Smooth Operators

The success of Daley’s Drywall is limited only by the surface available for them to cover.

The success of the Daley family is hardly superficial. The drywall firm founded by Gary Daley in 1963 is a Bay Area go-to subcontracting superstar. Three generations of Daleys have brought the Campbell, Calif.-based organization to prominence, adding depth and dimension to their original role as drywall specialists to include carpentry, metal framing, lath and plaster work, acoustical ceilings, and BIM.

Just last year the firm pulled in $110 million in revenue, and that number is already on track to hit $170 million by the end of 2020. While the well-documented growth in their region is a contributor to that jaw-dropping number, the deeper reality is that the demand for quality, excellence, and superior execution gets subcontracting firms hired—and Daley’s is a Bay Area darling for exactly that reason.

Little by Little

Meeting customers where they are and fulfilling their needs, according to company VP of sales Jonathan Hughes, has kept Daley’s on the fast track from the beginning. “Early on, our focus was on the residential multifamily market. It was always big for us because we were one of the few companies that specialized in that type of work. We’ve maintained that over the years, but we began doing more commercial work over time, so today about 75% of our revenues come from the commercial side. We still do the multifamily niche market, but by following our customers’ needs we realized we could add specialties.”

In the past 20 years, Daley’s added a lath and plaster division, and the addition of acoustical ceiling work led to the establishment of a rough carpentry and siding division. The company’s estimating arm benefits from its own in-house BIM department. “We're really a client-driven company, so we adapt to accommodate their needs and really take their feedback to heart. ‘It would be great if you guys could …’ is the suggestion that has led us to broaden our scope over these years.”

That thinking has led to a portfolio of marquee projects that include creating a spectacular acoustical ceiling for the Los Gatos offices of Netflix, and working on landmark projects that include San Francisco’s One Rincon Hill residential towers, UCSF Mission, Stanford University Cancer Center in San Jose, and a list too lengthy to include here.

“We keep a really small client base of mid- to large-sized general contractors,” Hughes confessed. “That's intentional because it represents only the best opportunities for our business.” He added that their approach to innovation is also one of intent. “Offering up a higher quality of service or efficiency or timeliness or meeting their schedule, or whatever a client needs is certainly an aspect of innovation, but internal innovation is absolutely critical.

“We're always thinking about best practices and asking ourselves to find better ways to accomplish goals, whether we’re with our field operations or with our accounting team—wherever there’s a need,” he said.

Flexibility & Personalization

To that end, Daley’s created an Innovation and Technology committee. “It's essentially a group of our employees and department heads from accounting, operations, all of our departments who are up on the latest trends. People can have critical discussions every quarter and come up with ideas and ask tough questions. ‘I know you've done this for 40 years, but why …?’ is the kind of curiosity and commitment that keeps us abreast of market trends as we find ways to improve our processes and systems.”

A leader in sustainable practices, Daley’s is the only firm of its kind in California that owns and operates its own recycling operation that recycles gypsum, in addition to metal and other materials. The vehicle fleet blends fuel-efficient hybrid and diesel vehicles, and the HQ is powered by solar panels.

Daley’s informal in-house slogan reflects that approach to novel thinking as well. “We exist to make our clients’ lives easier,” he stressed. “I’m always hearing from our customers that our flexibility is what gives them a great experience. We look at ourselves as a family business that provides personalized service. Our customers know that they can call us any time, ask for advice, get input—we pride ourselves on being experts in the industry, and we’re glad to help.

“I grew up in a drywall family,” Hughes continued. “One day a client called my dad for advice, which he gave even though the client had picked our competition to work with. I’ve always carried that with me because if someone comes to you who needs advice in good faith, the fact that they’re paying you for that advice shouldn’t matter. We’re a service organization, and that’s what service organizations do. … One of the things that gets me up in the morning is knowing that I could possibly help somebody improve themselves today. That’s infused in the way we do business.”