charlotte seitz’s C & H; Electrical co. lands big clients as it sticks to strategy of diversification with focus on being responsive to customers


C & H; Electrical Co.


Year Founded:

1983

Core Business:

Commercial, industrial and design-built engineering projects

Revenues in 1999:

$8.4 million

Revenues in 2000:

$18.5 million

Employees in 1999:

40

Employees in 2001:

73

Goal:

To keep employees working and to stay successful

Driving Force:

Demand for electrical contracting work done on time and within budget

Charlotte Seitz has charged ahead in the male-dominated and heavily unionized world of electrical contracting.

As owner of Pacoima-based C & H; Electrical Co., Seitz has found that responsiveness combined with a strategy of diversification have been the keys in landing major clients and major contracts. This month, the company begins work on the electrical wiring for Pier 400 at the Port of Los Angeles, expected to be the largest single-berth container terminal in the world.

Seitz bought the 18-year-old company in its early days from her husband, Hugh, who felt his technical knowledge could be put to better use out in the field for C & H.; Hugh remains general superintendent for all of the company’s construction sites.

Working from a spare bedroom, Seitz began the tedious process of amassing a solid client base. Today, that goal has been realized. Now it owns its own office space and counts among its clients UCLA, Amtrak and NASA’s Jet Propulsion Laboratory.

“About 10 years ago, I realized that the only way C & H; would expand was if we diversified into other projects beyond retail centers,” said Seitz. “So we began bidding larger commercial projects, government projects and public works projects.”

That strategy worked. The company posted revenues last year of $18.5 million, more than double the $8.4 million recorded in 1999. She is projecting revenues to surge to $25 million in 2001.

The wide range of work that C & H; bids for is rare in the contracting field.

“Typically, a general contractor enters into a relationship and then stays with the same one or two companies because it’s easy and comfortable to continue doing negotiated work, as opposed to work they have to bid for,” said Shane Hoggard, executive director for the Associated Builders and Contractors, a Los Angeles-based trade organization.

Contractors bidding a job at the Port of Los Angeles generally do not also bid jobs at schools, such as UCLA.

Diversified strength

“Some electrical contractors will specialize in certain areas, like supermarkets. We are not going to run across them at a port job,” said Seitz. “They have their own niche. The field is extremely competitive, but because we are so diversified, we don’t have any single main competitor.”

While happy with the boost in revenues, Seitz remains focused on simply keeping busy.

“My goal is not to keep doubling our revenue,” she said. “We just want to keep working with quality contractors. I’m busy making sure we stay busy.”

In an industry with high turnover rates due to lack of work, this is a goal that her approximately 60 electricians also appreciate. The third electrician that Seitz hired in the ’80s still works with her at C & H.;

“Many contractors have to temporarily lay off workers when jobs slow down, but I’ve never been without work since I started at C & H;,” said Shane O’Dell, foreman and electrician who has worked with Seitz for eight years.

“I was tired of doing 20-hour weeks and then getting laid off. With C & H;, I never get a day off.”

According to Hoggard, Seitz calls regularly to inquire about people on ABC’s “out of work” list.

“She is constantly growing,” he said. “And these workers are lucky if they can get in at C & H.; She takes a personal interest in her workers, which also helps the company because it is expensive to have a constant turnover of people.”

The retention of quality electricians translates into significant savings for the company in insurance premiums. Because Seitz is able to keep long-term, experienced workers, there are fewer accidents. Larger contractors with newer electricians tend to have more incidents, leading to higher premiums and higher costs that are then passed on to the client, said Seitz.

Although all contractors are required to pay their workers union wages, Seitz’s low overhead gives her an edge, which allows her to make lower bids and acquire more jobs.

“We chose C & H; on the basis of price,” said George Loynd, general contractor at Ray Wilson Co., which hired C & H; for a project at UCLA. “They were the lowest of seven bids we received. They have a competitive price and are very competent.”

Seitz credits her husband for much of C & H;’s success by keeping projects running efficiently and occasionally finishing them early.

Avoiding claims

All contractors run into problems at job sites, according to Seitz. While other contractors may use a problem as an opportunity to file a claim to obtain more money and more time for their work, Seitz is known for getting the problem fixed and avoiding claims.

“C & H; gets ahead because they are very responsive,” said George Elhaj, senior project manager at S.J. Amoroso Construction Co.

Elhaj worked with C & H; on the administration building at California State University, Northridge. He recalls an instance when a fire marshal inspection was scheduled, but he still needed one fire alarm bell installed. According to Elhaj, Seitz was not sure if the responsibility fell on C & H; or on the fire alarm subcontractor, but realizing his urgent need, she agreed to do it and discuss the logistics later.

“They did not question it, they knew we needed help so they immediately installed it for us with all questions of money and responsibility to be discussed later,” said Elhaj. “That is putting the client first.”

Seitz believes this responsiveness toward customers, which inspires confidence and trust, enables her to succeed in this male-dominated industry.

“I make myself visible to my customers, suppliers and employees and have not encountered any major hurdles dealing with my gender,” said Seitz. “Occasionally, at the beginning of a job, someone may have a little attitude, but not for long. I give all our customers a thorough history of our company and most people that I deal with, from banks to project managers, have been gracious and straightforward.”

Seitz said she has had offers to buy her company, but she is not interested.

“I would not even consider it, not unless C & H; Sugar is thinking of buying me so we can keep our name,” she quips.