ISSUE 1 2019
MICHIGAN
A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
CHAPTERS & MEMBERS COMING TOGETHER FROM Michigan TO California
Elevating and Exceeding Expectations Building West Michigan | Constructing Careers | Developing a Future for the Next Generation
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BENJAMIN BUYAK Chief Operating Officer
O. 517.694.0451 F. 517.694.9115 E. CapitalSteel@comcast.net 3897 E. HOLT RD. • HOLT • MI, 48842
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
C&M
CONTRACTING Chris Rowley
P.O. Box 241 • Lakeville, MI 48366 • Office: (248) 628-7207 Cell (248) 568-5358 • nortrowley@gmail.com
CONTENTS ISSUE 1 2019
FEATURE 6 2019 State Legislative Day Recap
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MEMBER SERVICES 14 Leverage Employee Benefits to Recruit and Retain Talent
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FEDERAL AFFAIRS 16 ABC Urges President Trump to Reverse Obama-era Policy on PLAs WORKFORCE DEVELOPMENT 20 ABC Western Michigan Chapter & FMI host first annual tech conference GOVERNMENT AFFAIRS 8 State of the State Recap 10 Executive Budget Recommendation Merit Shop Overview 24 Get to Know Your Lawmaker DEPARTMENTS 5 Executive Perspective by Jeff Wiggins 30 Advertiser Index
22 MICHIGAN MERIT • ISSUE 1 2019
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CONSTRUCTION TOOL & SUPPLY CO.
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Specialists in concrete anchors & spring steel clips Bill Parkhill Field Representative
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989.687.4042
geinsulationco.com
965 E. Saginaw, Sanford, Michigan 48657
Environmental & Medical Gas Services Michigan LLC
Allied Insurance Managers, Inc. 1055 South Blvd E. Suite #110 Rochester Hills, MI 48307 248.853.0930 Alliedinsmgr.com
5325-B Six Mile Ct., NW • Comstock Park, MI 49321
Mark Stone, Sales
ALLIED INSURANCE MANAGERS, INC.
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CONSTRUCTION INC. Licensed and Insured / Residential • Commercial fairandsquareconstructioninc@hotmail.com
Colville Electric Co. LLC Licensed and Insured Residential, Commercial, and Industrial Violations Corrected
Dave Colville 586.774.9110 Fax# 586.774.3897 Dave@ColvilleElectric.com
BUILDING A SUCCESSFUL BUSINESS
TAKES THE PROPER PLAN AND TOOLS, ALONG WITH EXPERIENCED PROFESSIONALS TO PIECE IT ALL TOGETHER Accounting and Audit l Tax l IT Consulting l Succession Plans Business Valuations l Cost Reduction Programs l Cost Segregation Studies Retirement Plan Consulting l Fraud Prevention and Detection l Entity Selections l Strategic Plans l Bonding/Surety Assistance
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D.C. Byers Company/Grand Rapids, Inc.
Building Restoration and Waterproofing Contractors Specialists in concrete Doug Lectka and masonry, restoration, SINCE 1903 President/Owner waterproofing, and epoxy flooring.
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
888.754.8478 • www.ahpplc.com Ann Arbor l Auburn Hills l Bay City l Grand Rapids Greater Lansing l Midland l Owosso l Saginaw
EXECUTIVE PERSPECTIVE
T
he start of 2019 brought with it a change in leadership within Michigan’s government, including a new Governor, Attorney General, Secretary of State, Senate Majority Leader, and Speaker of the House. Like all new things, time is needed to see what will come from these changes. However, the first couple of months have provided a few insights into the discussion that will be had in Lansing and across the state regarding our infrastructure, our economy, and our environment.
JEFF WIGGINS State Director ABC of Michigan 2019 BOARD of DIRECTORS Corey Hannahs, Chair Consolidated Electrical Contractors Greater Michigan Chapter Robert Clancy, Vice Chair Robert Clancy Contracting, Inc. Southeastern Michigan Chapter Mike Houseman, Immediate Past Chair Wolverine Building Group Western Michigan Chapter Ken Misiewicz, Secretary/Treasurer Pleune Service Company Greater Michigan Chapter Chris Beckering Pioneer Construction Western Michigan Chapter Jim Cripps Cripps Fontaine Excavating, Inc. Western Michigan Chapter Perry Merlo Merlo Contracting Southeastern Michigan Chapter Cort Niemi Lake Agency, Inc. Southeastern Michigan Chapter
On February 5, Governor Gretchen Whitmer delivered her first State of the State address to a joint session of the Michigan Legislature. Governor Whitmer highlighted our state’s perennial need to invest more in our roads and infrastructure, as well as her concern over certain environmental issues. She also touted two new programs aimed at getting more people into the skilled trades through training, apprenticeship programs, and community college. Of course, like many ideas in state government, the enactment of those well-intentioned programs will come with a price tag. And on Tuesday, March 5, Governor Whitmer presented her 2019/2020 budget proposal to a joint session of the House & Senate Appropriations Committees. You can find a detailed analysis of what she proposed to spend on education, skilled trades training, and more in this edition of the Merit Magazine. In addition to developments in state government, we also saw merit shop builders and contractors come together to take part in two great events to learn more about the industry and how they can continue to build our communities. In February, the ABC-Western Michigan Chapter hosted the 1st Annual Construction Technology and Innovation Conference in Grand Rapids, garnering regional interest and media coverage. ABC Members from across Michigan also made their way to Lansing on March 20 for the 2019 Legislative Day. This event held true to its reputation by bringing together legislative leaders, state department officials, and construction industry leaders to discuss the importance of the trades and what can be done to attract the next generation of skilled trade workers. As we move further into 2019, know that ABC of Michigan will continue to defend the free enterprise principles that we hold dear and promote the hard work of merit shop builders and contractors like you. Yours for the merit shop,
Brian Stadler Wolgast Corporation Greater Michigan Chapter Ed Tanzini Tancor Corporation Greater Michigan Chapter Tom Vitale Smith Haughey Rice & Roegge Western Michigan Chapter Andy Weisbrodt Bouma Construction Western Michigan Chapter Greater Michigan Chapter Mike Waalkes Lighthouse Insurance Group Western Michigan Chapter Andy Weisbrodt Bouma Construction Western Michigan Chapter
MICHIGAN MERIT • ISSUE 1 2019
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GOVERNMENT AFFAIRS
2019 STATE LEGISLATIVE DAY
Recap O
n March 20 members of ABC of Michigan travelled to Lansing in to learn, network, and meet with state lawmakers. The 2019 State Legislative Day provides merit shop leaders with a chance to have valuable conversations and voice concerns with influential state lawmakers. Attendees received passionate updates from ABC and legislative leaders, as well as a panel of small business experts. The event kicked off with breakfast where members and lawmakers got a chance to engage in meaningful conversations about the current climate in Michigan and merit shop priorities. This was followed up by updates from Senate Majority Leader Mike Shirkey and Speaker of the House Chatfield. Both assured members they would be working with administration to ensure we never return to the lost decade. Each year at the state legislative day, ABC of Michigan has the honor to award a senator and representative with the Lawmaker of the Year awards. This year, ABC recognized the work of State Senator Peter Lucido and Speaker of the House Lee Chatfield. Both members were instrumental in repealing Michigan’s archaic prevailing wage law. Additionally, we awarded the “Chris Fisher” Chairman’s Award to the ever-deserving ABC Greater Michigan Chapter President and CEO Jimmy Greene. The Chairman’s Award was created to recognize the dedicated efforts of someone outside of the legislature who has gone above and beyond as a leader and member of the merit shop community to advance the cause of free enterprise. Jimmy lives every day as a leader for the merit shop. Thanks to the effort of Jimmy as well as volunteer leaders throughout our association, ABC has seen great success in the state. Members were treated to a strong lineup of education. Chris Fisher, Partner at Midwest Strategy Group helped members understand the importance of meeting your lawmakers, creating and building relationships with them, and fostering those relationships to help them understand what is going on with their constituents. Stephanie Beckhorn, Director of the Michigan Talent Investment Agency, talked with attendees about her view on the future of skilled trades in Michigan. Beckhorn addressed how she believes the worker shortage could best be solved and what her and her colleagues at TED (Talent and Economic Development) are doing to further that issue.
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
Closing the event was a panel of small business experts. Moderated by Steve Gruber, host of the Steve Gruber Show; the panel included influential guests including Charlie Ownes, State Director of the NFIB in Michigan, Brian Calley, former Lieutenant Governor and current President of the Small Business Association of Michigan, and Rich Studley, the President and CEO of the Michigan Chamber. The panel talked about the economic future of Michigan and how the current Governor’s gas tax may affect businesses. The panel took questions from our attendees and provided a diverse insight. Overall, the 2019 State Legislative Day was a successful day full of information and meetings in the Capital City. Members heard from state representatives and senators, receiving in-depth updates on important policy issues that will affect the merit shop. Victories of the past year were celebrated, and future issues were addressed. Thank you to all who were in attendance and who made another legislative day successful. MM
MICHIGAN MERIT • ISSUE 1 2019
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GOVERNMENT AFFAIRS
The ABC of Michigan Team and Chairman of the Board, Corey Hannahs, met with Speaker of the House Lee Chatfield on the day of the State of the State. Speaker Chatfield continues to be a strong ally of the merit shop.
State of the State Recap
O
n Tuesday, February 12, Governor Gretchen Whitmer gave her first State of the State Address. The Governor’s address highlighted many issues facing our state, including some actions needed to address those issues, and guidelines for legislative priorities.
Additionally, many of her priorities could directly effect ABC members. She specifically mentioned Michigan’s declining infrastructure and the need for stronger skilled trades training programs. Michigan received grades of D- and D+ for our roads and infrastructure, respectively, from the American Society of Civil Engineers. She cited that according to studies, just 18% of our roads are classified as “good” condition. Governor Whitmer also addressed education, citing the many issues Michigan students face and their chances for success. She claimed Michigan schools have suffered the slowest growth of K-12 spending of any state in the country, an issue which she says is leading to employers choosing not to invest in Michigan. Corey Hannahs and ABC of Michigan State Director, Jeff Wiggins, are pictured with Senate Majority Leader Mike Shirkey. Sen. Shirkey has never stopped fighting for free enterprise since joining the Michigan legislature in 2010.
She also brought up an ever-changing economy as an issue Michigan workers are facing. She claimed that changing job requirements will lead Michigan workers to require more opportunities for training and certificates rather than just a four-year college plan. Rapidly increasing costs associated with four-year college programs was another issue she brought up. Her solution to this issue was a scholarship for debt-free community college or two years at a university. He speech ran a total of 55 minutes and was received well by Democrat lawmakers but not as warmly by the Republicans. Her stated goal of bipartisanship was fairly absent during her speech, but as always, we will be keeping an eye on all issues going through the legislature. MM
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
ABC Chapters in Michigan Recognized at ABC Convention At an awards ceremony on March 28, ABC’s Greater, Southeastern, and Western Michigan Chapters were recognized for all their work in 2018 in front of hundreds of their peers. Congraulations to the board and staff at the three chapters! We’re excited to see what you do in 2019.
Greater Michigan Chapter
Southeastern Michigan Chapter
Western Michigan Chapter
Recognized for: • Achieving membership goal • Reaching membership growth • Achieving more than 90% retention • Excellence in Chapter Governance Awards for: The Homeschool Program The Safety First Logo
Recognized for: • Achieving membership goal • Reaching membership growth • Achieving more than 90% retention • Achieving the highest contractor percentage in the region
Recognized for: • Achieving more than 90% retention • STEP Award Winner • Best Practice Award for Future Focused Fridays: Jump Starting Construction Careers
five year anniversary
Additionally, ABC Western Michigan Chapter Vice President of Operations, Jen Schottke, was recgonized for five years of service to ABC, its members, and the merit shop. MICHIGAN MERIT • ISSUE 1 2019
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GOVERNMENT AFFAIRS
FY
EXECUTIVE BUDGET RECOMMENDATION
MERIT SHOP OVERVIEW
O
n Tuesday, March 5, Governor Gretchen Whitmer presented her Executive Budget Recommendation for Fiscal Year 2020 before a joint hearing of the House and Senate Appropriations committees. This presentation is generally scene as the kickoff to “budget season,” a process that now moves over to the Legislature as both the House and Senate will begin holding committee and subcommittee hearings on the $60 Billion proposal. From the perspective of ABC members throughout the state of Michigan, there are certain things in this budget that should be applauded, while others will bring back memories of the job-killing policies of “The Lost Decade.” After a review of the hundreds of pages that included the Governor’s presentation, issue papers, press release, and actual budget drafts, below are the items of which merit shop builders and contractors should be made aware.
ISSUE 1 – Corporate Income Tax on S-Corporations
In 2011, Governor Snyder and the Legislature eliminated the Michigan Business Tax and replaced it with a straight-forward, simple, 6% corporate income tax. This tax was applied to all C-Corporations, while removing the double taxation that was incurred by S-Corporations under the previous administration. Unfortunately, it appears that Governor Whitmer intends to bring back double taxation for many S-Corporations in what was described as “Pass-Through Tax Parity.” The proposal will create a new 6% income tax on S-Corporations, LLC’s, and other partnerships that already pay taxes 10
under the established state income tax of 4.25%. The proposal includes a $50,000 “small business” state deduction, while also allowing businesses to deduct it on their federal taxes, depending on their specific scenario. This change is expected to bring in $280 million annually by FY 2021.
ISSUE 2 – “Pension Tax” Repeal
In 2011, Governor Snyder and the Legislature passed legislation that treated all retirement income the same by eliminating the exemption previously in place on income received via pensions. Governor Whitmer is proposing to reinstate that exemption, which will cost the state approximately $355 million annually by FY 2021. The Executive Recommendation claims this will be offset by the 6% income tax being placed on S-Corporations, however, there still appears to be a gap of about $70 million.
ISSUE 3 – Gas Tax Increase
During the 2018 election, Governor Whitmer rode the phrase “Fix the Damn Roads” to a resounding victory in the race for Governor. Despite claiming that bonding would be one of the major sources of funding to accomplish that goal, as well as denying that she supported a $.20/gallon tax increase, the Governor has put forward a $.45/gallon increase that would raise approximately $2.1 billion to be directed toward road construction. The increase will be implemented over the next fiscal year and give Michigan the highest gas tax in the country ($.71/gallon) Despite claiming all of this new revenue will go toward the roads, the recommendation would do other things. It moves money obtained from the 2015 road funding compromise, approximately $325 million, from the roads fund to the gen-
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
those looking to choose a career path like those in the trades.
eral fund to be put towards education funding. The increased revenue will also be used to double the Earned Income Tax Credit (6% to 12%) “to mitigate the impact of the motor fuel increase on low income families.”
ISSUE 4 – Michigan Scholarship Programs for Skilled Trades
After a careful review of the actual proposed budget bill draft, the language states that the requirements listed above will need to be addressed in a separate piece of legislation, which will likely produced the Michigan Reconnect Grant Act. The costs of the program will be approximately $50-55 million per year serving over 50,000 students. $60 million will be taken from unspent Marshall Plan funds, with the other $50 million coming from the General Fund. Due to revenue restrictions, the Michigan Opportunity Initiatives will not be operational until the 2021 Fiscal Year.
ISSUE 5 – Career Tech Education Funding (High Schools)
The Governor’s budget focuses specifically on the need for more skilled trades workers to meet demand. This is a reality known to all entities that exist in the construction industry. As part of her effort to solve this problem, Governor Whitmer is proposing three specific scholarship programs.
The Governor is also proposing an additional $50 million for Career and Tech Education (CTE) that could mean up to $487 per eligible student. See the proposed formula below. This is in concert with reductions in specific CTE-related programs, as well as the elimination of $1.75 million previously dedicated to Dual Enrollment Incentive Payments.
These scholarship programs, specifically the Michigan Reconnect Grant Program, are designed to cover tuition costs for
***All quotes and tables were taken from the FY 2020 Executive Recommendation Issue Papers***MM
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MEMBER SERVICES
Leverage Employee Benefits to Recruit and Retain Talent
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6 Steps for Leveraging Employee Benefits Step One: Evaluate What You Are Providing In any industry it is critical to have the strongest team possible. The construction industry is competitive as it gets, forming the strongest workforce at all levels is often your key to edging out the competition. In today’s climate, that becomes even tougher as unemployment rates remain low. Michigan ended 2018 at 4% unemployment. If you talk to any HR professional tasked with maintaining a dependable and skilled work force, they will tell you it’s a tough job. According to a recent report, 44 percent of employers think they are doing a good job of paying their employees, but only 20 percent of employees feel the same. Many have plans to improve their compensation strategy, but it can be costly to do this for everyone. Creating an employee benefit program that includes multiple layers of affordable and flexible benefit options can offset these costs, while still ap-
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pealing to talent. In other words, employers can get more “bang for their buck” by simply offering choices. Conducting a poll among your employees can provide valuable insight to create a program that your employees see value in. Step Two: Learn the Industry Standards
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This means that you should find out what your competitors are offering their employees. This can be accomplished by speaking with employees at your company who came to you from a competitor or by speaking with colleagues you know from other companies. Many benefit brokers can also provide an industry benchmark of what benefits are standard. You will want to use data from several sources to investigate what benefits look like in your market. Step Three: Seek Feedback from Current Employees
As I stated in Step One, employee surveys or polls are a great way to learn what your employees want, as well as
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
3 4
make them feel valued. Be prepared to act on the results, particularly if there is a strong, consistent message being shared. You should also talk to all of the employees who are leaving your company, whether for retirement or to work elsewhere. Exit interviews can give insight as to why they are leaving and if it possibly has anything to do with the benefits package you currently offer. Step Four: Think Outside the Box With the rising cost of benefits and demands from employees, companies are being forced to dig deeper in their strategies. Getting creative with benefits can sometimes help any organization to beat out the competition. In addition to medical and prescription coverage, employee benefit packages often include other perks. The list can be long…things like: generous paid time off, flex time, employee assistance programs, and student loan repayment programs. Wellness focused benefits create happier and healthier employees and can pay big dividends long term. Things like healthy snack machines, accommodations for working out, meditation and nursing mothers’ accommodations may seem far out to some, but these are all things that large and small employers alike are implementing to cater to the “work/life balance” trend.
to be clear on your expectations and goals. Sharing your employees’ feedback helps your benefits agent know your company’s unique needs. ABC and HBA sponsors a group medical plan for employer groups with 5–5,000 employees. The program provides competitive rates, simplified enrollment and access to multiple medical plans for groups that otherwise would not be able to offer more than one plan.
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Step Six: Once The Hard Work Is Done, Communicate!!!
The next step in strengthening your compensation packages for candidates & current employees alike is to communicate. According to Colonial Life, 73 percent of employees say that understanding the benefits they have is very important. In the same survey, 37 percent of employees want information on their benefits that they can understand.
Taking the time to research what your industry competition is doing and also what your current employees find most valuable is a large investment of time, but in the long run can pay off! MM
According to an online survey done by Glassdoor, four in five workers today would prefer new benefits or perks rather than a pay raise. Traditional benefits like medical, dental, vision, short-term and long-term disability insurance, life insurance, retirement savings plans and flexible spending accounts all remain at the top of the list. Step Five: Be Willing To Make Changes
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Companies are becoming more inclined to work with a benefits consultant these days in order to put together the most effective package. Since they are considered an expert and they work with many of your competitors, they have an added layer of insight that you don’t have. Be sure
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MICHIGAN MERIT • ISSUE 1 2019
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FEDERAL AFFAIRS
ABC Urges PRESIDENT TRUMP to REVERSE OBAMA-ERA POLICY on PLAs
I
n a letter written by Michael Bellaman, President and CEO of ABC, President Trump was asked to eliminate an Obama administration executive order encouraging the use of government-mandated project labor agreements (PLAs) on large-scale federal construction projects because it “stands in the way of creating career paths into the construction industry for many merit shop craft professionals.” The letter claimed that “ABC member companies annually invest an estimated $1.1 billion to build a construction workforce that is safe, skilled and productive using flexible, competencybased and market-driven education methodologies. This all-of-the-above approach to workforce development has produced a network of ABC chapter and affiliated training centers in 1,400 locations across the country that offer more than 800 apprenticeship, craft, safety and management educa-
tion programs—including more than 300 U.S. Department of Labor Registered Apprenticeship programs for 20 different occupations—to build the people who build America.” However, according to the letter, “government-mandated PLAs prevent participants in merit shop workforce development programs from obtaining high-paying jobs on taxpayer-funded projects and deny opportunities to the 87.2 percent of the U.S. construction industry workforce that chooses not to join a union.” ABC and other industry groups have repeatedly asked President Trump to rescind President Obama’s Executive Order 13502, which allows state and local recipients of federal dollars to mandate PLAs and encourages federal agencies to require PLAs on federal contracts to build projects of $25 million or more on a case-by-case basis. ABC and the coalition have advocated to replace the Obama-era policy with
Executive Orders 13202 and 13208, which would prohibit PLAs from being required on federal and federally assisted construction projects, respectively. Two dozen states have enacted fair and open competition legislation that welcomes all contractors to bid on construction projects. Rescinding the pro-PLA Obama policy and implementing a new policy that welcomes all Americans to build taxpayer-funded construction projects “remains one of ABC’s top priorities, especially as previous and new Democrat governors and legislatures promote PLA mandates on federally assisted and state public works projects” across the country, according to the letter. “Cutting this costly regulation and creating a new win-win policy will protect taxpayers, spur economic growth, maintain robust construction industry career pipelines and allow all Americans to compete to rebuild America.” MM
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WORKFORCE DEVELOPMENT
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MICHIGAN MERIT • ISSUE 1 2019
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WORKFORCE DEVELOPMENT
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ABC WESTERN MICHIGAN CHAPTER & FMI HOST FIRST ANNUAL TECH CONFERENCE
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n Tuesday, February 19, 2019 nearly 350 construction industry professionals gathered together for the first annual Construction Technology and Innovation Conference in Grand Rapids, MI. The Tech and Innovation Conference featured learning sessions, exhibitor displays, and live-tech demonstrations from premier technology solutions providers from across the globe. During this one-day event, attendees were inspired to create a culture of innovation, to improve productivity with technology, and to achieve operational excellence. Highlights of the conference included: • Inspirational keynote addresses • Multiple learning sessions covering topics such as tech change management, data management, BIM accuracy, field deployment and company-wide adoption •
An exhibitor trade show with top providers of technology software and solutions
• Live tech demonstrations featuring connected tools, construction robotics, and augmented reality The Tech and Innovation Conference originated out of a 2018 Board Strategy Retreat at the ABC Western Michigan
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
Chapter (WMC). Through the leadership of Jay Snyder at FMI, a challenge was presented. “At our board retreat Jay Snyder asked us what our role should be in tech and innovation within the industry,” Jen Schottke, VP of Operations at ABC WMC said. “At that meeting we realized it was our role to educate and connect members to technology solutions they can use in their business.” Less than one year later hundreds of members gathered in Grand Rapids for this first of its kind event. Technology has changed rapidly for the construction industry. “We thought it was a big advancement when we had phone lines at a job site,” said John Shepherd of Rohde Construction. “Everything is mobile now. Technology has made the job more demanding. People expect to be able to communicate with you 24/7 at the drop of a hat.” “The biggest thing about this conference is finding better ways to use the cell phone,” shared a colleague of Shepherd, Geoff Eldred. “Here we are learning how we can send reports and time sheets, access plan data. We can use it as a construction tool, not just a communication tool.” Advancing technology and making sure these tools are accessible on the job site is a big factor in attracting new and young talent. “Young people hate estimating,” said Kenneth Swanson of Autodesk a sponsor of the event. “Our technology allows that process to become more digital and in turn more interesting for a younger generation.” ABC WMC was able to have 10 students and 20 educators from the Grand Rapids area out to view all the new technology and inspire a new workforce to consider a career in the skilled trades. It was the local vibe to the event that made this and high attendance numbers possible. “We want this to stay a regional conference,” Schottke said. “We’d love to see it replicated at other chapters but our members are able to
MICHIGAN MERIT • ISSUE 1 2019
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send more of their staff because it’s just a quick drive instead of having to fly somewhere.” Needless to say, the Construction Technology and Innovation Conference was a huge success, and will be back next year. Save the date for February 12, 2020 and join ABC WBC and FMI at the Second Annual Tech and Innovation Conference. MM
Bob Koster Jr.
KYLE BARNHART TRUCKING, LLC 2510 E TOWNSEND ROAD | ST. JOHNS, MI 48879
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5701 Safety Drive, Belmont, MI 49306 • Phone: 800-886-1614 • Fax: 616-784-1140 22
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
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Fax: (248) 689-4342
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MICHIGAN MERIT • ISSUE 1 2019
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GOVERNMENT AFFAIRS
Get to Know Your LAWMAKER
LEE CHATFIELD
107th District Speaker Chatfield is the youngest Speaker in Michigan history in more than 100 years, and currently the youngest serving in the country. He was first elected to serve the 107th District in the Michigan House of Representatives in November 2014. The 107th District encompasses Chippewa, Emmet and Mackinac counties, and in Cheboygan County: Koehler, Tuscarora, Beaugrand, Hebron, Mackinaw and Munro townships and the city of Cheboygan. Speaker Chatfield and his family are active members in their local church and he serves his community in various ways. He is a member of Right to Life of Michigan, National Rifle Association, Michigan Coalition for Responsible Gun Owners and Michigan Farm Bureau. Speaker Chatfield has coached several community teams and hosts summer sports camps for his high school and local athletic associations.
GET TO KNOW SPEAKER CHATFIELD an impossible spiral of debt, eventually losing their licenses for nonpayment. By the end, more than 300,000 people lost their licenses and owed the state more than $600 million that would never be repaid.
DO YOU REMEMBER YOUR FIRST INTERACTION WITH ABC? WHAT IMPACT HAS IT HAD ON YOUR LEGISLATIVE EFFORT?
ABC and its members do a great job making good, solid information available to the Legislature and providing personal experience when this chamber discusses economic policy. Those experiences and personal connections are important, because they offer a unique perspective much different than most of the studies and historical data that is so prevalent. We use that experience and those stories to really understand what is happening around the state, to see what challenges are facing Michigan’s hard-working families, and to shape the tax and regulatory reforms that make this state a better place to start and grow a small, family business. OF WHICH LEGISLATIVE EFFORT ARE YOU MOST PROUD?
Until recently, Michigan double penalized residents who received a traffic ticket by charging them an additional, separate fee on top of the fines on the ticket. That policy trapped low-income residents who couldn’t afford the fee and who accrued additional penalties in 24
By repealing the fees and forgiving the entirety of the debt, our bipartisan effort allowed hundreds of thousands of Michigan drivers to suddenly regain their licenses, giving them the opportunity to reenter the workforce, visit the doctor or simply pick up their children from school. This important reform helped families in every corner of our state, and its repeal positively impacted a million lives. Instead of focusing on government spreadsheets, we changed the conversation and focused on helping families get back on the road and back to work. WHAT DO YOU BELIEVE IS THE SINGLE BIGGEST ISSUE FACING MICHIGAN NOW AND WHAT DO YOU THINK IS THE BEST SOLUTION TO THAT ISSUE?
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
One issue every elected official hears about back home is the ridiculously high cost of car insurance in this
state. Families are struggling with the burden of paying this outrageous monthly bill, and Michigan’s average rates are by far the highest in the nation. Our current no-fault insurance system is broken, and everyone wants to see it fixed. There are many different ideas for how to best address the rates, but we can all agree that it is well past time we found a solution to this important issue. This is a top priority of mine, and we are going to work with everyone, from both parties, to find common ground and deliver a real solution that lowers rates for Michigan families. HOW CAN ABC MEMBERS CONTINUE KEEPING LAWMAKERS UP TO DATE ON KEY ISSUES AND PRIORITIES FOR THEIR BUSINESS AND EMPLOYEES?
Local experts and people with decades of experience creating jobs in our state have invaluable insights into state policy and our outdated regulatory system. State legislators are a diverse group with varied backgrounds, and not everyone is an expert in the policies impacting ABC’s members. We need that information to get to the bottom of the issues and craft better, smarter policies. All of our debates are better informed when they include the testimony and realworld information provided by local job creators and their workforce. MM
PETER J. LUCIDO
State Senator
State Senator Peter J. Lucido, of Shelby Township, serves the people of Michigan’s 8th Senate District and is the Senate Majority Whip. Senator Lucido serves as chairman of the Senate Judiciary and Public Safety, Advice and Consent, and JCAR committees. Prior to his election to the state Senate in Nov. 2018, Senator Lucido served two terms in the state House of Representatives from 2015-2018. Senator Lucido is a licensed attorney, insurance agent, realtor, and former security register representative. He founded a Macomb County-based law firm and Macomb Now Magazine. The senator has also been active in the community, and has served as a member of several organizations and boards.
GET TO KNOW SENATOR LUCIDO DO YOU REMEMBER YOUR FIRST INTERACTION WITH ABC? WHAT IMPACT HAS IT HAD ON YOUR LEGISLATIVE EFFORT? I have worked with the team at the Michigan As-
sociation of Builders and Contractors since my earliest days in the legislature, back in early 2015. I received a visit from the deputy director, who came by to ensure I was aware of ABC’s legislative priorities and how I could get more information on issues of importance to the membership, should related information come before me in committee or on the floor of the House. OF WHICH LEGISLATIVE EFFORT ARE YOU MOST PROUD?
Now, at the beginning of my fifth year of legislative service, and my first term in the Senate, I have had the opportunity to sponsor, co-sponsor, amend and vote upon literally hundreds of bills and legislative packages. I am very pleased to have had more than thirty bills on which I was the sole or primary sponsor signed into law. They run the gamut from anti human trafficking; to curriculum content standards requiring the teaching of civics; strengthening protections against assault of school personnel; to anti female Speaker Chatfield takes time out of his schedule to read to students in his district. MICHIGAN MERIT • ISSUE 1 2019
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Senator Lucido gets to know constituents at a hometown parade.
genital mutilation legislation; to anti cyberbullying bills; to strengthening principal residency exemption protections for homeowners; and so many more. It would be hard to identify a single bill of which I am most pleased with having enacted into law. WHAT DO YOU BELIEVE IS THE SINGLE BIGGEST ISSUE FACING MICHIGAN NOW AND WHAT DO YOU THINK IS THE BEST SOLUTION TO THAT ISSUE?
There are quite a few “heavy lifts” that the legislature needs to address in the current term. Among them: improving the way our road funding dollars are utilized to vastly improve the quality of our roads and bridges; significantly reducing the cost of auto insurance for Michigan residents; and protecting Michigan citizens from unfair civil asset forfeiture practices which allow law enforcement agencies to cease and sell a person’s property without ever convicting or, some cases, even charging them with a crime, are among the biggest issues before us. I have already introduced legislation to change the way road dollars are spent — keeping more funding in the areas where it is generated and where more road repair dollars are needed. I have also introduced and successfully shepherded through the Senate a bill to significantly reduce the incidents of civil asset forfeiture, and anticipate having it heard in the House Judiciary Com-
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mittee very soon. As for reducing the cost of auto insurance, I have already introduced a number of bills, this year, to require the Michigan Catastrophic Claims Association to be much more transparent about how they do business; reduce insurance fraud; reduce the number of uninsured drivers; and allow for real-time verification of insurance coverage by law enforcement. HOW CAN ABC MEMBERS CONTINUE KEEPING LAWMAKERS UP TO DATE ON KEY ISSUES AND PRIORITIES FOR THEIR BUSINESS AND EMPLOYEES?
Continue supporting your association leadership in their efforts to reach out and connect with legislators to ensure we are aware of issues facing ABC members. I would also encourage members who reside in my Macomb County district to join me at my regularly scheduled Coffee Hours and/or to contact me through my office to let me know of your thoughts on issues before the legislature. I have designed and staffed my office to be a userfriendly source of information and assistance, and hope your membership will not hesitate to call or message us at (855) 347-8008 or SenPLucido@Senate.Michigan.gov. MM
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FIND AND DO BUSINESS WITH OTHER ABC MEMBERS. FindContractors.com lets you search for members by name, chapter, location, sales volume or type of construction, plus it’s easy to find members that participate in STEP, have federal designations and have signed the Drug- and Alcohol-Free Workplace Pledge. You can also update your membership information—and win more work!
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GAYLORD
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ISSUE 1 2019
MICHIGAN
ADVERTISER INDEX
A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
CONTRIBUTORS PUBLISHER Jeff Wiggins wiggins@abcmi.com MANAGING EDITOR Breanna George bgeorge@abcmi.com GRAPHIC DESIGN Sally Bancroft Bancroft Graphics www.bancroftgraphics.com PRINTING Bradford Printing www.bradfordprinting.net ADVERTISING Strategic Value Media www.svmmedia.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 118 W. Ottawa Street 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.”
Accurate Construction Services, LLC........2
Great Lakes Industrial Supply
Allied Insurance Managers Inc..................4
Co., Inc...................................................17
Andrews Hooper Pavlik, PLC....................4
Guy Hurley, LLC......................................2
Arrow Concrete Cutting............................2
Hickey Electric, Inc.................................16
Attitude & Experience, Inc........................2
HNI Risk Services of Michigan...............23
Bricklayers & Allied Craft Workers
HNI Risk Services of Michigan...............18
Trowel Trades Local #1............................13
Independence Commercial Construction,
Brigade Fire Protection............................22
Inc..........................................................29
Burgess Concrete Construction Inc...........2
Iron Rose Custom Renovations Inc.........28
C & M Contracting Inc............................2
J & B Electric Inc....................................11
Capital Steel & Builders Supply................2
Jackson Associates, Inc............................11
Century Flooring......................................2
JBS Contracting, Inc...............................31
Cloverleaf Electric, LLC..........................13
Jimco Fire Protection, Inc........................17
Colville Electric Co Llc.............................4
K & H Concrete Cutting, Inc.................16
Construction Tool & Supply.....................4
K & S Plumbing Co., Inc........................22
Constructive Sheet Metal, Inc...................2
K-Value Insulation..................................23
Core & Main..........................................17
Kyle Barnhart Trucking, LLC..................22
CSM Mechanical, LLC...........................23
Laux Construction..................................23
D C Byers Co............................................4
Liquid Calcium Chloride Sales................23
Desai/Nasr Consulting Engineers, Inc.......4
Loomis, Ewert, Parsley, Davis,
Eikenhout Inc.........................................17 EMGS Michigan.......................................4 Expert Heating & Cooling, Inc...............17 Fair and Square Construction, Inc.............4 FCC Construction Inc............................17 Fire Pros, Inc...........................................17 Fisher Companies....................................23 Frazier Rentals Inc.....................................4 G & G Electric........................................15 G E Insulation Co.....................................4 GBM Recycled Concrete, LLC................15
Gotting, PC............................................23 M One Limited Inc.................................23 Maltese Construction LLC......................12 Mechanical Heat & Frost Insulation LLC........................................18 Michigan Air Compressor Technologies..31 Midland Tool & Supply Co., Inc.............12 Miller Johnson Attorneys........................19 Modern Concrete....................................27 Modern Roofing Inc................................18 Nugent Builders Inc................................18 Pamar Enterprises....................................19
Parrish Excavating Incorporated..............18
Summit Electric Inc................................19
Performance Line Tool Center.................19
Superior Asphalt......................................28
Power Lighting & Technical
The Campbell Group..............................28
Services Inc.............................................18
Tradesmen International..........................18
R. Bruton Electric, LLC..........................19
TRP Crushed Aggregate..........................28
Rapid Fire Protection Inc........................19
Universal Spiral Air.................................28
RCI Electric............................................27
Universal Wall Systems............................28
Reed Insurance Agency...........................29
Valenti Trobec Chandler..........................13
Robert Clancy Contracting, Inc..............27
Vallen......................................................27
Rock Products Co...................................23
Valley Electrical Contractors....................27
Saginaw Bay Underwriters.......................28
Van Dyken Mechanical Inc.....................12
Schaefer & Bierlein.................................29
Van Laan Concrete Construction............27
Scientific Brake & Equipment.................29
Vanguard Fire & Security Systems, Inc....18
Slipstream Inc.........................................29
Walton Agency........................................12
Standard Electric Co...............................28
Wm. Molnar Roofing, Inc.......................27
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