ROBEX July 2018

BUILDERS EXCHANGE OF ROCHESTER, NEW YORK • SINCE 1888

ROBEX JULY 2018

US Ceiling Corp Transforms office space in Towers280 Midtown Photo by Angel Miguel Vazquez

Boulter

The Name That Carries Weight

ROCovery FITness Sober Living through fitness

Opioid Crisis

Things We Can Do Right Now

Cyber Attacks

The New Silent Killer of Construction and Contractor Businesses

JULY 2018 Features 10

Junior Builders Exchange

18

Opioid Crisis

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Employee Engagement

34

Tax Reform

38

The Builders Exchange Consortium

42

ROCovery Fitness

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Cyber Attacks

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A Message from the President

"Think it...Become it!" and other gems to come out of the JBX Leadership Series

Here are some things we can do today

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Why hiring assessments reduce turnover

Navigating the new system created by the Tax Cuts and Jobs Act of 2017

A prescription for better health insurance

Sober living through fitness

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Cyber hackers are targeting the construction industry

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A Letter from the Chairman

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Honorees

The Builders Exchange presents

2018 Lifetime Achievement and Craftsmanship awards 14 Member Spotlight Boulter: a business spanning 126 years and

five generations of leadership

Greater Rochester Enterprise 52

The groundbreaking work of this not-for-profit development organization

Project profile

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US Ceiling Corp

Project: Bergmann Associates

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ROBEX Staff and Board of Directors Index of Advertisers

www.robex.com

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ROBEX

JULY 2018 Volume 2 No. 2

BX STAFF

BOARD OF DIRECTORS

President Aaron Hilger

Executive Committee Chairman Kevin Cannan A.A.C. Contracting

Vice President, Marketing & Operations Kim Gaylord Planroom Manager & Membership Director Corrine Taylor Accounting Manager Taryn Deinhart Research & Communication Manager Mariel Fedde Planroom Reporter Nicole Gissendanner Planroom Coordinator Liz Durkee Executive Assistant Jenna Kraeger

Vice Chairman Dominick Mancini Postler & Jackle Secretary Robert Morgan Upstate Roofing & Painting Treasurer Victor E. Salerno O’Connell Electric Company Immediate Past Chair Curtis Peterson Monroe Piping & Sheet Metal, Inc. Board Members Traci Adolph Samson Fuel Richard Ash C.P. Ward, Inc

Builders Exchange of Rochester 180 Linden Oaks Suite 100 Rochester, NY 14625 P (585) 586-5460 F (585) 586-1580 info@robex.com robex.com

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ROBEX — July 2018

Dave Cooper Rose & Kiernan

David Mehalick Harris Beach

Dick Camping O’Connell Electric Company

Daniel Mossien Mossien Associate Architects

Mike D’Hont Western New York Floor, Co.

Brian O’Shell Ajay Glass

Kevin Foy M&T Bank Melissa Geska U.S. Ceiling Corporation Rick Kozyra Ark Glass & Glazing Ed Kurowski The Pike Company Mike Mallon LeChase Construction Mark Mancuso JBX Chairman Flower City Habitat for Humanity

The Builders Exchange of Rochester was founded in 1888 by visionaries dedicated to Rochester, New York’s commercial development market.

Today, the exchange has more than 600 members and affiliates, and serves the commercial, industrial and governmental construction industry in Western and Central New York. ROBEX © 2018 is distributed three times each year to all members on a complimentary basis.

Walter Parkes O’Connell Electric Company Timothy Pullis Brown & Brown of Rochester Norbert Rappl Retired 2 Star General Comac Building Supply Randy Sickler SWBR Architects Gary Squires Manning, Squires, Henning Co. Inc.

Publisher Fahy-Williams Publishing PO Box 1080, 171 Reed St. Geneva, NY 14456 P (800) 344-0559 F (315) 789-4263 To advertise contact Tim Braden at (800) 344-0559, tbraden@fwpi.com

www.robex.com

www.robex.com

July 2018 — ROBEX

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A message from the PRESIDENT

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USA Payroll is offering all ROBEX members/ franchisees

15% OFF

standard payroll processing fees.

To learn more contact Martha Parker at 585-350-7122 mparker@usapayroll.com

WWW.USAPAYROLL.COM 6

ROBEX — July 2018

fter a seemingly endless winter we are all glad that summer is finally here!

Spring brought us increased market activity and a generally optimistic feeling about the industry. The number of public projects bidding in the first four months of 2018 was just under 1,450. This was a 4 percent increase from 2017. Projects bidding in 2017 were up 12 percent and in 2016 we saw an increase of 7 percent. This is a great trend for the public market!

Perhaps more importantly, we saw an increase in private market activity, although many of those projects had slower than expected starts. Public works bidding in the Rochester region was steady over the period discussed above and did not have a dramatic change in any year. While we would like to see those numbers increasing, it is important to note that Builders Exchange members work all over the state and capture significant work volume in Buffalo, Syracuse, Albany, Corning and Binghamton.

Spring also brought us substantial political change in New York. Almost overnight, the Republican control of the state senate was reduced to a single vote. Their majority is now in the hands of a single Democrat from downstate who is doing a fantastic job of leveraging his position to benefit his district.

Since the return of the IDC to the democratic caucus, five Republican senators have announced their retirements.

It is almost a certainty that both houses of the legislature will be controlled by downstate democrats in 2019. This shift will leave upstate searching for leadership in a legislature that is more likely to increase the cost of doing business then decrease it.

Strong allies and supporters of our industry and region will also be sidelined as they become the minority in the Senate. It is almost ironic to think that Cynthia Nixon’s entry into the gubernatorial primary is a direct cause of this change. Without her challenge, it seems unlikely that Governor Cuomo would have acted to bring the Democrats together. By doing so now, he limits the strength of a leadership challenge based on failure to unify the Democratic Party. Cuomo leads the current polls by a large margin and it will be interesting to see if Nixon can capture more than 35 percent of the votes in the primary.

Another transition is occurring before our eyes. The unexpected death of long-serving Louise Slaughter created an open seat for Congress. Majority Leader Joseph Morelle is the leading Democrat in the race, and the political class views it as his seat to lose. We look forward to continuing to work closely with Morelle if he is successful. He is a strong supporter of Rochester, the construction industry, and Builders Exchange. He would also be a more pragmatic voice in Washington who may help bridge some of the partisanship that is tearing apart Congress.

I am also excited about Builders Exchange’s expansion into online training. We are partnering with Rochester- based CypherWorx to provide a wide selection of programming to our members. This partnership will increase our ability to reach your staff and increase our program offerings. We will be able to provide high-quality education programs both efficiently and cost-effectively. The software includes administrative tools that will allow members to track compliance and prove that training was provided.

While there are hundreds of offerings that we will be able to provide, look for timely and necessary programs such as New York State compliant harassment training and active-shooter training this summer. We are also interested in your ideas and will be able to create custom programs for member firms. Like our current offerings, some programs will be included with membership and others will be available for a fee.

Thank you as always for your membership and support. Have a fun time building things this summer!

Aaron Hilger President Builders Exchange www.robex.com

Laborers’ International Union of North America

Local 435 Daniel Kuntz / Business Manager & Secretary-Treasurer William Steve Jr. / President Robert Picardo / Vice President Carmen Serrett / Recording Secretary Michael Gay / E-Board Member Ace Roundtree / E-Board Member Clint Dunn / E-Board Member

www.Local435.org www.robex.com

July 2018 — ROBEX

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CONSTRUCTION CONSULTING “Your BEST Defense in the Construction Industry” ESTABLISHED IN 1992 491 Elmgrove Road, Rochester, NY 14606

585-647-9350 loewkebrill.com

• Roadway & Parking Lot Striping • Airports •MMA • Schools • 3M Tape • Thermoplastic • Paint

A letter from the CHAIRMAN

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fter what seems like a forever long winter, we have finally made it to June and are experiencing some nicer weather! Rochester is beautiful in the spring and this is one of the many reasons we live in Upstate New York. The lilacs were fully in bloom for the Lilac Festival and I am enjoying spending some time outdoors.

By now, you’ve participated in the Builders Exchange Golf Tournament. Thank you to all the sponsors, players and attendees. It was another momentous day, with about 250 people playing. I always enjoy the time on and off the course to network with construction professionals.

Builders Exchange is always interested in feedback on our functions, and if you have ideas or suggestions for next year’s event, please get them to me or Kim Gaylord.

The next major networking event will be the clambake on September 20th. Builders Exchange has been doing a large event in the fall for more than 60 years. The clambake draws 600-plus people to Burgundy Basin Inn – mostly office staff, company owners, and some field workers. It’s a great way to say thank you to your team for a job well done over the summer months, and to network with your peers. You won’t leave hungry!

The spring construction market in Rochester started off slower than anticipated with some off weather and slow contracts. Fortunately, business has picked up dramatically.

All of the union halls are at full employment and jobs in all facets of the industry are in high demand. We are finally experiencing a bit of a resurgence in new projects and work for the construction trades overall – especially in the private sector. This optimism does have some mixed signals. While our members generally report good volume and backlog, a review of recent bidders lists still shows a high number of bidders on projects. Typically, large numbers of bidders is a sign of a weak market, not one that our members seem to be reporting. There are also concerns about the development market slowing down. Despite these signals, Builders Exchange believes it is going to be a strong year overall.

Earlier this spring I had the opportunity to tour the Seneca Park Zoo Expansion, which is increasing the size of the zoo by 20 percent. The new exhibit area will feature giraffes and a new habitat for the rhinos. The construction being done is truly a site to witness, especially the giraffe doors – which are about four times taller than me! Many trades are working side by side during a tight timeframe. The exhibit is expected to be done by the end of June, with giraffes being there by the end of August.

Prior to this, the Cold Asia exhibited opened with red pandas and the snow leopards.

Later this year, the main building will be demolished to make way for a new building that will be provide better practices for animal care.

The expansion of the zoo and these projects will benefit many generations to come!

I encourage all of you to bring your families to the zoo to see these exciting animals coming to Rochester.

Builders Exchange also does some casual and fun social functions in the summer.

I especially enjoy the summer cookouts which happen June-August. I hope that you can join us for one of them later this summer!

Kevin Cannan A.A.C. Contracting

For More Information Call

585-621-7940

50 Bennington Drive • Rochester, NY 14616

capavementmarkinginc.com 8

ROBEX — July 2018

www.robex.com

Rochester Schools Modernization Program www.rsmpnews.net

(585)512-3820

Virgil I. Grissom School No. 7

James Monroe High School

The Children’s School of Rochester No. 1

John Walton Spencer School No. 16

The Rochester Schools Modernization Program has implemented a comprehensive Strategic Plan to bring the District’s learning environments into the 21st Century.

Junior Builders Exchange

“Think it …

Become it!”

Mark Mancuso, President, Junior Builders Exchange

S

ounds simple, yet how often do we make a habit of practicing this? People cannot grow and achieve until they believe they can, and make an effort to do so. This was just one of countless glittering pieces of gold to come out of the JBX Leadership Series put on by Gwen Mazza and her team at enSpirit LLC.

The Junior Builders Exchange exists not only for the purpose of building networks and camaraderie within the Rochester construction industry. We also want to improve, empower and educate ourselves as leaders, collaborators and thinkers.

Though the first part of our Leadership Series will more than likely be wrapped up by publication, do stay tuned for the fall portion of the series, set to resume late September.

In February, we held our annual volleyball tournament at Hot Shots.

The last-minute dark-horse competitor was the one to walk away with the trophy – congratulations to our champions Harter Secrest & Emery!

They, along with 19 other teams, got together for one wild day of volleyball!

Thanks to our awesome sponsors Taylor the Builder, BuildPay, O’Connell Electric, Pike Co., and Christa.

The seminar series and the volleyball tournament have been just a couple of parts of what has been a very successful year for the JBX. That momentum continues with a slew of exciting events scheduled over the next six months. While you’re reading this, we will have completed several springtime events including our 11th 10

ROBEX — July 2018

annual bowling tournament at Radio Social, which sold out almost two weeks prior to the event! Big thanks to our sponsors Christa Construction, O’Connell Electric, Allied Building Supply, Ironwood Heavy Highway, and the Habitat for Humanity ReStore!

In May, the JBX will have joined CFMA, DBIA, and CSI for a site tour of the recently completed Seneca Park Zoo project. These organizations make for perfect partners in bringing together important segments of the construction industry here in Rochester. We will have a chance to see how the project was completed, followed by some networking and refreshments at the Genesee Brew House.

Since education and selfimprovement are cornerstones of the JBX, “Beer School” will have been in session at Three Heads Brewery in June! All right, so not all education has to involve quiet study and number-two pencils.

This summer, the JBX board members will be taking part in a Habitat for Humanity Build Day. Flower City Habitat for Humanity brings partners together to build homeownership, communities, and hope. The JBX brings together likeminded construction professionals to better our industry and our community.

Sounds like a perfect match! If you or your company would like to support the board members as they swing a hammer for Habitat, please visit give. rochesterhabitat.org/campaigns/6940jbx-build.

September 6th marks our 23rd Annual JBX Golf Tournament, which will once again be raising funds for the URMC Mary Parkes Asthma Center.

The golf committee is already on the

lookout for silent auction and raffle items for the day of the event, so if you would like to contribute, please contact Brenda Parkes at bparkes44@ gmail.com.

The 7th Annual JBX Kickball Tournament kicks off again on Saturday, October 13th. Last year the event was a smash with 12 teams representing a wide variety of Rochester construction-related companies. A total of $6,000 was raised for charity.

Aerotek, the champions of the tournament, chose to split the proceeds between ACE Mentorship Program and Habitat for Humanity. This would not have been possible without our awesome event sponsors: Pike Co., Aerotek, LeChase, Taylor, Harris Beach, Bonadio, O’Connell Electric, and BuildPay. Thank you all for constantly giving back to the community!

I am excited to announce that later this year the JBX will be hosting a Casino Night. The date and location have yet to be determined. We do plan on a classy night loaded with real casino table games, awesome prizes, and good company. Stay tuned for more details!

This has been very exciting time for the Junior Builders Exchange.

We’ve had record turnouts for all of our major events, company sponsorships have been incredibly supportive, board interest is overwhelming, and the desire to build something greater than ourselves is strong within our community. However, the captain is only as good as his crew and currently our ship is full to the gunwales with talented, dedicated, creative, and ambitious board members. These folks around me are not only thinking it, they are becoming it! www.robex.com

Local Presence, National Strength

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Phone: (585) 232-4424 Fax: (585) 232-7802 www.bbnyinsurance.com July 2018 — ROBEX

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Lifetime Achievement and Craftsmanship Awards

The 2018 Winners

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he Builders Exchange is proud to honor the following recipients of its Lifetime Achievement Award.

• Kevin Cannan of AAC Contracting • Richard Clark of Villager Construction • Lyle Corey of LeChase Construction (posthumously) • John “Al” Hellaby of Wegmans Construction Group • Mark Kulzer of Klein Reinforcing Services • Frank Marianacci of Frank A. Marianacci Inc. General Contracting • Daniel Mossien of Mossien Associates Architects • Gary Squires of Manning, Squires, Henning Co. Inc.

On Saturday, March 24, the recipients were honored at a reception at Locust Hill.

They were selected base on nominations that were reviewed by the anniversary executive committee, who note that this year’s recipients have each impacted the construction industry in different ways. Many have led companies or played a significant role in the success of one or more firms. All have touched the lives of thousands of people in Rochester over their careers, through the various industries they work with, the charitable work that they do, or the things they construct.

Created in 1995, the Lifetime Achievement Awards recognize these and other important qualities in an

Lifetime Achievement Awards individual’s years in the construction industry.

Craftsmanship is a word we use a lot on a day-to-day basis. The Builders Exchange believes that it is important for every one of our members to realize what it means to be craftsmen, and how it sets them apart in what they do. Webster’s dictionary provides two meanings for the word craftsman: “(1) a workman who practices a trade or handicraft; and (2) one who creates or performs with skill or dexterity, especially in the manual arts.”

It is the second of these definitions that is especially important.

While every one of our workers in the field might be considered craftsmen under the first definition, it is only those exceptional few who fall under the second. The Builders Exchange is proud to recognize the following local craftsmen.

• Mark Gregoire, Crosby-Brownlie, Inc. for his process ventilation work at the American Packaging Plant in Churchville.

• John Fox and Mark Brunner, O’Connell Electric, for their

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Craftsmanship Awards 12

ROBEX — July 2018

electrical construction work on RG&E Station 122.

Browen Timothy, Rochester Davis Fetch, for his interior systems construction work on the Monroe Community College Theater renovation.

Hein Ta, LeChase Construction, for his masonry work at The Chapel at St. John Fisher College.

Roy Schumacher, O’Connell Electric, for his electrical construction work at the Sheds Compressor Station in Sheds, New York.

Thomas Zielke, O’Connell Electric, for his electrical construction work at Mercy Hospital Substation Replacement Project.

David Prest, Rochester Rigging & Erectors, for his structural steel construction at University of Rochester – Fauver Dorm.

Jay Stanley, Manning Squires Hennig, for his masonry reconstruction work at the Chautauqua Institute Amphitheater.

Lynn Reagle and Jason Orr, The Pike Company, for their masonry work on the Rochester Train Station.

Keith Marten, O’Connell Electric, for his electrical construction on the RED Rochester Boiler Conversion Project at Kodak Park.

Gary Black, US Ceiling Corp, for his interior systems work at the Bergmann Office at Tower 280.

JR Levis, EG Sackett Company, for his interior tile, stone and brick masonry work at the Del Lago Casino & Hotel. www.robex.com

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Member Spotlight

The Name That Carries

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ROBEX — July 2018

www.robex.com

by Brittany Arsenault, Marketing Specialist, Boulter Industrial Contractors

B

ack when the basic need for ice and coal delivery was on the rise, there was one man ready with a solution. In 1892, Thomas W. Boulter founded a local carting and moving company with two teams of horses and wagons to meet that growing demand. Fast forward 126 years, the business has evolved from its original concept to today’s company, providing industryspecific services such as rigging, steel fabrication, production line installation, heavy hauling, warehouse storage, custom packaging, and professional relocation solutions.

Above top to bottom: Family photo, June 1968; One of the original company trucks

www.robex.com

Five generations

Not every business makes it 126 years, let alone through five family generations. As the needs of Rochester’s economy began to change, so did Boulter’s business model. In 1946, after acquiring the family business, William T. Boulter purchased

five trucks and built a garage behind his home that would serve as headquarters until his son, William G. Boulter, joined company management in 1975.

Following in the footsteps of his grandfather – who focused on moving and storage – and his father who started the rigging business, William S. Boulter was promoted to president in 1996 and became Boulter’s fifth-generation leader in 2005.

Under his administration, the company moved operations to its current location in Webster and expanded the fabrication shop for steel and crating services. Today, Boulter’s various specialties have helped several organizations, including Rochester business giants Xerox, Wegmans, and the University of Rochester.

Setting the standard

Since we’ve been around for a few years, you can say we know a thing or two about

July 2018 — ROBEX

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CommerCial roofing and Painting ServiCeS

Concern. Honesty.

Professionalism.

These are qualities we insist on in our people – qualities that go far beyond technical expertise alone.

These are the qualities that make Integrity in Action a reality... and a way of life.

Call (585)272-8050 email bob@upstateroofingandpainting.com

NOTHNAGLE Drilling Inc. 1821 Scottsville-Mumford Road Scottsville, New York 14546

www.nothnagledrilling.com • Line Drilling/Relief Holes for Rock Excavation - Speed up Hoe Ram Activities!

• Vacuum Excavation Services for - Utility Locating - Pre Clear Excavation Areas • Post Holes and Fence Holes up to 18” dia.

• Rock Anchors and Toe Pins • Geotechnical & Environmental Soil Sampling • Monitoring, Remediation, Dewatering Wells • Geothermal Well Fields • Blast Hole Drilling • Pressure Grouting

the industry. As a firm with an established reputation for dependable offerings, punctual deliveries, and outstanding customer service, we’ve become a trusted resource for clients throughout New York. Although primarily serving businesses throughout the East, we have delivered our expertise across the country. With a comprehensive fleet that includes 40 forklifts, eight tractors, 15 air-ride trailers and an abundance of tooling options, Boulter can tackle any project, near or far, with precision and ease.

We are proud to employ skilled workers who use high-quality equipment to fulfill the unique needs of our clients. Most of our employees are unionized and therefore receive extensive training before they can begin to work. Our strong commitment to safety has earned

Call to Discuss all your Drilling Needs!

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ROBEX — July 2018

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Excavation

• • • •

Clearing Foundation Ponds Storm Water Solutions

Site • Utilities • Storm • Water • Sanitary • Demolition

Paving

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Milling Sweeping Flushing Tack Coat Paving Crack Sealing Striping

Fully Insured and Bonded Phone: Website: Email:

315-904-4420 RoadTekPaving.com Eugene@RoadTekPaving.com

us an award from the Specialized Carriers & Rigging Association, and a record of consistently working 90,000-plus hours with no major incidents.

While every day is different with no job the same as the last, Boulter employees thrive on challenge. As William S. Boulter, the company’s current leader, likes to say, “If the jobs were easy, they wouldn’t be calling us.”

What’s next?

Management credits the company’s continued success to its ability to overcome challenges. “The biggest obstacle that we’re tackling right now is recruiting young adults into this specialized industry.

Instead of pursuing a skilled trade, many high-school students feel that college is their only option. We plan to work with industry partners such as Lift & Move USA to familiarize high school and college students with our type of work.”

With an experienced president overseeing 50 employees on the team, Boulter continues to grow more and more each year. After recently celebrating its 125th anniversary, the future has never been brighter.

When people think of Boulter, they associate us with professionalism, dependability, and unprecedented customer service. The relationships that we have built with our clients helped shape our business into the industry leader that we are today. Our ultimate goal is to be the number-one choice, not only for local companies, but for businesses across the United States and abroad. www.robex.com

Daniel E. Mossien, RA, NCARB President and CEO D. MOSSIEN@MOSSIEN.COM DIRECT 585-262-6046 x 212 | CELL 585-259-2770 OFFICE 585-262-6000 70 LINDEN OAKS | SUITE 110 ROCHESTER, NY 14625-2804 WWW.MOSSIEN.COM

Registered in NY, VA, FL and TX July 2018 — ROBEX

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Healthcare

T

he opioid crisis is devastating.

In 2016 alone, 42,497 people in the United States died because of opioids; about 64,000 died from all types of overdoses. The opioid death total was an almost 28 percent increase from 2015, which had 33,029 deaths.

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ROBEX — July 2018

CRISIS

Forty percent of the opioid deaths in 2016 involved prescription medication. The most common prescriptions include Hydrocodone (Vicodin), Methadone, and Oxycodone (OxyContin). To put the number of deaths in perspective, 58,209 Americans were killed in

the Vietnam War over our 20-year involvement. In just two years, opioids have killed more Americans than two decades of conflict, and the numbers may be growing.

The large numbers are mindnumbing, and mask the personal and family crises that each opioid death www.robex.com

causes. Just among the staff at Builders Exchange, we can identify about two dozen friends or family members who have been touched by an opioid death. Those are fathers, sons, parents, friends, daughters, mothers and grandparents. Overdose deaths from prescription drugs are highest among 25 to 54-year olds. Men are also more likely than women to overdose at a rate of 6.2 compared to 4.3.

Construction has a higher incidence of accidents and opioid use then many other industries. Workers often work through injuries that should be treated with rest and physical therapy. Pain medicine helps workers cope and remain productive. Our workers are also tough and proud of working hard. They don’t want to stop, even if they are injured.

In addition, our workforce is ageing. Limited recruiting after the financial crisis has created a worker shortage and people are working in the field longer than they otherwise would have. Instead of working in supervisory roles, our

SAFETY

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older workers are still in the trenches. With age comes natural physical changes and deterioration over time. By the time they reach age 40, for example, 68 percent of patients who are being treated for back pain have disk degeneration and 50 percent have a disk bulge. By age 50, those numbers increase to 80 percent and 60 percent.

While it may be normal to have deterioration, it also causes

SECURITY

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SERVICE

Helping to protect Central and Western New York’s most successful businesses, school districts and universities for more than 30 years.

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19

pain, which leads to prescription opioids. Simply put, when we are in our 40s and 50s, our bodies don’t recover like they did when we were in our 20s!

As we try to tackle the opioid problem, we must ask ourselves what we can do in the construction industry.

Here are some things that we can do today.

• Don’t start taking opioids if you have not already done so. Ask for pain-relief alternatives, which are often covered by health plans in our region.

• If you must take opioids for pain, ask for a prescription for a week’s worth or less.

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• If you are already taking opioids, seek professional help and alternative measures.

• If you have excess pills, dispose of them promptly and properly.

Don’t leave them around for friends, family, or the next injury.

If the pills are in the house, someone that shouldn’t might end up taking them and becoming addicted.

• Back, knee, shoulder, and other common injuries can be helped with activity. Start including stretching and regular exercise to your daily routine.

• Try to maintain a healthy weight.

Carrying extra weight exacerbates common injuries and makes pain harder to manage.

• Provide education programs about addiction, and training on how to recognize the signs of addiction.

• Talk about addiction with your workforce. Make it one of your toolbox talks. Addiction is a disease, not a moral failing, and needs to be treated.

• Train your work force to use Narcan. Have kits on job sites and in the office.

Our work is inherently dangerous and has constantly shifting hazards. Opioid addiction only makes these conditions worse.

Over the next months, Builders Exchange will create online programs for our members to help educate field workers and office staff.

Our industry cannot cure the base causes of the opioid crisis.

We can help mitigate the effects and strive to provide the safest workplaces possible.

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Leadership

Employee Engagement

Why

Hiring

Assessments Reduce Turnover

By Nick Ryberg

O

ne of the biggest questions I get is this: “Will using hiring assessments help reduce turnover?” It is a critical and important question, and one that deserves a good answer. My answer is always “YES,” but only if you use the right assessment tool in the right way.

The world of hiring assessments has a long history, rooted in behavioral psychology. The current market is complex and quickly expanding with a wide variety of options. My advice – buyer beware.

There are only a few reliable and safe assessment products in a highly unregulated market.

Over the last several decades, the hiring assessment industry

has transitioned into a largely commercialized market. Behavioral psychologists and research studies have helped to identify the relationship between valid employee engagement assessment tools and employee turnover, and progressive business leaders and HR professionals are now integrating these tools to enhance their HR processes. This new reality is not continued on page 24

22

ROBEX — July 2018

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without its quirks, however. The turnover challenge can be extremely perplexing and confusing. Employers are continuously looking for that “silver bullet” to solve, once and for all, this costly problem.

Unfortunately, many businesses attempt to fix this problem by throwing more money at new hires or lobbing darts at benefits, work schedules, or staffing levels.

Employers with turnover issues, more often than not, overlook hiring assessments – largely because they are skeptical of value and typically see these tools as an added cost (dollars and implementation as opposed to a strong return on investment).

The assessment world can be both challenging and hard to decipher given all of the options.

It’s understandable that many employers haven’t taken the plunge.

What is becoming clear, however, and why employers should take this question seriously, is that the practice of integrating good assessment tools into HR processes is widespread among top quartile, best-in-class global companies.

In my experience, the concept of alignment is the best place to start if you’re considering whether or not to implement these tools. It’s a

common buzzword across industry and human resources circles. It simply means that individuals are placed in the right roles according to their technical skills and capabilities, as well as their values, interests, and most importantly, how they are naturally wired to behave.

High levels of alignment are achieved by knowing how an

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individual is “naturally wired,” and making sure that individual is in a role that matches his or her wiring.

Alignment is a beautiful thing when achieved. It’s really about deploying staff in a way that doesn’t require them to over-adapt to a role that they just aren’t cut out for. I always love the analogy of putting a right-handed person in a job designed for a left-handed person.

If the right-handed individual has the technical skills and experience for the job, they’ll adapt and potentially do well. But they’ll always go home tired. Even more important is that the risk of low engagement and turnover goes up. At some point, this employee will want to be in a right-handed job. Potential result = turnover.

The goal should be high employee engagement. A great illustration of how job alignment continued on page 26

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continued from page 24

helps create high engagement is the difference between the “have to curve” and the “want to curve.”

The “have to curve” represents employees doing what is minimally expected. The “want to curve” means, essentially, going beyond minimal expectations toward true emotional commitment to the job and company. Employees at the “want to curve” are doing what they’re meant to do. They are in a role in which their behavioral natural wiring, technical skills, and values are aligned. They are not overadapting. This is what we refer to as hiring the “Whole Person” versus hiring solely based on technical skills and a short interview.

Adding reliable and valid

assessment tools to your hiring and selection processes provides the third, oftentimes missing, element of the hiring process. This is precisely why best-in-class, top-quartileperforming, high-engagement companies are incorporating valid and reliable data, via assessments, into their hiring processes and beyond. These companies extend assessments and analytics into their onboarding, coaching, performance feedback, succession planning, and exit process.

Turnover is absolutely impacted by adding good data to the process.

These organizations understand the value of not leaving their biggest investment to chance. In fact, more than 90 percent of best-in-class

organizations are now incorporating valid, reliable assessment tools into their HR processes (see Aberdeen Group 2016 Study). According to Gallup, those top-quartile companies with low turnover are achieving approximately 65 percent less employee turnover versus the bottom-quartile companies. This is significant given the average cost of turnover for midrange positions is equivalent to 30 percent of first year compensation (see U.S. Department of Labor website).

Do assessments impact turnover? I think the answer to this question is, overwhelmingly, YES! Our clients, time and time again, see strong alignment and stabilization of turnover through implementation

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of valid and reliable assessment tools. The real question you should be asking is, “Why exclude valuable, readily-available data from one of your most important business decisions?”

Nick Ryberg is president and founder of HunterRoss LLC, a Western New Yorkbased consulting firm focused on workforce analytics and assessments. The firm is a Certified Partner of The Predictive Index and Qualtrics, and provides a wide range of solutions that improve employee engagement and alignment for clients. The firm also provides global talent acquisition services and peer advisory groups in the Rochester area.

For more information or an initial consultation, please contact Nick Ryberg at nick.ryberg@hunterross.com or 585-3815555. Or, visit hunterross.com.

www.robex.com

July 2018 — ROBEX

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US Ceiling Corp 30

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Bergmann US

Ceiling Corp is a subcontractor that worked on the prestigious corporate headquarters fit-out for national engineering-architecture firm Bergmann Associates, located in the Tower280 Midtown building in www.robex.com

Associates

Rochester. In addition to commercial office space, the impressive 14-story building at 280 E. Broad Street features market-rate apartments and restaurants. It has become a focal point in downtown’s revitalization movement, thanks

to its modern take on an historic building. The renovated landmark is driving both traffic and interest to downtown.

US Ceiling Corp completed the framing, drywall, and acoustical and linear metal ceilings July 2018 — ROBEX

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despite the high degree of difficulty and complexity in coordinating and installing the specialty products.

There was no room for error.

Due to the floating nature and integration of many ceiling surfaces, there were custom-designed solutions that resulted in an exceptional finished product. The linear ceiling system consists of precision, factory-detailed panels attached to a concealed carrier suspended from the structure above with a variety of perimeter and transition details. Noise reduction was achieved by combining panels with an absorptive backing.

In March, Gary Black, US Ceiling Corp vice president for operations received a Craftsmanship Award from ROBEX for his interior systems work at the Bergmann office. He was nominated by company President Melissa Geska, who wrote, “Gary Black worked tirelessly on coordinating the project with the owner, the general contractor, and with other trades.

There were extensive overtime hours worked, including driving to Ohio to pick up specialty materials to get the job done.”

“After designing interior fitouts for many of our clients, we were fortunate to have the opportunity to design our own space,”

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explains Gary Flisnik, principal of Bergmann. “We created a vibrant, collaborative environment that truly enhances the well-being of our people. We can be our own toughest critic at times, so it is a satisfying feeling when clients, potential new hires and those with whom we collaborate come into our office and can see and feel how the design and finished space speaks for itself.

“It was such a pleasure working with the construction team that included US Ceilings,” Gary continues. “Through their attention to detail and beautiful craftsmanship, they made our new home take shape and the design

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ROBEX — July 2018

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come to life.”

Bergmann has received Leadership in Energy and Environmental Design (LEED) Certification for its corporate headquarters from the U.S. Green Building Council (USGBC). It’s a globally recognized symbol of sustainability achievement. To achieve LEED status, projects are evaluated against a number of impact categories including energy, water, responsible use of natural resources, indoor environmental quality and innovation. Bergmann earned LEED Certified recognition based on the LEED 2009 Commercial Interiors (CI) rating system.

Bergmann’s Interior Design

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team designed the workspace in partnership with Bergmann architects and engineers. Through this collaboration, the team was able to deliver a number of environmentally friendly, energy-saving practices throughout the space.

The 60,000-square-foot second-floor office includes daylight responsive lighting, transparent glass wall systems, and energy-efficient heat-pump-based HVAC technology. Its floor is comprised of reclaimed hardwood with extensive use of regionally sourced and recycled materials. In fact, Bergmann placed a strong emphasis on recycling throughout the office.

Low volatile organic compounds are used throughout the workspace.

US Ceiling Corp is a subcontractor that has performed in the Rochester area over the last 17 years. The company is committed to empowering the community where we live and work. US Ceiling Corp is 100 employees strong, and specializes in metal framing, wood framing, drywall, insulation, and suspended acoustical and wood ceilings. US Ceiling Corp partners with organizations in the Rochester area to provide skilled training and employment opportunities with a passion to diversify the construction industry.

July 2018 — ROBEX

33

Banking

TAX Reform:

Construction Industry

by Adam Thaine, CPA; Principal, The Bonadio Group

E

ither the walls of our office building are thin or I work with naturally loud individuals.

Either way, I can easily hear the conversations of my neighbors. One common refrain I seem to be hearing more and more often from the partner next to me is that nothing is ever simple. That certainly holds true for the Tax Cuts and Jobs Act of 2017 that was signed into law by President Trump on December 22, 2017. Going way beyond simply reducing income tax rates, large-scale changes to the entire taxation system were made.

This new system may result in lower taxes for corporations and business owners; however, the road they now need to navigate is more convoluted and winding than ever before.

34

ROBEX — June 2018

Choice of entity

The form and substance of this bill changed drastically from inception to its final version. The one certainty that existed from the start was that C-Corporation income tax rates were going to be cut significantly. As a result, the number-one, client-asked question last summer and fall was whether conversion from a pass-through entity to a C-Corporation was beneficial.

The answer to this question then and now remains the same: “It depends.� While a number of questions need to be addressed to accurately assess a conversion, it can be analyzed at a high level assuming a business has enough earnings to be taxable at the highest tax bracket,

and that the owners desire consistent distributions.

Going forward, a C-corporation will pay income tax at a flat 21 percent. This leaves 79 percent of corporate profits to distribute. Once the corporation dividends out the profits, the owners are required to recognize income. Assuming the individual is in the highest income tax bracket, the dividends would be assessed a 23.8 percent tax rate.

The combination of the corporate tax rate and individual tax rate on dividends would result in the owners ultimately receiving 60.2 percent of the company profits in cash.

While C-Corporation tax rates were slashed from a high of 35 percent down to 21 percent (a potential www.robex.com

decrease of 40 percent for highly profitable corporations), individual rates were reduced from a high of 39 percent down to 37 percent. For large income individuals, there was a relatively paltry drop of 5 percent.

In order to make pass-through business entities competitive with C-Corporations, a new Pass-Through Deduction of 20 percent of Qualified Business Income was adopted.

This deduction calculation is performed at the individual level.

Joint filers with taxable income of $315,000 or less ($157,500 or less for all others) have a relatively simple calculation. Add up all qualified business income from all pass-through sources (effectively segregate business operation income from non-operations such as investments, capital gains, etc.)

and take 20 percent of the sum. This is the tentative deduction allowed to be taken against taxable income (“tentative” as it is further limited to 20 percent of the individual’s taxable income over any capital gains).

If the individual has income over $415,000 ( joint) or $207,500 (all others), further limitations exist in order to be able to realize the deduction. For starters, income from certain service businesses will not qualify at all (construction and real estate development qualify, but weep for your accountants and attorneys).

In addition, the amount of qualified business income allowable is limited to the smaller of (1) 20 percent of qualified business income, or (2) the larger of (a) 50 percent of W-2 wages, or (b) 25 percent of W-2 wages plus 2.5 percent of the original costs

basis of property currently being depreciated for tax purposes.

Essentially, for larger income individuals, they restricted the pass-through deduction to only be available on income from businesses with wages or large capital investments. Note that this limitation is performed at the business entity level, so they prevented individuals from utilizing wages of one business to claim this deduction on the income of another.

For my construction base, this limitation will be of concern in regards to joint ventures they have formed. Unless the joint venture has wages or a large number of fixed assets, it may be impossible to qualify their earnings for the pass-through deduction without restructuring the entire venture.

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Back to our original problem.

Full utilization of the pass-through deduction would result in a reduction in tax of 7.4 percent (37 percent top rate x’s 20-percent deduction). This translates to an overall top rate of 29.6

percent, resulting in the owner being able to keep 70.4 percent of their profits. Compared to the 60.2 percent of the C-Corporation owner achieved in our overly simplified example, the pass-through entity came out on top.

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ROBEX — July 2018

Craig Wallace (585) 704-7350 Paul Sorbello (585) 738-8646

So why are people still contemplating the entity conversion?

It all relates to the time value of money. While the pass-through entities will be assessed with a 29.6 percent tax rate in our example, C-Corporations will only be immediately assessed a 21 percent rate and can defer the additional tax on dividends until a distribution is made.

For pass-through owners able to make full use of the pass-through deduction, the resulting decrease from the previous high of 39 percent down to 29.6 percent represents a tax cut of nearly 10 percent. Even though the decrease is not as drastic as the corporate tax cuts, it still has a significant impact to the bottom line.

Depreciation

In line with the changes to tax rates, some more good news came in the form of depreciation. Previously, bonus depreciation allowed for the 50 percent immediate writeoff of all qualifying assets (brand new equipment, furniture, land improvements, and certain nonstructural building improvements).

Starting with assets placed in service after September 27, 2017, bonus qualifies for used as well as new property and allows for the writeoff of 100 percent of the cost of the asset.

Section 179 Deduction is another tool that allows for accelerated depreciation on qualified assets (equipment, furniture, and certain building improvements). The law has given a specified dollar amount that can be utilized to write off qualified assets immediately. The dollar amount has been increased from $510,000 to $1 million for the 2018 tax year. Given that bonus, depreciation will be 100 percent, Section 179 deduction is somewhat duplicitous in nature and can be more restrictive given that it cannot be used to generate an overall tax loss. However, starting in 2018,

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Section 179 can be utilized on improvements made to commercial property for the replacement of roofs, HVAC systems, fire protection systems, alarm systems, and security systems. None of these items qualify for bonus depreciation and therefore provide a great planning opportunity to utilize 179.

Interest expense limitations

Unfortunately, the law isn’t all unicorns and rainbows. Congress giveth and Congress taketh away. Up through 2017, with a few exceptions, businesses were able to deduct any interest expense they incurred. Going forward, business entities will be required to perform a calculation to determine if their interest expense deduction is limited.

The amount of interest expense allowable is capped at 30 percent of adjusted taxable income. For years 2018-2021, adjusted taxable income is basically defined as taxable income plus interest expense, depreciation, and amortization (EBITDA).

Starting in 2022, depreciation and amortization are no longer added back. Note that with all the accelerated depreciation now allowable, businesses may want to think about making certain capital investments prior to 2022 if the resulting depreciation will limit their ability to claim interest expense.

This calculation is performed at the entity level; thus an individual owning multiple business ventures cannot utilize the income from one entity to help claim interest expense on another. Any disallowed interest expense gets carried forward indefinitely.

There are some exceptions to this rule. Small businesses are specifically exempt from the interest expense limitation. A business would be considered small if the average of the past three years of gross receipts is under $25 million (note

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aggregation rules for commonly owned businesses apply). In addition, real property trades or businesses (construction qualifies) can make an irrevocable election to be exempt. The

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trade-off for those making the election would be that they would be forced to utilize slower depreciation methods on real property and qualified improvement property.

July 2018 — ROBEX

37

Healthcare

A Prescription for

Better Health

Insurance

P

38

ROBEX — July 2018

61%

BX Consortium

Covered Lives

by Year

Growth since 2013

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roviding health insurance is consistently rated as one of the most challenging cost drivers for our members. Most of our members are not large enough to self insure or seek alternative funding approaches for their health-insurance programs, such as contingent premium plans. That forces our members to be stuck in the small-group-community-rated pool or the block-rated pool for those with more than 100 fulltime employees, and less than 100 enrolled in their health insurance.

The larger employers with more than 100 enrolled employees often have steeper increases than the community due to adverse experience.

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“Joining the Builders Exchange Consortium saved us almost $300,000 in the first year alone. We also improved and broadened our plan offerings. I encourage you to check it out.”

Auto & Homeowners Insurance

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While health care costs and utilization will almost always go up, we have found ways to bend the cost curve for our members.

In 2013, Builders Exchange created an experienced rated health insurance purchasing group. The 13 initial members, which included four Builders Exchange Board Members, saw an initial savings of more than 20 percent. That was a rate decrease from the prior year add graphic on renewals! The program currently has 33 members, covers more than 4,000 lives and is ahead of communityrated plans.

Group purchasing is nothing new to business, or the construction industry. A number of health purchasing groups exist in the Rochester area. They cover a wide range of industry sectors including municipalities, school districts, not-for-profits, manufacturers, auto dealers and Builders Exchange www.robex.com

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Members. Multi-Employer Welfare Arrangements (MEWA’s) are great structures that allow each group member to make their own choices about plans offered and contributions. The Builders Exchange MEWA is fully insured. There is no joint and several liability. Each group member pays their premiums directly to the insurer; in this case Excellus is the carrier. The cost of insurance is based on the entire group’s experience, not an individual contractor. Each member is free to choose any or all of the five plan offerings. Each offering also includes four tiers of rates – single, single & spouse, single with children (no spouse), and family. This is a significant improvement for all the consortium members who typically only were able to offer one or two plans and limited pricing tier options for their employees.

July 2018 — ROBEX

39

“The Builders Exchange Consortium was a no brainer for us.

Together the company and our employees saved more than $250,000 and the ROBEX plans were better with more coverage.”

- James Hofford, HR Director, Wilmorite

How to join!

The Builders Exchange program is accessible to all members who have more than 25 employees. Potential members go through underwriting and if their individual risk is similar to the group experience, they will be allowed by the carrier to join.

Underwriting and the program bylaws requires that your firm sign a broker authorization letter with Brown & Brown. Brown & Brown will represent you through the underwriting process and will be your health insurance broker if you decide to join the group.

We recognize that changing brokers may be disruptive and will review any concerns with you. It is not uncommon for potential members to have to go through underwriting two to three times before they can be admitted into the program. This is due to the current strong performance of the purchasing group and the need to protect existing members from picking up additional risk. Once a member of the purchasing group, firms are allowed to stay regardless of their experience.

When can I join?

If you renew on January 1, we suggest going through underwriting in July or August. An underwriting approval is valid for six months.

Starting early allows for a second review if needed, due to experience, and provides time to make changes with existing programs. It also avoids the last-minute flurry of activity in late fall, during which underwriting approvals can be slow to materialize.

Some firms choose to purchase insurance right away after approval and others wait until their renewal date. We expect 30 to 50 firms to go through underwriting during this renewal cycle, and about half are likely to get approved to join.

For more information, contact Brian Hart at brian.hart@ bbrochester.com, or Kim Gaylord at kim@robex.com.

It’s about so much more than insurance policies......at Haylor, Freyer & Coon we take a “Total Solution” approach to your business.

• • • • • • •

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Integrating safety into business operations Ensuring OSHA compliance Building sustainable loss control programs Workers’ compensation consulting services Claims management Self Insurance / Captive analysis Employee Benefits

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Contact Cindy Bostley, CRIS, CIC cbostley@haylor.com 585-641-7028 www.robex.com

A Worthy Cause

Sober

42

ROBEX â&#x20AC;&#x201D; July 2018

www.robex.com

ROCovery Fitness is a nonprofit peer-led sober active community committed to healing

Living Through Fitness

and recovery from addiction. We are a nationally recognized Recovery Community Organization by Faces and Voices of Recovery (National Association of Recovery Community Organizations).

ROCovery

is the only program of its kind in the state of New York and the second in the country. We are a supportive and nurturing environment free of stigma, judgment and shame. ROCovery is a free program open to anyone who has a minimum of 48 hours of continuous sobriety. Our members are not only individuals in recovery, they are also the families and friends who support our mission. They have become not just recovery allies, they are recovery advocates.

In 2017, ROCovery was the recipient of the ESL Jefferson Award, was recognized by the Federation

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of Social Workers for Outstanding Contribution, and received the National Council on Alcoholism and Drug Dependence â&#x20AC;&#x201C; Rochester Area Community Collaboration Award.

We follow an evidence-based, trauma-informed organization out of Colorado called The Phoenix.

The Phoenix was founded by Scott Strode in 2006 and has reached more than 22,000 people affected

by Substance Use Disorder.

Their outcomes are overwhelmingly positive. Based on a survey they distributed in 2012, 73 percent of people that went to The Phoenix stay clean and sober, 93 percent saw an improvement in their physical health, 91 percent in their mental health, and 91 percent July 2018 â&#x20AC;&#x201D; ROBEX

43

in their quality of life. ROCovery Fitness is modeled after The Phoenix and has been mentored by Scott since inception.

ROCovery Fitness was founded

by Yana Khashper and Sean Smith.

Yana is originally from New York City and has been in western New York since 2012. Yana is a Licensed Clinical Social Worker with extensive experience in trauma, addictions, and mental health. She graduated Magna Cum Laude from New York University and went on to work with The New York City Fire Department Counseling Unit.

She focused on providing services to firefighters and emergency personnel of the FDNY who were impacted by the World Trade

Center tragedy and other disasters.

When she entered recovery, she experienced a sense of loss, lack of purpose and overwhelming sense of emotional pain. It was not until she found nature, physical activity and exercise that she felt a sense of freedom and regained purpose in her life.

Sean was born and raised in Rochester, and has been around the world in the last 18 years serving in the U.S. Army. Since entering recovery at the age of 37, Sean became a U.S. Army Ranger and went on to compete in the Best Ranger Competition three years later. He has an Associate’s Degree in Addictions Counseling and is a Certified Peer Recovery Advocate.

Since getting sober, Sean has been able to rediscover the wonders of nature and the thrills he once found being outside and exploring the world. Physical fitness and leading an active and healthy lifestyle have been extremely important to his recovery. They provide him with the inner peace that had been missing for so long.

ROCovery Fitness started by accident during the winter of 2015, the coldest winter on record in Rochester. Yana and Sean knew they were on the brink of relapse; they had been here before and knew all too well how it would end. They were isolated in their apartment; not doing what they needed to do to treat their recovery. Out of sheer

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desperation, they decided to try something different. They went on a hike. They posted their hiking plans on social media with an open invitation to anyone who would like to come. On this said COLD day, at this said COLD park, people came out for said hike. What they noticed was that most of the people in attendance were in recovery.

Yana and Sean noticed that their moods changed, as well as the mood of many of the other hikers. They were no longer cold or irritable. They weren’t thinking of drinking or using drugs. They were laughing, smiling and enjoying the serenity of the great outdoors.

One of the hikers asked if the group could do it again, and that was

the start of what would become ROCovery.

With weekly hikes, morning and park workouts, kayaking, cycling and so much more, we became New York’s first and only sober active community. We are a place where clean and sober is the norm.

In May of 2017, an incredible angel donor gave us a building; a former firehouse built in 1910, which we made into a sober clubhouse and wellness center.

ROCovery is funded solely through private donations and grants. All of our programs are volunteer-run. We currently have four paid staff members hired in 2017, which allows us to run programs seven days a

week, multiple times a day. We reach approximately 200 unique individuals each month and average 1,000 people each year.

Recovery is possible. It is not only possible, it is fun. So much fun. We no longer have to hide.

We embrace and celebrate our lives as individuals in recovery who have overcome adversity and found a better way. Join us on this beautiful journey.

Visit rocoveryfitness.org for more information, our membership questionnaire, calendar of events, pictures and much more. We can’t wait to have you join our ROCovery family and GET BUSY LIVING SOBER.

#MakeConstruction GreatAgain If you want the same long accounts receivables – keep asking for your check.

If you want to get paid – ask for BuildPay. Built to work the way you do; BuildPay protects your hard-earned payment, without any fees!

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1 (844) 303-5123 July 2018 — ROBEX

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SAFETY Zone

CYBER

ATTACKS The NEW Silent Killer of Construction & Contractor Businesses From accessing and locking your computer network to stealing private information, cyber hackers are targeting the construction industry.

Feature your business in the next issue of

ROBEX MAGAZINE Contact Tim Braden (800) 344-0559 tbraden@fwpi.com

46

ROBEX â&#x20AC;&#x201D; July 2018

by Nick Getty

I

f at any point during the work day you connect to the internet, you and your company are at risk of a cyber attack that could destroy your business.

In a survey by the Ponemon Institute, it was discovered that 55 percent of small businesses, including contractors, have experienced some sort of recent breach. This number is only set to increase in the years to come.

What does this mean for organizations within the construction and contracting world?

Many people are still under the assumption that the construction industry is not at risk for a cyber attack because criminals are only

looking for personal information, such as credit card data, that construction companies do not usually keep on record. This is no longer the case.

In regards to the construction industry, hackers can bring projects crashing to a halt by infiltrating continued on page 48

continued from page 46

computer networks that hold information that is critical to the company’s operations.

Examples of the types of information that are attractive to cyber-attackers include the following.

• Blueprints and project plans • Trade secrets • Employee information including benefits packages • Financials and payroll • Vendor and third-party data

Previously, members of the construction industry did not believe that a cyber-attack could happen to them. But now it doesn’t matter how valuable their information is for cyber criminals selling on the black market. It now only matters how valuable that information is to the company itself.

What happens when you realize you have been attacked by a cyber hacker?

You turn on your computer to pull up project details and it turns out your network has been shut down by a cyber criminal who is now holding your data for a ransom that you cannot and do not want to pay.

What happens next?

There are a couple of things.

OPTION 1: You pay the ransom.

There is no guarantee that this will unlock your information.

Additionally, it doesn’t reverse the impact of stolen information. You might have your own data back, but

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you still have to notify everyone who could have been affected about the details surrounding the attack (it is against the law not to notify those affected in 46 states).

OPTION 2: You contact a computer information systems technology expert to unlock or regain your data.

Sure, this may work to recover your information. But, it is VERY costly.

It may be even more expensive than paying the ransom.

Rob Coppola, senior account executive & manager at Lawley Construction Insurance, says “In 2017, one of our clients got hacked.

A local construction company based in Buffalo found out that it was shut down by a cyber criminal, when suddenly all of the information on its computers was being held at ransom for $15,000. This situation literally stopped all of their ongoing projects and halted the entire company.

Because they did not want to pay the ransom, they ended up having to hire an outside IT specialist. Having the specialist come in was even more expensive than the ransom. They got their information back, but suffered a loss of time and revenue because of the attack. Plus, they had to make all affected parties aware of the attack.”

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How can you defend your company from a cyber attack?

There is no way to completely prevent your network from being compromised. However, there are certain steps you can implement to help amp up your defense.

Keep all of your own technology updated.

And, check out your third-party vendor’s software as well. From antivirus programs to computer servers, all technology and software related to your network should be reviewed annually. This ensures all protections www.robex.com

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are up to date and doing their job to keep your data safe.

In 2013, Target was the victim of a cyber-attack. It was later found that Target’s breach could have been prevented if their HVAC contractor hadn’t let their anti-virus software expire.

Educate your employees.

Most hackers are able to get into your network because of employee/ human error. What is human error?

A prime example is clicking a link in an email that turns out to be a “phishing scam.” Emails phishing for

information are difficult to spot, so it is important to train and educate anyone working or emailing from your network on how to notice malicious phishing schemes.

Protect your company with cybersecurity insurance.

Because cyber criminals are relentless and are constantly searching for a weak spot in your defense against them, one of the best defense options is to purchase cybersecurity insurance. Having this coverage can help you recover from an attack in many ways, particularly in regards to your finances and reputation. At Lawley, we have a team of insurance professionals who know how cybersecurity insurance specifically affects the construction industry. By putting coverage in place you can protect your data, projects and reputation.

Don’t let your company collapse because of a cyber-attack.

Put a proactive plan in place to keep you and your assets protected.

If you need help, give the team at Lawley a call. Our construction and cyber security professionals know your business inside and out, so we can protect you from every attack, cyber or not. We’ve been able to help clients bolster their defenses and guide them through what needs to happen after a cyber-attack has occurred.

As a Loss Control Consultant for the Risk Management department at Lawley Insurance, Nick is responsible for providing loss control technical consultations and evaluations to new and existing clients through evaluation of client hazards and controls. In addition, Nick’s expertise allows him to generate recommendations and implement safety programs to reduce clients’ insurance costs.

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700 hours of training

Meet

David

34 years painting experience – 20 years as commercial painter Graduated from West Irondequoit High School Active cycler and snowboarder Supported hundreds of local construction projects Enjoys spending time at family cottage in Cape Cod Currently working on renovations at Three City Center Contributes a percentage of his wages to United Way and the Point Pleasant Fire Department Has worked at R.W. Dake for 20 Years

David is a proud member of Local 150 and happy to work for a union contractor that is a member of the Construction Industry Association of Rochester.

When you hire a union contractor, you’re working with the industry’s most knowledgeable and highly skilled workforce that will deliver the highest level of quality workmanship, while ensuring your project will be completed on time and on budget.

It all adds up to a contractor partner that is committed to providing the best return on your project investment.

See what a hiring a union contractor can do for your next project.

Visit ciar.biz.

David Wood, R.W. Dake & Co., Inc. Member Local 150

ECONOMIC Development

GRE

is a not-forprofit economic development organization supported by private and public-sector leaders dedicated to improving economic performance throughout our ninecounty region. Our purpose is to position the Greater Rochester region as one of the most innovative regions in the world, to attract new investment and economic growth. GRE collaborates with local businesses, universities, not-forprofit organizations and government leaders to support entrepreneurship, innovation, business attraction and expansion throughout the region.

GRE connects business executives with resources throughout the region including real estate, research and development assets, local supply chain, business partners, 52

ROBEX â&#x20AC;&#x201D; July 2018

potential incentives, workforce recruitment and training and entrepreneurial support.

When you list all the things the Greater Rochester region has to offer, it may seem a bit unbelievable.

Top-tier talent, natural resources, world-class colleges and universities, fantastic location near major markets and a low cost of living?

The reality is, the Greater Rochester region does have real talent, real collaboration, real access to markets and real opportunity to offer growing businesses.

The GRE team has successfully managed hundreds of different business attraction and expansion projects since the organization was established more than 15 years ago. Companies such as American Packaging Corporation, Barilla America, FedEx, HP Hood, LiDestri

Food and Drink, Maximus, Muller Quaker Dairy, OFD Foods, OmniID, ON Semiconductor, Quintel Technologies, Pride Pak and Seinsenbacher Rail Chemistry have collectively spent more than $1 billion on new capital investments constructing and outfitting new manufacturing plants and operation centers or updating existing facilities while hiring more than 7,800 workers. Thus far this year, Ambrell, EmployeeChannel, IEC Electronics, Innovative Solutions, LiveTiles, and Qualitrol have announced plans to investment $43 million, create 900 new jobs and retain more than 800 jobs in the region.

In addition to attracting new companies to the region, organic economic growth comes from supporting the companies that already have a presence in Rochester.

GRE supports existing companies www.robex.com

in the region through a unique, nationally recognized Economic Gardening program designed to provide strategic research to privately held companies with 10 to 99 employees and $1 to $50 million in revenue.

Since 2012, GRE has served 137 companies through this program. Companies who completed the program report more than 900 new jobs and $170 million of increased revenue.

We’re always accepting new applications for this program.

Business leaders are drawn to Greater Rochester because of the highly skilled and affordable workforce. There are 19 colleges and universities located in Greater Rochester, which educate more than 83,500 students and graduate 19,000 students each year. This provides resources to support our future talent pipeline. In fact, the region ranks third in the nation for college degrees conferred per capita.

Rochester generates more patents per resident, attracts more external research, and has more professionals trained to excel in this knowledge-based economy than communities three times our size. From legacy companies like Xerox, Bausch & Lomb, and Eastman Kodak to today’s leading-edge, high tech companies, our region innovates like no place else. Innovations such as cancer-preventing vaccines and the technology supporting missions to Mars were created by highly skilled talent in the Greater Rochester region. When measured by educational attainment levels and patents generated annually, the Greater Rochester region offers the highly skilled workforce necessary to compete in a knowledge-based economy.

These new advancements build on the long legacy of innovation that is inherently part of Rochester’s DNA.

Our transformation is not limited to one or two sectors but rather includes many high-tech industries from optics and photonics, advanced manufacturing, data science, agriculture and food processing to game design, life science, material science and information technology. In addition, strong regional competency in the areas of radiofrequency identification (RFID), sustainable packaging, drone technology, high-performance computing, software development, and data analytics can help companies develop the “marketplace of tomorrow” which is necessary to compete in a global economy.

The Greater Rochester region has an abundance of resources essential for sustainable, long-term growth and development. There’s a bold kind of rule-breaker spirit powering the entrepreneurial explosion that’s growing jobs, driving private investment and spearheading the revitalization revolution throughout the Greater Rochester region. Abolitionist Frederick Douglass and women’s-rights crusader Susan B. Anthony both knew that real change required a new way of thinking. That innovative, rulebreaking spirit is just as strong today in the city they called home. www.robex.com

Check out our upcoming events - from jobsite tours and educational seminars to happy hours and sporting events! www.robex.com/jbx

With a vested interest in your success, trust us to give you the best service possible!

Tax Preparation • Full Service Accounting • Bookkeeping CFO/Controller Services • Business Valuations ROBEX members receive a complimentary, one-hour consultation.

Call (585)292-1041 to get started.

1200 Jefferson Road, Suite 300, Rochester, NY 14623 July 2018 — ROBEX

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index of advertisers

JULY 2018

We would like to thank our advertisers for supporting ROBEX Magazine.

Please let our advertisers know you saw their ad in this issue.

AAC Contracting.............................................................................. aac-contracting.com....................................39 Advanced Thermal Technologies............................................advancedthermaltech.com............Inside front cover Altra Rental & Supply.................................................................................altrarental.com.............................. 28-29 B & L Wholesale Supply..........................................................................blwholesale.com....................................32 Boulter Industrial Contractors...................................................................... boulter1.com....................................23 Brown & Brown Insurance of New York Inc....................................... bbnyinsurance.com....................................11 Build Pay.................................................................................................. gobuildpay.com....................................45 C & A Pavement Markings.................................................. .capavementmarkinginc.com......................................8 C.P. Ward........................................................................................................cpward.com......................................5 CIAR........................................................................................................................ciar.biz....................................51 Emergent Safety Supply.............................................................................stub-ease.com....................................44 Ernstrom & Dreste............................................................................................ ed-llp.com....................................20 Fitch Construction...........................................................................fitchconstruction.com....................................24 Five Star Equipment...................................................................... fivestarequipment.com........... Inside back cover Frederico Demolition...................................................................fredericodemolition.com....................................25 Haylor Freyer & Coon....................................................................................... haylor.com....................................40 Hojack Park.............................................................................................. hojackpark.com....................................46 IV4..........................................................................................................rspoont@iv4.com....................................21 Junior Builders Exchange............................................................................robex.com/jbx....................................53 Laborers Local #435....................................................................................... local435.org......................................7 Lakeside Building Products................................................lakesideroofingandsiding.com....................................13 LB Bonds & Insurance...................................................................................lbbonds.com....................................39 LeChase Construction................................................................................... lechase.com....................................21 Loewke Brill Consulting Group..................................................................loewkebrill.com......................................8 Lovell Safety Management Co................................................................. lovellsafety.com......................Back cover Matthews & Fields Lumber Company.........................................................mflumber.com....................................49 Mossien Associates Architects.................................................................... mossien.com....................................17 Nothnagle Drilling............................................................................ nothnagledrilling.com....................................16 Piedmont Equipment.............................................................piedmontequipmentinc.com....................................50 R.M. Landscape....................................................................................rmlandscape.com....................................26 Redman Construction............................................................... redmanconstruction.com....................................48 Roadtek...............................................................................................roadtekpaving.com....................................17 Rochester Davis-Fetch Corp..............................................................davisfetchcorp.com....................................27 RSMP.......................................................................................................... rsmpnews.net......................................9 Samson Fuel............................................................................................ samsonfuel.com....................................47 Sessler Environmental............................................................................... sesslerenv.com....................................41 The Bonadio Group.......................................................................................bonadio.com....................................37 Upstate Roofing & Painting..............................................upstateroofingandpainting.com....................................16 USA Payroll............................................................................................... usapayroll.com......................................6 USI......................................................................................................................... usi.com....................................35 Wayside Contractors.................................................................. waysidecontractors.com....................................36 Weckesser Brick Co..........................................................................weckesserbrick.com....................................33 Welker...................................................................................................... welkercpas.com....................................53 West Fire Systems............................................................................westfiresystems.com....................................19 World Wide Bonding Agency..................................................................wwbagency.com....................................49 54

ROBEX â&#x20AC;&#x201D; July 2018

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