2019 Report to Members

THE Construction Association !

AGC Georgia – THE Construction Association

Declaring AGC Georgia to be “The Construction Association” is a bold statement, but we can back it up.

For more than 90 years, AGC Georgia has helped its members solve problems, operate with high ethical standards and approach each job with skill, integrity and responsibility. In the early years, our programs and benefits were often single solutions that met specific needs, but through the years, our outreach has become increasingly intricate.

Solutions these days require collaboration. Everything is connected, and each single goal is connected to other programs in an intricate pattern – almost like a giant jigsaw puzzle.

the pieces together to create a unified whole, serve our members like no other association and prove that we are “The Construction Association.”

For more than 90 years, AGC Georgia has helped its members solve problems, operate with high ethical standards and approach each job with skill, integrity and responsibility.

AGC GEORGIA offers a wide range of programs and services to its members. Taken individually, it’s impressive, but AGC Georgia’s real strength shines when programs are viewed as connecting pieces meeting a single need.

What are our goals? We strive to be the voice of Georgia’s construction industry, provide

Member Services and Engagement Opportunities

Advocacy & Representation

Safety

Education & Training

Professional/Leadership Development

Young Leadership Program

Governmental Affairs & Agency Relationships

Organizational Profile

Workforce Development

Executive Alliance

Workers’ Compensation Program

Retirement Savings Plan

Networking & Building Relationships

Career Development

Marketing Opportunities

Mission

valuable member services and promote best construction industry practices. That often means helping our members solve business problems as well as construction problems. Using the services outlined in the chart below, we’ll show you in the next several pages how our programs connect and what we’re able to accomplish when they do.

Industry & Association News

Economic Resources

Contract Documents

Award & Recognition Programs

Member Savings/Discounts

Community Service/Giving Back

Development of Industry Best Practices

The Associated General Contractors of Georgia is THE CONSTRUCTION ASSOCIATION representing over 600 top companies that are leading the commercial construction industry in Georgia. We are one of 89 chapters affiliated with The Associated General Contractors of America, Inc., which represents 27,000 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 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.

We strive to be the voice of Georgia’s construction industry, provide valuable member services and promote best construction industry practices.

2022

AGC Georgia Puts the Pieces Together to Solve Puzzles

WORKFORCE development is an ongoing challenge for AGC Georgia and its members. Companies can’t function without talented employees, and, in all career paths, we’re experiencing a shortage of qualified people. We’re working to put the pieces together to ensure talented people consider construction as a career and then succeed.

Our approach to developing a well-trained workforce is a giant puzzle that requires us to put pieces together from across our program offerings and involve members at every stage of their work lives.

1,500,000

Workforce Development Facts

2021

4:1

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

2022

1,500,000

296,000 Demand for craft professionals in Georgia through 2022

(Source: Build Your Future Craft Labor Map – www.byf.org)

$

$22.4 BILLION

Annual construction contribution to Georgia’s GDP of $563.6 B

(Source: Simonson, Ken. “The Economic Impact of Construction in the United States and Georgia.” AGC of America, January 25, 2019.)

58,000

$58,000

Average pay for all construction industry employees in Georgia. 10% more than the average for all private-sector employees.

(Source: Simonson, Ken. “The Economic Impact of Construction in the United States and Georgia.” AGC of America, January 25, 2019.)

11% Growth in Georgia’s construction employment in 2018 over previous year.

(Source: Simonson, Ken. “The Economic Impact of Construction in the United States and Georgia.” AGC of America, January 25, 2019.)

A conversation with Governor Kemp shortly after his taking office to share AGC Georgia’s efforts on workforce development and hear his thoughts on how to bring more funding to technical and career education.

90% Construction companies wanting to hire more employees

(Source: AGC of America 2019 Construction Outlook Survey Results for Georgia)

78% Construction companies reporting difficulty finding qualified talent

(Source: AGC of America 2019 Construction Outlook Survey Results for Georgia)

Pride in a job well done is learned at an early age. These elementary school students are building a teeny house and on their way to being our industry’s future stars.

School Programs

WE know that trying to interest college students in construction careers can be difficult. By the time a student reaches high school, they tend to have a preferred career path in mind. We’ve found that it’s easier for students to choose the construction industry when they have been involved in construction projects before they reach high school. In the past several years, AGC Georgia has helped establish a pilot program in elementary and middle schools. It takes help from state government, the state Department of Education, local government and school boards, and our member companies to make the programs work.

What Does It Take to Develop Construction Programs for Elementary & Middle Schools?

• Enthusiastic Educators – AGC Georgia has created fun programs for elementary schools like the Toolbox construction clubs for elementary schools in North Fulton County. Students build “teeny” houses that are just their size. Students and parents who get excited about construction in elementary school are a natural fit for middle and high school programs – often considering careers in our industry. Engaged, supported and enthusiastic teachers make the programs soar.

• State-Level Advocacy – Funding for construction education at all levels comes from many sources, including state government. AGC Georgia enjoys a positive reputation with state agency leaders and the Department of Education, as well as state legislators. We encourage our members to get to know their local legislators. We participate in meetings with agencies like the Georgia State Finance and Investment Commission, the Board of Regents and the Technical College System of Georgia, and their committees. All our efforts are dedicated to helping officials learn more about the construction industry so their decisions are positive ones. Last year, the Georgia Department of Education approved new programs for middle schools. Increasing funding for all school programs is an advocacy priority for next year.

• Local Government – Local school boards are another key source of funding and support. AGC Georgia members work with educators in local schools to create, fund and maintain construction education programs.

• Industry Funding – AGC Georgia member companies consistently donate materials and their time to support construction teachers. Companies gave in excess of $150,000 this year in monetary and in-kind donations.

AGC Georgia Begins with Elementary & Middle

We’ve found that it’s easier for students to choose the construction industry when they have been involved in construction projects before they reach high school.

High School Programs Prepare Students for Skills Challenges & College Studies

WE have worked to strengthen existing high school construction programs across the state and start new ones. Member companies have generously donated both time and materials to these programs and have lobbied their legislators and school boards to increase their reach.

Our advocacy efforts have paid off with the CONNECT act passed last year. This act provides funding through the state appropriations process for capital investments in construction programs. During the 2019 session of the Georgia General Assembly, AGC Georgia was instrumental in securing $500,000 for capital funding needs for construction classrooms and another $220,000 to help fund Extended Day/Extended Year stipends for teachers.

The stipends help teachers dedicate time to growing the number of students who are enrolled in work-based learning programs.

By enhancing construction curriculum at the high school level, students are learning valuable skills to help guide them in their career decisions, as well as compete in Skills Challenges. AGC Georgia hosts and funds four Skills Challenges across the state. AGC Georgia’s Young Leadership Program helps fund participation by our state’s winning high school teams to tattend the national SkillsUSA Competitions.

Over 160 high school construction and welding programs help introduce students to career paths in construction, thus building the industry’s workforce.

By enhancing construction curriculum at the high school level, students are learning valuable skills to help guide them in their career decisions, as well as compete in Skills Challenges.

AGC Georgia enjoys creating coalitions within the industry to advance workforce development efforts. Ellen Whitaker with the Plumbing, Heating, Cooling Contractors of Georgia speaks to students at a Skills Challenge.

New this year!

AGC GEORGIA helped initiate a program called TradeTalks. In partnership with the Georgia Department of Education, construction stakeholders regularly meet with high school counselors to share information on industry career paths

and offer hands-on demonstrations for some of the trades. Attendance has grown to 80+ at the meetings. Along with classroom teachers, counselors are a great avenue for the construction industry to partner with in an effort to spread the word about rewarding careers.

What Does It Take to Host Skills Challenges Across the State?

Every year, the competition in the statewide Skills Challenges is fierce. Winning teams take their abilities to the state and national competitions. It takes participation across the AGC Georgia membership to put all the pieces together:

• High School Construction Programs – AGC Georgia serves as a resource to create or sustain high school construction programs.

• Member Participation and Donations – Member firms have given hundreds upon hundreds of volunteer hours to coordinate each of the four regional challenges.

• Advocacy at State and Local Levels – Our relationships with legislators helped create the educational policies and programs to support high school and technical college construction programs.

• Program Certification Committees – AGC Georgia members volunteer to serve on committees tasked with visiting high school and Technical College System of Georgia construction programs that are seeking accreditation by the National Center for Construction Education and Research.

Leading general and specialty contractors and supplier firms are taking ownership of their future by talking to students about opportunities in the industry.

2018 TOTALS

65 Competing Schools

607 Student Competitors

1,100 Student Observers

$128,451 Total Contributions

165 Sponsoring Firms

College or Technical School

AGC GEORGIA works with state officials in government and higher education to prioritize construction as an essential career choice. Construction is now recognized as part of the state’s High Demand Career Initiative (HDCI). Because of that designation, high school students may enroll in a Dual Enrollment program that allows them to complete college and technical college courses while they are still in high school. Not only do they earn credit that reduces the time needed for an advanced degree, any courses at the technical college system focusing on construction are tuition free.

In addition to skilled trades talent, there is a high demand for young professionals with college degrees inside the construction industry. AGC Georgia partners with local construction management collegiate programs and the members of their AGC Student Chapters.

Three students from Kennesaw State University’s Construction Management AGC Student Chapter earned scholarships from AGC of America’s Education and Research Foundation. It’s an honor to help young people build their career to become tomorrow’s industry leaders.

AGC Georgia also partners with the construction programs at Georgia Tech, Kennesaw State University and Georgia Southern University and their respective AGC student chapters. The association’s support of those student-led organizations helps create connections between the collegians and professionals from all career paths within the association’s membership. The association also provides student memberships to our award-winning Young Leadership Program for $25 a year, which provides free or reduced access to meetings and educational programs. AGC Georgia staff members and representatives from member firms serve on each of the school’s construction management advisory boards.

AGC Georgia member, Brasfield & Gorrie, along with many others offer jobsite tours to students who are both in high school and college. It’s a great opportunity to offer a first-hand understanding of all the different types of skills needed to complete a construction project.

The association’s support of student-led organizations helps create connections between the collegians and professionals from all career paths within the association’s membership.

Javier Irizarry, Ph.D., takes time out of his duties as a professor at Georgia Tech to teach the AGC Georgia’s Supervisory Training Program (STP). He spent a day with the group focusing on technology being used on today’s jobsites. He’s pictured offering a demonstration on drones.

Preparing Construction Industry Leaders

DEVELOPING the next generation of leaders and strengthening the skills of industry executives is critical to the industry’s future success. AGC Georgia funds and supports essential programs designed for employees throughout their career and even in retirement. During a recent safety award program, AGC Georgia collected data on the age of our members’ field supervisors. Currently, 55% of the superintendents are over 50 years old and 23% are over 60 years old. While this example focuses on a single segment of our workforce, the same statistics can be applied to our executives, and many other roles within construction companies. Our workforce is aging out and we must be proactive in our efforts to develop the next generation.

Early Career

• Young Leadership Program – 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.

— YLP Highlights

Celebrating 23 years of leadership development

131 participants

77 companies represented

20+ annual events designed specifically for YLP

15 hours of complimentary professional developments

Over $90,000 in charitable contributions over last 12 months

350+ hours of volunteer work on a host of charitable endeavors

• Safety & Education Highlights

140 safety and education training sessions offered

— Over 1,200 representatives from 300 participating companies

— Approximately 1,100 hours of instruction

• Supervisory Training Program – AGC Georgia is building educational programs designed for jobsite supervisors and foremen. As their mentors retire, these well-trained supervisors will be ready to run projects for the next 20 years. The goal is to have their replacements ready to assume leadership roles in their turn.

AGC Georgia funds and supports essential programs designed for employees throughout their career and even in retirement.

Mid-Career to Senior Leadership

When a promising employee reaches the middle of his or her career, they are not eligible for YLP. YLP members graduate out of the program when they turn 40. AGC Georgia developed the Executive Alliance to help those individuals continue their leadership journey.

Executive Alliance – AGC Georgia’s Executive Alliance provides advanced professional development programs and peer-to-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.

• Executive Alliance Highlights

— 46 participants

— 37 companies represented

— 6 annual events designed specifically for EA, including three overnight retreats at Georgia venues

— 12 hours of in-depth training led by sought-after facilitators focusing on topics such as accounting, insurance/bonding, succession planning, building leadership and more!

— 40+ hours of networking with seasoned professionals sharing best practices

Retirement

After a rewarding career in the construction industry, retirees want to know their incomes are secure and their retirement is comfortable. AGC Georgia offers a Retirement Savings Plan to all member companies’ employees. Because the program extends across company lines, we are able to save our members administrative costs, as well as offering excellent investment opportunities.

AGC Georgia’s Executive Alliance provides advanced professional development programs and peer-topeer mentoring and networking.

AGC Georgia offers a variety of continuing education for all career paths. This group of industry professionals participated in our annual Fall Leadership Conference which offers a two-day track on topics important to mid-level and senior executives.

AGC Georgia Fast Facts

2019 Budget

DUES REVENUE

General Contractors $1,187,266

Specialty Contractors $365,351

Suppliers/Service Providers $181,525

Membership dues are 57% of the AGC Georgia’s annual budget.

More than $214,831 contributed to help meet the mission of 1) improving local communities, and 2) supporting quality construction education.

Membership Summary

Over $118,000,000 invested by over 5,000 eligible participants from 64 member firms

Professional and timely investment review assures the participants retirement planning is of the upmost importance.

$20,920,000 in annual revenue in 2018 from 266 AGC Georgia member firms covering over 11,100 employees and annual payroll of $548,224,853

$40,170,606 in assets, with liabilities of $23,610,000 and a policyholder equity of $16,559,957

$500,000 dividend declared in 2018, bringing total to $33,900,000. A dividend has been returned in 19 of the last 21 years.

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

End of an Era

AFTER 35 years of service, AGC Georgia’s Site Safety Training Van was recently retired due to the evolution of today’s educational opportunities for construction companies. The traveling classroom was made possible by a grant from OSHA and was a trendsetter in educating field personnel.

• Operated from 1984-2019

• Hosted 39,940 safety visits

• Trained 717,383 field professionals

Retirement Savings Plan

2018-2019 Board of Directors

PRESIDENT

Kevin Kuntz

McCarthy Building Companies, Inc.

Atlanta

VICE PRESIDENT

Brian Daniel Carroll Daniel Construction Co.

Gainesville

TREASURER

Chris Britton Brasfield & Gorrie

Atlanta

Ben Bunyard Choate Construction Co.

Atlanta

Scott Clark R. W. Allen, LLC

Augusta

Jim Cooper

Jennifer Horton Collins and Arnold Construction Co., LLC

Atlanta

Doug Hunter Holder Construction Co.

Atlanta

Tyler Isgett

Barnsley Construction Group

Tyrone

Christy Kovac Sheridan Construction

Young Contracting/SE, Inc.

Danny Pinyan

The Pinyan Company

Savannah

John Reese, III

LRA Constructors, Inc.

Albany

Chris Sheridan, P.E. Sheridan Construction

Macon

Rodney Smith

Parrish Construction Group, Inc.

Perry

Walter Stafford

WLS Construction Inc.

Macon

Jeff Stiner

Kajima Building & Design Group, Inc.

Balfour Beatty Construction

Joe Marchese Marchese Construction, LLC

Aaron McWhorter Sports Turf Company, Inc.

Nix-Fowler Constructors, Inc.

Gretchen Orrin

Athena Construction Group, Inc.

Atlanta

Doug Tabeling

Smith, Currie & Hancock LLP

Atlanta

Joe Tuggle

A Message from the CEO

Welcome to the Back of the Report to Members!

I hope you’ve had time to read about the AGC Georgia programs highlighted in the front of this Report.

We are, I’m proud to say, making a difference.

Michael T. Dunham Chief Executive Officer

If you’ve reviewed the Report, you’ll understand why Kevin and I put our messages at the end. We wanted you to absorb the incredible array of programs that AGC Georgia offers – year in and year out – before you spent a few minutes with us. We wanted you to have a sense of how crucial and interrelated our programs are.

I’m convinced that proclaiming AGC Georgia to be “The Construction Association” is a statement of fact. Our organization has been helping its members for more than 90 years, and we’ve reached a level of service delivery that few associations can match.

Our organization has been helping its members for more than 90 years, and we’ve reached a level of service delivery that few associations can match.

Yes, we’ve expanded the number of companies and individuals that we serve every year. Yes, we’ve maintained the excellence of our work. Yes, we’ve adapted as the construction industry has evolved. Simply put, we have led the way.

AGC Georgia often stands alone – not because we hold untenable positions, but because we’re working on issues no one else has addressed. We are often the only association meeting with state leaders about legislation or programs. We occupy a singular position as a trusted advisor to members, industry leaders and legislators alike.

I’d like to express a sincere thank you to the many member volunteers and our dedicated staff who make our progress possible. We enjoy being a leading AGC chapter because of their passion and willingness to raise the bar. For the 2018-2019 term, our hard work earned AGC Georgia the Cashman Award, AGC of America’s most prestigious chapter honor. It’s rewarding to know our great work is being recognize on the national level. If you have been an engaged member this year, thank you. It would be our honor to have your support going forward. If you aren’t involved with AGC Georgia yet, we invite you to make a difference in your company and in our industry. Call me at 678-298-4120 and let’s talk about how you and your team fit into our puzzle.

(l-r) Kevin Kuntz , 2018-2019 President, Mike Dunham, CEO, and Mark Woodall, Director of Governmental Affairs, accept the AGC of America Cashman Award at a recent Leadership Conference in Washington, D.C.

Hello and Goodbye!

MY AGC story began on a construction site in Bismarck, N.D., as I entered my senior year of high school. Forty-one years later, I’m honored that the final chapter of my career will include serving as president of AGC Georgia. I plan to retire after the AGC Georgia Annual Convention in Hilton Head this June.

I grew up the son of a carpenter who didn’t believe summers were meant for being lazy! One day while I was digging a footing for the same company my dad became part owner of, the company’s namesake asked me what I was going to do after high school. He encouraged me to consider the construction management program at North Dakota State University, and dangled the prospect of scholarship money from AGC of ND. (He happened to be the AGC of ND president that year.)

AGC of ND helped me pay for college, and on my way to accept my last scholarship, I passed a McCarthy hospital job site. Sending them my resume started a blessed, 36-year relationship with that company.

I’ve known for years that we are all connected. McCarthy and AGC have been constants running through my life, and I’ve learned so much more from my work than just how to construct a building.

I’ve learned that workforce development doesn’t start with gathering resumes. It starts with a company owner taking an interest in a high-school student digging footings or raising money for a skills challenge. It starts with a program for elementary school students who have fun building teeny houses or middle school students who find out they have a knack for skills in our industry. Developing a workforce involves teaching younger employees to lead by giving them important work to do. YLP programs provide thousands of dollars to our outreach programs, but they also develop tomorrow’s executives and nurture key industry relationships. They’re also a lot of fun. I grew up the son of a carpenter who didn’t believe summers were meant for being lazy!

All of these programs rely on our relationships with state and local officials. AGC representatives are known for their measured approach and informed advice. We are trusted advisers for our industry, something that takes years to achieve.

I hope this Report to Members shows you how interrelated AGC Georgia activities are. Together, we are making a difference across the state and in individual companies. It has been my honor and privilege to serve you this year. As I leave the industry, I can only challenge you to continue the good work you and AGC Georgia can do. I wish for you the brightest tomorrow. If you have half the satisfaction I’ve had in the last 36 years, you will

“A highlight of my year was attending the Skills Challenges. This young lady is a back-to-back champion in the electrical division for her region and has a bright future in our industry. It was a pleasure to join the award ceremony to present her and many other talented young people with honors.”

Kevin Kuntz McCarthy Building Companies, Inc. Atlanta, GA