There aren’t many construction companies in West Michigan like Triangle Associates Inc. that can boast a legacy of more than nine decades. What’s more, not many construction companies are being run by two designers. Architects Craig Datema and Mitch Watt discuss Triangle’s new leadership structure and the contractor’s strategy for the future. PHOTO BY JEFF HAGE

By Joe Boomgaard | MiBiz
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GRAND RAPIDS — After a quick glance at Craig Datema and Mitch Watt’s backgrounds, one could be forgiven for asking if they’ve somehow gotten lost on the way to the office.

The top two executives at Triangle Associates Inc., a Walker-based construction firm with more than $135 million in sales, trained and practiced first as architects and bring that design thinking experience to the building process.

“Architects have a vision of how to solve owners needs and what the solution will become,” Datema, chairman and CEO of Triangle, told MiBiz. “As contractors, we think of the process to get that vision to reality. We understand the process architects go through, and then we can look at how we build it (mindful) of safety issues for users and for the contractors.”

Moreover, having sat on both sides of the design-build process, they have a better idea of where to look for value for clients, Datema said.

“Having the president and CEO of a construction company with a design background is unusual,” Watt, the recently promoted president and chief business development officer of Triangle, told MiBiz. “That perspective is unique, and it helps us educate our staff (because) most of them come from a construction background. And we can help the client and support the architect with the vision. In the process, we’re looking at value engineering and budgeting. We understand the goal of the architect and the needs of the client in a different way than just saying this is what you need to do to get it done. It allows us to bridge the gap between architect and contractor.”

Team tackles new roles

Triangle recently realigned its senior management team, with Datema stepping out of the day-to-day management to focus on strategic planning, geographic expansion and community projects like the Grand Rapids Academy of Design and Construction, as well as serve as project executive on select company projects. “Why I got into this business, what gives me satisfaction and joy, is building buildings. What I want to do is gain more exposure, touch the jobs in parts and pieces and get more hands-on involvement working with our clients and staff so they’re growing and maximizing the services we provide,” Datema said. Moreover, he said the ADC has struck a personal interest in growing the future local talent pool in architecture and construction. Datema is involved in curriculum development for the specialized school in the Grand Rapids Public Schools system.

Meanwhile, Watt, who’s been with the company for more than three years, now oversees Triangle’s sales and marketing and pre-construction activities.

“Mitch was a good, instantaneous cultural fit with his technical knowledge and the way he deals with issues in and outside the organization,” Datema said, noting Watt was hired with this path in mind. Watt is also not the first non-family member to preside over the 93-year-old company. Datema’s great-grandfather, George Datema, founded the company, currently in its fourth generation of family ownership. “We’re not strictly a family business,” he said. “We’re really an employee-owned and managed company.”

Datema and Watt first met when both found themselves working on the Ledyard Building project in downtown Grand Rapids. Watt said he knew from that experience that Triangle was an organization with integrity and a strong team.

Following clients to new business

As Datema helps the company plot its future, he and Watt look to expand into more states. Triangle has worked in three states and is currently pursuing work with a five-state region, but they don’t want to be restricted by any geographic boundaries as they hope to follow client relationships to new business. One major Triangle client and a reason the company has been going out of state is the retailer Wal-Mart.

“Wal-Mart is one of our strongest clients over the last couple of years, and they’ve opened their doors for us to bid on projects out of the region,” Watt said. “That’s a good way to go into another market. We know the processes they have set up and we can look at other potential opportunities for clients. As we look beyond Michigan, we’ve carefully evaluated the types of clients we go after based on our strengths and less on parochial (reasons).”

Because the company doesn’t have much exposure outside of the state, it needs to be sure that it has the right fit of experience and knowledge to serve clients’ needs before going too far afield, Watt said.
Triangle has also had historic and recent successes in the K-12 market. For example, the company is currently working on school projects for districts in Portage, Kentwood, Hesperia, Vestaburg, Wayland, Montague, Fremont and Gary, Ind. The company has also targeted higher education, with current projects at Grand Valley State University and Michigan State University in East Lansing.

Frequently, Watt said Triangle is emphasizing its partnerships to win business. That was the case in Portage, where it linked with AVB Construction Inc. to win the bid for the $119 million bond work for two elementary and two high schools. The team is exploring a partnership with an architect and MSU on another project in East Lansing.

Better market ahead

Despite being battered by a tough Michigan economy and a tumultuous construction market, Datema said the company has found ways to hold its own.

“Without a doubt, 2009 was the bottom,” he said. “We definitely see more opportunity. The pendulum has swung more toward the hard-bid delivery process, and we’ve always based a third of our business on hard-bid general contractor contracts. We’re very strong in the hard-bid process.”

Triangle’s annual revenue in 2010 is on track to surpass what it had done in the last three or four years, but the company is still prepared for the market recovery to take several years. In the meantime, more projects will be renovations versus new construction.

“People are staying where they are and trying to renovate to what they need,” Watt said. “The markets that are strong for us are healthcare, K-12, government and universities. Those are strengths of ours, but we still have expertise in areas that will continue to be lagging — industrial, housing and commercial, although we’ve seen a little pick up in industrial.”

Triangle is also the general contractor on The Gallery on Fulton, one of the few major new construction projects going on in downtown Grand Rapids. Watt said the project was a perfect example of how Triangle — part of the project’s development team with CWD Real Estate, the Urban Institute for Contemporary Arts and the city ­­— has formed strategic partnerships to ensure a successful outcome.

“It’s a creative and unique partnership … that has created some unique opportunities to create a building that will work well with all entities and provide some dynamic synergy needed on Division and Commerce,” Watt said. “It’s especially rewarding to be part of a project that’s a part of the arts community. It’s a great venue for the UICA.”

Editor’s note: This story has been updated from when it appeared in the August 30 print edition of MiBiz. A correction was made regarding the company’s annual revenue projections for 2010.