ENR Groundbreakers Podcast
STO Building Group CEO Reveals Innovation Behind Three New Business Lines
“It’s all about the additional services we can offer our clients to enhance the value of our relationship,” says Bob Mullen in an exclusive interview
STO Building Group CEO Bob Mullen (left) offers a business strategy update to ENR Senior Editor Emell Adolphus in a recent Groundbreakers podcast interview
New York City-based building contractor STO Building Group has created three new business lines to reduce delays and increase project flexibility amid rapidly shifting market conditions, CEO Robert "Bob" Mullen shared in a recent ENR Groundbreakers podcast episode.
With its corporate units operating independently under the STOBG umbrella, the company’s new facilities construction services line serves as an end-to-end solutions partner for small teams, he explained. Its construction procurement solutions line manages relationships with equipment manufacturers to expedite delivery. While its elevator construction consulting business designs, builds and installs elevators and elevator equipment.
Mullen explains that the company’s facilities business grew from a need to support the diversity of project sizes in its portfolio.
“What's unique about our organization, given the size we are, is every day of the week we are building projects that are less than $1 million—sometimes less than $100,000. At the same time, we are building projects that are $1-$3 billion,” says Mullen. “Not many firms, and perhaps no firms our size, focus on the small work and the needs of clients in their local facilities. So [facilities constrction services] is a solution for small projects where a client can place an order for a project, which is delivered transparently. The client sees the pricing and the schedule, can understand how the project is going to go, and confirm, review and approve the project to proceed.”
Overall, “It’s all about the additional services we can offer our clients to enhance the value of our relationship,” says Mullen. “We want to be there early. We want to be there through the whole 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 reevaluate where we are from a pricing perspective, but our clients, for the most part, understand that new tariffs are not a known risk that we had anticipated, and adjustments need to be made where necessary,” he says. Mullen adds that STOBG has been “very careful” about monitoring potential changes to regulations and building codes at the federal level.
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“I think we do a very good job of that, and we adapt to those regulatory changes very well when they occur, and just move forward,” he says.
STO Building Group frequently ranks on ENR’s Top 400 Contractors list, reporting more than $12 billion in revenue last year.
