I recently had the pleasure of spending 30 minutes talking to Bob Clark, Executive Chairman and Founder of Clayco.
Clayco are a company that need no introduction, but for context they are a full-service real estate development, architecture, engineering, and construction firm achieving $5.8 Billion in revenue in 2023.
Our discussion centered around Advanced Manufacturing & Mission Critical construction, as well as providing an insight into Clayco’s history and DNA.
How does Clayco choose which projects to pursue?
“We see almost every project.”
A core focus for Clayco is to pursue projects that are really going to happen. There are a lot of variables that dictate whether projects are going to come to fruition, but Clayco takes a “holistic approach”, helping clients across the entire spectrum of the project from inception to completion.
For 25 years, Clayco didn’t have a single Business Development role in the company. Instead, they focus on their reputation as a company who get very complicated projects done. Through years of developing great relationships within the industry; work typically comes to them.
The impact of this is that Clayco currently has jobs in 45 cities – A testament to the reputation they have built.
Are you expecting the current momentum within Advanced Manufacturing & Mission Critical to continue?
“The Mission Critical is going to continue regardless, and 30% of our business is still Advanced Manufacturing… We think that regardless of the election, that will continue to be a critical part of our business.”
“I think half of our business this year will be in the cloud.”
A key difference between the ongoing work in Mission Critical and Advanced Manufacturing is that the Mission Critical business is less reliant on subsidies. This means that it’s not reliant on a change in the government dynamic.
The positive for Advanced Manufacturing is that there are “bulletproof parts” of the infrastructure bill – Clayco never expected five years ago that 30% of the business would be EV, however the reality is that electric cars are going to have a huge market share.
Although it will take time to convert the market from combustion engines to EVs, and that there’s a lot of infrastructure that needs to get rolled out, such as charging stations, and continued product development, Bob mentioned that EVs are going to “have a long-term impact and will be a long-term part of [Clayco’s] business”.
Bob recently acquired a Rivian and spoke about how he and his wife love the product.
What are the unique challenges that you’ve faced in the industry?
“Clayco has always been fast track. Nobody brings a simple easy project to Clayco.”
Clayco’s foundation has been in partnering with clients who are in a hurry. One of their first national projects was for Best Buy in 1990 – eventually building their whole distribution network across the country.
Working for companies like Pepsi Cola, Sysco Foods and Best Buy was how Clayco “cut their teeth” – Delivering projects in extremely short time frames on a national basis.
“We had to learn to travel.”
Three decades of traveling across the U.S. to build projects has given Clayco a competitive advantage ahead of local companies; as they have developed a network of suppliers, subcontractors and built trusting partnerships in all these markets across the country.
“Speed has always been a forte of Clayco which really helps us in the hyperscale market.”
One of the standout challenges of the Advanced Manufacturing & Mission Critical industry is highly aggressive schedules and building projects in diverse locations across the country – especially in more remote locations where there’s the space to build these mega projects.
Clayco’s traveling workforce, and legacy of delivering large industrial warehouse buildings against aggressive deadlines, makes them uniquely well-positioned to overcome the challenges of such projects.
Why has Clayco specifically seen such growth and success since its inception?
“A lot of the companies have found their own niche and they’re successful in their own right. I have a lot of admiration for anybody who can compete and make a construction company.”
Clayco’s strategy from the beginning was to grow the business.
Hiring extremely ambitious people and being very detailed in their strategic planning has underpinned their success.
“About a third of my time is spent on strategic planning. We very much developed a strategy to get into the hyperscale space.”
The company was well versed in building large enterprise data centers. The first really large hyperscale data center build was for one of the large technology companies in 2018-19 in Washington State, and today it has developed into a widespread group of tech clients.
Clayco are projecting to do $3.2 Billion in revenue this year in the cloud, without it being concentrated to a single client.
One of your first rules is hiring the best and brightest. What is your strategy to achieve this goal?
“I’m always looking for that extra special thing in the people that we hire that makes me believe they’re not just coming to work for a paycheck, but that they’re going to build something, and that we’re going to build something together.”
Having creative development opportunities and being able to articulate a vision of where the company is growing is integral to hiring the best and brightest.
“You have to be selective as you’re making an investment in people, but you have to be worthy of their investment too – It’s a two-way street.”
You’ve mentioned Adventure, Sustainability and Diversity are core values to you. How have you incorporated these values into Clayco’s DNA?
“All these things have to do with the golden rule. Treat people how you want to be treated and treat the Earth how you want the Earth to treat you.”
Bob makes himself as accessible to every employee in the company as possible, so the leaders in the business are on the ground with their teams, driving the business forward together.
“Diversity, inclusion, and sustainability are all things that are really easy to understand.”
One of Clayco’s mantras is “Beyond These Walls”.
This is to emphasize that “what happens inside the buildings we construct is more important than the bricks and mortar”.
What was evident from our conversation is the overwhelmingly positive impact that these values have had on building Clayco into the company it is today.
Our conversation provided a great insight into the future of Advanced Manufacturing & Mission Critical, and Bob’s unique perspective left a lasting impression.
The future of both industries are bright, and although there are challenges along the way, Clayco exemplify just how quickly these business areas can develop.
The next five years will look vastly different, but if we have learned anything from the last five years – Change will come, and it will come quickly.
Embracing the challenges, building a strong reputation, and championing sustainability & diversity will ensure that you’re best positioned to make a positive impact.
Explore Bob’s website Bob Clark Beyond: Adventurer in Hope for an insight into his Inspiration, Adventures, Impact and Business News.
