Winter/Spring 2015

construction today eorgia

F E A T U R E S

8 Building Our Construction Workforce

Our industry’s workforce is in a state of crisis since we do not have enough well-trained, qualified and experienced people to build. The number of people entering the industry will not fill the need we have now or in the future.

12 Differentiation: Beyond Value Add

For companies to differentiate from the rest, they must reach further, and have exemplary operational execution and strategic excellence, as well as strong human capital and an adaptive improvement.

15 2nd Annual Construction Professionals Conference & Marketplace

To be held on April 29, this year’s event will provide 50+ hours of professional development, networking with more than 600 professionals and the Ron Amerson Supervisor Safety Awards.

17 School’s Out; Bring the Family to Annual Convention

This year’s Annual Convention will be held June 7-10 at the Omni Amelia Island Plantation Resort in Amelia Island, Florida. It features networking, a business session, industry recognition programs, sports outings and family activities in a relaxed setting.

Publisher: Heather Greyling

Editor: Robin Lamerson

Project Manager: Adam Lingenfelter

Associate

Advertising Sales: Christine Ricci, Jamie Williams, John O’Neil, Marjorie Pedrick, Matt Wooten, Nicole Hudson, Raymond Strickland, Ryan Griffin, Vicki Sherman

Marketing: Brianna Martin

Layout & Design: Gufran Khan

After meeting with many of our members during the recent AGC Georgia President Tour, I consider myself even more blessed and honored to lead our great association. I appreciate you welcoming me into your community.

It is gratifying to hear your positive feedback about the tangible ways you and your company are benefiting from membership. I describe our experience at R.K. Redding Construction as the more we get involved and take advantage of services, the more we gain and the more our customers and construction partners benefit as well. In fact, our entire industry gains stature when a workforce is better trained, jobsites are safer, employees have greater access to health insurance/retirement benefits, we give back, we tackle tough issues, we advocate for a positive regulatory climate and new construction technologies are embraced to benefit all stakeholders.

Our ability to effectively enhance the stature, image and reputation of the commercial construction industry is paramount to successfully tackling or at least making important strides in addressing one of the most pressing issues we face today—the workforce shortage and a shrinking labor pool of experienced workers. Members across the state concur this matter is a top concern and they are looking to AGC Georgia to help. With the state’s economy improving and more construction projects in the pipeline, there is a greater sense of urgency to address the situation.

Since many of us knew for some time this workforce shortage was coming, numerous workforce development initiatives were put in place by AGC Georgia among others to attract more young people to our industry. Last year, efforts to tackle this issue were ramped up and in 2015, we are reaching out to young people, veterans and others looking to change careers in an even bigger way.

I encourage you to read the workforce development article starting on page 8. It speaks to what AGC Georgia

is doing to take the lead on this complex and important issue. As industry leaders, I believe the ultimate responsibility to build our workforce rests with us. We must get out from behind our desks and into local schools to support their construction programs and meet with students one-on-one. This hands-on approach will expose more young people to a rewarding and exciting career in construction and the trades.

With the start of a new year, it is a good time to pause and ask ourselves this question—what more can we do to take advantage of our company’s affiliation with AGC? I appreciate how easy it is to feel overwhelmed by the

Randall Redding, President/CEO R.K. Redding Construction, Inc. Bremen 2014-15 President, AGC Georgia 2670 Roff Ave. Macon, GA 31204 734598_Greene.indd 1 18/02/15 1:58 PM

President continued on page 7 georgia construction today WINTER/SPRING 2015 5

continued from page 5

number of opportunities as well as new, innovative programs being rolled out to members. In addition to the AGC Retirement Savings Plan, you can now also participate in The AGC Alternative, providing employees with customized health insurance benefits. Members rely on our Young Leadership Program to help develop future leaders and the Build Georgia Award program to recognize outstanding projects. The inaugural class of the AGC Georgia Academy began in February and emphasizes soft skills training, and members are gearing up for the second Construction Professional Conference & Marketplace in April. Members continue to value participation in CompTrust AGC MCIC, our workers’ compensation program, as well as the savings received for discounted services and products by top vendors. And, the list of chapter services and programs goes on and on…

What has worked for us at R.K. Redding is getting more of our people involved where different individuals spearhead the services we use and programs we participate in. This effort allows us to take greater advantage of all AGC Georgia offers. You might try this divide and conquer approach at your company.

After 38 years in the industry, I have the same passion and love for what it is we do—working together as

a team and building for clients—and I know I am not alone. We are the largest industry in the country and above all, we are a people business—it takes people to build buildings. Buildings last for generations, which is a tremendous source of pride. I am always hard pressed to come up with reasons why more young people don’t pursue construction careers. It may be that as an industry we have fallen short in sharing with others, especially young people, what it is we do and why we love it so much. To turn our workforce shortage around, I am convinced we must be part of the solution and each of us has a role to play.

Tommy Beman

Travis Huffines

Reg Davis

Scott Russell

Eddie Garrett

Jason Weatherford Jordan McDonald

Brian Madden

Chris Hayes

Josh Bridges

To turn our workforce shortage around, I am convinced we must be part of the solution and each of us has a role to play.

Building Our Construction Workforce

How You and AGC Georgia Working Together Can Make a Difference

a state of crisis since we do not have enough well-trained, qualified and experienced people to build. To make matters worse, the number of people coming into the industry is nowhere close to filling the need we have now or in the future.

By Mike Dunham, Chief Executive Officer

Afew questions to start the conversation:

• Are you passing up work opportunities due to a lack of qualified people to hire?

• Do you know how you are going to replace valued employees who are close to retiring?

• When is the last time you shared your love for construction with children in your family?

• Have you been to a local high school to find ways to support their construction program?

• How many high school students have you spoken to about choosing a construction career?

• Who is the last instructor in a construction program you shook hands with to say thanks?

• Do you know where your company’s future workforce is coming from?

• Is your company participating in local construction career fairs and skill competitions?

• Are you attending AGC Georgia Workforce Alliances to address future labor force needs at your local level?

• Do you know the steps you can take to build our future workforce?

As best I can describe it, our industry’s workforce situation is in

We knew for some time this situation was coming. Our members are telling us they lack sufficient manpower to build projects getting underway this summer. In fact, many say this is the reason they are passing on new project opportunities. This same crisis situation in our industry is happening in most other states as well, only enhancing the gravity of the situation.

Using AGC Georgia staff resources and help from contractor members and industry leaders who have stepped up to the plate, we can be proud of what has been accomplished to date. Since its inception, AGC Georgia’s involvement with the Construction Education Foundation of Georgia (CEFGA) as a major underwriter, founding partner, and proud supporter of their annual CareerExpo and SkillsUSA Championships has yielded important gains in getting into local schools and in front of young students to promote careers in construction. Our Workforce Development Alliances, which began in a few regions in 2006-2007, are expanding into other regions. The Alliances have given us an opportunity to get to know local school officials, their construction faculty and program students. This effort has resulted in our helping

to organize and host construction career fairs, member-sponsored skill competitions, student jobsite field trips and donation of construction materials and monies provided by members to help support construction curriculum. Since its creation, we have supported Governor Deal’s Go Build Georgia initiative. It is raising awareness and building interest in skilled trades.

In early 2014, a statewide AGC Georgia Workforce Development Taskforce was formed to address the urgency of the situation we are facing. The taskforce, led by Mike Kenig with Holder Construction, includes contractor members from around the state, and several Chapter staff  members. We convene regularly to stay on top of what is happening around the state with our regional workforce development alliances. We also work to identify opportunities for AGC Georgia and members to get involved in these efforts.

Despite all we have done and continue to do, there is still so much more we can and must do as outlined in our workforce development strategic framework on page 11. From my vantage point, addressing this crisis requires an “all hands on deck” and grassroots approach by a greater number of our members in order to really make an impact. What this means is while part of the solution to our workforce situation falls to AGC Georgia and what our association can do from a big picture perspective to drive the change needed, more of

Upson-Lee construction teacher and school leadership hosted MetroPower, Piedmont Construction Group and AGC Georgia representatives for a tour of their construction lab.

Gerald Wread, construction teacher at Lamar County High School appreciates donated materials from All-State Electrical Contractors for his students to use in mock skills competitions.

Echols County school counselor arranged for seniors with an interest in construction to visit with ACE Electric and True North Construction Group representatives.

AGC Georgia joined Elkins Constructors, Inc. at a meeting of the SavannahChatham County Public School Board to discuss the needs for construction education.

Scott Clark, R. W. Allen, invited Washington County construction students on a tour of the firm’s office building project. Joe Marchese, Marchese Construction, met with students enrolled in the welding program at the Effingham College and Career Academy.

Joe Tuggle and Rick Reed, Swofford Construction, led Lumpkin County construction program students on a jobsite tour.

Photos from the East Georgia Skills Challenge feature participants in masonry and welding competitions.

our members have to get engaged to create a groundswell effect.

AGC Georgia stays busy on numerous fronts as it relates to workforce development—serving as a catalyst for action at the state legislative level and taking the lead to interact and build relationships with local school boards, policy makers and educators around the state. Staff also spends a lot of our time keeping the lines of communication open with state government leaders about workforce, career and economic development-related matters. Of course, as the political landscape changes from year to year and new appointments and elected officials take their seats at the table, we often see some of our progress slowed down. In the last year, AGC Georgia staff has ramped up our presentations to educators, school boards and other groups to spread the message about careers in construction and our workforce needs.

The other key part of this solution rests with AGC Georgia members and the key employees at your respective companies who need to become more visible in local schools and find ways to invest time in meeting with middle and high school students. We call this initiative the “one school, one instructor, one student” approach which is proving the most effective way for contractors to make a difference. I agree wholeheartedly with and commend Chapter president Randall Redding

for his point of view about workforce development on page 5. He says, “I believe the ultimate responsibility to build our workforce rests with me and my peers. We as contractors must get out from behind our desks and into local schools to support construction programs and meet students one-on-one.” For one contractor, this might mean going to the local school to shake a construction faculty member’s hand and thank him or her for a job well done. For another, this might mean speaking to students in a welding class about your love for the industry. Several members are finding great success by inviting a local construction class to frequent jobsite tours during the life of a project.

I believe the opportunities for you and your company to get more engaged with local schools and students is endless. Your help in getting more young men and women to see our industry as a viable and rewarding career opportunity can’t be overstated. With Georgia’s nearly 200 high school, college and career academy and technical college construction programs around the state, there are immediate opportunities for you to find ways to contribute and make a tangible difference.

With Bill Chambless’ able assistance in the field for us, he is focusing much of his time helping to oversee the workforce alliances and ties with local school construction programs. He is an important

resource to our members in this area and is seeing firsthand how a grassroots effort can pay off in so many ways. Bill often tells me the more he learns and knows about the workforce situation and what it will take to fix it, the more he is overwhelmed by all of the opportunities and contributing factors that led to the problem in the first place. I have come to the same realization and feel the same way. Bill says his most important role today is “educating members about the crisis, encouraging them to take the lead at the local level, introducing them to local school leaders and construction faculty, and helping them figure out the best way to contribute and get in front of students.”

I encourage you to read the January/February 2015 issue of AGC of America’s Constructor Magazine (http://goo.gl/cCQ2Hw). It includes several important articles addressing the talent shortages our industry is facing. They will help you better understand and appreciate what we are contending with here in our state and the complexity of what it will take for us to address our workforce needs. This also helps to explain why you see so many goals laid out in our strategic framework—a quick fix or Band-Aid approach is no longer an option. A multi-faceted situation resulting from multiple contributing factors or root causes requires a multi-faceted solution!

The urgency of the situation calls for ramped up efforts by all of us doing our part to solve this situation in a meaningful and lasting way. You are welcome to contact me at dunham@agcga.org, Bill Chambless at chambless@agcga.org, and Mike Kenig at kenig@holder.com, to learn more about ways you and your company can get involved and make a positive contribution to building our future workforce. ■

I believe the opportunities for you and your company to get more engaged with local schools and students is endless. Your help in getting more young men and women to see our industry as a viable and rewarding career opportunity can’t be overstated.

Workforce Development – A Strategic Framework

Our Vision for Workforce Development

To lead the way and continue to lay a foundation with our members’ help in building a sustainable, quality and welltrained construction workforce to meet our needs now and in the future, so we are never again in a critical labor shortage situation in Georgia.

GOA l 1

Expose more middle and high school students to the world of construction – the opportunities and rewards of pursuing a career in construction and the trades.

GOA l 2

Increase demand by high school students for quality construction management education, trade and apprenticeship programs, universities, college and career academies, and technical schools in Georgia.

GOA l 3

Bring career development stakeholders together with AGC Georgia members, and state/local officials, to get everyone on the same page so we are in a better position to understand, get buy-in, and put in place what is needed to resolve the industry’s workforce shortage situation.

GOA l 4

Invest in a grassroots strategy of having AGC Georgia members engage in “one school, one instructor and one student” at a time as a way to make meaningful headway in resolving our workforce situation.

GOA l 5

Dispel negative perceptions about construction and enhance the industry’s image, reputation and stature by focusing on what we do to build in our communities (target audiences include students, parents, educators, counselors).

GOA l 6

Spread the word about career opportunities in construction to middle and high school students, young adults graduating college or entering the workforce without employable skills, veterans, women and minorities, and job seekers of all ages plus those that are in positions to influence them, i.e. educators, career placement advisors, youth apprenticeship coordinators, workforce development specialists.

GOA l 7

Seek financial support and resources from the industry and other outside entities to support and advance workforce development initiatives by maximizing the use of our AGC of Georgia Foundation.

GOA l 8

Coordinate AGC Georgia’s workforce development efforts with other groups who are also addressing our workforce needs, i.e. Go Build Georgia, College and Career Academies, Construction Education Foundation of Georgia (CEFGA), Technical College System of Georgia, SkillsUSA, Trade and Industrial Educators of Georgia (TIEGA), Georgia Association for Career & Technical Education (GATCE), etc.

GOA l 9

Improve the articulation process and eliminate the disconnects, inconsistencies and gaps that exist when students transfer construction coursework from high school to postsecondary school to higher education so they don’t lose credits and have to repeat courses.

GOA l 10

Communicate successes by AGC Georgia and member firms to our entire membership, and all stakeholders.

Differentiation:

create real value-added solutions to customers. Many are happy to continue doing just that. However, when an organization desires to deliver differentiation, the risk is high, and clear focus on strong investigative research is a must.

One particular product company does these core pillars well. In many aspects, it is a best-in-class organization. It is known for delivering highquality products and great service in the right markets. It hires qualified people and has high retention and strong leadership. More than a decade ago, this organization desired to develop a new product to compete in a product category where its core competencies had a strong fit. After several years of development, it made a risky decision to scratch the project and start over. This company spent sizable dollars, invested many man-hours and had a decent product nearly ready to go. But it wanted to go bigger.

This organization had developed new technology that suggested it could develop this product with an electrical drive system stronger and more efficient than anyone thought possible. Through thorough research, it discovered there was a clear possibility not only to outperform the electrical class of products it would compete with, but also to challenge (and potentially outperform) various products in the much stronger hydraulic class of products. The research overwhelmingly suggested a sizable marketplace and contained valuable customer feedback that this

new differentiated product would not only be unique but also in high demand. This confirmed the initial hypothesis that suggested it could create an entirely new class of product performance. So it started over again, scrapping old ideas and thinking much bigger. After 10 years of development, the product launched and has been a great success. Not only did the company continue the value add it is known for, but it also developed clear differentiation in the market. It changed market perceptions in many ways. The product is clearly a value add, but also to have this product perform at or better than its counterparts in a completely different class is true differentiation.

Being in Las Vegas, one may think of gambling as an analogy concerning what it takes to gain a return on risk when relying on faulty data for the decisions. One game in particular comes to mind. Roulette. This game is quite interesting and risky in many respects. There are various levels in the betting process. You can bet on a color or odd or even numbers, and if you win, you are paid 1:1. You can increase your payout, but you have to narrow the field for your bet. You can bet on a block of numbers from 12 at one time, down to two. The lower the quantity of numbers you bet, the bigger the payout. The most risky bet is the single number. If you bet on a single number and win, it pays 35:1.

The risk for an organization is that differentiation really lies in the highpayout, high-risk bet. It may not

always be the single number bet, but it is the high-risk, high-reward bet that defines differentiation’s risk. However, there is a pitfall waiting for the player in roulette. A display board is always present showing that last 12-18 numbers that were played. The game of roulette is a game of chance where the house has a 5.26% edge that no strategy can overcome. Many players try and “game” their bet by relying on some pattern in the display board. Nearly all professional roulette books, websites and authors will tell you that no such ability exists. In creating real differentiation for an organization, roulette gives us two valuable lessons. One, risk is part of the reward. But two, without proper data to suggest a clear direction and outcome, it is just a bet.

There are steps construction products organizations can take to break the house edge when placing their bets. First, assess the four characteristics; operational execution, strategic excellence, strong human capital and adaptive improvement. Study the game first and then build the healthy organization that many are fearful of building. Second, develop robust research, strategy and decision making practices. Third, begin taking some risk on differentiation (or even start with value add) but without roulette’s false information follies. Lastly, start pushing the drivers—strong leadership, consistency in the market, routine measurement, customer voice and forward vision. ■

Bryan Kucinski is manager of strategic accounts at FMI Corporation. He can be reached at 303.398.7225 or via email at bkucinski@fminet.com.

Reprinted with permission from FMI Corporation, 919.787.8400. For more information, visit www.fminet.com or call Sarah Avallone at 919.785.9221.

Differentiation alone is not “value add.” Value add involves that “extra” customers receive for the price they pay. To have real differentiation, it requires an organization to produce “unique” products or services with little to no competition and a lower sensitivity to price.

Construction Professionals Conference & Marketplace

Wednesday, April 29, 2015

7:00 a.m. – 3:55 p.m. Georgia International Convention Center (including continental breakfast and keynote luncheon)

Starting at $159 per Attendee – Don’t Miss This!

• Exposure to 65+ subject matter experts to use as ongoing resources

• Meet 600+ professionals to expand your network

• 50+ hours of professional development

• Presentation of Ron Amerson Supervisor Safety Awards

Last year we a promised a BIG conference, and attendee feedback overwhelmingly proved AGC Georgia exceeded expectations! Attendees specifically bragged on the relevance of the learning sessions and products and services at the marketplace. For 2015, we are committed to hosting an even more dynamic event to help professionals working in all levels of their company gain knowledge and build relationships to make them stronger leaders!

Safety

• Human Performance: Understanding Human Error

• Inside Scoop on EPA New BMP Enforcement Objectives

• Air Sampling 101 for Noise, Silica and Asbestos

• Crane Safety for Site Managers

• Best Practices for Stick Built Construction

• Infection Control

• Temporary Labor – You Train Them! No, You Train Them!

• How to Incorporate Safety in a Lean Project

• BIM Safety Planning

Human Resources

• Background Checks using Social Media

• Workplace Bullying, Violence and Harassment

• Hiring Our Heroes

• “What If?” Scenarios

• Bridging the Gap between Baby Boomers and Millennials

Marketplace Reservations!

All firms with a desire to showcase their products and services to construction industry professionals are welcome to reserve a tabletop displace space at the AGC Georgia Construction Professionals Conference.

**3+ hours of Exhibit-Only Time During the Day’s Events**

• Wellness Programs

• The AGC Alternative Private Healthcare Exchange

• Federal Wage and Hour, and Overview of Travel Pay Under FLSA

Technology

• Managing Design Changes for the Field Team with Confidence

• Begin with the End in Mind: Create a Comprehensive BIM Execution Plan

• Day in the Life of Mobile Devices on Jobsites

• BIM: High Impact; Low Cost

• Use Customer Relationship Management (CRM) to Win More Work

• Technology Case Studies

• Apps: The Use Case for Cloud in Construction

• How to Save Money and Dramatically Reduce Time with Digital Construction Layout

• Stop Surprises: Manage the LEED Construction Process

• Real World BIM

• Harnessing Integration, Mobile, Sensors, and Augmented Reality

• Get Real! Capturing and Using Real-World Data in Design Decisions

Executive Operations

• Recent Court Decisions – Is Your Business Affected?

• Handling Sales Tax in the Correct “State” of Mind: Primary Areas Affecting Sales Tax Treatment During the Performance of Construction Contracts

• Getting Ahead of the Risk – Recognizing, Shifting, and Mitigating Contractor Risk

• Succession Planning: Better Now than Never

• Georgia’s Certificate of Insurance: Lessons Learned

• Don’t Wait on Congress: Reform Your Own Taxes; Top Ten Tax Breaks You Probably Omitted

• Shaken Not Stirred: Bond…Payment Bonds

• Join the Force! Workforce Development

• Results of the 2015 Legislative Session

• Construction Claims

• Georgia Lien Law

Soft Skills

• Assertive Communication

• Head to Heart

• What Makes a Great Leader

• Leaders and Managers: Understanding the Difference is Critical to Enhancing Your Performance

School’s Out; Bring the Family to

Annual Convention

Join AGC Georgia on Amelia Island for a great time

AGC Georgia Annual Convention

Sunday-Wednesday, June 7-10, 2015

Omni Amelia Island Plantation Resort

Amelia Island, F l

Registration is open for AGC Georgia’s Annual Convention this June. With 3.5 miles of pristine beaches situated between the Atlantic Ocean and Intracoastal Waterway and full service spa and breathtaking golf course, we can’t wait for you to join us on Amelia Island at the newly renovated Omni Plantation Resort!

Leaders of Georgia’s construction community will gather for this memorable experience. Convention includes:

• Networking

• Business Session

• Sports Outings

• Family Activities

• Industry Recognition • Oceanside Relaxation Programs

As past convention attendees attest, this event, which offers opportunities to build your network, is invaluable to all professionals.

While we proudly offer opportunities specifically geared toward the industry professional, we also build in time for attendees and their families to gather with each other. Visit the Annual Convention listing in the Upcoming Events section on www.agcga.org for complete details.

• Registration options begin at $350

Experience the resort’s $85 million renovation since our last visit

Tentative Schedule At-A-Glance

Sunday, June 7

TBD a.m. Golf Tournament

5:30 p.m. Welcome Reception

6:30 Dinner & Party

Monday, June 8

7:30 a.m. Business Session Begins

8:30 AGC Kids’ Club

9:30 Ladies’ Brunch

1:00 p.m. Open Play Golf

6:00 AGC Kids Club

6:30 Young Leadership Program Dinner

Tuesday, June 9

7:30 a.m. Awards Program Begins

8:00 AGC Kids Club

6:30 p.m. AGC Kids Club

6:30 Closing Dinner with SIR Award Presentation and Installation of Board

Wednesday, June 10

11:00 a.m. Hotel Check-Out

• Young Leadership Program participants are eligible for complimentary registration

• Hotel Reservation Deadline: May 6, 2015 (Room block will sell out prior to this deadline)

• Room Rates Begin at: $245/night ■