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Home arrow Sustainable Land Development Today arrow January 2006
Heading South PDF Print E-mail
Written by Greg Yoko   
Sunday, 01 January 2006
Atwell-Hick’s growth strategy combines providing efficient client services with aggressive implementation of its strategic plan. It is no secret that the baby boomer generation is migrating to southern destinations, primarily to begin a new phase of life through retirement or the establishment of second homes. For Bob Macomber, though, his move to Florida is anything but a retirement plan.

Macomber, a licensed engineer and surveyor, is also the chief executive officer (CEO) of Atwell-Hick Development Consultants, an award-winning development consulting firm founded in 1905. His relocation from Michigan to Florida is to lead the company’s expansion into a new market and the first phase of the firm’s new national growth strategy. Macomber is heading the company’s new Tampa office.

“I had a great opportunity to retire in Michigan or gradually phase out of the company if I wanted to,” reveals Macomber, “but I am invigorated about rolling up my sleeves and getting more into the game again.”

 

The Game
When Macomber was named Executive Vice President of Atwell-Hicks (AH) in 1991, he had already been with the firm for 20 years and an owner for 12. With annual revenues at about $2 million and a staff of 30, the firm was set for growth.

Less than 15 years later, with a growth rate of 25 percent each year since 1985, AH closed 2005 with over $60 million in revenues and boasts over 450 on the payroll, including 22 owners. In addition to its five Michigan offices and the new Tampa location, AH has offices in the Chicago and Cleveland areas with continued expansion plans in Florida.

The game of growth and success, as stressed by both Macomber and president and chief operating officer Brian Wenzel, is only possible with a shared vision and strategy executed by a group of professional and dedicated staff. The numerous industry awards and designations received by AH as “one of the best places to work” is certainly a testament to its treatment of employees.

In an era when finding and retaining key professional staff (architects, engineers, surveyors) continues to be a challenge, AH wins awards for its ongoing advancement of staff through internal training programs and other employee benefits. For a somewhat extreme example, read the adjoining story on the firm’s 100-year anniversary company cruise. Overall, AH enjoys a miniscule 8% turnover rate.

 

Leadership
While the leadership of the company may seem cumbersome, according to Wenzel, who was named the chief operating officer in 2003, it has become a trademark of the firm.

“Each and every one of the 22 owners of Atwell-Hicks are active partners,” states Wenzel. “We are a firm of consensus-building and a firm of personal impact. What makes us unique in the marketplace is that we are proactive and do not hesitate in implementing changes.”

Wenzel, who also became president of the firm this past year, joined AH in 1994 from the residential homebuilding sector. He brought a thorough understanding of the complex land development process to the firm along with energy and assertive posture that has since shaped the firms strategy.

“It is really about the people,” explains Wenzel. “One of my primary responsibilities is to find great quality people. Our aggressive growth requires the best staff working on the best projects for the best clients in the industry.”

In fact, it was Wenzel who spearheaded the firm’s transition to a market-sector structure in 2000 that served as a catalyst for AH’s organizational and philosophical shift to focus on specific private-sector development consulting.

 

Market Sector Focused Approach
Wenzel, who presented a session at the December 2005 Land Development Breakthroughs conference on the “Trends in Land Development and Strategies to Capitalize on Them,” illustrates AH’s structure of organizing its work by project type. For instance, AH’s business is currently garnered in five project categories: residential (40%), commercial (30%), field services/surveying (20%), environmental/brownfields (10%), and an emerging water/wastewater segment.

To be able to successfully focus and meet the needs of a specific market sector, it is important to clearly understand what is happening, what to expect, and how to adapt and adjust to meet the needs of clients in that sector when they are needed. In other words, to be successful, the service provider must be proactive and not reactive.

For instance, it is rather clear – if one looks at the research – where the population growth and shift will be occurring over the next decade (See cover story in this issue for more details). As Wenzel outlined and explained in his presentation, development in these areas is going to happen, but it will not be the same as it has been in the past because…
• population growth will put strain on land resources and existing infrastructure
• land development projects are getting more complicated
• community opposition is becoming more organized
• the rise of national developers on the local development scene

 As outlined elsewhere in this issue, residential growth typically leads the development of commercial, retail, and institutional sectors. Therefore, it is essential to be aware of the market place – what is working, what is changing, and what is failing.

It is no accident that AH’s expansion is occurring in Florida. With most of the major U.S.TampaOrlando) helps them accomplish two major objectives. First and foremost, it helps them serve their clients better. Secondly, they are moving into an area where the action is. homebuilders and large big-box retailers already as clients, the addition of office locations in (and eventually

“We already have about one-third of the market share in southeastern Michigan,” explains Macomber, “and when you look at the states in the Great Lakes Region and the population migration to the Sunbelt, we felt that this was an important strategic move for Atwell-Hicks.”

 

Diversification of  Professional Resources
One of the keys to AH’s success is its diverse professional offerings. Almost 95 percent of its revenue-generating activities are done in-house.

“Our civil engineering, land surveying, land planning, environmental consulting, and water/waste water consulting is done internally,” states Wenzel. “Only environmental and geotechnical lab work is sent outside the firm.”

“This is very important to us, and even more important and beneficial to our clients,” continued Wenzel. “It allows us to control the quality and priority of each project. It also provides us the ability to look at the project’s ‘big picture’ – clearly seeing the variety of interests that often impact project decisions.”

Wenzel admits that some developers are hesitant to latch on to this approach.

“Developers clearly understand the concept of proforma and the expense side of a project,” relates Wenzel, “but my argument and philosophy is that the developer must also be looking at the income side of the proforma – where more value can be created. I explain that we may not be the least expensive, but we are certainly the most affordable.”

Expansion, whether to Tampa or Cleveland, required strategic personnel acquisitions and relocations as well.

“Thoroughly engrained in the Atwell-Hicks culture is our dedication to working with the local market and those key community officials that authorize and approve the planning and entitlement processes for development projects,” explained Macomber. “This often means a combination of new and current staff assignments.”

 

As an example, prior to opening the Tampa office, AH had nine staff members committed to open the new location. Five were hired from the local area after extensive evaluation and four employees, including Macomber, chose to relocate. Macomber expects that by the end of 2006 there will be 25-30 staff members in the Tampa location.

Even with those lofty projections, the Tampa office is likely to represent only a quarter of AH’s growth in 2006. The firm added 107 employees in 2004 and another 115 last year.  SLDT