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Profile - Archives
Building Within ---
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By Cheryl Mah
Don Nishimura has learned the business of construction literally from the ground up. From digging holes and overseeing projects to leading one of Western Canada’s largest construction firms in its strategic planning, his “school of hard knocks” training has helped him to build a successful 30 year career.
Not too bad for someone who got his start in construction by “accident.”
The president and chief operating officer at Scott Construction Group has come a long way from his small town roots. Born in Nelson, B.C. to Japanese-Canadian parents who were relocated there at the start of World War II, he was encouraged early on to get a good education.
He followed the traditional academic route by enrolling at the University of British Columbia in 1970. But after graduating with a Bachelor of Arts Degree and Bachelor of Laws Degree, he wanted a break from academics and wound up doing odd jobs such as logging, framing and other small contracting jobs.
“At that time I was into sailing and yacht racing and I needed to finance that lifestyle by working on contracting jobs like house renovations. I also liked working outside,” recalls Nishimura, 60.
In 1986, he met John Scott, who invited him to learn the business with his new company.
“He said if you don’t like it in six months, I have contacts and you can go off to do something else,” says Nishimura, who joined as junior estimator/project co-ordinator and has never looked back since. “It was a big learning curve for me but I enjoyed it. I had some crusty old superintendents who kept me in line and out of trouble. “
Perseverance and a strong work ethic, which Nishimura credits to his humble upbringing, has helped him to succeed in the industry. He admits luck has also played a part. “I consider myself lucky to have run into a mentor and an owner like John. I’ve learned a lot from him – he’s been a great coach and mentor for me over the last 25 years. “
Nishimura would rise through the company ranks, earning his current position in 2005. In his role, he is responsible for the company’s strategic planning, operations, legal and risk management. No longer in the field or overseeing building projects, his “projects“ now are growing the company and the people within it.
“My biggest projects are about succession, growth of the company, recruitment and growing people,” he says. “I enjoy watching all the young people joining the company and rising up through the ranks and being successful.”
He adds facetiously, “My job now is about making myself redundant.”
The company has undergone a “calculated risk managed growth” over the last decade which has seen its annual volume go from $40 million in 2001 to an average volume of $200 million plus today. Employees currently number between 150-160.
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Its extensive portfolio includes many Vancouver landmarks and high profile projects including Eugenia Place, Waterfront Place in Coal Harbour and the Christ Church Cathedral.
Diversification has been key to the company surviving the cyclical nature of the business. In the late 1990s, the company made a concerted effort to break into the ICI sector.
“Up until about 1997, we were the ‘go to’ company for high end residential high rises and we had developed a particular rapport with Asian clients and were very successful in servicing that sector of the industry,” says Nishimura, noting they built many of the early signature residential buildings that helped define Coal Harbour.
The company’s first institutional project at UBC was the Earthquake Engineering Research Facility. Since then, it has completed a number of other projects on the campus including the Biodiversity Building, Biosciences Renew and the renovation of the Sauder School of Business.
“We were quite successful at making that transition into ICI and proving that we could perform and deliver projects in those sectors,” says Nishimura.
Today, Scott Construction has diversified into five divisions (industrial, institutional, commercial, residential and special projects) with a reputation for quality and on-time delivery. Although the company established itself through high end residential projects, it now represents only about 25 per cent of their volume. |
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Current projects include the $200 million Hotel Georgia renovation and residential/tower project for Delta Land Development Ltd., Robert H.N. Ho Research Centre at Vancouver General Hospital, RCMP headquarters in Richmond and Robson Square revitalization in downtown Vancouver. Other recent noteworthy projects were the complex renovations to the CBC building and the Honour House, which was a unique volunteer effort by the construction industry with Scott as construction manager.
“Certainly over the last few years, projects have been more on the public side but we have a fairly good mix of public and private clients,” says Nishimura.
Construction in B.C. (as well as elsewhere) was roaring at a record pace until the economic meltdown in late 2008. The global recession impacted everyone hard. But a backlog of projects and work from repeat clients helped to carry the company through this most recent tough period. Adversity though is nothing new for a company that was founded in the middle of a deep recession back in 1984.
“The stimulus funding by all levels of government also certainly helped. A lot of work has been more on the public side than private side but I see a balance coming back,” says Nishimura.
Although he is optimistic about the future, the recent recession not only caused a slowdown in volume but also increased competition in B.C.
“The world’s changed. There are about 15 international consortiums opening up offices here or operating here in one shape or another. So the world has become a smaller place. It will be a challenge because there are lots of players here,“ he says.
Last year the company opened an Edmonton office to capitalize on the growth and activity in Alberta.
“There are opportunities there for sure. We’re working in Fort McMurray and have done jobs as far as Saskatchewan. We’ve been lucky to land a couple of small jobs to get a foothold there and we will continue to build on that. Our partnership with Aecon gives us the ability to service the market there,” notes Nishimura, adding Western Canada is where they foresee growth over the next few years.
In 1995, the company partnered with Aecon Group to become its construction arm in Western Canada. It provides them with access to a wide range of construction expertise and financial services that wouldn’t otherwise be available to a company of its size.
Much of the work expected in Alberta will be related to the oilsands and industrial infrastructure.
“I hope that the governments of the day at all levels see the need to continue to fund infrastructure renewal and growth,” comments Nishimura. “A lot of the infrastructure in Canada is at that age where it needs to be looked at and replaced. It’s definitely a potential growth area.”
Scott Construction also strives to stay ahead of environmental requirements, which have become the norm in business today. Susan Hildebrand is their director of sustainable building practices and ensures green strategies are implemented into projects.
“We’ve been recycling waste from our sites since the 90s. There’s real cost savings to doing that,” notes Nishimura. “Today certainly sustainability and corporate social responsibility are at the forefront. It’s been a real change and I think there is an obligation and a responsibility for those of us in the business to do what we can.“
He credits their success and longevity to long standing relationships with clients and the quality of the people in the company. Scott was recently named one of the 50 Best Small & Medium Employers in Canada for 2011 by AON Hewitt.
“Being voted as one of the best employers was a big coup for us,” remarks Nishimura. “Winning industry awards and recognition from your peers is great but this award really reflects the value we place on our people. This is a bricks and mortars business but you really don’t get there without good people. Success is from them.”
Actively involved in the industry, Nishimura is currently on the board of directors for BCCA and the B.C. Construction Roundtable. He is also serving as chair elect for the VRCA.
“I’m enjoying that kind of volunteer work because it not only allows you to give back to the industry but you can also discuss issues and how the industry can be improved like skills shortages, procurement practices, standards and technology,” he says of his involvement.
Procurement practices by public and private agencies are very top of mind for many in the construction industry, according to Nishimura. The industry has always advocated for a fair, open, and transparent process but with the recent market turmoil, changes in preferred project delivery methods and more players in the market, built in biases and other issues have become a concern.
“The experience level of people procuring capital projects now is probably not as high as it used to be – that’s another issue,” explains Nishimura, who sits as the chair of the standards and practices committee for the BCCA. “And there are some issues out there in terms of stratification of the industry with these large international firms coming in. Where do smaller contractors or trades fit in that can’t necessarily partake in P3s, for example?”
BCCA recently released a revised Construction Management Guidelines for government bodies and agencies to follow when using CM as a project delivery method. The guidelines, which can also be applied to privately funded projects, aim to provide a fair and equitable process resulting in a contract award based on maximum accountability.
Training the next generation is also critical and one of the biggest challenges facing the industry.
“A lot of what we do is experiential knowledge we’ve gained going through the good and tough times,” notes Nishimura. “It can’t all be book taught or it’s not all on the web. A lot of that has to come from knowledge transfer and we all struggle with that as the demographics change. How do you transfer all that knowledge and experience to the up and coming youngsters? It’s a huge challenge because you can’t put it on a disk and say here it is.”
He continues, “The skill labour shortages we went through years ago is just on the back burner right now. All studies and indications are that it will rear its ugly head again in a couple of years.”
That’s why one of his priorities within the company is to ensure adequate training and professional development is available for the younger employees. “It takes a long time to ‘grow your own’ and that’s got to be one of the main focuses of any company nowadays.”
It’s also about succession planning and “making sure there are good people in house to take over and step up,” he says.
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