction Project Executive

As defined by Merriam-Webster, renovation is the act of restoring life, vigor or activity.

As the smarter construction company on a mission to build excellence, we are proud of our renovation projects that restore and bring fresh energy into the communities where we live, work and play. Steered by our skilled leaders and a talented IMMPact team, we have witnessed firsthand how exceptional renovation construction can transform communities and change lives.

Beautifying the Community Through Renovation

One of Miles-McClellan Construction’s most noteworthy renovation projects was our work on Wells Barn at the Franklin Park Conservatory in Columbus, Ohio. Wells Barn is an existing heavy timber barn frame from the late 1800s that was renovated into a new education, community outreach and events facility on Franklin Park Conservatory’s campus. One of the most complex construction considerations faced during this renovation project was finding a way to incorporate the original timber from the barn into the modernized version that met current building codes and was structurally sound. Ultimately, our structural engineer was able to design new studs that could be fastened to the existing timber, and C-channel beams provided an additional layer of support. The updated Wells Barn has been a great addition to Franklin Park Conservatory, and now holds a variety of events that benefit the community, such as cooking demonstrations, do-it-yourself cooking classes and tastings within the kitchen space, children and youth classes, adult classes, summer camps, lectures and conferences/symposia.

Family-Friendly Renovation

It doesn’t get much more memorable than having stingrays as a client! Well, not exactly, but we loved partnering with the Columbus Zoo for numerous renovation projects that included the Freshwater Mussel Conservation & Research Center, Nocturnal Building and Aviary upgrades to create a habitat/exhibit space for the Weedy Seadragon and renovation of an existing stingray touch experience. Due to weather issues, Miles-McClellan Construction had to find resourceful ways to complete the project, including repurposing soil used in other areas of the zoo undergoing renovation and using it to cover up miles of pipework.

Renovation That Improves Safety at Schools

Some of our most important renovations have nothing to do with aesthetics, but improving critical components of a space. For our work with Columbus City Schools, we led several HVAC renovations that would make schools safer for students and staff. Under the supervision of Brad Bloomberg, Vice President, HVAC renovations at Valleyview Elementary School, Westgate Elementary School and West Broad Elementary School included replacement of the HVAC systems, new electrical service and both structural and architectural elements to support the new systems. Working strategically, these projects were completed on-time and without issues.

Changing Spaces, Changing Communities, Changing Lives

Our renovation projects transform and improve the lives of residents.  With every renovation project, we are doing our part to help our clients breathe new life into spaces that are vital to the community.

We believe in renovation that makes an impact. Contact us and let’s make a difference through excellent renovation!

2023 Q3 Economic Indicator

2023 Q3 Economic Indicator
The forecast briefing headline included in this month’s Construction Executive magazine was short and simple, “The National Economy is Weakening.”

While speaking on the magazine’s 2023 Q3 “Economic Update and Forecast” webinar, Anirban Basu, The Associated Builders and Contractors’ Chief Economist, said, “the economy has been much stronger than I would have anticipated.” But while job growth, low unemployment and increased spending on construction are positive signs, Basu remains wary of the longer-term outlook, pointing to red flags such as skyrocketing credit-card debt and other industry economic indicators. “My view,” Basu told his online audience, “is the national economy is weakening, increasingly under pressure from higher interest rates, strikes, worker shortages and loss of production; borrowing costs are higher; and excess inflation persists.”

Our attached report, is one quick and easy way to see the trends behind the headline.  The AIA Billing Index is on a four month negative trend, including the last two months below 50. The ABC and FMI backlog indicators are both on negative trends and neither has returned to pre-pandemic levels.

Quick summary: Contractor backlogs are lower right now and there will be less opportunities to pursue throughout 2024. For owners, this could ultimately result in increased competition and more competitive pricing.

A couple of examples from Q3 Miles-McClellan bidding and budgeting efforts:

  • Craig Richards, Vice President, “Our division originally bid a sizeable renovation project to a large, international CM firm. During Q3, 2021, the wall protection package was worth $6.7M and was removed from the scope of work due to being over budget. The package was rebid during Q2 of 2023 at $7.6M. This was a 13% increase in 18 months.”
  • Kevin Joseph, Project Executive, “My team is continuing to feel the effects of bad owner budgets. We recently were low bidder on a City of Columbus job that is 45% over budget. The job is unawardable and the City is now trying to figure out what they can do to value engineer the job. I’m not confident that value engineering will be able to make up such a large disconnect between the budget and the reality of local construction costs. We were also recently low bidder on a public job in Mifflin Township that is unawardable due to a blown budget.”
  • Matt Recchiuti, Vice President, “Much like Kevin, really the only trend I am seeing is that Architects are woefully underestimating public budgets to owners, and almost all of the Public Work bids are having to re-bid to due a shortage of requested funds. We are still seeing delays in HVAC equipment and Electrical gear, most of the time up to a year.”

Second Quarter Economic Indicator – A look back

2023 Q1 economic indicators

As we quickly pass Q2 and move into Q3, we are starting to understand better how the year will shape up. I recently had a chance to review The Conference Board’s (TCB) website for a description of what they see ahead. TCB’s mission is to be a “member-driven think tank that delivers Trusted Insights for What’s Ahead to help our members improve performance and better serve society.”  In a bullet point summary, TCB’s most recent update included:

  • Real GDP rose by 2.4% in Q2 ahead of the expected 1.8% forecasted. This resulted from a weakening demand in consumer consumption being more than offset by business investment.
  • Consumer consumption growth of both goods and services cooled in Q2. This trend is expected to continue for the remainder of 2023 due to three factors:
    • real disposable income is down;
    • pandemic excess savings are gone, and consumers are carrying historic debt levels;
    • mandatory student loan repayments are set to resume.
  • Business investment did more than offset the decrease in consumer spending in Q2, showing sizable spends in transportation equipment, facility structures and intellectual property products. However, this information came with a warning: TCB expects weakening consumer demand throughout the remainder of 2023, combined with high interest rates to reverse business spending trends.

A couple of examples from Q2 Miles-McClellan bidding and budgeting efforts:

Craig Richards, Vice President, “Our division originally bid a sizeable renovation project to a large, international CM firm. During Q3, 2021, the wall protection package was worth $6.7M and was removed from the scope of work due to being over budget. The package was rebid during Q2 of 2023 at $7.6M. This was a 13% increase in 18 months.”

Matt Recchiuti, Vice President, “Our team recently rebid a steel package. Our original steel package was quoted at $53,500 in February 2023, and after the project rebid in August 2023, the final (unchanged) steel package was purchased for $58,000. This is almost a 17% annualized increase in steel pricing.” 

Kevin Joseph, Project Executive, “One notable and frustrating reality that my team faces is the fact that more than half of the projects we bid this past quarter were so far over budget that the project could not proceed. It seems that across various industries and types of projects, owner’s budgets have not caught up with the price increases that exist in Central Ohio. Some owners mention that they plan to wait to rebid work once prices decrease, but we have not seen any indication that this is a realistic plan.”

While at times it may feel like we are spinning our wheels with all the budgets and rebidding, we would rather provide realistic, inclusive budgets and bids then submit low numbers with the hope of winning and not failing.

Using Our Construction Experience to Build Excellence


Building excellence and exceeding client expectations has been our core philosophy for over 45 years, and it is our exceptional team that allows us to accomplish this mission. Throughout the years, our team members have worked on a magnitude of different complex projects for clients of all sizes in all industries. This provides our clients with many advantages. Whatever your construction project or needs, we have the skills and expertise to ensure your satisfaction!

Let’s explore how we can make our construction experience work for you.

Diverse Expertise

From residential, commercial, healthcare, higher education, manufacturing, and hotels, we have done it all!  Having this knowledge and experience allows us to handle different project complexities and requirements effectively. Wherever there is a construction challenge, we have a smarter construction solution.

We Know the Industry

Our range of experience means we know the intricacies of a variety of industries and their environments. Every industry has unique needs that must be met, best practices that must be observed and certain technology that is required to help operations run more smoothly. We have had years of experience working within these different guidelines depending on our client, which is why we are confident we are more than prepared to handle even the most complex details of your construction project.

We Build Lifelong Relationship

Being a top construction company since 1978, and having numerous team members with a vast array of broad construction experience, means we have built strong relationships with our clients, suppliers, subcontractors, architects, engineers and other industry partners. This also allows us to provide a variety of different services that other construction companies can’t offer. Whatever your dreams are for your next construction project, we know an expert that can turn that vision into a reality!

Efficient Project Management

Having broad construction experience means our project management systems and processes have been refined to be as efficient as possible. Every Miles-McClellan project is guided by some of the most respected and experienced construction professionals in the industry along with an IMMPact team that shares insights and knowledge with each other to achieve building excellence.

Client Satisfaction is Top Priority

Experienced construction firms recognize the significance of pleasing the client. This is why at Miles-McClellan Construction, we stress communication, transparency and collaboration throughout the life of a construction project. We want to know all of our clients’ needs, get their feedback and help them with tough decisions. This results in building lifelong relationships.

How can our broad construction experience make your next project a success? Contact us and let’s work together to find out!

Exceptional Design-Build Services Start With Exceptional Leadership

Design-Build Services

At Miles-McClellan Construction, we know that great leaders achieve great results. This is why our design-build construction projects are guided by experienced project leaders and strategically mapped out by an integrated, cohesive IMMPact team that holds each other accountable to building excellence.

With design-build construction projects, a design-build firm such as Miles-McClellan Construction works with our architect partner as they are designing the project. This approach offers several benefits, including enhanced coordination of materials, improved communication, efficient scheduling, increased project speed and better oversight and control. Let’s explore the process involved with design-build projects, and why it’s quickly becoming the top project delivery method.

Scheduling

At Miles-McClellan Construction, we always strive to complete projects on time. We make sure we understand project goals early, and always communicate risks to the whole team from the very beginning, which increases the opportunity for savings and efficient planning. Using the design-build integrated approach allows the construction schedule to be developed concurrently with the design process and identify potential bottlenecks. During design and pre-construction we also analyze the marketplace for current labor force availability, material order backlogs and current/future bidding schedules of major projects in the area. This gives us the opportunity to time our bid around the surpluses to ensure the most competitive pricing.

Coordination of Materials

For our design-build projects, our IMMPACT teams start collaborating from the early stages. This collaboration enables us to identify and select the best materials for your project, and stay on budget and within schedule. Material purchasing requires taking several different factors into consideration, such as availability, cost-effectiveness, sustainability and staying compliant with building codes and regulations. Working in sync throughout this process allows us to streamline material procurement, reduce delays and have materials delivered on time to your construction site. We also

Communication

Communicate, communicate, communicate! Effective communication is crucial in design-build projects, which is why our IMMPact team approach is incredibly effective. It promotes knowledge sharing and enables our team members to trust one another and collectively hold each other accountable to build excellence and ensure client satisfaction. This efficient communication helps address potential issues, minimize delays, resolve conflicts and keeps everyone informed throughout the project.

Completion, Oversight and Control

Our integrated design-build approach means that we are responsible for overseeing and controlling the entire project from start to finish. This provides a higher level of accountability, and also gives us the authority to make decisions promptly, resolve issues promptly and ensure that the project is completed on time and within budget. Construction is a puzzle with many solutions, some of which are more cost effective than others.

Led by talented, experienced leaders and our IMMPact teams, design-build construction projects offer enhanced coordination of materials, streamlined communication, optimized scheduling and the assurance that our clients receive a high level of excellence and customer satisfaction from pre-construction to the ribbon-cutting ceremony.

Are you ready to make an IMMPact with your next design-build project? Then contact Miles-McClellan Construction and discover how we can help you build excellence!

First Quarter Economic Indicator – A look forward

First Quarter Economic Indicator Now wrapping up Q1 and moving into Q2, at Miles-McClellan Construction, we continue to see a confusing assortment of trends. Below is a quick summary of what we have been seeing over the last 30 days and what we expect more of in Q2:

  • The broad trend speaks to the continued rising interest rates but now with an added twist of uncertainty around the banking industry’s stability. As a result of recent bank collapses and the discussions around bank capitalization and the quality of the assets on the balance sheets, lending has started to tighten. At Miles-McClellan Construction, we are experiencing many projects that are either delayed or canceled due to financing issues.
  • The private construction market continues to slow down because of rising construction costs and interest rates. As a result, we continue to bid on the plethora of public projects available this spring. Two notable trends in this bidding arena are: 1) we are starting to see a longer list of GC bidders on each project, and 2) we are also starting to see more subcontract numbers come in under each trade category of each bid. This trend will eventually lead to lower pricing, as increased competition always does.

A couple of specific examples to share are:

Craig Richards, Vice President, “In the past few years, concrete pricing held pretty steadily while other materials were escalating. However, in the last year, concrete pricing has been on the rise. For example, we paid $135.50/CY on a mid-sized project in August of 2022. We are starting a similar project this May 2023, and concrete is now $155.50/CY – a 15% increase.”

Matt Recchiuti, Vice President, “I was recently talking to a client, and she had just found out that the 1,000,000 SF warehouse project she was going to manage was being canceled. The cancellation was because the lessee agreed to lose their deposit while backing out of the lease.” 

Brad Bloomberg, Vice President, “My team used to bid 1-2 public jobs a month, and now we are averaging 5-7 per month. That is a swing of 75% private bidding to 75% public bidding over the last quarter.”

Kevin Joseph, Project Executive, “We recently contacted a shower door supplier to revisit pricing we originally received in September 2022. As a result of our inquiry, the manufacturer lowered their shipping costs by 50%, giving the owner significant project savings.”

Between now and our next publication, we will closely monitor interest rate projections and construction costs as the competition increases. We will need this up-to-date information as we work to provide our clients with competitive and realistic project budgets.