2018 Report to Members

Building

Tomorrow’s

WORKFORCE

Today

A SSO CIATE D G E N E R AL CO NTR AC TO R S O F G EO RG IA , I N C .

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Report to Members JUNE 2018

President’s Message

Scott Clark R. W. Allen, LLC Augusta, Georgia

A

s I began this year as President of AGC Georgia, I had three primary goals: to create a platform for rising managers to engage with AGC, to strengthen our future workforce through our state Workforce Development Alliances, and to increase AGC Georgia member support of the Skills Challenges as a concrete way to attract students to our industry.

I am proud of our work in the creation of the Executive Alliance. We knew we were missing the needs of rising senior management, and we meant to fix that gap. The Executive Alliance provides essential networking opportunities, education, and peer-to-peer activities to assist professionals with their career trajectory. In its inaugural year, the Executive Alliance has 35 members, which is an excellent foundation. We know they will establish both friendships and connections to AGC Georgia that will last a lifetime.

A robust workforce is the key to our continuing success, and it is a challenge that cannot be met overnight. We have seen several initiatives implemented including engaging elementary school students through construction artwork and the Toolbox program, working with the State Board of Education and state government to further support for skilled trade education and early employment, and advocating for new high school construction programs. We will continue to work for many years to ensure the viability of the labor pool in the coming decades, and it is vital that we do so.

This year, Workforce Development Alliances have seen tremendous growth across Georgia. A snapshot of our year includes four regional competitions including two new Skills Challenges, 420 student competitors (a 290% increase), and 788 student observers (a 183% increase). In 2018, I look forward to the development of two additional Alliances. I’m impressed with the work of every region and the skill of our future workforce.

We cannot simply wish that skilled, motivated employees would knock on our doors. We must attract interest early – as early as elementary school – and develop that interest into talented workers who seek careers in our industry. We have made great strides this year.

A robust workforce is the key to our continuing success, and it is a challenge that cannot be met overnight.

I intend to continue working to help create a skilled, driven and job-ready workforce for our industry. My appreciation to everyone who helped turn our vision into reality. I am humbled by your support. As I leave office, I challenge our members to continue to develop statewide Workforce Development Alliances and Skills Challenges and to get involved with the Executive Alliance. I cannot wait to see our members working together and with our youth to bolster our industry!

ASSOCIATED GENERAL CONTRACTORS OF GEORGIA, INC. 2018 REPORT TO MEMBERS

Why is Workforce Development Important?

T

he commercial construction industry is facing a serious threat – a shortage of skilled workers at all levels.

Looking down the road, we’ll need thousands of new employees just to stay competitive. And we won’t be looking solely for skilled tradesmen, either. We’ll have to find supervisors and technology experts, accountants and project managers, architects and engineers, as well as those who excel in skilled trades.

Technology skills will be increasingly important.

Where will these new workers come from?

2021

Our workforce will come from a variety of places where AGC members are already meeting new prospects. Our members are in schools, competitions, college programs and government, and many of our future employees won’t consider a career in construction until we present the possibilities to them.

AGC Georgia is working now to strengthen our existing workforce and develop the workforce that will move us into the future. The 2018 Report to Members highlights the variety and strength of those efforts in three parts: Strengthening Today’s Workforce Building Tomorrow’s Workforce Creating a Positive Environment for Workforce Development

+

–

4 to 1 For every four people who leave the industry, only one comes in.

1,500,000

1,50

2021

1,500,000 1,500,000 1.5 million

97,437

Number of construction workers needed nationwide in the next five years if the industry fails to replenish its workforce.1

Number of carpenters and craft laborers needed in Georgia by August 2021.2

$

$ $18 billion

12%

42%

Annual construction contribution to Georgia’s GDP of $496 billion.3

Percentage growth for overall employment of construction laborers and helpers from 2016 to 2026, faster than the average for all occupations.4

Percentage of Georgia survey respondents “having a hard time filling both salaried and craft worker positions.” 5

88% Percentage of Georgia survey respondents expecting it to be hard or to become harder to find both salaried and hourly craft construction professionals in the next 12 months.6

73% Percentage of Georgia survey respondents who said their firms had increased pay or benefits in 2017 to recruit and retain both salaried and craft workers.7

1 Source: CLMA 20/20 Foresight Report: The Long-Term Outlook for Construction.

2 D ata provided by the Construction Labor Market Analyzer® on the Build Your Future website at byf.org. BYF is sponsored by the National Center for Construction Education and Research.

3 S imonson, Ken, “The Economic Impact of Construction in the United States and Georgia, AGC of America, April 27, 2018.

4 B ureau of Labor Statistics, Occupational Outlook Handbook at https://www.bls.gov/ooh/construction-and-extraction/construction-laborers-and-helpers.htm#tab-6\ 5, 6, 7 S ource: 2018 AGC of America Construction Outlook Survey Results for Georgia.

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StrengtheningToday’s

WORKFORCE Y oung Leadership Program

Members of the Supervisory Training Program

A

GC Georgia is working to make our industry a superior career choice by increasing training for existing employees and making improved safety a foundation of the industry, as well as helping member companies offer benefits comparable to other industries. Here are highlights of our efforts this year:

Our YLP offers employees a chance to develop leadership skills early in their careers, network with their peer group and establish personal relationships with future industry leaders. YLP sponsors professional development seminars and reduced-cost access to AGC Georgia training programs, and raises money for hand-selected charities benefiting local children, families and veterans.

2018 Young Leadership Program Highlights 1 32 YLP participants 7 7 member companies represented 2 5 annual events designed specifically for YLP

S upervisory Training Program

1 0 hours of complimentary professional development

AGC Georgia members nominated more than 700 jobsite supervisors for the Ron Amerson Supervisor Safety Award Program. We were delighted with the quantity, but we noticed several things about the ages of the nominees:

$82,000 in charitable contributions over last 12 months H undreds of volunteer hours on charitable construction projects, including earning national recognition for an ADA retrofit of a toddler’s home.

50 was the average age 50 percent of nominees were over 50 20 percent were also over 60 It takes time to learn excellence as a jobsite supervisor, so it’s critical we start training assistant supervisors and foremen now so they will be ready to take over when their mentors retire.

Younger professionals look forward to the annual professional development session where veteran executives share lessons learned.

YLP members, and Senator Mike Dugan, celebrate with leadership from Hillside, a behavioral health center for young people, during the grand opening of a home that serves as their new meeting space and professional offices. The program contributed over $26,000 to the renovation project.

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ASSOCIATED GENERAL CONTRACTORS OF GEORGIA, INC. 2018 REPORT TO MEMBERS

E xecutive Alliance

Safety and Education

In its inaugural year, AGC Georgia’s Executive Alliance provides advanced professional development programs and peerto-peer mentoring and networking. Ideal candidates for this program are senior-level representatives, including those already serving as president or owner, and others who are moving into senior positions in the near future. EA focuses on leadership best practices for representatives of any type of business, not just construction-specific.

AGC Georgia companies are committed to providing safe workplaces and ongoing education for their employees. We take both safety and education seriously because the two go hand in hand. Well-trained employees are safer on the job site, more effective leaders, and better at their craft.

2018 Executive Alliance Highlights

Our most popular courses include: BIM, Blueprint Reading, CPR/First Aid, CQM, Estimating, Fall Protection, Lean Construction, Lien Law, NPDES, OSHA 10 and 30-Hour, and Silica Training.

2018 Safety and Education Highlights

3 5 EA participants – 7 presidents, 14 vice presidents, and 14 senior managers

92 safety and education training sessions offered

2 7 member companies representing all regions of Georgia & one in Florida

O ver 360 hours of instruction

9 annual events designed specifically for EA, including three overnight retreats at Georgia venues ver 20 hours of in-depth training led by sought after O facilitators

1 ,104 participants 8 0% of contractor member firms involved In the last 12 months, 58 contractor firms hosted 655 jobsite training sessions with AGC Georgia’s Site Safety Van. These visits offered safety best practices to more than 15,200 people.

Great participation at the Spring 2018 EA Retreat at Callaway Gardens.

Thank you for assisting me in finding a new job in construction. Because of your willingness to help me learn more about your contractor members, I accepted an offer as an assistant project manager with Swofford Construction. I am very grateful for everything AGC Georgia has done for me, and I am excited to work with a member company. — Blake Stalnaker

AGC Retirement Savings Plan Member companies work hard to provide benefits to their employees, but companies of all sizes can drown in the administrative costs and paperwork required by retirement plans. Our Retirement Savings Plan – a multiple employer 401(k) – is well-known among top talent in the construction industry. It also allows companies of all sizes to pool their resources to help employees save more of their money.

2018 AGC Retirement Savings Plan Highlights 63 member firms enrolled O ver $105,000,000 in assets 5 ,000+ covered employees M ore than $175,000 in annual administrative costs saved uarterly investment review process rivals the Q largest single employer plans 3

Building Tomorrow’s

WORKFORCE

C

reating skilled workers for the future of our industry takes years. AGC Georgia has identified several critical factors influencing who might be interested in a construction career and what their skill-level might be when they’re ready to begin work. Here are the highlights of our efforts this year: Connecting Students and Industry It takes a tremendous amount of money, member participation and materials to create a new construction program or to take an existing program to the next level. We have: Contributed over $40,000 to school construction programs.

Grown the number of school programs connected to contractor members to over 100.

Coordinated in-kind donations totaling over $50,000.

Educated thousands of students on construction through classroom visits, career fairs, and Skills Challenges.

Served as advocate and resource for creation of 4 new high school construction programs.

Recruited record number of members serving on program certification committees for high school and TCSG construction program accreditation by the National Center for Construction Education and Research.

Advocated for implementation of YouScience aptitude tool for all ninth graders and TSCG students to help them choose an optimum career path based on their natural talents.

Hosting Skills Challenges Skills Challenges across Georgia have provided a tangible reason for high school students to sharpen their construction skills – everybody loves to win. We have expanded member and student participation in existing Skills Challenges and have grown the number of contests across the state. Some of this year’s accomplishments include: E xpanded Skills Challenges to Central Georgia, Northeast Georgia, East Georgia and South/Southwest Georgia.

Raised $56,000 during one event to host a local competition and support area high-school construction programs.

200 firms contributed $114,000 to the competitions.

420 students competed from 54 high schools; 788 students and dozens of influencers observed.

Students participated in electrical, carpentry, plumbing, masonry, welding, A/V production and Team Works.

After students hone their crafts at local Skills Challenges, they compete in their regional SkillsUSA Competition. Regional winners advance to SkillsUSA Georgia events hosted each March, with first place winners representing their school at the national competition.

Members proudly delivered AGC Georgia Foundation checks totaling more than $40,000 to construction programs that participate in Skills Challenges.

Scott Clark is pictured with Evans High School construction program students who are winners of the 2017 East Georgia Workforce Development Alliance Cup.

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ASSOCIATED GENERAL CONTRACTORS OF GEORGIA, INC. 2018 REPORT TO MEMBERS

Building Interest in Elementary Schools With increased member support of high school and TCSG construction programs, it’s critical for industry leaders to begin working with students in elementary and middle schools. Elementary school students (and their parents) who are excited about construction are more likely to enroll in middle school construction programs. Graduates from middle school programs are a natural fit for high school and college programs.

This exponential growth is a powerful piece of AGC Georgia’s workforce development efforts. This year, highlights included: embers contributed $6,000 to begin new Toolbox M construction clubs for elementary schools in North Fulton County. Three programs have gained a loyal following with plans for more coming on board during the 2018-19 school year.

Due to the construction industry’s status of being a High Demand Career Initiative, the Georgia Department of Education fully-funded middle school construction programs in early 2018. Many of these feeder programs will begin during the 2018-19 term, and serve as an invaluable asset to high school programs since students will be more aware of construction as a curriculum choice in high school.

Toolbox Information

“Thanks to you, all 19 students participating in the construction club received a hard hat. I can’t begin to tell you how much it means to our students. They are so excited to have their very own!”

— Morgan Tew, teacher and Toolbox sponsor at Vickery Mill Elementary School

AGC Georgia board members donated hard hats to fourth and fifth graders participating in the Toolbox program at Vickery Mill Elementary School.

Program’s model can be easily replicated in other districts across the state.

“SkillsUSA has been an eye-opening experience for me. It has given me the confidence, not only in electrical skills, but also being a woman in the world of construction. I have been offered multiple jobs and an internship. Thanks to the donation by AGC Georgia’s Foundation, I will not have to worry about funding for this trip.”

—S hyann Bailey, student at Adairsville High School competing in electrical at the SkillsUSA National Competition in Louisville, KY

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Creating a Positive Environment for

WORKFORCE

Growth After running a construction business for 49 years, and serving as chair of a local school board and the Georgia Senate Education Committee, I believe I have a unique perspective for education and workforce development. During my time in the Senate, it has been a pleasure to have AGC Georgia as a passionate ally and advocate on this topic with me. Their support of Senate Bill 3 and willingness to contribute countless resources to help CTAE and TCSG curriculum align with industry needs will pay off for the construction industry for decades to come.

— Georgia State Senator Lindsey Tippins-R, Marietta

N

o one association or company, working alone, can create the range of initiatives we need to ensure a sustainable construction workforce. AGC Georgia’s goal is to build the necessary relationships with the Georgia legislature, agencies and leaders to create a coordinated statewide strategy to address the educational and skill requirements of a sustainable workforce. We also work with other associations, states and AGC of America to share best practices throughout the nation.

Here are highlights from the past year: Georgia Governor Nathan Deal proclaimed October as Careers in Construction Month.

AGC Georgia helped promote Senate Bill 3, the Creating Opportunities Needed Now to Expand Credentialed Training (CONNECT) Act, sponsored by Senator Lindsey Tippins-R, Marietta. Industry involvement in the classroom creates a direct link and pipeline for contractors seeking skilled and trained labor and students seeking jobs in our industry. Governor Deal signed the bill into law on May 8.

R. W. Allen hosted Felicia Cullars, a STEM/STEAM Program Specialist with the Georgia Department of Education, as she shadowed several RWA employees. After this experience, she said every student should be exposed to the industry for the variety of skill sets you need – accounting, math, people skills, etc.

“I had no clue how valuable the mathematical practices are that happen on a construction site.”

—F elicia Cullars, a STEM/STEAM Program Specialist, speaking to the Georgia Department of Education State Board Meeting after visiting R.W. Allen in Augusta

Working with AGC Georgia is always a pleasure. They bring expertise, steady determination and the facts we need to any discussion of the industry or workforce development. Their perspective has helped make legislation better time and time again.

— I rene Munn, general counsel and director of policy for Georgia Lieutenant Governor Casey Cagle

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ASSOCIATED GENERAL CONTRACTORS OF GEORGIA, INC. 2018 REPORT TO MEMBERS

As a member of the 2017 House of Representatives Construction Management at Risk Study Committee, my colleagues and I appreciated having AGC Georgia as a trusted resource. Association leaders are always eager to engage in the hard discussions, and AGC is known for its willingness to fight for the entire industry.”

— Georgia State Representative Emory Dunahoo-R, Gainesville

AGC Georgia members acted as ambassadors for more construction training in high schools. Members attended school board meetings, workforce partnership meetings, and technical college meetings.

Representative Emory Dunahoo-R, Gainesville, helped lead hearings on improving the Construction Management@ Risk process and at their conclusion asked AGC Georgia representatives for recommendations. Two key issues emerged – the need for a single place to post advertisements for state and local government contract opportunities and the elimination of automatic disqualification simply because a contractor has not previously constructed a CM@Risk project.

Both issues were introduced as bills and passed into law this session. Plans are underway to present training sessions for firms unfamiliar with using the CM@Risk delivery method.

U.S. Representative Virginia Foxx from North Carolina visited ACG Georgia as part of her work as the chair of the House Committee on Education and Workforce. She wanted to learn more about the initiatives sponsored by AGC Georgia, CEFGA and Westside Works.

AGC Georgia

FAST FACTS

2018 Budget Dues Revenue General Contractors. . . . . . . . . . . $1,130,610 Specialty Contractors. . . . . . . . . . . $345,130 Suppliers/Service Providers. . . . . $162,360

$22,200,000

in annual revenue in 2017 from 265 AGC Georgia member firms covering over 10,000 employees and annual payroll of $350,000,000.

Membership dues are 56% of AGC Georgia’s annual budget.

C: 0

M: 2 with liabilities of $38,900,000

in assets, Y: 0 60 $22,000,000 and a K:policyholder equity of $16,800,000.

More

than $135,784 contributed to help meet the mission of 1) improving local communities, and 2) supporting quality construction education.

Over

$105,000,000 invested by over 5,000 participants from 63 member firms

$500,000

dividend declared in 2017, bringing total to $33,400,000.

Participants

enjoy the benefits of a workers’ compensation policy that can follow them in 50 states and has the backing of a A.M. Best A+ and S&P A+ ratings.

Membership Summary Membership Composition by Category

102 firms joined in the past year

General Contractors. . . . . . . . . . . . . . . . . . 152 Specialty Contractors. . . . . . . . . . . . . . . . . 287 Suppliers/Service Providers. . . . . . . . . . . 139

+ Member Services and Engagement Opportunities

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Advocacy

& Representation

Workforce

Development

Industry

& Association News

Safety

Executive

Alliance

Economic

Resources

Education

& Training

Workers’

Compensation Program

Contract

Documents

Professional/Leadership

Development

Retirement

Savings Plan

Award

& Recognition Programs

Young

Leadership Program

Networking

& Building Relationships

Member

Savings/Discounts

Governmental

Affairs & Agency Relationships

Career

Development

Community

Service/Giving Back

Marketing

Opportunities

Development of Industry Best Practices

Organizational Profile

Mission

The Associated General Contractors of Georgia is the premiere statewide trade association representing nearly 600 top companies that are leading the commercial construction industry in Georgia. We are one of 88 chapters affiliated with The Associated General Contractors of America, Inc., which represents 26,000 member firms nationwide.

AGC Georgia member firms are automatically enrolled as members of AGC of America; thereby, providing members even greater access to services and a strong, influential and collective voice at the local and national levels.

Guided by our core principles of Skill, Integrity and Responsibility, our mission is to be the voice of Georgia’s construction industry, provide valuable member services and promote best construction industry practices.

Vision Building the best and most innovative contractors association in Georgia.

2017-2018 Board of Directors PRESIDENT Scott Clark R. W. Allen, LLC Augusta

Todd Ammerman

Charlie Garbutt, LEED AP, AIC Christy Kovac, P.E.

Chris Sheridan, P. E.

River City Contracting, LLC Columbus

Garbutt Construction Company Dublin

Sheridan Construction Macon

Sheridan Construction Macon

Trey Anderson

Randy Hall

Matt Lee

Rodney Smith

VICE PRESIDENT Kevin Kuntz

Anderson Construction Co. Fort Gaines

Batson-Cook Company Atlanta

Young Contracting/SE, Inc. Atlanta

Parrish Construction Group, Inc. Perry

McCarthy Building Companies, Inc. Atlanta

Dan Baker, P.E.

Mark Hanrahan

Mike Macon

Jeff Stiner

Duffey Southeast, Inc. Cedartown

Taylor English Duma, LLP Atlanta

Balfour Beatty Construction Atlanta

Kajima Building & Design Group, Inc. Atlanta

SECRETARY Brian Daniel

Ben Bunyard

Michael Heisey, CPE, LEED AP Aaron McWhorter

Doug Tabeling

Carroll Daniel Construction Co. Gainesville

Choate Construction Company Atlanta

RA-LIN Carrollton

Sports Turf Company, Inc. Whitesburg

Smith, Currie & Hancock LLP Atlanta

TREASURER David Moody, Jr.

Jim Cooper

Jennifer Horton

Brian Newsome

David Thompson

Cooper & Co. General Contractors, Inc. Cumming

Collins & Arnold Construction Co., LLC Atlanta

Albion Sandy Springs

Piedmont Construction Group, LLC Macon

Dave Cyr

Tyler Isgett

Kelly Nix

Joe Tuggle

Parrish Construction Group, Inc. Perry

New South Construction Co., Inc. Atlanta

Nix-Fowler Constructors, Inc. Mableton

Swofford Construction, Inc. Austell

Doug Davidson

Lyndy Jones

Tony Pellicano

Kevin Watson

New South Construction Co., Inc. Atlanta

JCI Contractors Moultrie

Pellicano Construction Albany

Bowen & Watson, Inc. Toccoa

Gene Fulford

Mike Kenig

Danny Pinyan

West Georgia Roofing II, Inc. Carrollton

Holder Construction Company Atlanta

The Pinyan Company Savannah

C. D. Moody Construction Co., Inc. Lithonia

AGC Georgia Professional Staff Reach our staff at 678.298.4100 or by lastname@agcga.org.

Bill Chambless, CBO Member Development Specialist

L.B. Kinnett Administrative Services

Mike Dunham Chief Executive Officer

Erin Dupree Communications Coordinator

Cindy Parham Administrative Services

Alyson Abercrombie, CAE Director, Communications & Marketing

Andrea Feldman, CPA, CFE Controller

Liz Campbell Director, Business Engagement

Machell Harper Director, Member Services

Cherri Watson Director, Safety, Education & Workforce Development Mark Woodall Director, Governmental Affairs

JUNE 2018 ASSOCIATED GENERAL CONTRACTORS OF GEORGIA, INC. REPORT TO MEMBERS

Chapter of

AGC Georgia Headquarters and Training Center 1940 The Exchange; Atlanta, GA 30339 678.298.4100 www.agcga.org

CompTrust Mutual Captive Insurance Company 1940 The Exchange, Suite 200; Atlanta, GA 30339 678.298.1880 www.comptrustagcmcic.com