|Palazzo Brothers Electric, Inc. is committed to:
|Palazzo Brothers Electric, Inc. is a leading electrical contractor servicing the new construction, renovation
and electrial service needs of big-box retailers.
The Company was founded by Joseph Palazzo in 1991 initially as a specialty contractor performing mall up-fit work,
sign service and installation, residential, pre-engineered metal building wiring, design/build, restaurants and other small
buildings. In 1994, the Company migrated away from residential and sign work, shifting its focus to restaurants and
retail stores. Palazzo soon entered the big-box retail industry, having developed close relationships with several
general contractors serving the leading big-box retailers. Today, Palazzo provides complete electrical installations from
ground-up new construction, rehabilitation of old buildings and retrofitting of special installations. The Company
primarily operates in Ohio, Alabama, Georgia, Indiana, Kentucky, Maryland, Missouri, New York, North
Carolina, Pennsylvania, South Carolina, Virginia and West Virginia.
In 2004, Palazzo completed 125 projects. Throughout its history, management believes the Company has consistently
posted profit margins relative to the electrical contracting industry. As a result, Palazzo has achieved the scale and
reputation necessary to effectively service big-box retailers, including Lowe’s Home Improvement Stores (“Lowe’s”), its
largest account, Wal-Mart, Target, BJ’s Wholesale Club, Best Buy.
Palazzo provides complete electrical installations for the retail industry through competitive invitation bids, directly
negotiated bids, time and materials bids, repeat business and direct referrals from several strong general contractor
relationships. Exhibit 1 illustrates the Company’s various service offerings.
As of December 2004, Palazzo employed 54 people, including 16 master electricians, 29 apprentices and nine
warehouse and administrative personnel. Management believes it has an excellent relationship with the employees
and is especially proud of the fact that no employee has ever been laid off due to a downturn in business.
The secret to Palazzo’s success is its unyielding dedication to excellent customer service. Palazzo has never been
responsible for a delay in any construction project, and in many cases was retained to finish or fix other specialty
contractors’ work that was either far behind in schedule or of substandard quality. Palazzo’s ability to provide superior
quality and service has been the result of its strict adherence to its strategy of controlled growth. Over the years,
Palazzo has conscientiously restrained growth in favor of maintaining a talented employee base. Management
understands clearly the perils of taking on excessive amounts of work and having to hire marginal talent to complete
the job. In fact, in 2004, Palazzo passed on more than $15 million in bids due to the Company’s emphasis on customer
satisfaction and would not undertake projects where it was not capable of delivering the level of service and quality its
customers are accustomed to receiving.
Given its controlled growth strategy and reputation across the industry for providing superior quality and customer
service, the Company has developed strong relationships with several leading general contractors, as well as with key
personnel at the big-box retailers for whom it regularly completes work. Nearly 100% of Palazzo’s jobs are with repeat
customers who appreciate the fact that Palazzo has never missed a deadline. In many cases, Palazzo is afforded the
privilege of negotiating directly with the general contractors.
Most employees are trained using “Wheels of Learning” curriculum developed by Institute for Construction Education
in association with Associated Builders and Contractors. Since we have over 10 years of experience in Lowe’s “new
store construction, our personnel have intimate knowledge of the store’s electrical systems from the ground up and
through most prototype changes.
Additional qualified personnel may be obtained within our company, through any number of our strategic partners,
associates, or staffing companies.
Specialty equipment can be mobilized from our own fleet or through our national accounts agreements with the three
major equipment rental houses.
Materials can be obtained from any number of supply houses and lighting national accounts.
|124-A Cleveland Road
Norwalk, Ohio 44857
|Toll Free (800)705-3320