Finalist
Real Estate and Hospitality Services
When Joel A. Testa joined his father’s company, Testa Cos., in 1994, he was very aware that many second-generation businesses fail. Because of that, his goal has been to build the small, family-run, construction company that his father founded into a larger, more sustainable organization that is focused on the long term.
To do this, Testa, who serves as the company’s chief operating officer, introduced a new way of thinking to this conservative industry that is typically reluctant to change. He has applied innovative concepts to the company’s full supply chain, including its relationships with vendors and competitors.
Testa is a big believer in systems and has seen how they can positively impact a business. Over the years, he has successfully implemented many systems that are typically reserved for larger businesses in other industries. One of his first initiatives was to transform the typical relationship between general contractor and subcontractor.
He replaced the normal bidding process used to select subcontractors for projects with a new concept of using select subcontractors for projects with the big-business concept of a preferred supplier/volume-pricing model. Doing this has allowed the company to bid on projects more effectively because prices are locked in for a set period of time. It has also allowed it to bid more efficiently because there is no need to have time-consuming competitive bids for each project.
He also implemented new technologies that changed the way subcontractors interacted with the company, such as a program that automatically schedules all the subcontractors as soon as a project is awarded. Doing this has enhanced the on-time performance of the company’s projects.
While these changes have been effective for Testa Cos., changing minds in the construction industry is easier said than done, so Testa had to take a lot of time to educate his vendors about why these are good changes for them.
As a result of his efforts, the company’s revenue more than doubled from 2007 to 2008 — impressive at a time when many contractors are seeing declines or even shutting their doors. These results are proof that Testa has a good handle on the company’s future.
How to reach: Testa Cos., (330) 928-1988 or www.testacompanies.com
