Acquiring a top industry certification was not easy for Concrete Designs Inc., but it was an important part of its plan to recover from the effects of the Great Recession, which threatened to close the almost 60-year-old business.
The Tucson company, which has specialized in architectural precast concrete products such as columns, balusters, moldings and trim since 1958, has expanded its offerings into cast stone. Much like precast concrete, cast stone is an ornamental or functional masonry product.
After a multiyear process, the company recently became a member of the Cast Stone Institute, which certifies product quality through testing and inspection. Members must also undergo a recertification process every two years.
“We saw the opportunity because there are no certified plants west of Texas,” said Nathan Hartzell, owner of Concrete Designs. “We’re able to offer customers in Arizona and California a local source to get a certified product.”
Cast stone is designed to simulate cut limestone and has an acid-etched finish. It is predominantly used on the East Coast, he said, and architects from that region tend to specify its use out West.
Even though precast and cast stone are both essentially made of sand, cement and a few additives, Hartzell said, in an architect’s mind there is a difference.
It took CDI almost three years to be certified, with special testing every month, reports to be filed quarterly and surprise inspections.
“But it’s worth it for a couple of reasons,” he said. “It opens up a whole new market to us and it gives our customers confidence that we’re meeting all these standards so our product will be superior.”
Opening up a testing lab and sending some employees for special training has not only benefited them through certification, it’s also improved the company’s traditional offerings, he said.
“It required us to be a lot more scientific with our mixing system than artistic, because (precast concrete) is really an artistic look, but this made us get really methodical on how we do things,” Hartzell said.
Acquiring the certification is part of the company’s diversification efforts after the housing crisis and recession. During the height of the housing boom, about 90 percent of CDI’s business came from residential sales. Today, almost 60 percent comes from commercial projects.
The business has also started networking with commercial architects.
A crazy ride
CDI was started by two geologists, Donlon LoBiondo and Keith Martin, in 1958. The two owned the business until it was bought in 1996 by Oldcastle, one of the largest building material manufacturers in the world.
Deby Wiest, who had been manager under the original owners, stepped up to run the company for Oldcastle. Hartzell joined CDI in 2006, becoming manager in 2009 just as the economy went into a free fall.
“I became manager and we had a horrible 2009, a horrible 2010 and a really bad 2011,” he said.
Oldcastle was hurting globally and tried to sell the Tucson company, but found no takers. After Wiest and Hartzell failed to find a buyer, Oldcastle was ready to shutter the business. But Wiest wasn’t about to give up.
“Deby came into my office, closed the door and said we should buy it,” Hartzell said. They made a deal with Oldcastle, bought the company and equipment and signed a five-year lease on the property.
They were on their own in 2012 and started to build the business back up. Then, in 2013, Wiest died. “It was a huge blow for everybody,” he said.
The following year, Oldcastle moved to sell the property. Using a Small Business Administration-backed loan and support from Oldcastle, Hartzell was able to buy the land below market price.
“They said: ‘We know what you’re doing. This covers our numbers in our books so if you can come up with this, we’re OK.’ I owe those guys a lot,” he said. “It’s been a crazy ride.”
So far, sales are up 25 percent from 2012, and the company has 35 employees.
“We’re healthy again, that was the biggest thing,” Hartzell said. “Now, how do I tell the world we’re better than everybody and keep it truly being that? That’s our next big push.”
