Building Margin

125: Scaling a Profitable Construction Business with Jeff Calabro

16 snips
Aug 7, 2025
In this insightful conversation, Jeff Calabro, President of SDI Services, shares his journey of scaling a construction business post-acquisition by Solv Energy. He discusses the challenges of attracting skilled workers and the need for effective leadership in navigating market fluctuations. Jeff highlights the significance of empathy in the workplace and emphasizes financial preparedness for stability. He also provides strategies to avoid burnout and sustainably grow a business without sacrificing profit or control. A must-listen for contractors seeking balance!
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ADVICE

Diversify Around Your Core

  • Diversify offerings near your core competency to smooth seasonality without abandoning strengths.
  • Run finances on a 12-month cycle and prepare cash reserves for seasonal downturns.
ANECDOTE

How SDI Expanded Services

  • SDI expanded from drilling into mechanical and later modules to increase value and reduce risk of narrow scope.
  • Jeff phased the service additions to prove success and make the company more attractive to buyers.
ADVICE

Don't Buy Work With Thin Margins

  • Avoid 'buying work' by slashing margins; focus on efficiency instead of chasing top-line volume.
  • Prioritize bottom-line health because low-margin volume increases risk and erodes profitability.
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