- May 8, 2024
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M.L. Underwood has weathered the economic storms
Wayne Grant
News Editor
Some old movies show a banker agreeing to provide a loan to a young person who has an idea and not much else. He helps the kid get started, just based on a gut feeling.
That doesn’t happen so much today, but a similar thing happened when Mike Underwood got his construction business started.
He’s now 54 years old and celebrating 30 years as owner of M.L. Underwood Construction Inc., a company that has been the general contractor for buildings throughout Florida.
He got his start when a financial investor, who had helped other young entrepreneurs, offered to back him for a 50% ownership. Underwood was 25 years old, had a degree from the University of Florida in building construction, and a few years as project manager under his belt.
Underwood said the financial backer “just felt like he was the right person.” The agreement allowed the backer to later take his investment out and Underwood became sole owner.
His general contracting business thrived, as evidenced by restaurants, offices, retail stores, manufacturing facilities, churches, schools and even custom private residences, many of which can be seen on his website mlunderwood.com.
He still loves going to work every day.
“The days are never the same and there are always new challenges,” he said.
When a client comes to him, they might have something as basic as a photo of a building they want to emulate, or a full set of plans. As general contractor, he then works with them to accomplish their goal, providing his expertise in materials and design.
He said the biggest challenge a construction company faces is the economy. It’s something the businessman has no control over, but has to expect, because it’s cyclical.
Underwood’s solution is to “make hay while the sun shines and save for a rainy day.”
It’s old advice, but still very sound.
“That’s why I’m still here,” he said.
He said the building construction industry is the second riskiest business, behind restaurants, in failure rate. Not only can the economy bring business to a stop, but bidding on jobs also has its hazards. Being a good estimator of costs is critical.
“You can lose money before you even start,” he said.
Maintaining high quality is the number one requirement for staying in business, he said. But as a general contractor, Underwood must rely on the work of other people. So, he’s careful to hire high-quality subcontractors.
Underwood’s dad was career Air Force, so the family moved every two years while he was growing up. He was introduced to the Daytona Beach area when he worked as project manager for the construction of Bishop’s Glen, which included 300 apartments and a healthcare facility.
He found that he liked the area, and eventually started his business in Ormond Beach. He had been all over the county, but said this area felt like home.
Underwood said construction in the area is “trending upward,” and his own business is steady.
Daytona Beach and county officials are always touting what a huge impact new upscale hotels and enhancements at the Speedway will have on the area, and Underwood agrees. The fact that Hard Rock and Westin are willing to invest in the area is a good sign for the local economy.
“It will have a ripple effect throughout the whole county,” he said.
Underwood has started to develop properties for himself, and now owns a few mixed-tenant office plazas.
But building things has always been his main interest, from playing with Legos as a kid to working construction jobs in the summer during college.
“A building is just a big erector set,” he said. “I have fun every day.”
