People: Finding Balance

Marco Contractors Doubles Down with Revenue Streams

Tim Schooley - 12/10/2010


After decades as a general contractor, Marty Smith
knew the foundation of his business could use extra support.


Smith started a construction company in the 1970s when he didn’t even know how to build so much as a dog house, but Marco Contractors has generated a strong list of major retail clients, building stores and restaurants throughout the country. The company now has a staff of more than 200 employees and revenue that has reached as high as $40 million to $50 million.


Yet Smith is aware stores close as well as open, contract as well as expand. “I always wanted to have different revenue streams so, if one failed, it could pick me up,” he said.


That’s what has happened through the latest downturn, which led retailers to stall plans to open new locations while often cutting back on the number of stores. Revenue at Marco has dipped to around $35 million as Smith has worked harder to generate more business.


At the same time, Smith’s Rockerz Inc., a firm incorporated in the mid-1980s but ramped up around 2002, finds itself busy serving a similar client base, providing them with flooring made from ground and polished concrete.


Using the leverage and resources of his larger contracting firm, Smith said Rockerz has been experiencing double-digit annual growth because it can more cost-effectively compete.
“We’re cheaper in the long run for a lot of national retailers because we do both,” he said.


The new flooring is a value proposition, giving retailers a flooring technique that is LEED-certifiable and can help save on heating and lighting costs with a reflective finish while improving the overall shopping experience by creating a brighter store. Rockerz flooring, which is long-lasting, was used at Giant Eagle’s Market District store at Settlers Ridge in Robinson Township and such retailers as Family Dollar and Dollar General, among others.
While retailers may not be opening as many new stores, they often are looking for ways to save money on established ones.


“Keep in my mind: We’re not talking about one store,” Smith said. “You can save them $10,000 a store on floors.”


Rockerz has ramped up to more than 50 employees and has been experiencing 25 percent to 30 percent annual growth at the same time Smith said Marco’s business trajectory has been going in the opposite direction.


While Marco continues to be profitable, Smith said it’s a challenge to juggle the demands of both businesses with those of Planet Pulse, his casual clothing store in Cranberry, which just opened a second location at Settlers Ridge.


“You’re constantly trying to find balance,” he said, noting that each business faces different needs. “I’ve got to find the right overhead to commit to the right amount of revenue to make sure that my bottom line is healthy.”


Whether it’s Marco licensed to work in all 50 states, Rockerz’s green flooring or the merchandise mix at Planet Pulse, Smith strives to make each business stand out.