Agustin Arellano, who started his construction company in 1973, never imagined he would one day be cooperating with a global leader in construction by providing local expertise. He began as an interior contractor in Fort Lauderdale, developing office buildings and condos in Dade and Broward Counties. Years later, he identified a promising niche in the health care construction services market.
Today, Arellano Construction is a strong player in the Florida construction market. Surely, as a result of this, he was recently contacted by one of the world’s leading health care construction firms looking to establish and grow its presence in North America. “We entered into a strategic alliance with the OHL Group this year. Through this agreement, OHL invested in Arellano as a platform for growth in the U.S. health care construction market,” Arellano explained.
“OHL is one of the largest health care builders in the world. Consequently, the deal is a win-win for both companies, as well as for our current and future clients. OHL USA, Inc. purchased a majority of Arellano to obtain local expertise, and we kept our entire management team in place. By joining The OHL Group,
Arellano Construction has secured the financial support necessary to take on larger projects throughout Florida.”
It wasn’t until the early 1980s that Agustín Arellano presented his first bid on a small hospital expansion project, an experience that later encouraged him to focus his company’s attention on health care construction services. The business has grown to more than $100 million in revenue in 2007.
Perhaps Arellano stood out because the firm offers more than core construction services. Fifteen years ago, the firm was asked to provide pre-construction services for one of the major health care facilities in Miami. Since the success of that venture, Arellano has made this specialty an integral part of his business.
Another asset of the firm is the emphasis it places on finding the right personnel: “We look for the best in the field, people who carry strong technical qualifications and who understand that great customer service is our prioritythis is part of what got us where we are today,” Arellano said. Now with the support of OHL, the company is sure to make even larger strides in the future.
The recent agreement will benefit Spanish multinational OHL by providing it with local expertise in hospital construction, a market segment in which it already holds a leading position both in Spain and internationally.
The increase in its health care portfolio does not come as a surprise, because Arellano foresaw that the need for new medical facilities, and/or renovations would increase. “The demand for medical facilities continues to be strong because of Baby Boomers hitting retirement age and moving to our warmer climate, and the constant influx of ‘snow birds to Florida,” he said.
“In addition, existing hospitals are constantly renovatingnot only to keep up with the demand, but also to keep up with technology, and to keep the competitive edge with newer state-of-the-art facilities.”
Arellano is quick to point out, however, that his company is not servicing any one subsector more than another. In other words, his firm does renovations as well as expansions, and hospitals as well as medical offices. “We offer a total health care construction solution that includes the ability and flexibility to handle everything from small renovations to large expansions.”
When asked about his predictions for the company in the year ahead, Arellano replied, “It is no secret that times are difficult right now. While we feel we have a strong position in the health care market, we will without a doubt be facing stiffer competition. We are confident, however, that OHL’s financial strength and international experience provides us with a firm footing for 2009 and beyond.”
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