AGC of Minnesota Annual Report 2022

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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.

AGC works “ hard to be Your Trusted

Resource in everything we 2022 has been a challenging year. do. Every service offered, event Post-COVID market headwinds, fed by planned, or course charted is unprecedented supply chain disruptions evaluated through the lens of and a rapid rise in inflation, ate into profits bringing the greatest value and created an unsteady business climate. Through the uncertainty, AGC has been to our members. your proven partner, helping you navigate Tim Worke the trouble by bringing reliable analysis, AGC CEO 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 your 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. Tim Worke, CEO

AGC of Minnesota Mission Statement 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.


Strategic Priorities 2023-2025

1 Build out Education Programs & Professional Development Services

4 Build a $450k Advocacy Fund

2 Expand and Deliver a Comprehensive Menu of Field Training and Certification Programs that Position AGC as the Industry Leader for Technical Training

5 Reimagine and Build the Construction Summit into a Vital, Profitable, and Industry-Leading Event

3 CHASE Program Participation Recognized by Project Owners as Tangible Value for Contractor Procurement Selection

6 Further Expand and Define DEI Efforts Throughout Minnesota


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.

The CHASE program has helped us take our safety program 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

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

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, Since partnering with AGC, an educational event on construction we’ve seen an increase in our economic trends with AGC of America business. We choose AGC because for Chief Economist Ken Simonson, this marketplace it provides the biggest and a Scotch Tasting event ahead impact. It has well-attended events, so in terms of our impact on our main industry, of the Recognition Evening in St. this is the place to be. Paul. These were in addition to our annual golf tournament, sporting clays - David Borak, Principal fundraiser, recognition evening, and Orion Search Group holiday reception.

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


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.

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 - Paul Almen, General Counsel construction contract principles and insurance practices; held continuing Ryan Companies US, Inc. 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:

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.

• 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

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

• 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.


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.

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

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, To really grow a remembering names with ease, leading productive meetings, perfecting business, when you get to a listening skills, and networking with peers. Executive Circle, relaunched certain threshold, you have to in 2022 with 13 member firm executives, studies six aspects of be professionally mature enough transformational leadership over five months. STP (Supervisory to start to work ON the business Training Program) continues to offer six units of training on the and not IN the business, and this knowledge and skills every supervisor must have to be an effective was a chance to challenge my self to manager of people, time, equipment and materials.

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


See you in January at the Summit! Don’t miss two days of industry-relevant education and networking! agcmn.org/constructionsummit

Thank You to our 2022 Annual Partners!

A CONSTRUCTION SUPPLY GROUP COMPANY

525 Park Street, Ste. 110 | St. Paul, MN 55103 Phone: 651-632-8929 Web: www.agcmn.org | info@agcmn.org