New York City-based construction contractor STO Building Group has created three new lines of business aimed at reducing delays and increasing project flexibility amid rapidly changing market challenges, CEO Robert “Bob” Mullen shared on a recent episode of the ENR Groundbreakers podcast.
With its corporate units operating independently under the STO umbrella, the company’s facility construction services line serves as an end-to-end solutions partner for small teams, he explained. Its line of construction contracting solutions manages relationships with equipment manufacturers to streamline delivery; and its elevator construction consulting business designs, builds and installs elevators and elevator equipment.
Mullen explains that the company’s facilities business grew out of the need to support the diversity of project sizes in its portfolio.
“What’s unique about our organization, given the size we are, is that every day of the week we’re building projects that cost less than $1 million, sometimes less than $100,000. At the same time, we’re building projects in the $1 billion to $3 billion range,” says Mullen. “Not many companies, and perhaps none of our size, focus on the small work and customer needs in their local facilities. [facilities constr8ction services] is a solution for small projects where a customer can order a project, which is delivered transparently. The client sees the pricing and schedule, can understand how the project will go and confirm, review and approve the project to proceed.”
In general, “it’s about the additional services we can offer our customers to enhance the value of our relationship,” says Mullen. “We want to be there early. We want to be there throughout the project. We want to be there beyond the project.”
Outside of the normal ebb and flow of the construction market, Mullen tells ENR that the Trump administration’s tariff policy has had the biggest impact on the company’s project portfolio.
“Certainly, some projects we’ve had to reassess where we are from a pricing perspective, but our customers, for the most part, understand that the new rates are not a known risk that we anticipated, and adjustments need to be made when necessary,” he says. Mullen adds that STO has been “very careful” in monitoring potential changes to regulations and building codes at the federal level.
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“I think we do very well and adapt very well to these regulatory changes when they happen and just move forward,” he says.
STO Building Group is often on ENR’s Top 400 Contractors list, posting more than $12 billion in revenue last year.
