Letter from Our President, Walt Fegley

Walt FegleyAs I reflect on Reno Contracting’s 20th anniversary this year, I am proud to commemorate this milestone in terms of how we have managed our affairs as a company over the past two decades, and more importantly, over the past three years. We celebrate our achievements as a hard working, dedicated and talented team of construction professionals. Reno is a strong local business and employer, good corporate citizen and reliable partner within the construction industry. At the same time, looking back at then versus now enables us to see consistencies in our 20-year journey that point to some of our deepest strengths as a company; our ability to weather turbulent times, which demands we investigate, evaluate and implement progressive new ideas that adapt to the marketplace and allow us to be relevant in our industry, and our commitment to our Corporate Values which guide our strategic vision, no matter what:

• Safe projects and a safe work environment
• Honesty, integrity and high morals in all dealings
• Highest standards in pre-construction, construction and all other services
• Open Management supports our Strategic Vision
• Valued employees are key to our success

When Reno incorporated in 1993, the construction industry was at a low point. A similar climate was evident again in 2003 and yet again today. Both then and now, Reno has persevered and excelled, adapting to changes in construction and evolving its business model. A perfect example is our recent expansion into new areas of expertise – sustainable building practices and solar energy. Despite the sluggish economy we have attained modest success. Reno Efficient Sustainable Practices and Reno Solar have made a solid impact on our bottom line, and equally important, they have clearly established our character and brand. We must figure out efficient, affordable energy use and building occupant comfort and performance for our business because it is the right thing to do. We have gone down many different paths in sustainable practices, “walking towards the light” as I’ve often said and we fine-tune the direction as we go. We have spent endless hours educating others. It is far from figured out but it is our mutual future.

Today, the economy in San Diego continues to grow modestly despite “multiple bumps”, according to a recently released publication, the “2013 San Diego Commercial Real Estate Forecast,” by Cassidy Turley, The Corky McMillin Center for Real Estate at San Diego State University, and National University System Institute for Policy Research.  Momentum in economic growth slowed in 2012 compared to 2011, and is expected to further slow this year. Reno’s backlog and planning, however, point to a robust 2014, and that will be a welcomed day. According to the study, “The San Diego multi-family market has continued to act as a beacon of hope for the larger regional commercial real estate market, becoming the first sector to make a full transition from the recovery phase into expansion mode.” This bodes well for us also, as last year we entered the residential market through a joint venture with Patrick Coyle of Coyle Residential. We began construction on a 271 unit, four-story, multi-family apartment building and parking structure in San Jose as Coyle Reno, and we have been recently awarded the Civita II Project here in Mission Valley with Sudberry Properties.  Opportunities abound in multi-family and it demands our prudence as we ramp up this new business enterprise.

As groundbreaking, large-scale commercial construction remains modest, Reno has made significant progress in tenant improvements through our TI business unit. Recent projects include construction and remodels for a biotechnology laboratory space, healthcare call center and multi-use office/warehouse building. In our traditional market, Reno Contracting has benefited from what the Cassidy Turley report called one of San Diego’s core assets – its diversified economy, including healthcare, government/military, hospitality, retail, professional services and technology. We are fortunate to have significant expertise and recent or current projects in nearly all these areas, as the economy rebounds at a different pace in each different industry sector.

I am glad to see a generally positive outlook for our local economy and industry as we move through 2013 and begin the next 20 years of Reno Contracting. I am personally most grateful for the opportunity to meet and work with some of the greatest people one could hope to know…while working in the best industry in the world, construction. I am proud of what we do and how we do it, with fairness, integrity, commitment and dedication.  Thank you to each and every client, architect, engineer, subcontractor and Reno Team Member for allowing me this honor and for making Reno who they are today and going forward. Onward to 2013!