Following its most successful year, RAND Engineering & Architecture, DPC was named one of Inc. 5,000’s fastest-growing private companies in the Unites States for the fourth time. RAND, which was ranked 4,896, is one of the top 100 engineering firms on the list, which includes only two other engineering firms in the New York City area, and the only one specializing in building restoration and design. RAND’s revenue in 2012 was $9.8 million, which represents a 38% growth over the previous three years. (The Inc. list, now in its 32nd year, measures revenue growth over the past three years.) RAND also made the Inc. 5,000 list in 2009, 2008, and 2007.
Steady Ship, Rough Waters
Despite the rough economic waters that hit the real estate and construction industries particularly hard over the past few years, RAND has maintained a steady ship thanks to property owners undertaking capital improvements for their buildings. “As the economy slowly makes its way back, more and more of our condo and co-op clients—the mainstay of our business—have been moving ahead with major restoration and upgrade projects for their buildings systems,” says RAND’s President Stephen Varone, AIA. “Our expertise in surveying those systems and designing and administering repair programs has served us well.”
Varone noted that the 7th Cycle of New York City’s Local Law 11/98 (now known as the Facade Inspection and Safety Program, or FISP), also played a role in RAND’s growth over the past three years. FISP requires owners of buildings taller than six stories to have the facades inspected by a professional engineer or registered architect every five years to determine if there are unsafe conditions. RAND performed approximately 350 FISP inspections for the 7th Cycle, which has led to a steady stream of follow-up repair programs. “Facade inspections and repair have been our bread and butter since Day One,” Varone says. “Each inspection cycle results in a steady demand for services.”
Growing with Energy Efficiency
Another factor contributing to RAND’s growth was the set of energy efficiency laws that went into effect in 2009 under the city’s Greener, Greater Buildings Plan. The laws require owners of buildings 50,000 square feet or larger to benchmark their energy use (Local Law 84/09) and to have an energy audit conducted every 10 years, followed by retro-commissioning measures to maintain building systems (Local Law 87/09). “One of our core strengths is helping buildings keep their critical systems operating smoothly,” says RAND Principal Peter Varsalona, PE. “With our experience in upgrading mechanical, electrical, and plumbing systems, we are well-suited to help property owners comply with the city’s energy-efficiency requirements.”
Varsalona added that another New York City Local Law—Local Law 43/10, which requires buildings burning No. 6 heating oil to convert to a cleaner fuel by 2015—has also resulted in a number of heating plant conversion projects, a trend that is certain to accelerate over the next year.
Staffing Up
RAND’s growth in revenue has required a similar increase in our staff—it is now an 85-person firm, the most employees the firm has ever had. Varone cites RAND’s reputation as a firm people want to work for—it’s been named one of Crain’s Best Places to Work in New York City four times—has helped attract qualified professionals.
“We’re excited we’ve been able to grow while finding the talent to continue to do quality work in greater volume,” Varone said. “It’s great to grow fast, but it’s even more important to grow better.”
It’s a recipe for growth that RAND plans to keep following.
