AGC of Minnesota Annual Report 2022

2022 Annual Report

CEO Summary

Value Should Be Visible

Excellence is not given, but is earned through consistent dedication to hard work and the application of effort that produces proven results. At AGC of Minnesota, we strive to achieve everyday excellence that delivers value for you. Value that is both measurable and apparent.

To this end, I am pleased to share a copy of our 2022 Annual Report. The report highlights and measures the many ways your AGC membership has brought value to your company, elevating your game, and setting you apart among peers in the construction market. I encourage you to spend time reviewing the report where you are sure to find differencemaking effort that adds bottom line value.

2022 has been a challenging year. Post-COVID market headwinds, fed by unprecedented supply chain disruptions and a rapid rise in inflation, ate into profits and created an unsteady business climate. Through the uncertainty, AGC has been your proven partner, helping you navigate the trouble by bringing reliable analysis, advocacy, and the resources needed to outpace the competition. I am extremely proud of the work we’ve accomplished together in meeting the challenges of this market, allowing you to remain resourceful and resilient.

Looking to our future, the association is poised to build upon our strengths and increase the value footprint of

membership. You will find in this report our recently adopted three-year strategic plan. The plan realigns some service offerings to bring you more value in areas of need like technical trainings and certifications as well as adding new resources that will leverage our investment in the future of our industry through education and development programs. Thanks to all of you for being AGC of Minnesota members and for caring about your industry. We remain Your Trusted Resource.

AGC of Minnesota Mission Statement

your

Tim Worke, CEO

“ AGC works hard to be Your Trusted Resource in everything we do. Every service offered, event planned, or course charted is evaluated through the lens of bringing the greatest value to our members.”

Tim Worke AGC CEO

To promote the health and sustainability of Minnesota’s construction industry through professional leadership and advocacy, with an enduring commitment to serve all members with skill, responsibility, and integrity.

“

Safety Services

CHASE Members Break Safety Record

The Construction Health and Safety Excellence (CHASE) program began in 2003 as a partnership between Minnesota OSHA and AGC of Minnesota, making 2023 its 20-year anniversary. Over its 20-year history, CHASE members have embraced continuous improvement as reflected by the graph below and capstoned with 2021’s incident rate at 1.43, which is 66% safer than the remainder of the construction industry in Minnesota.

CHASE

from regulation to best practices. The relationship that we’ve had has helped me to understand the ‘why’ behind a lot of the regulations, so it’s been very beneficial to us. ”

- Stacy Arnold, Safety Director RJM Construction

With AGC’s Safety Committee in full swing, the typical conversation of selfimprovement will be set aside in order to change industry standards. Since last approached in 2019, Utility, Highway, and Commercial building contractors have continued to face increased safety problems with improperly marked locates, timeliness of locating utility lines, and the lack of participation by utility operators at utility meets. The AGC Safety subcommittee; “The Worker Safety and Utility Damage Prevention Subcommittee” will position itself at center stage in this spring’s Legislative session to challenge the status quo.

Networking

Many Opportunities for Connection

One significant benefit of an AGC membership is the opportunity to network with industry peers at AGC’s many educational and social events.

In 2022, AGC hosted a “Break the Ice” networking reception in Stillwater, a member meeting at Great Lakes Aquarium in Duluth, a St. Paul Saints game together with MBEX, an educational event on construction economic trends with AGC of America Chief Economist Ken Simonson, and a Scotch Tasting event ahead of the Recognition Evening in St. Paul. These were in addition to our annual golf tournament, sporting clays fundraiser, recognition evening, and holiday reception.

AGC works to make sure you can create meaningful connections in the industry!

“ Since partnering with AGC, we’ve

an increase in our business. We choose AGC because for this marketplace it provides the biggest impact. It has well-attended events, so in terms of our impact on our main industry, this is the place to be. ”

The

program has helped us take our safety program

seen

- David Borak, Principal Orion Search Group

AGC Safety Committees Reconvene with a New Focus on Utility Damage Prevention

Labor Services

A Year of Accomplishments in Labor

Our labor department helps members manage relations with construction unions, negotiate potential conflicts with the unions from jurisdictional disputes to language interpretations, assemble a fast-track arbitration process to resolve disputes, and facilitate conversations including becoming signatory with a union. AGC’s Labor Cabinet advises and provides valuable industry input to all significant labor actions.

Ten New Collective Bargaining Agreements

AGC worked with six different unions and other associations to forge ten new collective bargain agreements. The committees began meeting in February with a kickoff event featuring Ken Simonson, AGC America’s economist, and presented other valuable data on economic metrics, AGC survey results, benefit fund health and outlook, wage history and outlook, and negotiations strategies. AGC already is working on Highway Heavy and Building Minnesota North negotiations in 2023.

“AGC has the resources available to help you in-house. If a labor grievance does arise, in those rare instances, it’s comforting to know that you can pick up the phone day or night and talk to resources at AGC to help you get it resolved.”

-JoAnn Toth, General Counsel MG McGrath, Inc.

Significantly, AGC now offers contractors the opportunity to assign bargaining authority, improving how our negotiations committees show up, preventing potential miscommunications with the unions, and providing an easy contact with the unions.

As COVID-19 rules created potential conflicts and problems, AGC provided compliance guidance and tables distinguishing the different rules. AGC also flexed its Cabinet’s guidance as vaccines became mandatory, at first monitoring mandatory vaccination policies, coordinating with sister organizations, and eventually agreeing with two unions on COVID-19 vaccination protocols. AGC compiled and clarified the varied wage rates and allocations, publishing on our website the Consolidated Wage Sheet

Legal Services

Are you Making Use of AGC’s Contracts?

AGC’s Contracts Committee is composed of a mixture of general and subcontractors, in-house and outside attorneys, business owners and executives. The group mirrors the perspectives in the industry and aims to create terms that reflect industry practice, are fair, and are easy to understand. Last year the committee polished the subcontractor agreement, looked at the conflicting terms with other form contracts related to modular construction and decided to hold our current path, and created guidance for firms looking for ideas to combat wage theft.

“What I look for in groups I’m involved with is big picture: how does it help the industry, not just me? Because construction’s going to keep going, and we want everyone to be successful. And if everybody’s working together, I think that happens.”

- Paul Almen, General Counsel

Ryan Companies US, Inc.

The contracts are free to members and available to non-members for a fraction of national contracts, hoping to be more of service than a profit center. AGC also has offered other associations the opportunity to provide the contracts free to its members.

Other Legal Accomplishments

In addition to our contracts, AGC provided testimony at the Legislature, specifically explaining that a proposal would not clarify a small problem but would upset and confuse long established construction contract principles and insurance practices; held continuing legal education events including construction ethics and diversity; hosted the in-house counsel forum where in-house construction attorneys can share best practices and emerging problems; and created a Code of Conduct for AGC of Minnesota.

Government Affairs

The United Voice of the Minnesota Construction Industry

Working on behalf of our members this year, the AGC Government Affairs team:

• Raised $137, 819 for the AGC Building and Transportation Constructors Advocacy Funds

• United a strong legislative coalition of over 30 organizations to push for transportation, building, water, wetland, and other infrastructure funding

• Led the Transportation Advocacy Coalition, made up of employers and Minnesotans who build, maintain, and rely on the state’s transportation system, to support strategic funding and to fully dedicate sales tax on auto parts to transportation, with the Senate overwhelming passing the initiative by a 59-7 vote

• Testified over a dozen times to several House and Senate committees, including Capital Investment, Transportation, Jobs and Economic Growth, and Environment

• Pushed for legislative action on industry priorities through press conferences, including federal infrastructure matching funds, increasing transportation funding and a public works bill

• Represented construction contractors in pushing for replenishing the Unemployment Insurance Fund and preventing business tax increases

• Educated owners about the construction supply chain and price issues and pushed for solutions through direct meetings, inflation alerts, stories and data

Take Action for Your Industry!

AGC of Minnesota members are the association’s most effective advocates. At times throughout the year, it is necessary to ask members to make their voice heard on legislative and regulatory issues affecting the construction industry. Thank you for helping AGC and the Minnesota construction industry by signing up to receive AGC’s Action Alerts! Visit p2a.co/AGC or scan the QR code.

AGC Foundation

2022 Hit the Mark for Scholarships

Due to record turnout at the Golf Tournament and Sporting Clays Fundraiser and a generous donation from the McCrossan Family, the AGC of Minnesota Foundation raised $62,000 and distributed $25,000 in scholarships to 15 students in higher education pursuing a career in the construction industry. Two students were awarded the C.S. McCrossan Scholarship, given annually in honor of Charles McCrossan (1926-2017) and funded by a preferred memorial designation and matching funds from the McCrossan family. The Foundation also gave $15,000 to Dunwoody College to fund scholarships for minority students studying construction.

“AGC is the only organization that tries to get together all the contractors ...and provides an environment where you can get support on political issues, and have a voice. To not work with one another to have a collective voice would be missing an opportunity as an industry.”

- Justin Gabrielson, President, Midwest Region Ames Construction, Inc.

Diversity, Equity, & Inclusion

Deeper Member Engagement

This year, through our DEI Committee At-Large, general contractors have taken intentional steps to form deeper member engagement opportunities with MWBE members by hosting our DEI Leadership Council meetings and networking events at their office locations. Hosting the meetings has afforded MWBEs an opportunity to meet face-to-face with key organizational leaders and decision makers. This alone is becoming a game changer for some of our MWBEs who have since been awarded contracts.

The DEI Leadership Council met with the AGC Board of Directors and engaged in an open and candid dialog that served as a pathway to understanding barriers that MWBEs continue to face.

Once a month, we feature an MWBE in our MWBE Member Spotlight. Featuring our MWBEs provides an additional level of engagement and exposure to our broader membership.

New in 2022, AGC of Minnesota launched a series of DEI Awards to recognize member businesses for their initiatives in the diversity, equity, and inclusion space. Awards will be given in four categories:

• DEI Excellence Awards (General Contractor | Specialty Contractor | Affiliate Member)

• Diverse Business of the Year Award (MBE member)

Education & Development

STP, Leadership Blueprint, & Executive Circle: Bigger and Better than Ever!

AGC educational programs got back in full swing in 2022. Since its launch in 2014, the Leadership Blueprint program has connected with over 125 young professionals from member firms interested in enhancing their oral communication skills, remembering names with ease, leading productive meetings, perfecting listening skills, and networking with peers. Executive Circle, relaunched in 2022 with 13 member firm executives, studies six aspects of transformational leadership over five months. STP (Supervisory Training Program) continues to offer six units of training on the knowledge and skills every supervisor must have to be an effective manager of people, time, equipment and materials.

“ To really grow a business, when you get to a certain threshold, you have to be professionally mature enough to start to work ON the business and not IN the business, and this was a chance to challenge my self to remember that concept and take a step back – not away – and start to look at our business in those terms to apply the lessons learned. And it was a positive experience across the board.

”

Matt Coz, President Rachel Contracting

“ Part of the benefit of being a member is having resources like Yolanda...if I have an issue, there’s somebody who can help me. AGC is my go-to for when I have needs within my industry, to find the answers.”

Jon Kainz, CEO/President Donlar Corporation