Gaetano Construction: Poised to grow with “Nano Utica”

UTICA — “Nano Utica is a game-changer,” says Brian A. Gaetano, president of Charles A. Gaetano Construction Corporation, LLC. “This is like winning the Super Bowl,” he exclaims.

Nano Utica, a moniker applied to the nanotechnology development under way in the Mohawk Valley, got a huge boost on Oct. 10 when Gov. Andrew Cuomo announced that six global technology companies formed a consortium to invest $1.5 billion to launch the state’s second hub of nanotechnology.

The consortium will be headquartered at the Computer Chip Commercialization Center located on the SUNYIT campus in Marcy. The Empire State agreed to invest $200 million over 10 years for the purchase of new equipment for the Nano Utica facility. The R&D facility is expected to cost $125 million and encompass 253,000 square feet, including cleanrooms, laboratories, hands-on education and workforce-training facilities, and integrated offices.

The focus of the research is on computer-chip innovation for new technologies and products in the consumer and business marketplace. The growing reliance on computer chips affects nearly every industry.

“This project will create 1,000 high-tech jobs just in research,” says Gaetano. “We’re expecting thousands … [more] from the manufacturing companies and suppliers which will be drawn to the area. The town of Marcy [plant site] has a 420 acre park near the college with the infrastructure in place: roads, power, sewers, and the necessary zoning.” The Marcy Town Supervisor, Brian N. Scala, estimates that the public-private investment could reach more than $46 billion and generate up to 6,500 jobs over the next decade.

That’s music to Gaetano’s ears. “I see tremendous potential for real-estate investment and for construction,” he opines. “The area will need plants, offices, apartments, condos, additional road construction, and … [perhaps] school buildings. Just look at what happened to Malta [a town in Saratoga County] when Global Foundries built a giant chip factory to manufacture integrated circuits for semi-conductor companies.” The factory now employs more than 2,000 people on top of the 1,000 employed at the R&D center in Albany.

The Gaetanos — brothers Brian, 62, William, 66, and Greg, 48 — are sitting in the catbird’s seat, ready to benefit from the projected boom in real-estate development and construction. William is the executive vice president of the construction company and Greg is the corporate secretary-treasurer.

Gaetano Construction is located in 14,000 square feet of office space on the mezzanine at 258 Genesee St. in downtown Utica, a building owned by the family. The construction company is celebrating 58 years in business.

“My father started the company in 1955,” says the oldest brother, William. “He was a mason contractor with a small crew, who decided in 1960 to become a GC [general contractor]. He didn’t incorporate the business until the early 1970s. Gaetano [Construction] has grown into a full-service, general-contracting, and design-build company that did $52 million in sales last year and employs 50 full time. We’re projecting about the same sales volume for 2013.”

The brothers Gaetano are the principals and equal stockholders of the construction company. Rounding out the executive management team are David L. Kleps, vice president for design/build; John Kinney, controller; Anthony Obernesser, senior project manager; Michael Bushardt, chief estimator; and Steve Perez, general superintendent.

The Gaetanos also work with area professionals to help steer the company: M&T is the company’s primary bank; Firley, Moran, Freer & Eassa CPA, P.C. in DeWitt is Gaetano’s accounting firm; and Mentor Rudin & Trivelpiece, P.C. in Syracuse provides the construction firm legal representation.

Gaetano’s clients and approach

The Gaetano conference room displays dozens of buildings completed over the years, including projects in the fields of education, health care, commercial and industrial, institutional, housing, manufacturing, and warehousing/distribution. The client list reads like a “Who’s Who” of area companies and institutions: Hamilton College and Colgate University, Cayuga Medical Center and Faxton St. Luke’s Healthcare, Utica National Insurance, the Rescue Mission of Utica, Acacia Village, F.X. Matt Brewing Co., Feldmeier Equipment, Inc., and Fiber Instrument Sales, Inc., just to name a few.

Gaetano Construction also specializes in building custom vacation homes, renovations and repairs, pre-construction services, and has been a Butler Builder franchisee for 32 years. Gaetano Construction is currently working on its largest project — an 80,000-square-foot Theatre & Studio Arts complex at Hamilton College, scheduled for completion in 2014 and valued at $36 million.

William Gaetano says the company’s philosophy and people set it apart in attracting and keeping clients.

“We focus on our customers and work on projects typically in a 50-mile radius of Utica, because it’s easier to control the work. It’s common for us to do repeat business, often on a design-build basis. The bottom line is that we build relationships. After all, the customer can fire us anytime.”

Gaetano goes on to say that “… the company is also focused on our … [staff]. We spend a lot of time recruiting employees, turning to schools like [SUNY] Delhi, which has an outstanding program in construction management. We make sure that our new hires receive a lot of on-the-job-training, including estimating, before giving them positions of responsibility. This is a tough business to manage, and we encourage them to make decisions, but only after they have paid their dues. We have also learned from experience that we need to hire people who want to live in the Mohawk Valley, who enjoy the lifestyle.”

Change

Looking back over decades in the construction/commercial real-estate business, Brian Gaetano notes the changes in the industry — especially the impact of technology, the emphasis on safety, and going green. “Everybody has computers and smart phones, which is pushing our business to respond faster. It’s the ‘now society.’ Customers want everything cheaper and faster, and they are not always giving us time to think how we can do that. We may be able to communicate faster, but we still need time to consider how to build or renovate a facility. Each project is a custom effort; this is not a … [cookie-cutter] business,” he says.

Brother William Gaetano adds that “[s]afety is our primary concern on the job. We’re proud to have received the GCI Risk Control award for 2012-2013, which recognizes our safety program and workshops. The upside is not only a healthy work force but also a favorable claims experience, because our EMR (experience modification ratio) is low. We’ve worked hard to institute a company culture that emphasizes safety.”

Gaetano Construction has also gone green. “We currently have six LEED (Leadership in Energy and Environmental Design) associates who are certified in green building,” says William Gaetano. “All New York State projects are now built to LEED standards, and some in the private sector have followed suit.” Gaetano cites his firm’s work on projects such as the Cayuga Medical Center in Ithaca, the Old Forge Arts Center, and Hutchings Psychiatric Center in Syracuse. “As for recycling our construction materials and debris, we created a waste stream long before it became mandatory,” declares Gaetano.

Giving back

The Gaetanos are very active in their community involvement and professional associations. “Over the years, we have contributed to a number of worthy causes that improve the quality of life in our community,” says Brian Gaetano. “We are a proud supporter of not-for-profit efforts such as America’s Greatest Heart Run & Walk, the Saranac Concert Series, The Mighty Run, and Habitat for Humanity. We provide labor and material for many of these events and encourage the staff to volunteer. Our company also hosts several live telethons from our corporate office to help promote ticket sales. It’s our way of giving back.”

“I have committed a great deal of time to AGC (Associated General Contractors of America) and GBC (General Building Contractors of New York State), where I served both as the association’s president and a director,” says William Gaetano. He currently serves as a board member of Mohawk Valley Edge and is the president of the Utica Industrial Development Corp. “These organizations have helped us to become more professional by sharing industry best practices. They benchmark a standard that helps us to serve our customers better and to compete. We also spend a lot of time lobbying in Albany trying to change antiquated laws like the Scaffold Law and to help write new legislation.”

In the corner of the conference room at Gaetano Construction rests a plaque recognizing a generous contribution by Charles A. Gaetano, who gifted a multi-purpose stadium to Utica College. The stadium is named after the donor. Under the picture of the stadium is a sentence in Italian: Non c’e male per il figlio di un giardinere! Translation: “Not bad for the son of a gardener.” Considering the growth of Gaetano Construction, the plaque needs an addition: “Not bad for the grandsons of a gardener.”

Contact Poltenson at npoltenton@cnybj.com