PIPE DREAMS

Hardworking plumbers turn a low-cost startup into a $35 million empire.

Al Vecchione and Larry Martino, partners for over 25 years, friends for life. A dream come true.

By the second year of business Mr. Vecchione and Mr. Martino had eight men working for them. It was at that time a lucky break came to them.

“That winter we got an emergency call from M.J. Rains, a huge company that owned over 50 properties,” Mr. Vecchione explained. “The water lines in one of their Manhattan co-ops froze and burst. It was two days before Christmas, late at night, and none of the other plumbing contractors responded to their call for help. We went in, shut down the water and did the repairs. They were grateful and, because we offered 24-hour service, M.J. Rains gave us more work than we could handle. I had to hire more men until I had twenty plumbers working for me.”

They found a larger workspace, with a real desk and an office as well as a warehouse for storage. They stocked emergency supplies, but most materials are delivered directly to job sites. Plans were blueprinted by an outside engineering company and redesigned into what is called a shop drawing that gives the exact dimensions to pipes and fixtures.

As the business grew ALMAR started profit sharing and medical insurance for non-union members. They got an accountant involved and learned that as the business grew, so did expenses.

Mr. Vecchione elaborated, “It’s all proportionate—manpower, supplies, union benefits—it’s all part of a growing business. If you don’t keep drawing money from your profits, you invest in yourself. You have to leave the money there because the people you need to succeed—the banks, the bonding company and prospective clients—want to see a strong foundation.”

In the building trades a bonding company is like an insurance policy. They promise a job will be completed, even if you go bankrupt. It took ALMAR over a decade to get million dollar bonding, but they achieved it.

Today there is a lot of competition in the plumbing and heating industry. That’s where bids come in. ALMAR outlines what will go into a job in dollars and cents. Other contractors do the same. The builders choose from those proposals and hire from those bids. City, state and federal bids are sealed. When those bids are opened, the lowest bidder is awarded the contract. There are usually a dozen companies bidding for a job.

“Those are 4 to 8 million dollar bids,” Mr. Vecchione revealed. “Some of those jobs go on for an average of two years.”

The Trump Tower wasn’t built in a day. That was one of Almar’s projects in Midtown Manhattan. They have done a lot of work for Donald Trump, and are currently working on Trump Plaza in New York City. Most ALMAR projects are in the Big Apple. Memorial Sloan Kettering Hospital, N.Y.U. Research Center required specialized plumbing for operating rooms and labs. Other jobs include a federal courthouse downtown and the Hearst building uptown. The J.F.K. Terminal, International Arrivals building is another of their projects.

Today ALMAR employs 225 people. Even with the costly changes in the construction trade and the price of materials escalating, ALMAR still completes their projects. This year their expected volume will reach over $35 million. Not bad for a couple of plumbers from Long Island.

“You have to believe in yourself,” Mr. Vecchione concluded. “We never thought twenty-five years ago we would be doing the huge jobs we do today. We have a unique partnership, Larry and I, success without harsh words between us.”

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