December 2013

Page 1

Guam Contractors’ Association


Peace be with you!

Vol.54 Issue 12 DECEMBER 2013



Feature Story

2 | DECEMBER2013















Around the Bench

At Hawaiian Rock Products, we are always ready to meet your FRQVWUXFWLRQ QHHGV :H KDYH D รฑHHW RI RYHU FRQVWUXFWLRQ YHKLFOHV DQG D ZRUNIRUFH RI RYHU HPSOR\HHV :H RSHUDWH VWDWH RI WKH DUW IDFLOLWLHV VWUDWHJLFDOO\ ORFDWHG WKURXJKRXW WKH LVODQG ZLWK WKH FDSDFLW\ WR IXOรฐOO DQ\ SURMHFW VL]H UHTXLUHPHQWV 2XU YDVW รฑHHW RI HTXLSPHQW FRQWLQXHV WR H[SDQG DORQJ ZLWK WKH JURZLQJ QHHGV RI WKH LQGXVWU\ :H DUH KHUH WR SURYLGH \RX ZLWK WKH TXDOLW\ SURGXFWV DQG VHUYLFHV you need, when you need them. In Guam, we have the following list of batch plants: t "HBU $PODSFUF #BUDI 1MBOU produces 250 Cubic Yards per hour t "OEFSTFO $PODSFUF #BUDI 1MBOU produces 100 Cubic Yards per hour t .BOHJMBP 'BDJMJUZ houses two (2) of the most modern 300 Cubic Yards per hour Concrete Batch Plants t #SBOE OFX "$ 1MBOU capable of producing environmentally friendly asphalt mixes and recyclable asphalt "41)"-5 $0/$3&5& $0/4536$5*0/ 3&4063$& รท $VSKDOW %DWFK 3ODQWV รท $VSKDOW 6SUHDGHUV รท $VSKDOW 'LVWULEXWRU รท 3QHXPDWLF 7LUHG 5ROOHU รท 9DFXXP 7UXFN DQG $LU 6ZHHSHU '-&&5 0' &26*1.&/5 รท 50& 7UDQVLW 0L[HUV รท 'XPS 7UXFNV รท &RQFUHWH 3XPSV รท &HPHQW DQG 7UDFWRU 7UDLOHUV รท (QG 'XPSV รท /RZ %R\V




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THEDIRECTORS PRESIDENT James A. Martinez, GCA PAST CHAIRMAN Robert Salas, Landscape Management Systems CHAIRMAN - ELECT Tom Anderson, Black Construction Corporation VICE CHAIRMAN - ELECT Art Chan, Hawaiian Rock Products SECRETARY/TREASURER John Sage, WATTS Constructors CONTRACTORS DIRECTORS: Narci Dimaoala, Amazon Construction Juno Eun, Core Tech International Tom Nielsen, Maeda Pacific Corporation Tom San Nicolas, dck pacific guam LLC John Robertson, AmOrient Contracting ASSOCIATE DIRECTORS: Paul Calvo, Calvo’s Insurance Underwriters Carlo Leon Guerrero, M80 Office Systems Inc. Patty Lizama, Pacific Isla Life Ray Yanger, Matson Navigation

THEEDITORIALS Guam Contractor’s Association (GCA) in conjunction with AdzTech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA. While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, staff, GCA members, GCA Board of Directors and advertisers. For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive, Suite 203, East West Business Center, Upper Tumon, Guam. To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.

Guam Contractors Association

THETEAM PUBLISHER: James Martinez SALES & MARKETING DIRECTOR: Geri Leon Guerrero AD SALES: Tom Mendiola PRODUCTION: Geri Leon Guerrero Christopher “Taco” Rowland PHOTOGRAPHERS: Christopher “Taco” Rowland Celia Wu EDITOR: Adztech CONTRIBUTING WRITERS: John Robertson David F. Macaluso Ted Garrison

GCA STAFF: Francine Arceo Desiree Lizama COVER: Peace Festival Government House


2nd Annual


On Wednesday, November 27th, the University of Guam’s PreEngineering Program, led by Professor Reza Moradi conducted Guam Post has been very involved in UOG’s Engineering program. Each year, they hold the Charlie Corn Golf Tournament to raise funds for local aspiring engineering students. Last year alone, SAME awarded over $23,000 in scholarship money. In a continued show of support, members of SAME Guam Post were invited and attended the competition.

of the spaghetti bridge could be no more than 1.0 kg and must

able to withstand the heaviest load before failing wins the compebookstore voucher. While the competition was a challenging one, two teams were able to come out on top and win the prize.

Photos/Data courtesy of University of Guam 6 | DECEMBER2013



Dema-ala, Nathaniel Lizama, Roggie Vitug, Aydan Gagaring

Above: Roggie Vitug, Nathaniel Lizama, and Aydan Gagaring

Team members above: Joseph Tydingco and Kevin Dema-ala Above: Abriel Calingo, Anthony Layco and Douglas Helgenberger

Using a little “body English” to gain advantage.

UOG Engineering Students

To join SAME Guam Post, log on to and click on “Membership” at the top of the home page.


DECEMBER2013 | 7


Military, Government and Labor Relations Committee Update – December 2013

Tensions Mount over Control of the East China Sea

By John M. Robertson

The U.S. and Japan moved swiftly to warn China to refrain from escalating territorial tensions in the East China Sea, after Beijing stepped up the ante in its dispute with Tokyo over the Saturday 23rd November declaration of a new air defense zone covering islands claimed by both nations. Hours after China unveiled its new air defense identification zone, or ADIZ, on Saturday, warning of military action against foreign aircraft that don't honor its enforcement, U.S. Secretary of State John Kerry and Secretary of Defense Chuck Hagel sharply criticized China's action and reiterated Washington's commitments to defend Japan in case of a conflict.

The announcement from Beijing created an extensive area of overlap between Chinese and Japanese air defense zones (see map), heralding a potentially dangerous new phase of the territorial dispute over the uninhabited Senkaku Islands, which are controlled by Japan but claimed by China and Taiwan, where they are known as Diaoyu. A senior U.S. official said Sunday there would likely be a demonstration of American military resolve to continue operating in the area of the islands without Chinese interference. The unspecified display isn't likely to involve a direct military confrontation. The U.S. moved forcefully, however, to try to counter China's bid for influence over increasingly jittery Asian neighbors by sending a pair of B-52 bombers over disputed islands in the East China Sea, U.S. officials said Tuesday. The B-52s took off from Andersen Air Force Base in Guam and flew more than 1,500 miles northwest, crossing into what China has declared as its new air-defense identification zone, at about 7 p.m. ET Monday. The U.S. deliberately violated rules set by China by refusing to inform Beijing about the flight, officials said. China had warned of military action against aircraft entering the zone

without notification, but didn't respond to the B-52s, which weren't armed and were part of a long planned military exercise. A U.S. official said there was no attempt by the Chinese military to contact the B-52s. "The flight was without incident," a U.S. official said. Wednesday morning, in Beijing's first public comment on the flight, the Ministry of National Defense said in a faxed response to The Wall Street Journal that the Chinese military monitored and identified the U.S. aircraft. It also said that China would identify all aircraft entering the zone and has the capability to exercise "effective control" of the zone. The ministry said the U.S. military aircraft had flown on the eastern edge of the new Chinese zone, about 120 miles from the disputed islands. By challenging a direct military warning, the U.S. flight risked a potentially destabilizing response by the Chinese. But the move also may have calmed tensions in the region by reassuring U.S. allies and keeping tempers in check in Japan, South Korea or other countries, Pentagon officials and defense analysts said. The U.S. test was the outgrowth of months of growing tension in which China and its smaller neighbors have been jostling for control of waters with plentiful fishing stocks and potentially rich hydrocarbon reserves in the East China Sea and South China Sea. Beijing and Tokyo have competing claims to a group of islands in the East China Sea, and China moved over the weekend to solidify its standing by declaring the air-defense zone, which encompasses the disputed islands, requiring aircraft to report in before entering the zone. The U.S. and key Asian allies, including Japan and South Korea, criticized the requirements as a power grab by Beijing, and the Pentagon vowed to show it wouldn't be bound by them. That demonstration came when the B-52s flew over the area without the required notification to Beijing. U.S. officials stressed that both the exercise and flight path were long planned. A senior defense official said that Secretary of Defense Chuck Hagel, who was briefed on the exercise, had made clear over the weekend that the U.S. should continue to fly over the islands.

8 | DECEMBER2013


flights into the zone, whereas Japan and South Korea told their airlines not to make such notifications. At the very best, these are mixed, and therefore dangerous, signals. Beijing's new zone over the islands the Chinese call the Diaoyu, along with the government's broader territorial claims, is indicative of a much larger problem for the United States. How to Answer China's Muscle-Flexing (by former U.S. diplomat Mr. John Bolton and senior fellow at the American Enterprise Institute)

futures. Simply ignoring the bad news won't work. Here are three building blocks for a more realistic U.S. strategy on China. First, since China's principal theater of action for decades will be Asia, that must also be the focus of America's response. China's territorial claims, and now the air-defense zone, provide Washington with an enormous opportunity to maintain and expand its influence along China's periphery, from India to Japan. Whether we have the wit to exploit this opportunity remains to be seen. Ideally, the U.S. would benefit from something akin to an alliance system among our friends and allies, currently a far-fetched goal given, for example, tensions between South Korea and Japan. Contemporary Japanese-Chinese disputes are mirrored in Seoul-Tokyo arguments over seemingly useless islands and reefs, reflecting even deeper historical grievances and animosities. Nonetheless, America alone can provide the support necessary to resist Chinese hegemonism, which essentially all Asian governments recognize. They would welcome a stronger, more visible, Washington role, even if they won't necessarily say so expressly in today's uncertain and dangerous environment.

A view of some of the disputed islands in the East China Sea

In Japan, commercial air carriers were caught in the middle, with Tokyo pressuring them to ignore China's request for cooperation. Japan's aviation authorities Tuesday ordered the national airline association to disregard a Chinese request for the flight plans of all flights that pass over the area in dispute. Japan's move shows that Tokyo is determined to take a tough line in the territorial dispute. This is as was discussed in the November issue of the Construction News Bulletin. Vice President Biden’s Japan visit

According to former U.S. diplomat John Bolton, for too long, American business and political leaders have accepted the notion that China is engaged in a "peaceful rise" to become a "responsible stakeholder" in world affairs, which we should placidly allow to happen. Instead of fantasizing about what China might become, it is far more sensible to consider what America's strategy should be under a range of possible scenarios. The rosy "peaceful rise" theory ignores countless other possibilities, particularly its polar opposite.

China's declaration on November 23rd of an air-defense identification zone over the Japanese-held Senkaku Islands in the East China Sea transformed Vice President Joe Biden's Asia trip during the first week of December. Mr. Biden's main objective in meeting with Japanese Prime Minister Abe on Tuesday was to assure him that America opposes China's belligerent, unilateral action in asserting the defense zone. Although Mr. Biden publicly criticized the defense-zone announcement, he did not expressly reject it. Moreover, the administration earlier advised U.S. commercial airlines to notify China of

The People's Liberation Army remains the dominant force within the Communist Party, and the party remains the dominant political (and major economic) force in China. That explains Beijing's sustained increases in military budgets; its expanding nuclear and ballistic-missile arsenals; its unmatched cyber-warfare program; its construction of a bluewater navy; and its anti-satellite, anti-access and area-denial weapons systems. These aren't the marks of a "peaceful rise," especially combined with Beijing's aggressive territorial claims. America urgently needs strategic thinking about China's radically different alternative

Taiwan has an interesting potential role. Although its territorial claims mirror Beijing's, Taipei could gain substantial support for its unique status from its Asian neighbors, thereby reducing its international isolation, by distancing itself from China's current assertive posture. For example, Taiwan could say publicly that it does not recognize Beijing's defense-zone declaration, and that it wants to confer with Japan, South Korea and others to align their responses. So doing would serve notice that Taiwan won't accept being declared part of China's next power projection. Second, China's military growth demonstrates persuasively why the U.S. can no longer countenance massive militarybudget cuts. We need superior Pacific Ocean air and naval power to counter Chinese aggressiveness, but we also need capabilities in the Middle East, the North Atlantic and elsewhere against other potential threats. Beijing doesn't have to match America's military capabilities world-wide to equal the U.S. off China's shores. Accordingly, allies who pulled their weight in meeting common-defense needs would certainly help. Most of Europe may be beyond redemption, but Japan is poised to resume


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U.S. defense officials said there would be further military exercises in the area, and acknowledged it is possible that China could attempt to contact or intercept the aircraft involved in future flights. Officials said the military's Pacific Command routinely prepares for contingencies, but that planners didn't think it was likely that China would attempt to challenge the flight. U.S. military planes often ignore the air-defense zones of non-allied countries, and frequently respond to any radio hail by asserting the right to operate in an international air space.


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a normal nation's full self defense role, something Washington should welcome.

Chinese leaders, adding that China's move was deeply concerning.

against North Korean aggression. Period," he said in his speech.

Third, the U.S. and its allies should press China to join a vigorous campaign to counter the proliferation of weapons of mass destruction by North Korea, Iran and others. Pyongyang's nuclear and ballisticmissile capabilities have fueled enormous concern in East Asia. While China has the heft to bring North Korea to heel, Beijing's persistent failure to do so signals that it is not as interested in solving the problem as its rhetoric indicates.

"This action has raised regional tensions and increased the risk of accidents and miscalculation," Biden said in Tokyo Tuesday after meeting with Japanese President Shinzo Abe. Japan has been on edge for the past two weeks since China unilaterally declared any planes flying through the zone must file flight plans with Beijing. The airspace sits atop tiny islands that are at the center of a long-running territorial dispute between China and Japan. The U.S. refuses to recognize the zone, but Biden has avoided calling publicly for Beijing to retract it, wary of making demands that China is likely to snub. Rather, the vice president hoped to persuade China not to enforce the zone or establish similar zones over other disputed territories.

In his talks with Park, Biden stressed there would be no change to President Barack Obama's security strategy with its emphasis on a "pivot" towards Asia in recognition of China's growing military power. "I want to make one thing absolutely clear: President Obama's decision to rebalance to the Pacific basin is not in question," Biden said at the start of the Park meeting. "The United States never says anything it does not do. It's never been a good bet to bet against America... and America will continue to place its bet on South Korea," he added. "America is a Pacific power -- a resident Pacific power -- and we are going nowhere. Nowhere."

No wonder, therefore, that Tokyo and Seoul look to their own military capabilities, including missile defense, to protect themselves against Pyongyang and Beijing's growing nuclear arsenal as well. Nor ha China's interest in Iran's oil reserves helped in containing Tehran's nuclear program. Vice President Biden’s Beijing visit Emerging from a meeting with Chinese President Xi Jinping, Vice President Joe Biden said on Wednesday that U.S.-China relations depend on trust and a positive notion of each other's motives. Neither leader made public mention of a major clash over disputed airspace that's pitted China against the U.S. and its Asian allies. Appearing somber and subdued, Biden said the relationship between the two major powers will significantly affect the course of the 21st century. If the U.S. and China can get that relationship right, the possibilities are limitless, Biden said as reporters were allowed in briefly after he met with Xi in Beijing. This, according to an Associated Press report. This new model of major country cooperation ultimately has to be based on trust and a positive notion about the motive of one another," Biden said. Biden said he had come to Beijing because complex relationships require sustained engagement at high levels. He said Xi's candor and constructive approach had left an impression on him. "Candor generates trust," Biden said after a meeting that ran more than an hour longer than scheduled. "Trust is the basis on which real change — constructive change — is made." The two leaders had a second meeting involving larger delegations and a working dinner planned for later Wednesday. Absent from Biden's comments was any discussion of U.S. concerns over China's new air defense zone. Only a day earlier, Biden pledged to raise those concerns "with great specificity" with Xi and other

12 | DECEMBER2013

After meeting with Biden, Xi said the U.S.China relationship had gotten off to a good start this year "and has generally maintained a momentum of positive development." But he said the global situation is changing, with more pronounced challenges and regional hotspots that keep cropping up. "The world as a whole is not tranquil," Xi said through a translator, adding that the U.S. and China shoulder important responsibilities for upholding peace. "To strengthen dialogue and cooperation is the only right choice facing both of our countries." Added Biden, "The way I was raised was to believe that change presents opportunity." Vice President Biden’s Seoul Visit U.S. Vice President Joe Biden arrived Thursday in Seoul, his final stop on a three-nation Asian tour that has tested Washington's ability to keep tensions between China, Japan and South Korea from spilling over. Vice President Biden said Friday there should be no doubt about America's commitment to its strategic shift to Asia as he wound up a regional tour dominated by security concerns including the new Chinese air defense zone. In talks with South Korean President Park Geun-Hye and later in a speech at Seoul's Yonsei University, Biden reiterated US opposition to the Chinese zone which has fuelled regional tensions -- especially between Beijing and Tokyo. At the same time, he underlined the regional -- and global -- unity in the face of the "clear and present danger" of North Korea's nuclear weapons program. "Let there be no doubt, the United States is committed to do what it takes to defend our allies and ourselves


President Park pressed Biden on China's new "air defense identification zone" (ADIZ) which, as well as inflaming Beijing's territorial disputes with Japan, also overlaps South Korea's own ADIZ. Seoul has threatened to expand its ADIZ in retaliation. The United States is consulting South Korea about that, as it seeks to calm what is already a dangerously volatile mood in the region. Park said Biden's trip to the region would be "of much help for peace" in Northeast Asia. "We are at a point in time when the situation in Northeast Asia is very fluid and tensions in the region are escalating," she said. Acknowledging the "considerable apprehension" triggered by China's declaration, Biden stressed anew that Washington did not recognize the new zone. However, as on his visits in Tokyo and Beijing, he stopped short of demanding that China rescind its decision. Tensions in the region are at their highest in years, with China and Japan squaring off over a chain of uninhabited islands in a feud that has some observers warning of the danger of an armed confrontation. While reassuring South Korea of US support, Biden's university speech clearly referenced Washington's desire for Seoul to pursue better relations with Tokyo. As the battle for influence in Asia between China and the United States heats up, Washington wants its two main military allies in the region on board and undivided. But South Korea and Japan are going through one of their regular diplomatic freezes, with Park refusing to even talk to Prime Minister Shinzo Abe until Tokyo apologizes for a host of historical grievances related to Japan's 1910-45 rule over the Korean peninsula. "The entire region will be more stable and


more secure if the leading democracies -Japan, South Korea and the United States -- are able to improve their relations and cooperation with one another," Biden said. Taiwan China's announcement also prompted expressions of concern from Taiwan—the island China regards as a rebel province. Taiwan's government was "highly concerned", according to a joint statement from its ministries of defense and foreign affairs and the Mainland Affairs Council, which handles relations with Beijing. Some analysts said they expected China to eventually set up a similar ADIZ over the South China Sea, where China's claims overlap with those of Vietnam, Malaysia, Taiwan, Brunei and the Philippines. But they said they didn't expect that to happen soon as China didn't yet have the air power to enforce ADIZ over the huge area it claims, which stretches almost to the coast of Malaysia and the Philippines. Guam and the Realignment of Forces With the above as a backdrop, it would appear that the realignment of U.S. military forces in the Western Pacific should begin moving forward without delay or more correctly should have been moving steadily forward from a few years back. The House Armed Services Committee concluded their version of the military budget in May and have since then been waiting on the Senate. The Senate Armed Services Committee is remaining silent while the HASC is pressing for the conference committee to resolve differences and do so before the end of the calendar year. That timing is now impossible because the Congress will go on break at mid-December. Meanwhile, our Congresswoman Bordallo is expending her full energy and influence wherever she can to get the program back on track. Unfortunately, Guam has no representative in the Senate.


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TRADES ACADEMY B u i l d i n g

S k i l l s

F o r


L i f e t i m e


by: David Macaluso

In their earlier lives, prior to forming Isla Paint and Roofing Supply, Brian was a professional chef, a Japanese Linguistics Major, journeyman union painter and in sales for a paint company. Then he decided to start his own company when he sold the largest job in the history of United Coatings/Quest Construction and went on to become the Rep for Quest Construction (United Coatings/Hydro Stop/Street Bond) in Micronesia. Before Jaylene joined the team in 2007, she was Chief of a medical department and flooring contractor. Now for the nearly 15 years, Isla Paint and Roofing has been providing high performance coatings that offer beauty and corrosion protection for roofs, below grade, tanks, pipes, as well as superb technical representative services. According to Brian, what sets Isla Paint and Roofing apart from its competition is the excellence his staff has in product knowledge, field experience, customer service and the exceptional performance of their product lines. Brian adds. "We like to say, we are small but mighty. And we strive to be the best coating company on the Planet. We have a most incredible team at Isla Paint and Roofing Supply that always strives to be the best. There is no such thing as failure, only opportunities to learn and try again.” The best advice Brian could give to others who are interested in starting a business similar to his is to be prepared to work hard. And if a woman is interested in starting a similar business Jaylene said, “It’s important to be committed to being the very best, do not take no for an answer, and always have fun with it!” In addition to Jaylene being the President of Isla Paint and Roofing Supply, she helped launch the National Association of Women in Construction

(NAWIC) on Guam nearly two years ago. Jaylene was also the Chartering President for NAWIC. She was inspired by the original sixteen women from Texas who started NAWIC back in 1953. According to Jaylene, those pioneers wanted to create an atmosphere where they could network in and support each other professionally. She feels that philosophy still holds true today. While living in California, Jaylene was an active member of NAWIC. But She moved to Guam after construction industry in California became unstable in 2007. While on island she missed the sisterhood and comradery of NAWIC. Jaylene felt it was important to create a professional society in construction that was dedicated to women on Guam. About three and a half years ago she had the idea to create a local chapter on Guam. At the time, Jaylene said, she felt so alone being in the construction industry, until she met other women in this industry. She talked to the Guam Contractors Association and to all the other organizations on island that are involved in supporting women in the community.

early part of December, Isla Paint and Roofing Supply made a $3000 scholarship donation to NAWIC Guam #381 for young people who are interested in pursuing a career in the construction industry. The company also made a $6,000 donation to the Community Access Program, (CAP) through the Guam Contractor Association Small Business Committee for the village of Tamuning. Isla Paint and Roofing Supply also routinely donates coatings to the community, whether through the Island Beautification program or most recently for the First Family’s Annual Peace Festival. Through these activities, Isla Paint and Roofing Supply can make the island a little better for many people. According to Brian, the true meaning to success is being able to touch the lives of those around us and make them a little bit happier. And as far as Isla Paint and Roofing Supply’s legacy, both Jaylene and Brian would like to leave behind some beautiful structures in the community that they helped to build and to have wonderful memories and careers for their staff, customers, friends and family.

Jaylene said, “At first, no one on island ever heard of NAWIC, but once I got the support I needed, I held a pre organizational meeting to raise interest, gained members and focused on future plans.” During that initial meeting she realized there are so many talented women in the construction industry on Guam. Now heading into NAWIC’s second year, its roots are continuing to grow on Guam. Jaylene is no longer the president to NAWIC, but she is still an active member and continues to help the organization. "It's was important to have a local NAWIC chapter on Guam to enhance the success of women in the construction industry. This will help women to work together and form a stronger united group,” Jaylene. Both Brian and Jaylene find ways to give back to the community. In the


DECEMBER2013 | 17


Being able to give back to the community by creating jobs and commerce, in addition to carrying products that make our island beautiful are some of the things, Brian and Jaylene Kent, the brother and sister duo from Isla Paint and Roofing, love most about their job.

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GCA Luncheon November 19, 2013 Westin Resort & Spa

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Pizza, Pop & Power Tools November 23rd, 2013 Trades Academy


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GCA 26th Annual Golf Tournament November 9th, 2013 Country Club of the Pacific

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2:13 PM

th 55 Anniversary


Solid State Lighting Market to Eclipse $56 Billion Over The Next Five Years

The On-Line industry news leader Edison Report rolls out word from a new market research report that the total Solid State Lighting (SSL) market is expected to reach $56.79 billion by 2018. Edison Report cites the U.S.-based global market research and consulting company Markets and Markets recently published, “Solid State Lighting Market by Types (LED, OLED, and PLED), Application (General Lighting, Backlighting, Automotive, Medical), Verticals (Industrial, Residential, Consumer Electronics), Materials & Geography – Analysis & Forecast (2013-2018)“ that from 2013 to 2018, backlighting and general lighting application will contribute to the global Solid State Lighting applications market with a share of 87% in 2012 and is expected to record high growth in coming years. According to Markets and Markets, the global Solid State Lighting Market

30 | DECEMBER2013

has been segmented by types of SSL, applications and verticals. The Solid State Lighting Market by types includes Light emitting diodes (LED), Organic light emitting diodes (OLED) and Polymer based light emitting diodes (PLED). The SSL based LED’s are further segmented by materials used at different stages of manufacturing process in the report. LED based SSL are primarily utilized in general lighting and backlighting based applications. Energy efficient characteristics of the SSL lighting technologies will be integrated with light based medical applications.

the display market displacing LCD and LED display technologies. Many Asian companies have geared up to emerge as dominant players in the OLED equipment and materials market.

The Markets and Markets report notes that OLED’s has high market share in backlighting applications adding that demand for OLED display has been accelerating as it has diverse applications and better display features. They say that going forward, with decreasing production costs, prices of OLED panels will decline and OLED will further penetrate

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Asia-Pacific is the leading region in the overall Solid State Lighting Market with 50% of market share in 2012; followed by North America and Europe with 23.9% and 19.9% each in 2012. Russia, Brazil and the Middle East are the largest contributors with a total share of 6.3% occupied in the global Solid State Lighting Market.

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WHAT CONTRACTORS MUST DO TO COMPETE SUCCESSFULLY One of my favorite talks is on “Why Contractors Should Get Out of the Construction Business.” Of course, I don’t suggest they stop building things because that’s what they do, but that’s not the business they are in. The program explains why they need to redefine or reposition their business in the minds of their prospects. Why is this so important? When owners are asked about contractors, they offer descriptions such as overpriced, unreliable, confrontational, difficult to deal with, and on and on. I hope that’s not the way your clients think about you. But in discussions with many quality contractors who tend to negotiate their work, I hear complaints, especially during the slowdown, that after doing several projects for a client, the client wants them to bid for the next job. If you’re honest with yourself, then you realize that action indicates that at least some people in that organization think you are overpriced. The problem is the actual construction work is pretty much a commodity; it’s very difficult to differentiate one contractor from another in placing concrete, hanging drywall, or painting. Of course, there are differences among contractors, but in the client’s mind, there is little if any difference in this area. Therefore, they believe the only variable is price. Unfortunately for contractors the only perception that matters is the client’s. Daniel Pink says, “For business, it’s no longer enough to create a product that’s reasonably priced and adequately functional.” Unfortunately, that’s what most contractors do as they simply try to deliver a set of plans and specifications for a reasonable price. The problem is that keeps you in the mind of the client as a vendor, not a partner. Instead, a contractor needs to redefine what it does as a contractor in the prospect’s mind. I would argue that contractors need to be perceived as problem solvers throughout the entire life cycle of the project, from inception until the day it’s torn down. This opens all kinds of opportunities for contractors to add value. The construction process itself is very limited. It represents something less than 10 percent of the life cycle of the structure, and construction costs typically range somewhere between 10 and 18 percent of the total life-cycle cost of a building, depending on the type of building. When contractors consider projects holistically, they increase their opportunities to provide unique value and differentiate themselves from their competitors. This concept isn’t new. There are many contrac-

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tors pursuing this strategy. The question is, “Are they maximizing the potential of this strategy? To do this, they must create the image in the client’s mind that they are the solution to the client’s problems. In essence, you need to be thought of as a partner, not as a vendor.

project?” When the prospect responds, you can demonstrate your expertise instead of talking about it. Just like the great athlete who doesn’t tell you how great he is but just gets the job and done, in the end, you will be much more impressive.

You will have fewer options if you primarily competitive bid work, but even in that environment, extraordinary performance can change a potential prospect’s image of your company. For example, a road builder from Delaware was awarded a project as the low bidder, only to learn they had left several things out of the estimate. The president told his project team to meet with the city and do everything possible to finish the project early to obtain the early completion bonus and salvage the project. They worked with the city and finished early. What surprised everyone was they made money because of the faster schedule. Then they received the bonus, and the project became a great financial success. The president of the company explained the best was yet to come. He started receiving calls from all over the state, asking if his company could design-build their next road so they could take advantage of his aggressive schedule. The idea is to get into the mind of the prospect by creating a favorable image. It should be obvious if you don’t differentiate yourself on your projects, it will difficult to continually attempt to sell that. Therefore, to sell value, one must deliver value. The problem is despite delivering great value, many contractors stub their toes when they make an attempt to leverage their high performance into additional work.

Focus on how you can add value for the prospect. This may include how you can simplify the construction process. Keep in mind most people aren’t really interested in building something; they merely want the end product. They dread the construction process, so making it less painful can be a great differentiator. Further discuss how you can help make the end product for the prospect better, not just how to make the construction cheaper. One of the best ways to add value is to design a project that allows the prospect to be more profitable in his new building. Since this savings will go on indefinitely, it might even approach the construction cost. Just think how powerful your position would be if over the lifetime of the project, the construction was free.

The reason is they have the mistaken belief that the prospect cares about them. Of course, prospects want qualified contractors, but in most cases where a prospect sits down across the table to discuss his project, he knows that you can build his project. So spending time telling him you can do it because you have built many previously does little to increase his interest in your company. Yet contractors come in with their fantasy brochures and PowerPoint presentations and talk about how great they are or how much experience they have. In reality, the prospect doesn’t care or at least isn’t influenced by that type of presentation when all the contractors do the same thing. Don’t tell me this doesn’t happen because I’ve sat through too many of those types of presentations from both sides of the table. The prospect is interested in what he perceives as his unique situation and how you can help him through the process. Therefore, focus on the prospect. One of the best questions to ask is, “What are your concerns about this


To make it simple, the discussion should always be about the client. Of course, if they ask a question about you, you can answer it. That will normally occur when you promise something. The prospect may ask you to provide your assertions. Now you can give past examples or references where you did something similar for another client. That approach has a whole different impact than coming in, pounding your chest. A few weeks ago, I had lunch with Neil Southwell, a friend and colleague, and we discussed this issue. We both agreed that contractor presentations should focus on the client and not on the contractor. Since Neil coaches contractors on preparing their bids, I asked if he had any specific recommendations to improve the process. He provided a list of ten suggestions. Since I don’t have room to share those here, I will write about them in my blog as soon as I finish the current series of Sun Tzu and strategy. To sign up and follow my biweekly blog, go to Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. Contact Ted at 800-861-0874 or Further information can be found at"