| Steel has been a strong business for Michael Lassner and Charles Kowalski.
Their Fort Lauderdale-based Allied Steel Buildings has gone from four workers to 40 in the past four years. Its sales have doubled to more than $40 million last year.
The company sells pre-fabricated steel structures. It designs custom buildings, which can be steel or steel-structured, works with partner companies to manufacture the actual product, and then delivers, and in some cases, sets up the buildings.
About two-thirds of its business is the pre-fabricated structures, which are popular as backyard sheds, auto body shops, large agriculture buildings, or as housing for oil equipment, to name a few.
The rest of its business is steel-structured buildings, which can be finished with stucco or block, and have ended up as schools, churches or store fronts.
''We have a product that can be considered lower-end or can be considered a vehicle for higher-end,'' said Lassner, 34.
Lassner thinks that versatility will help shepherd the company through this economic downturn. He expects the company to maintain the same sales level as last year, with growth flat.
Steel prices can be very volatile, but for Lassner, the bigger concern these days is the slowing economy.
'Our salespeople say, `We know [our clients] need the product, but they're not jumping,' '' Lassner said, describing the attitudes of many customers who are cautious about purchases in the current business climate. Many of his small-business customers might have in the past taken out home-equity lines to finance these buildings, he said, which is more difficult to do now.
Structural and pre-fabricated steel buildings aren't common in Florida, where concrete is the preferred method of construction. The American Institute of Steel Construction estimates that the market share of steel structures has grown from 21 percent in 2005 to 30 percent last year in Florida.
The steel trade group has started to market itself heavily in Florida, especially through its Steel Solutions Center, which provides free help in conceptualizing steel projects.
Steel is less expensive, goes up quicker, is more precise than a concrete pour and is greener, said Walt Primer, the Florida area manager for the trade group. For the past 13 months, Primer has been in charge of promoting steel-structure building throughout the state.
Primer said one of his big challenges is countering a perception that steel isn't hurricane-proof.
''The perception I've been finding in Florida is that it's lighter and they are a little bit scared, but people don't realize that it can be designed to be as strong as concrete,'' said Primer, who points to the new parking garage at the Seminole Hard Rock Hotel in Hollywood as an example of a structure designed to withstand strong winds. ``It just depends on how the engineer designs the foundation.''
Allied buildings can cost anywhere from $4,000 for a simple home garage to up to $1.2 million for a large manufacturing facility, Lassner said.
Less than one percent of the company's sales are in Florida. Allied sells throughout the United States and Canada, to Europe, Africa and the Caribbean.
Most of its international business has spread by word of mouth -- with clients in Canada connecting the company to others in Greece.
''People who buy buildings know people who need buildings,'' said Lassner, who together with Kowalski, started the business with a $27,000 investment in 2003.
The two began the company after their previous employment came to an abrupt end -- the company, Pompano Beach-based Steel Building Depot, folded overnight. Lassner worked with the company's former clients to renegotiate their contracts and make sure the buildings came through.
Some of those clients are still Allied customers today, Lassner said.
Still, the company attributes much of its success to its unusual marketing. Two years ago, the company decided to branch out from its cable-television commercial offerings and trade-publication advertising to break into the racing world.
''We know they didn't all read steel magazines,'' Lassner said of the company's customer base, describing the move into marketing itself into racing as trying to reach customers in a different way.
When Allied started showing its commercials on Speed TV, the auto and motorcycle racing channel, business picked up. So it started talking to NASCAR officials -- and ended up as a sponsor on Jimmy Spencer's car.
Spencer, nicknamed ''Mr. Excitement'' because of his driving style and personality, brought unprecedented exposure to Allied.
''Things blew up here,'' remembers Lassner, who was not an avid fan before the Spencer deal and said he was amazed at the credibility it brought. ``[It was] the best fall we ever did.''
The NASCAR relationship continues today through a sponsorship of the NASCAR series in Canada, said Lassner, who adds the company's focus now is on international expansion.
Still, the company struggles with operating a business in South Florida and its high housing prices, making it hard for its workforce to find affordable housing.
Allied has thought about how long it will remain here, said Lassner, adding that finding good workers -- and keeping his existing workforce happy -- is a challenge. With their lease up in April, they've thought about relocating to Central Florida, he said, and regularly query employees about moving.
''I love growing a business here,'' he said, ``The problem is our employees can't afford to live here.''
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