Flywheel Model Spins Success For Minds

First decade shows Midwest D-Vision Solutions’ best niche is not having just one.
By Doug Fox

When Marshall Tate and Sean Wright started Midwest D-Vision Solutions (MWDS) in 2013, they did it with the mindset of creating an entirely new breed of subcontractor in the Utah market.  Deploying a unique flywheel approach championed by some of the area’s biggest general contractors themselves, Midwest D-Vision Solutions is pacing to do $75 million in business in 2023. Things are clearly trending in the right direction for MWDS as the company marks its 10th anniversary year.

“We’re kind of to that point where, honestly, if there’s a large project, it’s rare that we don’t have something on it,” Tate said. “It may be that we’re only doing a small division for one building and we’re doing four divisions for another. But most large projects, we’ve got our hand in, in one form or another. We’re just kind of at that scale now.”

No Pane, No Gain
When Tate and Wright –– as CEO and President, respectively at Midwest Commercial Interiors –– set out to disrupt Utah’s subcontractor market in 2013, they did an incredibly smart thing by meeting with leaders of the state’s biggest general contractors to pick their brains, understand their biggest frustrations, and find out what kind of subcontractor would be of the greatest benefit to them. 

“One of the primary drivers of this journey was to sit down with the C suites of all the general contractors that we had come to know well and had trusted relationships with, and really get their input on where they saw problems within their construction means, methods and schedule,” Wright said. “We wanted to be the easiest company [for them] to do business with from the day the job landed in our lap.”

What they learned through their discussions was that there were three primary frustrations for the big general construction firms. They wanted better coverage within categories, better field execution and improved project closeout. 

In terms of expanded coverage within categories, Wright explained that any particular project might have 10 scope areas inside of a certain division. Companies would typically bid on singular aspects of those 10 different specialties based on the nature of their specialty. What would make things simpler for the GCs, however, would be if one company could be hired to do all or multiple scopes.

“So our business premise was pretty simple when we started,” Wright said. “We wanted to give them 95 percent coverage confidence and we wanted to build the right kind of team that would be able to estimate, project manage and field deliver the projects we took on.”

Wright said the advice from the general contractors proved pivotal, leading MWDS to expand its available scopes of flooring, increased offerings in Division 8 of doors and hardware, as well as glass and glazing. Those latter two moves in particular have been critical to the company’s "flywheel" approach.

“Part of that flywheel strategy for us was to be able to offer a more comprehensive Division 8 offering to the marketplace. We really tried to differentiate ourselves from everyone else by investing in our own capabilities to engineer, draw and fabricate what (we sell)."

Glass and glazing services, Wright said, are indicative of the fragmentation in the market.

“You have the really big boys that are doing curtain wall on big skyscrapers and then you have a big gap down to smaller providers that are doing smaller commercial,” he said. “We wanted to fit somewhere in the middle there.”

As such, he said MWDS has found a sweet spot in providing glass for schools of all sizes, church facilities and office buildings in the range of three to five stories.

Tate added that subcontractors in any market are people who have grown up in and come to own a business committed to one particular trade. At MWDS, the approach is completely opposite.

“This company wasn’t built by trades people,” Tate said. “The company was built for general contractors by general contractors. We allowed [top contractors] to tell us what markets we should be in and where our business model would be most effective for them. They not only coached us on how to grow our company, they made strong business commitments to help us grow our company in the direction they wanted us to grow.”

"Walk, talk and smell like a subcontractor"

Several months after opening Midwest D-Vision Solutions, Tate and Wright determined they needed someone specifically over the new operation. Wright knew just the person –– Eric Reynolds, a former colleague at a prominent design firm.


The only problem was, Reynolds didn’t consider himself the right man for the job.


“When Sean and Marshall came to me with the idea of starting this off, I remember one of the first things I said to them was, ‘This is exciting. It’s exactly what the market needs, but sorry, I’m not your guy. I’ve never done anything of that sort,’” Reynolds said with a laugh. “Obviously that didn’t stick. They wouldn’t take no for an answer from me.”


Reynolds –– only the fourth employee at MWDS when he was hired, started as General Manager, and was elevated to Vice President in 2020 –– said the factors that weighed heavily in changing his mind were the trust that he would have the necessary support to make a difference, along with the ability to navigate his own pathway in fulfilling the company’s overall vision.


Reynolds said he didn’t necessarily know what to expect from the company when he started but noted any worry or trepidation went out the window after the company’s initial growth, and delivering on huge projects like the Salt Lake International Airport, the new Utah State Correctional Facility, and the state-of-the-art 95 State at City Creek office tower.


“On Day 1, I probably was not thinking I was going to be building a new airport or being part of a new prison or even these 25-story towers. Those were not really in the cards, in my mind,” he said. “But now I’m like, ‘Bring it on!’ Any project, any size scope –– I’m eager and ready.”


The Next 10 Years

Midwest D-Vision Solutions not only remained fully functional during the COVID pandemic, it had all the projects its workforce could handle. It’s more the aftereffects of COVID that are providing challenges now and in the foreseeable future. 


According to Tate, those obstacles include an incredibly disruptive supply chain followed by an equally disruptive inflation spike, both of which affected overall prices of projects.


“Price will always be important in construction,” said Tate, “but price is less of a primary driver today than it was three years ago by a long shot. Price doesn’t mean a lot if they can’t get the product. Price doesn’t mean a lot if they don’t have the labor to execute. Price doesn’t mean a lot if the whole process is so short-circuited. So there’s really been some fundamental changes, and I think in many ways those changes have kind of mirrored how we set ourselves up strategically.”


But when it comes to the biggest potential challenge in the years ahead, both Tate and Wright cited workforce scarcity. 


“People have been and will be for the foreseeable future, our single-most significant constraint to growth,” Tate said. “You know, there’s something brewing out there. […] Where we’re headed, it’s not going to be a question of who has the lowest price. It’s going to be a question of who has people that can actually execute on the job.”


Once again taking advantage of its flywheel business model, Tate said MWDS is well-situated to counter future staffing issues as much as possible. He noted the company can bring in new employees and immediately put them to work in jobs that require less initial expertise. Then as their experience grows, they will have the opportunity to shift into higher trade categories, such as glass and glazing, where the earning potential is greater.


With five operating divisions working under a single roof, MWDS employees will have the ability to grow their careers in any number of directions, Tate said.

“I want to drive home that our ability to recruit and retain the best talent in the market is going to be, I think in the future, the biggest differentiator between companies. And those companies that are paranoid and pulling their hair out wondering how they are going to be able to attract talent are companies that are, frankly, at risk of not being around in five years.”


Accelerating advancements in technology are also expected to play a big role in how companies address construction in the years ahead, Wright said. Artificial intelligence will likely handle many of the more mundane tasks. Companies are making significant investments into how automation can affect construction.


From framing layouts being done by robots to smart equipment that will help save wear and tear on employees’ health and wellness, Wright said there’s going to be as many innovations for the field in construction as there may be for the home office.



“There’s a lot of technology that’s making its way into construction, and it’s speeding up,” said Wright. “We really see that as a game-changer for our company in how estimations may work. … The industry is going to have to look at what it needs to do with less people and more computing power. That’s one of our strategic views on that.”


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The Ultimate Compliment

Going back to the original group of contractors who shared their insights on what kind of subcontractor would best meet their needs, it should come as no surprise that the majority of MWDS’ portfolio features work done for those very same companies.


Which can be a complimentary and daunting experience.


“Working for your friends is one of the scariest propositions that there is,” Wright said. “And I was not only professional colleagues with a lot of these general contractors, but personal friends. But that satisfaction that comes out of winning the [significant projects] and that they trust us enough that we were the one they hired. […] When the GC hires you to do their own work, that’s a compliment that keeps on giving.”



“We’ve built one of the largest subcontracting companies in Utah in a relative 10 short years and, ironically, not a single one of us came out of any of the trades that we have business in,” Tate said. “I think we really do represent a new breed of subcontractor that brings a more sophisticated approach to market –– a much more strategic partnership-centric approach to the market.”



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