A Monthly Publication of ABC Keystone
Michael
Brian
Ken
John
Anthony
Patrick
Jan
Funk & Sons, Inc.
MESSAGE FROM THE CHAIR
Despite Economic Struggles, Hope is on the Horizon.
BY: JOHN LEHMANN
We are at an interesting crossroads with our economy, and it's curious to find that some companies are thriving and others are down on revenue against budget by 25% or more.
At the ABC convention in March, I was able to connect with various peers. It was interesting to hear that some of our subcontracting partners were down in revenue, which I found hard to believe. This was probably the biggest eye-opener for me.
Here are some of the reasons I have heard which will sound familiar:
• Certain market sectors have slowed, i.e., big box facilities.
• Interest rates are still high, and clients keep pushing for projects.
• Projects are taking longer to complete, pushing others projects out further than anticipated.
• Labor shortages and materials delays are hindering start dates.
• Contractors are being more selective due to the risk of lack of labor and materials.
This is an interesting dilemma we are facing. The Fed continues to push out an interest rate drop, although ABC Economist Anirban Basu of the Sage Policy Group suggests there should be a .5% interest rate decrease in September (we hope). Sage also stated in their report that the jobs report fell below projections and appears to have flatlined in recent months. Material delays still seem to hinder us; things like electrical equipment still have very long lead times. That's not good news, so what can we do about this? The construction industry is a vigilant group. We are used to getting things done no matter the odds, making us unique.
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Here is some food for thought:
• Look at diversifying the market sectors in which you work. This was my #1 goal after the recession in the early 2000s, and it has worked.
• Never underestimate the importance of business development and networking. Especially the executive leadership and, most importantly, the CEO and President. Clients want to hear from the top.
• GCs and Trade Partners need to connect. Get out there and build those relationships. I find tremendous value in networking with our current and potential trade partners, and there is no better place than ABC mixers and events. But you can schedule lunch, learn, or hold internal company meets and greets.
• Work on the company! Process improvement is an ongoing effort throughout a company's life cycle. It should never stop, even when we are so busy we feel we can't. Take the opportunity to work on your strategic business plan, evaluate your policies and procedures, and get internal feedback on what could be barriers to success or what is working well and can be enhanced. The health of your company is as important as anything!
• Train, Train, Train! Build consistency across your company, and vet out complacency. It's more important than ever for our employees to understand the importance of blocking and tackling, which drives success and, more importantly, eliminates risk. You will always hear me say that there is more to learn from our losses than successes. There is a lid on our profits but no bottom on our losses.
To sum up, we have a way to go before the most important election of our lives. If we get out and vote, we hope to see the dramatic changes we will need to see better outcomes for the economy, our companies, and our loyal employees. Meanwhile, no matter how busy or slow we are, we need to stick to a plan and always push forward to drive success.
NAVIGATING DAVIS BEACON: AVOIDING CATASTROPHE
Your Blueprint to Compliance and Success.
Join us for a crucial seminar covering the latest updates to the Davis-Bacon and Related Acts (DBRA), offered at no cost. Contractors will gain important insights to ensure compliance and prevent costly mistakes.
ABC KEYSTONE OFFICE
SEPT. 24, 2024 8:00 AM – 9:00 AM SEPT. 25, 2024 8:00 AM – 9:00 AM
ABC NITTANY VALLEY OFFICE
FROM THE CEO/ PRESIDENT
ABC National Edorses Trump
BY: G. DAVID SLOAD
On Monday, July 22, ABC National officially announced the endorsement of Donald J. Trump for President of the United States. Before the endorsement, ABC National staff was able to meet with both the campaign staff and Trump himself. We understand that this may cause some consternation or lead to questions. The following points clearly show why a Trump administration would be more beneficial to the construction industry than a Harris administration:
for Endorsement of Donald J. Trump:
President Trump demonstrated unwavering support for the construction industry during his previous term.
Economic Policies:
President Trump's commitment to reducing taxes and implementing pro-business policies aligns with ABC's mission. These policies ensure a thriving economy that benefits large and small construction companies.
Infrastructure Development:
President Trump's focus on rebuilding America's infrastructure has been a cornerstone of his policy agenda. His plans to invest in critical infrastructure projects will create jobs, stimulate economic growth, and improve the nation's competitiveness.
Support for Skilled Trades:
Under President Trump's leadership, there was a renewed emphasis on vocational training and apprenticeships. These efforts are vital for addressing the skilled labor shortage in the construction industry and have empowered individuals to pursue rewarding careers in the trades.
Commitment
to Deregulation:
President Trump's efforts to roll back unnecessary regulations have reduced the administrative burden on businesses, allowing them to focus on innovation, efficiency, and job creation.
ABC National Board members voted to endorse Donald J. Trump for President based on these key reasons. They believe that President Trump's policies have had a profoundly positive impact on the construction industry and the broader economy. His vision for America aligns with our values of merit-based opportunity and free enterprise. ABC is optimistic that his re-election will ensure continued growth and prosperity for our industry and the nation.
2024 2024 SCHOLARSHIP WINNERS
ABC Keystone Chapter recently awarded scholarship funds to 11 individuals through the Merit Shop Training & Research Center. Awardees either reside in the Chapter’s service area or will attend a trade school, college or university program that is in the Chapter’s service area. All are seeking an education directly related to a construction career.
Applications are reviewed by distinguished industry professionals serving on the Scholarship Selection Committee of the Merit Shop Training & Research Center, Inc. The scholarships are awarded solely on the basis of merit and without regard for the race, color, religion, national origin or gender of applicants.
The Merit Shop Training & Research Center was created by the Associated Builders & Contractors, Keystone Chapter (ABC Keystone) as a non-profit fund whose mission is to provide financial assistance to students who have chosen construction-related career paths. The Center is funded by members of the Chapter, who have taken upon themselves the responsibility of being proactive in assisting men and women in their preparation for this industry. The Center has awarded over $574,850 since its inception.
ABC Keystone congratulates the 2024 Merit Shop Training & Research Center scholarship winners!
Matthew Bear
Enrico Capriotti
Jacob Condo
Christopher Fisher
Luke Moser
Andrew Steinkamp
Ellie Young
Luke Redcay
Collin Rilatt
Matthew Griffiths
Gavin Long
35th Annual Excellence in Construction Awards
NOVEMBER 7, 2024
West Shore Country Club
Camp Hill, Pennsylvania
Power Your Presence: Advertise with Impact!
Promote your business to more than 300 ABC Members at the prestigious Excellence in Construction Awards. This premier event, hosted by ABC Keystone, unites industry leaders to celebrate outstanding achievements in building. Explore advertising opportunities within the EIC program to maximize your C.O.R.E. Credits and reach a targeted audience of key decision-makers in the construction industry.
Contact Rebecca Wolf at rebecca@abckeystone.org for more information.
ADVOCACY UPDATE
Doesn’t the State Legislature Have Anything Better to Work On?
BY: JIM WILLSHIER, DIRECTOR OF GOVERNMENT AFFAIRS
Last month, we announced an increase in funding for the Pennsylvania Department of Labor & Industry’s investigation unit, aimed at enhancing labor law enforcement. This boost in funding means the investigation unit will be more active in examining employer practices and enforcing fines, penalties, or legal actions where necessary.
Following our warning about the expanded scope of investigations— ranging from false claims to genuine mistakes and accurate omissions— members have asked how they can proactively seek guidance from the Department to ensure compliance with prevailing wage laws.
In a recent case, our chapter tried to help a member clarify how a specific position would be classified by the Department. Despite repeated inquiries over two months, the member received no response until we escalated the issue, prompting the Department to schedule a phone call to discuss the matter.
Given Governor Shapiro's and several legislators’ emphasis on proper employee classification, it's perplexing why it takes so long for a compliant company to get a clear answer. Governor Shapiro has even challenged employers questioning the increase in investigations, asking, “What are you afraid we might find?”
The Department should appreciate employers who seek proactive compliance as much as it enforces penalties for misclassifications. We are already reaching out to the Secretary to express our concerns and request improved collaboration to help employers meet compliance standards.
In the meantime, we need your help. Please send us any valid questions you have about complying with prevailing wage laws. We aim to share these questions—confidentially and without identifying any individual or company—with the Department to emphasize the need for better partnership and support. With the additional taxpayer funding allocated to the Department, it’s crucial they use these resources effectively.
Email your questions to jim@abckeystone.org. Thank you for your assistance!
ASK AN ACCOUNTANT
BY: DAN STURM, CPA, CCIFP PARTNER | MCKONLY & ASBURY www.cohenseglias.com
(267) 238-4775
Cash Management to Improve Your Bottom Line
Cash management is the process of managing the inflows and outflows of cash in a business and is particularly important for construction contractors. Long payment cycles, unpredictable expenses, and fluctuating demand all emphasize the need for cash management. A solid cash management strategy and process can help with long-term sustainability and help drive additional income straight to your bottom line, especially in today’s interest rate environment. With guidance from your financial advisor, excess cash can also be invested, creating additional cash flow and income.
Poor cash management can affect the ability to grow, obtain new contracts, pay suppliers, employees, and taxes, and ultimately result in negative net income. There are many strategies that you can implement to improve cash management. Improving cash management is a longterm project that requires an intentional strategy and focus. We have outlined a few cash management strategies below for your consideration. While not an all-inclusive list, we've observed these strategies contribute to the success of many contractors.
Plan ahead. One of the most important steps in cash management is to create a realistic cash flow forecast that projects the expected cash inflows and outflows for a given period. This can help you anticipate and prepare for cash shortages or surpluses, and to adjust spending and borrowing accordingly. A cash flow forecast should be updated regularly and based on accurate data from past and current projects, as well as market trends and customer behavior.
We should emphasize that projections and forecasts apply to more than the business as a whole. This same strategy can and should be applied to capital equipment purchases. Construction equipment is a major expense for most construction companies. Forecasting cash flows prior to equipment purchases will support your decision-making process. Cash
inflow from new equipment should exceed the cash outflow for debt and all other costs associated with the equipment.
Contract payment terms. Contract payment terms are as important as ever, particularly in today’s environment with fluctuating material prices and rising costs. Frontloading payments on contracts can provide significant benefits to your cash management process. This allows you to work on your customers’ dollars, versus your own, for mobilization and other job startup costs. These costs can be significant. Frontloading payments may create a liability on your balance sheet, however, it’s a much better option than using your line of credit or other debt, which only adds to the cost of business. For contracts that are significant in duration, you may have an opportunity to hold excess cash in short-term investments, driving additional investment income to your bottom line.
Invoice and collect promptly. Another way to improve cash management is to ensure that invoices are sent to customers (and collected) as soon as possible and that they are clear and accurate. While this seems like a basic strategy, it is not uncommon for us to see significant job costs build on a balance sheet. Monitoring unbilled job costs is critical to cash management, particularly on time and materials projects. You’ve incurred the cost and have a right to payment. Sitting on these unbilled costs may be costing you interest income, or even worse, costing you interest expense on your line of credit. An accounts receivable process that demands accountability of your project managers, or others responsible for billing closes the loop on this process. In the words of Peter Drucker, “what gets measured, gets managed.”
Manage expenses and inventory. Controlling expenses and inventory of the business is probably the “go-to” item to manage cash. While critical, it’s just one piece of the overall strategy. Contractors should
review their expenses regularly and identify areas where they can reduce costs or negotiate better terms with suppliers. You should also monitor inventory levels and avoid overstocking or understocking materials and equipment, which can tie up cash and increase storage and maintenance costs.
Incentivize ALL employees. Creating an incentive plan for all employees can provide a tremendous boost to a cash management strategy. Ask yourself how are my employees motivated to serve our clients with excellence, drive additional billings, collect cash, and control spending. Does the person answering your phone know they have a direct impact on the experience of your customers? Customer experience has a direct impact on your ability to set fees and get paid. You may have an opportunity to redesign current incentive plans to help drive forward a new strategy and mindset where everyone contributes and benefits. One idea is creating cash collection goals and rewarding employees for exceeding those goals. A well designed incentive plan gives all employees an opportunity and motivation to contribute to your strategy.
Education. Last, but not least, the education of your entire organization can have a significant impact on your cash collections, top line revenue and net income. Often, your team may focus on areas specific to their job and lose sight of the big picture. For example, project managers are very aware of budgets and costs impacting jobs they are charged with managing. But are those same project managers aware of all the costs it takes to run your business? We have observed some clients apply administrative fees to each job that cover the general and administrative costs of running the business. It allows the project manager to see that a gross margin of 10% can quickly decrease to 7% or less. Applying an administrative cost to each job may influence contract bid estimates and overall behavior in spending. Especially, if these same project managers receive bonuses based on the bottom-line results. Educating everyone about the business can make a difference, sometimes immediate.
ELEVATE YOUR LEADERSHIP.
Develop and enhance your team’s leadership skills with ABC Keystone.
LEADERSHIP DEVELOPMENT SERIES
• Self-Management Sept. 10, 2024
• Setting & Achieving Goals Oct. 8, 2024
• Leadership v. Management Nov. 12, 2024
• Presentations Removing the Fear: Dec. 10, 2024 (Confident Communication: Mastering Presentations)
• Discovering Your DISC Style Jan. 14, 2025
• Communication is Everything Feb. 11, 2025
• Attitude Adjustments March 11, 2025
• Networking, Referrals April 8, 2025 & Strategic Alliances
• Developing High Trust Teams May 6, 2025
• Understanding Financials June 10, 2025 for Non-Accountants
Instructor:
Jeff Witmer
Pathway Business Advisors
2024 Verified STEP Participants
Allan Myers
Allied Mechanical & Electrical
Arthur Funk & Sons, Inc.
Benchmark Construction Co., Inc.
Brubaker, Inc.
C.M. High, Inc.
CB Construction Services, Inc.
CCS Building Group
CH+N Site Construction Inc.
CLARK, Inc.
CMC, Inc.
Commonwealth Fire Protection Co.
Conewago Enterprises, Inc.
Conewago Manufacturing, LLC
Conexus, Inc.
D.E. Gemmill, Inc.
DenTech Industrial
DeRock Electric Company
Detwiler Roofing
EG Stoltzfus Construction, LLC
Flyway Excavating, Inc.
Garrety Glass, Inc.
Glenn O. Hawbaker Inc.
H&S Industrial, A Viocity Company
Hayden Power Group
High Construction Company
Hursh Painting Co., Inc.
James Craft & Son, Inc.
Kessel Construction, Inc.
Keystruct Construction, A Viocity Company
Leer Electric, Inc.
Leonard S. Fiore, Inc.
LEW Site Construction LLC
M. Potteiger, Inc.
Martins Flooring
MVE Group
Paramount Contracting, Inc.
Pincus Elevator Company, Inc.
Poole Anderson Construction, LLC
Verified as of August 2024
Quarry View Building Group
RSR Electric, A Viocity Company
Schlouch Incorporated
Silvertip, Inc.
Smucker Company
Speedwell Construction, Inc.
Stuebner, Inc.
Susquehanna Valley Construction Corp.
The Tri-M Group, LLC
The Tuckey Companies
The Witmer Group
United Rentals, Inc.
Vision Mechanical, Inc.
Wagman Construction, Inc.
Warfel Construction Company
Wenrich Painting, Inc.
White Rose Interiors, LLC
Wohlsen Construction Company
Zartman Construction, Inc.
NO COST TO ATTEND! YOUR VOICE MATTERS TO US.
Join us for an invitation to shape the future! As we embark on a new three-year plan starting January 2025, your leadership is crucial. Attend our Strategic Planning Sessions to contribute your insights and help guide the Chapter forward. Your input as a valued member will shape our priorities and drive new initiatives for the association. This meeting is no-cost to attend and open to all members!
Get an exclusive peek into Chapter operations!
• ABC National’s Monica Glowinsky and Keystone Chapter leaders will lead breakout sessions focusing on the Chapter’s strategic plan goals.
• Members, Chapter leadership, and staff will collaborate in discussions aimed at setting goals that ensure return on investment for members and advancement in the construction industry.
ABC Keystone 135 Shellyland Road Manheim, PA 17545
AGENDA
Wednesday, September 18, 2024
8:00 am – 4:00 pm
Continental Breakfast followed by session with lunch included. 4:30 pm – 5:30 pm Happy Hour
Thursday, September 19, 2024
10:00 am – 3:00 pm
Continental Breakfast followed by session with lunch.
Joining an ABC Keystone Committee requires just 1-2 hours per month, offering substantial returns:
• Gain valuable leadership experience
• Foster or strengthen business relationships
• Implement your ideas effectively
• Directly influence industry issues
Monica Glowinski Senior Director of Chapter Development, ABC National
OCTOBER 22, 2024
10:00 AM – 5:00 PM
Join us as we explore the latest trends and cutting-edge solutions that are redefining the construction industry.
Who Should Attend?
• Project Managers
• Technology Decision Makers/ IT
• Company Leadership
• Safety Leaders Keynote Speaker “How to Implement Technology”
- Maria Davidson CEO & Founder of
ABC Keystone 135 Shellyland Road Manheim, PA 17545
Kojo Presented by:
Build Your Team.
Grow and Develop Your Workforce with ABC Keystone
• Create your own workforce through formalized training.
• Increase productivity, safety & profits.
• Expand your workers' knowledge base.
• Bid work more competitively.
The construction industry is constantly evolving. To stay relevant, companies must continually grow their talent. ABC Keystone understands that making employee development a priority within a company culture ensures the team remains well-informed on industry trends, recent developments, and best practices. Contact us today to learn more today. ABCKEYSTONE.ORG
MERIT SHOP PROUD
FORMER ASSISTANT U.S. ATTORNEY
ELIZABETH RAY JOINS SAXTON & STUMP
AS SENIOR COUNSEL
VINCE LIBERTO JOINS SCHAEDLER YESCO DISTRIBUTION AS VP OF BUSINESS OPERATIONS
Fourth-generation, family-owned Schaedler Yesco Distribution, Inc., has announced a new addition to its team.
Saxton & Stump has added Elizabeth ‘Liz’ Ray as a senior counsel attorney in the firm’s Investigations and Criminal Defense Group. Ray is a former assistant United States attorney for the Eastern District of Pennsylvania and will work out of the firm’s downtown Philadelphia office with other members of the Investigations and Criminal Defense Group, including its co-chair, Mark E. Cedrone. Prior to that, she spent 15 years in private practice working in both healthcare litigation and intellectual property law following her cum laude graduation from the University of Pennsylvania School of Law.
“We’re thrilled that Liz has joined the firm,” Saxton & Stump CEO James W. Saxton said. She has outstanding credentials, and her work experience with the United States Attorney’s office significantly adds to our depth in investigations and criminal defense practice as well as other areas of complex litigation.” In her nine years with the United States Attorney’s office, Ray appeared before the Third Circuit Court of Appeals panel, handled complex civil and criminal forfeiture and money laundering cases, collected restitution in civil and criminal matters, and collaborated with other prosecutors and law enforcement partners, including the United States Marshals Service. In private practice, she counseled pharmaceutical companies on regulatory compliance and risk avoidance. Ray also defended major pharmaceutical companies in nationwide litigation involving product liability, consumer fraud, and securities fraud allegations.
“Liz’s experience in private practice and in the United States Attorney’s Office gives her a unique perspective on approaching complex criminal and civil cases. She will add tremendous depth to our already deep bench of high-quality lawyers. I am personally excited to be working with Liz, for she will add tremendous value to our clients,” Cedrone said.
On July 8, Vince Liberto joined the team as Vice President of Business Operations. The responsibilities of this role include process management, business operations, and training & development with the goals of refining quality and continuous improvement efforts, streamlining processes, improving workflow efficiency, and enhancing overall customer experience via a skilled workforce of employee-owners.
“I am excited to welcome Vince to our team,” said Farrah Mittel, President of Schaedler Yesco. “His proficiency, combined with the experience of the rest of our team, will have a positive impact on our overall organizational effectiveness and success.”
Vince has worked in the electrical distribution industry for over 28 years and has held various roles in sales and operations leadership. In his previous position, he was responsible for strategic initiatives to enhance efficiency, drive growth and profitability, and create value for customers. In his spare time, he enjoys traveling and spending time with family.
For inclusion in future issues of the Merit Shop Spokesman, please send your press releases to: rebecca@abckeystone.org
WELCOME NEW MEMBERS
Wouch, Maloney & Co., LLP
Stephen J. Shade, CPA, Partner 1515 Market Street, Suite 1710 Philadelphia, PA 19102
www.wm-cpa.com (215) 675-8364
sslade@wm-cpa.com
Sponsored By: Stephanie Titus Poole Anderson Construction
Eagle Wireless
Daniel Geesaman, National Account Manager PO Box 1429
Downingtown, PA 19335
www.eaglewireless.us (866) 607-4773
daniel@eaglewireless.us
Sponsored By: Lawrence L. Summers Jr. C Mechanical Services
Fully Promoted of Lancaster
Allen Landis, Owner
155 Rohrerstown Road Lancaster, PA 17603
www.fullypromoted.com/locations/lancaster-pa/ (717) 917-0520
allen.landis@fullypromoted.com
Garrett Electric, Heating & Air
George R. Garrett, Owner & Operator 1001 Stonemanor Drive Lancaster, PA 17603
www.garrettelectrichvac.com (717) 371-4814
george@garretteletrichvac.com
TLC Construction & Renovations, LLC
Tarik Casteel, President 1821 Fulton Street Harrisburg, PA 17102
www.tlchbg.com (717) 565-9343
trcasteel38@gmail.com
Sponsored By: Steve Conway Pyramid Construction Services
Synergy Employment Group, Inc.
Christopher White, President 224 South 9th Street Lebanon, PA 17042
www.synergyempgroup.com (717) 450-5443
cwhite@synergyempgroup.com
MILESTONE ANNIVERSARIES
Congratulations to these members celebrating milestone anniversaries in August 2024!
65 YEARS
D&H Electrical Construction, LLC
Garrety Glass, Inc.
Murray
30 YEARS
American Testing Laboratories, Inc.
D.C. Gohn Associates, Inc.
H.C. Nye Company, Inc.
Louis P. Canuso
20 YEARS
The Hess Agency
Quandel Enterprises, LLC
5 YEARS
Crownstone Equipment
Bobcat of York, Adams Co. & Lancaster
5 YEARS CONT.
Flow Mechanical, LLC
Greg A. Vietri, Inc.
Univest Financial
Wile Plumbing, Inc.
1 YEAR
Austin Electric
B&D Builders, LLC
Ferguson Waterworks
Fritz Fire Protection Company
Green Building Engineers
Hoff Construction Services
Investment Real Estate, LLC
Key Painting & Decorating, LLC
LifeStages Development
Residential Media Systems Ltd. (RMS)
UPMC
SEPTEMBER AUGUST
8/14
8/21 Employment Assessments - Part of the Human Resource Management Academy
8/28 OSHA 10-Hour Construction
8/30 Adult First Aid/CPR/AED Certification
8/15
9/18 & 9/19 Strategic Planning Meeting
Courses:
DIAMOND SPONSOR SAPPHIRE SPONSOR
PREMIER SPONSORS
PLATINUM SPONSORS
GOLD SPONSORS
Acuity Advisors and CPAs, LLP
Aerotek
All Set Tile & Marble Co. Inc.
B & B Integrations
Barley Snyder
SILVER SPONSORS
Associated Products Services, Inc.
Brown Plus
Fulton Bank
D.E. Gemmill, Inc.
Leer Electric, Inc.
BRONZE SPONSORS
Commonwealth Fire Protection Co.
ECS Mid-Atlantic, LLC
Haller Enterprises
Remco Inc.
CB Construction Services, Inc.
EHD
Garrety Glass, Inc.
Hess Auctioneers, LLC
Horst Construction Co.
GR Mitchell, Inc.
Paramount Contracting, Inc.
R.A. Walton & Company, Inc.
The Witmer Group
Hursh Painting Co., Inc.
MVE Group
Martin’s Flooring
M. Potteiger, Inc.
Providence Engineering
RKL
Saul Ewing LLP
Smucker Company
Trout CPA
