Michigan Merit Magazine - 2016, Issue 1

Page 1

ISSUE 1 2016

MICHIGAN

A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN

MERIT SHOP VICTORY

ELECTRICAL RATIO

1:1 ELIMINATED IN NEW LEGISLATION


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CONTENTS VOLUME X, ISSUE 1

FEATURES

14

6

Understanding Your Workers’ Comp Experience Modification Factor

8

Annual Legislative Day Brings Members and Lawmakers Together

13

Annual Report: The Year in Review

DEPARTMENTS 5

Executive Perspective by Jeff Wiggins

10 Economic Update: Michigan Non-Residental Contractors’ Employment and Payroll Earnings Trends by Don Wilson

8

20

14

Government Affairs: ABC of Michigan Electrical Ratio Legislation Signed by Governor

17 Government Affairs: ABC Lauds Bill to Increase Competition on Federal Construction Contracts

14

20

Get to Know Your Lawmaker

22

Advertiser Index


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EXECUTIVE PERSPECTIVE

JEFF WIGGINS State Director ABC of Michigan 2016 BOARD of DIRECTORS Mike Houseman, Chairman Wolverine Building Group Western Michigan Chapter Dave Sheffield, Secretary/Treasurer Onslow-Sheffield, Inc. Southeastern Michigan Chapter Dan Murphy, Immediate Past Chair MAG Insulation Greater Michigan Chapter Chris Beckering Pioneer Construction Western Michigan Chapter Jim Cripps Cripps Fontaine Excavating, Inc. Western Michigan Chapter Rick Jackson Jackson Associates, Inc. Southeastern Michigan Chapter Michael Marks The MacKenzie Companies Greater Michigan Chapter Dave Mollitor Consolidated Electrical Contractors Greater Michigan Chapter Bill Molnar Wm. Molnar Roofing Co., Inc. Southeastern Michigan Chapter Brian Stadler Wolgast Corporation Southeastern Michigan Chapter Jack VandeGuchte Western Michigan Chapter Mike Waalkes Lighthouse Insurance Group Western Michigan Chapter

This issue of Michigan Merit touches on many of the areas ABC of Michigan works to advance and defend the Merit Shop and the success of each ABC Member. A full service organization doesn’t just mean representing our industry at the local, state, and national levels, but also working on behalf of member firms across a broad spectrum of services. In this magazine issue alone we cover great networking events that bring together the entire state, legislative advocacy, workers compensation savings, evolving construction techniques, and much, much more. There is a reason ABC has been ranked “the most effective” construction association in Michigan. It’s because nobody works harder on your behalf than ABC. The fruits of this labor are also highlighted in this magazine issue by way of a 2015 Annual Report that shows the strength and benefit of ABC members joining together on a statewide basis. As 2016 unfolds with economic growth continuing, elections from the statehouse to the White House taking center stage, and new opportunities arising, ABC of Michigan is committed to this being the best year yet thanks to your involvement and leadership to help grow your business by supporting our industry. Yours for the Merit Shop,

A full service organization doesn’t just mean representing our industry at the local, state and national levels, but also working on behalf of member firms across a broad spectrum of services.


FEATURE

UNDERSTANDING YOUR WORKERS’ COMP EXPERIENCE MODIFICATION FACTOR While a safe work environment is a top concern for ABC contractors, it’s important to also understand what your experience modification factor (Mod) means in the development of your workers’ compensation insurance premium. How this historical data is obtained should be helpful when developing a strategy to minimize your future workers’ compensation cost. As most contractors realize, there is a direct correlation between your Mod and the cost of your workers’ compensation premium. WHAT IS A MOD? Your Mod compares your workers’ compensation claims activity to other employers of similar size operating in the same type of business. A multiplier is used to determine whether a company will receive a discount or a surcharge for their insurance premium. In Michigan, this premium multiplier is determined by the Compensation Advisory Organization of Michigan (CAOM) who collects this data from participating insurance companies. Michigan is one of several states with independent bureaus while others obtain this information from the National Council of Compensation Insurance (NCCI). While the premium and credits provided by insurance companies can be adjusted based on the characteristics of your business, it is also important to note that your individual costs can be greatly reduced by implementing cost saving programs. HOW IS A MOD CALCULATED? While there is some complexity to how this is determined the basic formula is: a company’s actual losses are compared to industry average by their peers in the same class of business. Factors taken into consideration are: past audited payrolls, loss frequency and loss severity. The experience rating is mandatory and applies

to all employers who have employees. The Mod is calculated annually. It uses payroll and loss data. It typically includes data from a three year rolling average and excludes the most recent policy term. HOW DOES MY MOD IMPACT MY PREMIUMS? Your Mod represents either a credit or debit that’s applied to your workers’ compensation premium. A Mod of 1.0 is considered to be the industry average. While a Mod factor less than 1.0 is a Credit Mod, which means losses are better than expected, resulting in a premium discount. A Mod of more than 1.0 is a Debit Mod, which means your losses are worse than expected and a surcharge will be added to your premium. Below is an example of how it works based on a $100,000 premium for a 1.0 Mod. A Mod of .75 would mean that insurance premiums could be as much as 25% less than a company with an Experience Mod of 1.0. This could result in a reduction of cost by as much as $25,000. The savings to your bottom line can be significant! For example, a contractor with no losses could have a modification of approximately .75 or lower. In one year, another contractor with three claims with losses at $4,500, $15,000 and, $350 could have a mode of 1.25 or higher. Just one year of multiple losses can potentially impact your Mod over a three year period. The contractor who can control their losses has a definite competitive advantage as the premiums can be as much as 50% lower for their workers’ compensation insurance! PREMIUM

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HOW CAN YOU REDUCE YOUR MOD? It pays to know your Mod and make it part of your company’s daily routine to keep it under control. Your first step is to have management and employees committed to the process. From there, other steps include having a comprehensive safety program, ongoing employee training, proper claims handling, and an implemented return to work program. In addition, focus should be made to educate your employees on a variety of topics relevant to your specific type of work. Other ways you can help to reduce losses and take control of your Mod include: • Reviewing your losses and payroll information for accuracy. Keeping in mind that the fewer losses you have the better, Mods are influenced by the number of small frequent losses than by one larger loss. • Reporting all work-related injuries to your insurance company promptly. Late reporting can result in increased cost

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for the claim. • Training supervisors on what to do when a loss occurs. Keep the lines of communication open with the injured employee. • Improving upon your hiring practices and making sure every new hire completes a hands-on training period to make sure the new person is qualified and capable of performing the job. The ABC Michigan Self Insured Workers’ Compensation Fund is your association’s endorsed self-insured workers’ compensation program. This member-owned program offers its participants assistance in establishing a solid safety program and rewards its members with large returns of surplus premium and policy credits. The ABC Fund is designed to save members money by providing a long-term solution to reducing the overall costs and by making workers’ compensation a profit center. For more information, please contact the ABC Fund’s Administrator, Regency Group at 800-686-6640. MM

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FEATURE

ANNUAL LEGISLATIVE DAY BRINGS MEMBERS AND LAWMAKERS TOGETHER February 18 was a day to celebrate in Lansing! More than 60 ABC members came from around the state to hear from four engaging speakers, and connect with more than 30 lawmakers over breakfast. ABC of Michigan President, Chris Fisher, kicked off the day updating members on priority legislative issues for 2016. Including an update on electrical ratios and the repeal of prevailing wage. Members were then given the opportunity to discuss these issues with lawmakers over breakfast. Our first speaker of the morning was Joseph Lehman, President of the Mackinac Center for Public Policy. The Mackinac Center is an independent, nonprofit research and educational institute in Michigan. Lehman took the opportunity to address our engaged audience of members and lawmakers on good government, and his seven principles of good governance. Appropriately following Lehman’s speech on good governance, we presented ABC’s 2016 Lawmaker of the Year Awards. The two recipients of this year’s awards have been fighters for ABC and friends in the legislature for their entire tenure. Senator David Robertson has held a 100% commitment to the Merit Shop, most recently with his co-sponsorship of the repeal of prevailing wage. Through three, two-year terms in the Michigan House of Representatives, and his second, and final, term in the Michigan Senate, Sen. Robertson has tirelessly remained committed to ABC

8

ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN

Photo taken by Mark Sawyer

and its’ members’ goals. Since first taking his seat in the Michigan House of Representatives in 2010, Representative Earl Poleski has been the primary sponsor of many landmark laws, including last year’s enactment of legislation to stop the spread of local prevailing wage mandates, prohibiting schools, counties, and cities from mandating employers to participate in any educational apprenticeship or apprenticeship training program that differs or exceed those required by state or federal law. Rep. Poleski has amassed a 100% ABC voting record. We are proud to call these two honorable men, ABC’s 2016 Lawmakers of the Year. We were honored to be joined by Lieutenant Governor Brian Calley, who spoke very honestly with members about the current issues in Michigan. ABC members appreciated the candid conversation and open answers to some on-the-spot questions. In addition to the Lieutenant Governor, we had two individuals from the federal level to give us a national legislative perspective. Congressman Mike Bishop, who represents all of Ingham County, Livingston County, and north Oakland County, spoke about his continued dedication to fighting for the Merit Shop at a national level. Recently named Vice President of Legislative & Political Affairs at ABC National, Kristen Swearingen gave us a candid view of policy at the national level. Swearingen has her finger on the pulse in Washington, D.C. and was able to offer an update on important issues, including her encouragement of members to contact federal lawmakers and urge them to cosponsor a neutral-


ity in government act that would prohibit government-mandated project labor agreements. She also encouraged members to attend ABC National’s Legislative Week in Washington, D.C. this June to make sure the voices of the Merit Shop are heard this election season. Overall, we had an excellent morning learning from some knowledgeable speakers, networking with peers, and engaging with lawmakers. We thank all those who attended and made the day a success. That success in great part is due to the generous support of our sponsors. ABC of Michigan wishes to thank them, once again, for their part in making the event possible. • The ABC of Michigan Self-Insured Workers Compensation Fund • Consolidated Electrical Contractors • Public Affair Associates MM

More than

90%

of attendees rated the price of registration as Excellent or Good

100%

of attendees rated the registration process as Excellent or Good On average, more than

80%

of attendees rated the speakers as Excellent or Good

MICHIGAN MERIT • ISSUE 1 2016

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ECONOMIC UPDATE

MICHIGAN NON-RESIDENTIAL CONTRACTORS’ EMPLOYMENT AND PAYROLL EARNINGS TRENDS BY DON WILSON, ECONOMIST, ABC OF MICHIGAN The initial effort to profile the value of payroll earnings and employment of Michigan headquartered non-residential general contractors and their specialty contractors by region is reflected in four accompanying charts for the years 2007 through 2014 and an estimate for 2015 based on three calendar quarters actual information. Data on any state is usually about six months behind the current quarter due to the necessity of the Bureau of Labor Statistics time involved to thoroughly check the accuracy of the Quarterly Census of Employment and Wages. The four regions analyzed are the Upper Peninsula combined with the Northern Lower Peninsula, (Chart #1), the Saginaw Valley region with the South Central Lower Peninsula, (Chart #2), the Western Lower Peninsula with the Southwest Lower Peninsula , (Chart #3), and the Southeast Lower Peninsula, Chart #4). The largest region in the state (based on employment) is the Southeast Lower Peninsula region followed by the WesternSouthwest Lower Peninsula area, the Saginaw Valley-Lower South

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Central Peninsula region and the Upper Peninsula-Northern Lower Peninsula area. Due to labor market situation the Livingston County employment and payroll earnings are include in both the South Central Lower Peninsula segment of the Saginaw ValleySouth Central Lower Peninsula data and the Southeast Lower Peninsula data while data on Calhoun County employment and payroll earnings are included in both the South Central Lower Peninsula portion of the Saginaw Valley-South Central Lower Peninsula data and in Southwest Lower Peninsula portion of the Western Lower Peninsula – Southwestern Lower Peninsula figures. As a result of the “Great Recession” of 2008-2009, employment and the value payrolls in each region turned downward through 2010 except in the Upper Peninsula-Northern Lower Peninsula region where there was only a dip in 2009 for a reason(s) not easily identified. Then in 2011 through 2014 growth resumed and presumably during 2015, except for the Upper Peninsula – Northern Lower Peninsula area in Chart #1. Employment and payroll earnings portrayed for the Upper Peninsula – Northern Lower Peninsula in Chart # 1 averaged


5,100 individuals and $272.9 million in 2014 and about 4,800 and $260 million in 2015. In Chart #2, for the Saginaw Valley-South Central Lower Peninsula area, employment and payroll earnings totaled 11,700 persons and $642.9 million in 2014 and an estimated 12,300 individuals and $711 million in 2015. The Western Lower Peninsula – Southwest Lower Peninsula region, featured in Chart #3, employed 16,100 persons with $914.7 of value in payrolls in 2014 and about 17,000 employees on the payroll earnings of $1000.6 million in 2015. Chart #4 features the employment and earnings in Southeast Lower Peninsula area which amounted to 35,100 persons earning $2370.8 million in 2014 and about 38,300 individuals with $2,666 million in earnings in 2015. According to the latest occupational survey by the Bureau of Labor Statistics, employees in Michigan’s unionized and non-unionized residential, non-residential, and civil and heavy engineering construction and the extraction industries earned an average mean paycheck of $48,440 per worker, or a total of $5916.4 million in 2014, the latest year for which data is available. Data is not available by region of the state in that survey. That compares with an average mean paycheck of $47,480 per unionized and non-unionized worker in the same occupational pursuits across the U. S. in the same year. MM

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ANNUAL REPORT

THE YEAR IN REVIEW ABC of Michigan had a great year in 2015 advancing the Merit Shop philosophy and promoting the free market. We had strong support from the legislature, making it possible to pass some great legislation helping the landscape for merit shops across the state. Some of our legislative feats included: • Leading the enactment of legislation to prohibit local communities from passing new local prevailing wage mandates, capping the total to just 20 communities across the state out of 1800 local units of government • Passing landmark legislation prohibiting union-only training mandates for municipal, county and school construction. • Securing house passage of legislation to eliminate the burdensome ratio of one master electrician to one electrical apprentice on a jobsite. Final passage was pending at the end of 2015, but passage is expected in the senate. (This legislation was passed – article included in this edition of the magazine.) • Working the state senate to pass a full repeal of the Michigan Prevailing Wage Act. Unfortunately, the house did not pass the legislation, and this issue remains a top priority for ABC of Michigan. Working with the Administration for passage of skilled trades incentives through the state’s Skilled Trades Training Fund. Supporting continued economic development incentives to build and grow our state. In addition to our legislative feats we expanded the ABC

Health Benefit Trust with plans from both McLaren Health and Priority Health. The ABC of Michigan Self Insured Workers’ Compensation Fund returned over $5,000,000 to ABC member firms in Michigan. And, we launched the Michigan Construction Leadership Summit on Mackinac Island. The three-day event was a

We lead the...legislation to prohibit local communities from passing new local prevailing wage mandates, capping the total to just 20 communities across the state out of 1800 local units of government. great success, and will be returning in 2017. Some highlights of the event included: • More than 100 leading contractors from across Michigan coming together to network • An engaging panel from economic development leaders from Detroit, Grand Rapids, the Great Lakes Bar Region and Lansing • Top construction users from leading sectors in an educational panel • Leadership sessions from informative speakers • A keynote speech from Steve Ford that left attendees wanting more We are already off to a great start in 2016, and look forward to continuing to serve our membership. MM

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GOVERNMENT AFFAIRS

ABC OF MICHIGAN ELECTRICAL RATIO LEGISLATION SIGNED BY GOVERNOR In a major Merit Shop victory, Governor Rick Snyder signed into law ABC of Michigan legislation to eliminate the state’s costly and burdensome ratio of one journeyman electrician for every apprentice on a jobsite. The new legislation replaces the former ratio with a far more flexible and efficient ratio that allows up to three electrical apprentices per journeyman. “The passage of this legislation marks another step in building Michigan’s future,” said Chris Fisher, ABC of Michigan President. “We currently have a shortage of workers in the electrical field, and we are at a place where we must encourage the hiring of apprentices to grow our field of skilled trades workers.” The bill, House Bill 4813 was introduced by Representative Amanda Price on August 18, 2015, and has been a priority for ABC of Michigan and its members for far longer. While there was significant opposition from organized labor, ABC members made a tremendous difference by contacting their lawmakers from one end of the state to another. Three different ABC members also testified in front of the House and Senate. Thanks to these efforts the bill made it through the House of Representatives, the Senate, and on to Gov. Snyder’s desk where it became a public act. The reform to this ratio means greater opportunities statewide. Electrical contractors can now hire more apprentices, increasing job creation in the state, and making the electrical trade more appealing to aspiring tradesmen. Additionally, the legislation brings clarity by no longer having inconsistency in ratios depending on

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if the work is residential or commercial. This legislation also protects Merit Shop training programs from ever being discriminated against by the state of Michigan by making it illegal to turn down any program that has the approval of the United States Department of Labor. Thanks to ABC of Michigan’s efforts, this legislation will help further promote Michigan’s continued construction industry rebound, make it illegal to discriminate against Merit Shop training programs, promote training, and create new jobs across Michigan. The enacted legislation will be known as Public Act 73 of 2016 and it will take effect in 90 days. MM

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GOVERNMENT AFFAIRS

ABC LAUDS BILL TO INCREASE COMPETITION ON FEDERAL CONSTRUCTION CONTRACTS On January 12, Associated Builders and Contractors (ABC) applauded the House Committee on Oversight and Government Reform’s favorable reporting of the Government Neutrality in Contracting Act (H.R. 1671) out of committee. The bill, introduced by Rep. Mulvaney (R-S.C.), will increase fair and open competition on federal and federally funded construction projects by preventing federal agencies from requiring contractors to sign project labor agreements (PLA) as a condition of winning federal or federally assisted construction contracts. “Project labor agreement mandates restrict competition from qualified contractors and drive up costs to taxpayers by excluding the 86.1 percent of the U.S. private construction workforce that chooses not to belong to a labor union from working on these projects unless they join a union or pay union dues and fees,” said ABC Director of Labor and Federal Procurement Ben Brubeck. “By removing federal agencies’ ability to require these discriminatory agreements, Rep. Mulvaney’s commonsense legislation will increase competition on taxpayer-funded construction projects and ensure

that taxpayers get the best possible construction at the greatest value. Today’s action by the committee follows the momentum built at the state and local level to eliminate these crony contracting schemes.”

Studies indicate government-mandated PLAs increase the cost of construction projects in numerous markets between 12 and 18 percent compared to similar non-PLA projects. ABC sent a letter to members of the committee ahead of the markup and has long opposed PLA mandates as discriminatory and anti-competitive backroom deals that increase costs to taxpayers. Studies indicate government-mandated PLAs increase the cost of construction projects in numerous markets between 12 and 18 percent compared to similar non-PLA projects. When mandated by a government agency on a taxpayer-funded proj-

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Contact Perry or Ray Merlo

Call 248-714-5486 Fax 248-714-5249

Specialized Indoor & Outdoor Dust Collection Systems Custom Sheet Metal Fabricating Services Platforms Material Handling Fans Airlocks

1415 S. Division Ave., Grand Rapids, MI 49507 (616) 245.5306 • Fax (616) 245.3542 • www.csm-gr.com

e c

Thornview

Electric LLC 616-301-0186

ThornviewElectric.com MICHIGAN MERIT • ISSUE 1 2016

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GOVERNMENT AFFAIRS

ect, a PLA typically ensures construction contracts are awarded only to companies that agree to recognize unions as the representatives of their employees on that job; use the union hiring hall to obtain workers at the expense of existing qualified employees; obtain apprentices through union apprenticeship programs; follow inefficient union work rules; pay into union benefit and multi-employer pension plans; and force workers to pay union dues and/or join a union as a condition of employment. In 2009, President Obama issued Executive Order 13502, which strongly encourages the use of government-mandated PLAs on federal and federally funded construction projects. In response, 20 states have enacted legislation or executive orders restricting PLA requirements and preferences on state and local projects since 2011. In 2015 three states took action to guarantee free and open competition on taxpayer-funded construction projects. West Virginia banned PLA mandates in March when Gov. Earl Ray Tomblin became the first Democratic governor to sign a bill prohibiting

GBM

PLA mandates. Arkansas Gov. Asa Hutchinson signed into law a bipartisan bill prohibiting PLA mandates that passed both the State Senate and House of Representatives in unanimous votes in March. And Nevada Gov. Brian Sandoval signed legislation to make Nevada the 23rd state to restrict PLA mandates on state and state-assisted projects in some capacity in June. However, Maine’s 2011 law sunset in October 2015, dropping the number of states back to 22. In addition, on March 27, 2015 the U.S. Senate passed Amendment 665, offered by Sen. Flake (R-Ariz.) to the Senate’s budget resolution (S. Con. Res. 11), which expresses the sense of the Senate that construction contracts should be awarded without discrimination based on contractors’ agreements with labor organizations. The House passed the budget conference report, which also included this anti-PLA language, 226-197, on April 30. Sen. Vitter (R-La.) has introduced companion legislation, S. 71, which has been referred to the Senate Homeland Security and Government Affairs Committee and awaits further action. MM

sales@gbmrecycledconcrete.com

R E CYC LE D CO N C R ETE , LLC.

Removal, Trucking & Processing • Chilson Road, Howell • Kensington Road, Brighton • Latson/Grand Oaks, Howell

HICKEY ELECTRIC INC. RESIDENTIAL, COMMERCIAL, INDUSTRIAL

PO Box 1357 • Brighton, MI 48116 • Phone 810-522-6474 • Fax 810-522-6499

GREAT LAKES

STRIPING & SEALING, INC. Since 1972

P.O. Box 283 • Traverse City, MI 49685 • P: 231-946-8269 • F: 231-946-6044 Sealcoating • Infrared Repair • Crack Filling • Parking Lot Striping • Parking Lot Sweeping BRUCE BIDDINGER - PRESIDENT mail@glssmiasphalt.com

FREE ESTIMATES

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INDUSTRIAL & CONTRACTOR SUPPLIES TOOLS FOR: IRONWORKERS*MILLWRIGHTS*CARPENTERS*PLUMBERS*ELECTRICIANS KLEIN*KNOXFIT*OCCIDENTAL LEATHER*RIDGID*PROTO*MSA SAFETY EQUIPMENT*SLINGS*GIANT SOCKETS & WRENCHES

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EXPERIENCED CONSTRUCTION ATTORNEY Contracts, Collection, Litigation, Liens Ronald S. Thompson, MBA, JD, CCIM, CRE Attorney, Builder, Broker

Thompson Stewart, P.C.

COMPLETE ASPHALT MAINTENANCE

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Office: (517) 852-0925 Hickey Electric, Inc. • 5995 Guy Rd., Nashville, MI 49073 Website: hickey-electric.com • Email: office@hickey-electric.com

Phone: (313) 274-9800 Fax: (313) 274-7849

41000 W. Seven Mile, Ste. 230 • Northville, MI 48167 TELE: (248) 912-0670 • FAX: (248) 912-0667 rthompson@thompsonstewart.com Free initial consultations

Matt MacKenzie

Ambassador’s Club

ACCOUNT MANAGER

ENGINEERING/SKILLED TRADES

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Phone Mobile Fax

An Allegis Group Company

2007 Austin Midland, MI 48642

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For a FREE Consultation Call 269.321.5056 or visit us online at Focal5.com

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S

C IN

96 E1

2

~All Types of Roofing & Related Sheet Metal~Crane Services Available~

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Commercial & Industrial

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AUTO • HOME • COMMERCIAL • LIFE • EMPLOYEE BENEFITS

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ELECTRICAL CONTRACTORS ENERGY SAVING SPECIALISTS “Since 1939”

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MICHIGAN MERIT • ISSUE 1 2016

19


REPRESENTATIVE EARL POLESKI Representative Earl Poleski was the recipient of ABC of Michigan’s Lawmaker of the Year Award presented annually at the Legislative Day. He has been a fighter for the Merit Shop since first elected in November 2010. Rep. Poleski has promised to work towards making Michigan more business friendly by cutting the Michigan Business Tax and replacing it with a tax that aligns the interests of business with that of our state. Rep. Poleski is committed to fixing state government and stopping Michigan from wasteful spending. He currently serves as a member of the Committees on Appropriations and Financial Liability Reform. He also serves as chair of the Appropriations Subcommittee on Judiciary, as well as vice chair of Department of Health and Human Services, and General Government. In addition, Poleski is a member of the Appropriations Subcommittees on the Department of Corrections, Natural Resources and School Aid. Learn a little more about him in the interview below. Why did you run for office, and what are you most passionate about in your position? While serving on the Jackson County Board of Commissioners, it was obvious that the Legislature could benefit from fiscal discipline and businesslike approaches. I offered my background and experiences toward that end. Do you remember your first interaction with ABC? Could you talk a little about what impact, if any, that has had on your legislative efforts? I recall visiting ABC while running for office, and meeting with ABC members in Jackson at about the same time. My impressions 20

ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN

of the need for adult fiscal approaches in State government were confirmed in those meetings. Of which legislative effort you are most proud? There are a number of group accomplishments of which our class in the Legislature may be proud, but my personal items are: • Reforms of the Mental Health and Substance Abuse governance structure • Enactment of the Local Preemption bill, which prohibits local units of government from requiring local employers to pay particular minimum wages or provide fringe benefits in excess of that required by State or Federal law. • Early Warning System for school districts. What do you believe is the single biggest issue facing Michigan now? Best solution to that issue? We continue to struggle to provide excellent education to our population generally, and to Detroit in particular. A view that our societal dysfunctions contribute most significantly to those problems is needed, and a more integrated approach toward human services and education would be more effective than the current silo approach. What recommendations do you have to improve ABC members’ communication with legislators? Communications should be frequent and friendly, and not necessarily related to any particular legislative need. It is important for members to form a relationship with legislators so that when an opinion is shared, there is a common understanding of each others’ backgrounds. What are your top legislative priorities for 2016? • I want to see the budget completed by June 1, for the sixth and final time in my tenure. • An effective reform of education in the Detroit area is crucial. As a related matter, MPSERS reform is also important. • I would like to see auto insurance reform finally occur – something that we have been working on, on and off, for five years. MM


Kurt E. Elliott Prinicipal

... the business of transitions

Cell: 269-665-0488 k.elliott@focal5.com

8175 Creekside Drive, Suite 200 • Portage, MI 49024 Office: 269-321-5056 • Fax: 269-585-5988 www.focal5.com

Email: Estimates@IndependenceCommercial.com

UNIVERSAL SPIRAL AIR Manufacturer of Spiral, Oval and Rectangular Duct Systems

w w w.usaduct.com sales@usa-duct.net detsales@usa-duct.net

2735 West River Dr. Grand Rapids, Michigan 49544 616-475-5905

37050 Plymouth Rd. Livonia, Michigan 48150 734-261-0410

INDUSTRIAL * COMMERCIAL RESIDENTIAL * GENERATORS * COMMUNICATIONS 3079 E COMMERCIAL DR P.O. BOX 2264 OFFICE: 989-835-2154 MIDLAND, MI 48641-2264 FAX: 989-835-2693 www.valleyelectricalmidland.com

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P: 734.676.4488 F: 734.676.6183 www.expertheatcool.com 24400 Northline Rd. Taylor, MI 48180 Residential Heating and Cooling Services Expert’s dedicated employees are ready not just to meet your expectation but to exceed them. • Emergency service & maintenance • Preventative maintenance agreements • City certifications • Furnace replacement • Air conditioning replacement • New construction HVAC systems • Humidifiers • Air cleaners/Air purifiers • Wi-Fi thermostats

Commercial HVAC Services Expert Heating and Cooling offers a wide range of commercial HVAC services including: • Emergency service & maintenance • Preventative maintenance agreements • Air quality solutions • Design & build HVAC systems • Rooftop units • Make-up air/ exhaust system • Retrofit and replacement • Performance Verification • Building automation system

A higher return on experience. Protecting your bottom line while you build from the ground up. Thomas Doyle 248.223.3402 thomas.doyle@plantemoran.com construction.plantemoran.com

Building Lasting Value for Contractors Industry Expertise, Functional Knowledge, and Applied Technology Combined in Innovative Ways

Crowe POC Manager™ Solution To learn more, visit crowehorwath.com/POC or contact Rhonda Huismann at +1 616 752 4229 or rhonda.huismann@crowehorwath.com. © 2016 Crowe Horwath LLP, an independent member of Crowe Horwath International crowehorwath.com/disclosure

CON-16000-062A


ADVERTISER INDEX ISSUE 1 2016

MICHIGAN

A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN

ABC Self Insured Workers Comp Fund........24

Jimco Fire Protection....................................16

Accurate Construction Services......................2

K&S Plumbing Co., Inc................................14

Aerotek........................................................18

K-Value Insulation..........................................7

AIS Equipment...............................................4

Laux Construction........................................17

Albin Hengesbach Carpentry..........................2

Liqui-Force Sewer Services...........................16

MANAGING EDITOR Breanna Cope cope@abcmi.com

Andrews Hooper Pavlik, PLC.........................4

Liquid Calcium Chloride Sales.....................10

Arrow Concrete Cutting...............................21

Livingston County Concrete.........................15

ASHA Safety...................................................2

Loomis, Ewert, Parsley, Davis, Gotting..........14

GRAPHIC DESIGN Melissa Travis Ink Ideas Graphic Design, LLC www.inkideasgraphicdesign.com

Attitude & Experience..................................17

Maltese Construction....................................10

Bailey Agency...............................................19

Maner Costerisan.........................................17

BCT Benefits Plan...........................................4

Merlo Construction......................................17

Blackstar Building Group...............................2

Michigan Cat................................................12

PRINTING Keystone Millbrook www.keystonemillbrook.com

Blevins Sanborn Jezdimir Zack.......................6

Michigan Critical Power...............................14

Brigade Fire Protection.................................11

Michigan Solar & Wind Power Solutions.......7

Capital Steel & Builders Supply......................7

Midwest Mosaic Inc......................................17

ADVERTISING Strategic Value Media www.svmmedia.com

Carleton Equipment.......................................4

Miss Dig System Inc.....................................13

Constructive Sheet Metal..............................17

Pamar Enterprises........................................14

Covenant Occupational Health & Wellness........................................11

Parrish Excavating........................................14

CONTRIBUTORS PUBLISHER Jeff Wiggins wiggins@abcmi.com

Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 230 N. Washington Sq., Suite 202, Lansing, MI 48933, (517) 853-2545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors Inc. of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors Inc. of Michigan guarantee or warrant any claims or offers made by the advertisers. Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors Inc. of Michigan.”

Creative Window Treatments........................16 Crowe Horwath LLP.....................................21 CSM Mechanical..........................................15 Desai Nasr Consulting Engineers..................10 Expert Heating & Cooling............................21 Fair and Square Construction.........................2 FCCI Insurance Group.................................12 Fire Pros Inc.................................................10 Fisher Companies...........................................7 Focal 5 Group..............................................21 G&G Electric...............................................19 Garber Chevrolet..........................................13 GBM Recycled Concrete...............................18 Great Lakes Industrial Supply......................21 Great Lakes Striping & Sealing.....................18 Guy Hurley Blaser Heuer..............................12 HD Supply Waterworks................................16 Hickey Electric.............................................18 HNI........................................................19, 23 Independence Commercial Construction......21 Jackson Associates, Inc.................................11 JBS Contracting, Inc.....................................23 JE Johnson...................................................12

Plante Moran................................................21 PM Technologies..........................................13 R Bruton Electric..........................................14 RCI Electric..................................................16 Rock Products..............................................16 Ronald B Rich.................................................2 RW Mercer.....................................................7 Scientific Brake & Equipment......................16 Summit Electric............................................16 Thompson Stewart.......................................18 Thornview Electric.......................................17 Timpson Transport, Inc................................17 Titan Interiors..............................................19 Tradesmen International...............................16 Turn-Key Mergers & Acquisitions.................18 Universal Spiral Air......................................21 V Pizzo Electric............................................23 Valenti Trobec Chandler...............................23 Valley Electrical Contractors.........................21 Van Laan Concrete Construction..................19 Vanguard Fire Security Systems....................23 Walton Agency...............................................2 Wm. Molnar Roofing, Inc.............................19


Quality | Integrity | Dependability | Diversity

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PRESORTED STANDARD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 75

ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN 230 N. Washington Sq. Suite 202 Lansing, Michigan 48933 www.abcmi.com

Your Industry’s Self-Insured Workers’ Compensation Fund Returning Millions Back To Members Over $34 Million since 1995 • Workers’ Compensation Insurance

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