Is there courage in construction companies? And can it be found in the customer segment, subscribers, or the banking sector?
The Kuopio regional manager of Savon Laaturakennus Oy speaks about courage in this article Tommi Saastamoinen, Kuopio Regional Manager, YIT Construction Oy Jari huttunen and Jalon Group CEO Jussi Myllymäki From Mikkeli.
The keys to the solution in hand
Tommi Saastamoinen and his team were facing unemployment. “This can’t happen here,” he had said when some of his trusted men had been laid off. “We had a good team, including a site engineer, a tender estimator, foremen and workers, all of whom had been on the same journey for several years.”
Saastamoinen felt a sense of duty. Could something be done about it? He started contacting companies in the industry, looking for new opportunities for his close-knit team. By chance, he met the CEO of Savon Laaturakennus Oy in Iisalme. Jukka Rissanen. “After a brief discussion, we realized that our thoughts were very similar,” Saastamoinen recounts the events. “Savon Laatarakkennus found the courage to respond to our challenge.”
Tommi Saastamoinen now works as a regional manager at Savon Laaturakennus Oy's newly established regional office in Kuopio. His team is also registered with the company and is working on the renovation project of Juontotie in Kuopio. "A really nice start," he thanks the developer of the project, Niiralan Kulma Oy.
""Even though our team has done things in their own way, everything has seamlessly come together," Saastamoinen rejoices. "The employer company has also adopted our operating methods."
Saastamoinen's work continues in developing Savon Laaturakennus Oy's operations and acquiring new contacts and contracts.
"“First in. First out.”
""Yes, there is courage in the construction industry," assures Jari Huttunen, YIT Construction Oy's Regional Manager in Kuopio.
"People in the construction industry know how sensitive the industry is to economic cycles. There are ups and downs. There are no calm years or moments.” Drawing on two decades of construction experience, Huttunen suggests that attitudes need to be in place if you want to work in the industry.
"History tells us that those who are brave and lead the way survive difficult times and overcome even the deepest pits.”
Big companies have their trump cards. You don't have to do everything yourself. A big company can always find a solution to any problem, and it's easier to make bold decisions together. That's what has been done: "Let's be a little more proactive in doing these things."
Although there have been challenges in the housing market, YIT has gone against the tide in the market and launched several hard-money housing initiatives nationwide. “We have a strong belief that we are heading towards better times.”
Jari Huttunen is reminded of the motto: “First to arrive. First to leave.” That is courage. “The expression is appropriate for a berry patch, but it also describes YIT’s current operations.”
"You can be brave, as long as you minimize the risks”
Jalon is an exception in the construction industry: the company is pushing ahead despite challenging times. “From our perspective, we can’t really talk about a downturn,” says Jussi Myllymäki, CEO of Jalon Group Oy. “We currently have Jalon’s highest order book ever.”
Myllymäki reveals the recipe for success: “We do projects that are similar to our company, ones that we know we have strong expertise in. Our company’s balance sheet is also in good shape.”
Jalon has refined its own operating methods and standardized its practices across the group's various companies. Where necessary, lessons learned have been transferred to another company. "Then you can trust that it will work."
But do you have time to relax during a downturn?
“On the contrary!” Myllymäki laughs. “Then we have to put our feet under us and run smarter. Even though Jalon is widely known as an actor, we still have to go out and tell people who we are.”
The company has invested in project development while doing the legwork, visiting customers, attending investor and financier meetings, and preparing for the future.
The courage has been found for major projects. K-Citymarket in Haapaniemi, Kuopio, the largest primary school in Finland, Pirtti School with 800 pupils, the Jyväskylä Theatre and a 110-apartment housing project for Espoo apartments are the construction sites currently underway by the construction company. They speak volumes about Jalon's results-oriented approach. "And more major projects are coming," Myllymäki reveals.
Jalon's CEO considers a bold attitude a good starting point for doing business. "As long as we remember to minimize risks, whether they are related to procurement, accounting or subcontractors."
Where is the courage of the subscribers and financiers?
Tommi Saastamoinen of Savon Laaturukken hopes that cities, municipalities and the state will take the lead in launching construction projects with more courage. “Now would be a good time to build.” He calls for courage from all construction project actors: “Let’s go straight to the fire, and not wait!”
YIT's Jari Huttunen agrees. Courage should be found throughout the value chain. Financiers should also wake up. "When we're talking about millions, even hundreds of millions in large projects, there should be a basis for the success of the projects," Huttunen believes. "Things should be looked at collectively. You can't turn the ship around alone."
“If we do things the way they have been done before, it is poison for me. Just boldly move towards new winds and new challenges. It will be rewarding,” encourages YIT’s regional manager. “If customers don’t come knocking on the door, you have to be active yourself. Otherwise, others will come from right and left.”
The same is reflected by Jussi Myllymäki of Jalon Group. “Yes, there is courage in both customer segments and construction companies. Million-dollar projects cannot be carried out without civic courage,” says the CEO. “Big companies invest.”
Myllymäki recalls that rental houses have not been built with such a low average square meter price since 2010. The ongoing investments are of course driven by business needs, but customers know that construction is now affordable. That is why they are investing.
“When we have collected investment programs from companies, they look pretty good,” Myllymäki explains. “Customers have become more active.”
Even though we are talking about construction companies and project clients with millions of dollars in business, and even smaller ones, Jussi Myllymäki wants to remind you who ultimately runs the business: “When a company has a top team and they have a great vibe, then things work.”
“The key resource of a construction company is its employees and personnel.”
Text: Heikki Luukkonen