United Contractors Magazine June 2023

JUNE 2023 ISSUE / VOLUME 229 W W W.U N I T E D C O N T R AC T O R S . O R G

Passion + Perseverance

This Industry Was Built On Grit p.6 ________________________ An Industry Economic Forecast for 2023-24 p.14 ________________________ FACES: UCON’s Southern CA PAC Fundraiser p.28

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magazine

CONTENTS

2023 UNITED CONTRACTORS BOARD OFFICERS President..................... Ron Bianchini, Preston Pipelines, Inc. VP/President-Elect.............. Kevin Hester, McGuire and Hester Secretary/Treasurer...........Dale Breen, Midstate Barrier, Inc. Sec/Treas-Elect.......Juan C. Arrequin, Bay Line Cutting & Coring, Inc.

UNITED CONTRACTORS BOARD OF DIRECTORS Kelly Attebery, F & M Bank; Tom Barr, Ghilotti Bros., Inc.; Bryn Burke, Dees Burke Engineering Constructors, LLC; Teresa Dias, Peterson Trucks, Inc.; Kurt Eddy, Pavement Recycling Systems, Inc.; Greg Goebel Jr., Goebel Construction, Inc.; Alan Guy, Anvil Builders; Jeff Peel, Steve P. Rados, Inc.; Joe Sostaric, The Conco Companies

w w w. u n i t e d c o n t r a c t o r s . o r g

6 UP Front

Grit = Passion + Perseverance

By Emily Cohen, UCON EVP

8 LABOR

Mid-Year Review: UCON Labor Relations

By Victor Sella, VP of Labor Relations

UCON LEADERS

United Contractors Committee Chairs Associates: Teresa Dias (Associate Director), Peterson Trucks, Inc. | Kelly Attebery (Associate Director-Elect), F & M Bank | Caltrans: Michael Ghilotti (Chairman), Ghilotti Bros., Inc. | Legislative: Rob Layne, O.C. Jones & Sons, Inc. | Political Action (PAC): Chris Young (Chairman), D.W. Young Construction Co., Inc. | Safety & Insurance: Robert Sabin, Harbor Linx, Inc. | Attorney Roundtable (ART): Facilitated by Mark Breslin | SF City Contractor Liaison: Mike Ghilotti (Chairman), Ghilotti Bros., Inc., Miguel Galarza (Chairman), Yerba Buena Engineering & Construction, Inc. | Scholarship: Trony Fuller, West Coast Sand & Gravel | Southern CA Steering Committee: Steve Concannon, Pavement Recycling Systems, Inc.

JUNE 2023

• •

UCON’s Labor & Member Services Team Contract Corner

By UCON’s Labor Relations & Member Services Team

14

UNITED CONTRACTORS STAFF

Mark Breslin, Chief Executive Officer; Emily Cohen, Executive Vice President; Tejel Patel, Executive Assistant to CEO; Ursula Becker, Executive Assistant to EVP; Victor Sella, Vice President of Labor Relations; Clay O’Neal, Regional Vice President, Southern CA Operations; Dave Jenkins, Contractor Services, Southern California; Ruby Varnadore, Labor Contracts Manager; Lucia Mixon, Contractor Member Services, Southern CA; Sandra Kaya, Administrative Specialist; Sue Weiler-Doke, Labor Relations Consultant; Melissa Gutwald, Director of Finance & Operations; Denise Ramirez, Online Services Manager; Emmy McConnell, Senior Accountant; Michelle Hannigan, Bookkeeper; Angelica Gouig, Director of Events & Education; Christine Traina, Event Manager; Rachel Oraa, Event Assistant; Avanti Mehta, Education Assistant; Marissa Miller, Marketing & Communications Manager; Michelle Vejby, Publications Manager; Eddie Bernacchi, UCON Chief Lobbyist; Christopher Lee, Safety Consultant; Drew Delaney, Mike Buckantz, Regulatory Consultants

United Contractors Magazine (ISSN: 2166-3777) is published monthly, 11x a year, by United Contractors, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. Editorial comments, letters, and article submissions are welcomed and encouraged.

Correspondence should be directed to the United Contractors office at the above address, by phone at (925) 855-7900, or by e-mail at info@unitedcontractors.org. Reproduction of editorial material in this issue is permitted if accompanied by proper source credit. Periodicals postage paid at San Ramon, CA and other offices. Postmaster: Send address changes to: United Contractors Magazine, 17 Crow Canyon Court, Suite 100, San Ramon, CA 94583. © 2023 Published in the U.S.A.

28 FACES

UCON’s Southern CA PAC Event

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5

By Emily Cohen, UCON Executive Vice President

GRIT = PASSION + PERSEVERANCE AND THIS INDUSTRY WAS BUILT ON IT

H

ave you ever wondered about the key factor in determining someone’s long-term success? Most believe it’s a person’s IQ. More recently, people will argue that it’s a person’s emotional intelligence or “EQ.” Maybe it’s someone’s charm or good looks. Their level of education. Natural talent. Or the abundance of resources or opportunities they’re given from birth.

Turns out, while all of these may matter, none of them are the best determinants in predicting a person’s success. Whether it’s a student, an athlete, a member of the military, a corporate salesperson, a union apprentice, or an entrepreneur construction contractor, the best way to determine a person’s likelihood of long-term success is to measure their level of grit.

For many of you, this should be welcome news.

No other industry has more people with higher levels of grit than the construction industry. It’s the first word I use to describe the nature of our members and a key factor that makes this industry, and its people, so remarkable. Most of you were built on grit (in addition to high IQ, charm, and good looks). And in the ever-changing, sharply competitive, high-pressure construction industry, it’s often the secret sauce that allows companies—leaders, and their teams—to survive and thrive through the obstacles.

ability, IQ, or EQ in determining a person’s likelihood of achieving long-term success.

As an industry, grit got us the historic SB1, securing $5.5 Billion a year, forever, for California’s road, highway & transit infrastructure. Grit (and a lot of generous financial support) defeated Prop 6. It’s what steered many of your companies through economic downturns and allowed your teams to develop creative and innovative solutions during their most stressful and trying moments. It’s the single biggest trait many of you tapped into to survive the ’08 great recession and weather the pandemic. It’s the engrained characteristic that has been passed down by multi-generational construction families—often built by immigrants. And it is what a brave new construction business owner taps into to keep getting into the ring and grow from a start-up to a multi-million-dollar company. At UCON, it’s the guiding trait that has expanded our market share on behalf of union contractors across California, and it’s what empowers our team to face challenges and solve problems (large and small) for you and the greater industry every day. We stay singularly focused on the goal and will get back up as often as it takes to ensure we are meeting our mission.

Grit is defined as the ability to apply focused attention, resilience, perseverance, and dedication to achieving specific and long-term goals. Or, as psychologist and “grit scientist” Angela Duckworth puts it, “Grit is stamina…

It is about having a goal you care about so much that it organizes and gives meaning to almost everything you do. And grit is holding steadfast to that goal. Even when you fall down. Even when you screw up. Even when progress toward that goal is halting or slow.”

With the economic uncertainty, market challenges, and business hurdles that lay ahead (more on all of that in this issue), our member companies will no doubt have to make key adjustments, sharpen your competitive edge, and develop smart business strategies and innovative solutions to adapt. But in addition to all of that, don’t forget to embrace the grit. As you hire new talent, coach and develop your teams, and create your updated business strategy, look for opportunities to tap into and cultivate grit—the get-up and keep-going drive—at every level of your company.

Grit is running the marathon, not the sprint. And, it turns out, it’s often more important than natural talent,

Because it turns out, for better or for worse, your high IQ, charm, and good looks will only get you so far. z

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W W W.U N I T E D C O N T R AC T O R S . O R G

The Duckworth Grit Scale:

GRIT

If you’re interested in knowing your own “grit score”, answer the 10 questions below, on a scale of 1-5. (You can take the actual quiz at www.angeladuckworth.com/ grit-scale) Share this with your teams to learn more about them.

7.

1.

9. I have been obsessed with a certain idea or project for a short time but later lost interest.

New ideas and projects sometimes distract me from previous ones.

2. Setbacks don’t discourage me. I don’t give up easily.

3. I often set a goal but later choose to pursue a different one.

4. I am a hard worker.

5. I have difficulty maintaining my focus on projects that take more than a few months to complete.

6. I finish whatever I begin.

My interests change from year to year.

8. I am diligent. I never give up.

10. I have overcome setbacks to conquer an important challenge.

Share this survey with your teams and ensure grit is a factor you’re considering when hiring new talent and developing people at all levels of the company. z

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7

By Victor Sella, Vice President of Labor Relations

MID-YEAR REVIEW— UCON LABOR RELATIONS After completing the heaviest bargaining season in UCON history, 2023 is about refreshing our focus on UCON’s core labor relations priorities: expanding union contractor influence, increasing union contractor competitiveness, growing the union construction industry through partnering, and training next-gen contractor leaders.

Here’s a quick review of what’s happened and what’s ahead in 2023:

Negotiations In Q2, UCON negotiated Master Agreements for the Cement Masons and OE3 Pumpers; at the time this article is being published, we anticipate beginning Teamsters negotiations soon. Most notably, our contractor-led negotiations teams were able to re-open tentative agreements negotiated by other associations to improve terms and conditions for contractors in significant ways. In the end, these final negotiated agreements successfully met UCON’s main labor relations strategic objectives: maintain competitive economics by all possible means, create consistency across agreements statewide, and enhance legal protections for contractors.

These longstanding objectives were set by UCON’s Labor Executive Committee (LEC), which consists of contractor co-chairs for each craft we deal with across the state. If you’re interested in participating in negotiations in the future, please contact me at vsella@ unitedcontractors.org or (510) 362-6959.

Masthead Expansion In line with growing influence across the state, UCON recently became a joint masthead for the Cement Masons (N. CA). Masthead status primarily refers to being the primary bargaining partner with a certain craft as well as the association agreement that gets submitted to the DIR to set prevailing wage.

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W W W.U N I T E D C O N T R AC T O R S . O R G

Within the past year, UCON expanded our masthead status portfolio beyond the OE3 Master Labor Agreement (MLA) to include the Laborers (S. CA), Pile Drivers (N. CA), and now Cement Masons (N. CA) MLAs. While this change may largely appear to reflect on our relationships with these unions, gaining masthead status is actually a reflection of the fact that for years contractors have migrated to UCON for our quality support services for union contractors and our uncompromised focus on growing the union construction industry.

As of April 2023, UCON contractor membership expanded to 454 union contractors across the state, meaning we represent the majority of signatories for most crafts we work with. Masthead status means we’re in a better position to advocate for union contractors.

In the end, UCON becoming masthead with any craft means being able to better negotiate agreements that keep union contractors competitive.

Industry Partnering UCON renewed our focus on improving the industry through partnering with our Industry Partner Meetings (IPMs). In January and February, we met with the Laborers (S. CA) and OE12, respectively. UCON also met with the Carpenters / Pile Drivers (N. CA) and our signatories regarding future off-shore wind work in March – more on that to come.

Up next, we continue the IPM season with our second IPM with the Laborers (S. CA) on June 12, Laborers (N. CA) on July 12 and 13, and OE3 on August 25. If you’re interested in participating or learning more about how IPMs can add value to you and your company, contact me at vsella@unitedcontractors.org or (510) 362-6959.

Southern California Growth: Mergers & New Affiliations UCON and ECA are in the final stages of a merger more than a year in the making. The integration of UCON

Photo: Walsh Construction Company II, LLC

and ECA was in many ways aligned before merger talks began. Simply put, our shared values and common mission drive our decisions and the reason we exist: to support and advocate for heavy civil contractors across Southern California.

This focus matched with unparalleled service means that UCON’s footprint in Southern California includes over 120 Southern California-based contractors. But continued growth is meaningless if not guided by a clear mission and vision. Fortunately, ECA and UCON share a near identical origin story that persists in how we do business today: we each were created by a dedicated group of small underground contractors seeking to strengthen their voice and improve competitive conditions for contractors in their region. Together we now have greater shared resources and a more influential platform to better serve union contractors of all sizes across Southern California.

ECA contractors are not the only group seeking to increase their influence through partnering with UCON. The Mobile Crane Operators Group (MCOG) recently signed an affiliation agreement for the purpose of gaining greater contractor support and amplifying their voice to meet their unique needs. The MCOG agreement is similar to what UCON and the California Landscape and Irrigation Council (CLIC) inked in 2021, resulting in UCON representation for union landscapers in all areas of their business, including CBA negotiations with the Laborers (S. CA) and OE12. Going forward, MCOG and CLIC members can also rely on UCON for our services and a seat at the table in future negotiations impacting their industry.

What’s Up Ahead?

UCON’s credibility and influence ultimately stem from the decisions, vision, and policies set and driven by UCON’s contractor leaders. It therefore follows that our future successes will be determined by how well we train and develop our next-gen leaders to carry

the industry forward, especially as so many of our experienced industry leaders and negotiators retire.

In service to this point, UCON will be partnering with a nationally recognized union negotiations consulting group to lead a two-day training for up to 30 contractors in Q4 2023.

Most notably, UCON will invite other associations to send key negotiators to participate in the training for the purpose of creating more cohesion and skill across all contractor negotiators, regardless of association affiliation. If you’re interested in participating, contact me at vsella@unitedcontractors. org or (510) 362-6959.

Finally, UCON is expanding our Labor & Member Services (LMS) team to include a new Director of Labor Relations position. We’ll keep you updated on the hiring process as we look forward to expanding what we can do for you now and in the future.

Interested in connecting with industry leaders to address construction’s most critical issues? Whether you’re an industry veteran or simply seeking to get more involved in the industry, Industry Partner Meetings (IPMs) are great opportunities to build relationships with our union partners and your counterparts at other companies. Contact Victor Sella to find out more: vsella@ unitedcontractors.org or (510) 362-6959. z

Upcoming UCON Industry Partner Meetings: Southern California District Council of Laborers (SCDCL): June 12 Northern California District Council of Laborers (NCDCL): July 12-13 Operating Engineers, Local 3 (OE3): August 25

JUNE 2023

9

UCON’S LABOR & MEMBER SERVICES TEAM

Helping You Navigate Labor, Operations, HR & Payroll Minefields Across California United Contractors Labor & Member Services team is a valuable resource for contractors statewide, assisting key management, administrative and field staff on a daily basis.

With over 100 years of combined construction labor relations experience, UCON’s Labor & Member Services team will help you navigate Labor, HR, Payroll, and much more. We handle thousands of member calls every year, and are committed to doing our best to respond the same day. If we don’t have the answer, we will find it. Meet our team and learn our areas of expertise:

Victor Sella Vice President of Labor Relations vsella@unitedcontractors.org (510) 362-6959

Victor oversees labor relations advocacy, contract negotiations, and support services to UCON’s 450+ contractor members across the state. By providing labor, operations, and human resources consulting to our members, Victor gets the satisfaction of resolving people’s problems and improving contractors’ abilities to get work done and stay competitive.

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Clay O’Neal Regional VP - Southern CA

Ruby Varnadore, PHR Labor Contracts Manager

coneal@unitedcontractors.org (657) 439-4545

rvarnadore@unitedcontractors.org (925) 362-7310

Clay is the Regional Vice President for Southern CA, leading member relations across the region, including labor, agency, and legislative matters. He is dedicated to cultivating genuine relationships and improving the business environment for UCON’s members across Southern California.

Ruby oversees association labor contracts and supports UCON’s contractor member companies and their teams.

Her main focus is researching and answering labor questions and inquiries related to contract interpretation, payroll, prevailing wages, employment law, and more.

“Being a member of UCON is an essential function of our business at DeSilva Gates Construction.

Having the ability to rely on an expert resource for help and insight with larger industry-wide subjects allows us to be more efficient and in turn make better business decisions.”

— Brian O’Rourke, DeSilva Gates Construction

W W W.U N I T E D C O N T R AC T O R S . O R G

Lucia Mixon Contractor Member Services, Southern CA lmixon@unitedcontractors.org (925) 362-7306

Lucia provides operational support and assistance to UCON’s contractor members.

She assists in resolving issues and answering questions involving labor relations, collective bargaining agreements, grievances, labor disputes, payroll, and pre-jobs.

“UCON has successfully guided us to resolution on several union matters. We can depend on them for sound advice that aims to mitigate risk to our organization.”

— Melissa Cowles, Sully-Miller Contracting Co.

Not Just A Bank, A Business Partner Helping Contractors Succeed - Call Us!

Ray Strzelecki

Executive Vice President Oakland 510.457.3739

Erik Pierce

Chris Barr

Vice President Oakland 510.457.3779

Executive Vice President Sacramento 530.906.3155

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Sandra Kaya Labor & Member Services Administrative Specialist skaya@unitedcontractors.org (925) 725-6695

Providing administrative and project support to the Labor & Member Services team, Sandra assists in ensuring high-quality member service, and the best member experience possible.

Sue Weiler-Doke Labor Relations Consultant sweiler-doke@unitedcontractors.org (916) 719-6073

With more than three decades in construction, Sue WeilerDoke helps members with their labor relations. Directly involved with the $1.5 billion I-405 Project in Los Angeles, she led 11 departments as West Coast Business Director, including project engineering, risk management, contract and subcontract administration.

Member FDIC

Contract Drafting, Review and Negotiation Trial and Arbitration Claims, Dispute Resolution and Mediation Bid Protests Collection

Tel: (650) 691-2888 Fax (650) 691-2889 www.lrconstructionlaw.com

Contact: A. Robert Rosin Janette G. Leonidou Michael M. Lum

Leonidou & Rosin 777 Cuesta Drive | Suite 200 Mountain View, California 94040

JUNE 2023

11

CONTRACT CORNER

Updates & Resources for Union Contractors UCON Payroll/Operations Classes Now Available On-Demand UCON recently offered a series of short webinars (45 or 60 minutes) to help contractors with challenging topics that we frequently get questions on. All of these webinars have been recorded and are available to our members for viewing afterwards in the Contractor Resources Library as well through the UCON app and in the online Education Library. The slides for all of these webinars are also available.

•

Skilled & Trained Workforce

•

CBA Subcontracting Rules

•

Overtime & Special Shifts (Northern CA)

•

Overtime & Special Shifts (Southern CA) Additionally, contractor members needing companyspecific training on any of these topics, as well as the new CAC regulations and Project Labor Agreements, can contact Victor Sella, VP of Labor Relations, to schedule a training for your team.

UCON Member Resources Highlight Union Payroll Reference Guides

PRESTONCO.COM

Underground wet and dry utilities, cabling, signals, and lighting; soils testing, management, and disposal; and fill site management.

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W W W.U N I T E D C O N T R AC T O R S . O R G

UCON has combined all of our quick reference charts related to union payroll and work rules into one document to make it easy for our members to download all of the available charts at once. This is useful not just for payroll personnel but also for estimators and project managers who need to understand the impact on labor costs when setting up and running different types of shifts on projects. We have both a Northern CA and Southern CA version covering the master labor agreements, as well as versions for the Traffic Control, Highway Improvement, and Landscape industries. All of them continue to be revised for changes when new agreements are negotiated, so make sure you have the latest version.

Available to contractor members in the Contractor Resources Library, or contact Labor & Member Services at 925-855-7900 or memberinfo@unitedcontractors.org for a copy.

Trucking Prevailing Wages Update DIR Revises FAQ to Address AB 1851 The California Department of Industrial Relations (DIR) has issued updates to their on-/off-haul trucking FAQ, (https://www.dir.ca.gov/division/ Hauling-under-Labor-Code-Section-1720.3_FAQ.pdf), which now incorporates AB 1851.

The revised FAQ help to clarify/confirm several items: •

AB 1851 is interpreted to be effective on projects advertised for bid on or after January 1, 2023.

•

No clear definition is given for “integrated into the flow process of construction,” but the DIR references the coverage determinations that may be helpful in defining it.

•

There is no exhaustive list of “paving, grading and fill materials;” some examples are given, but the DIR or courts could determine through particular decisions that a material does or does not fit in that category.

•

Drivers (or companies who employ them) who perform this covered work must be registered with the DIR and maintain certified payrolls.

This includes material suppliers.

•

“Dump truck” rates are meant to apply when on-/off-haul of a material is covered by prevailing wages, even if a different vehicle is used.

UCON contractor members can refer to our Trucking Prevailing Wages Reference Guide, available in our online Contractor Resources Library.

JUNE 2023

13

By FMI Corporation

CONSTRUCTION MARKET FORECAST

2023 Industry Outlook from FMI

E

conomic factors influencing this forecast include the recent banking challenges impacting expectations on lending standards and ongoing consolidation; shortages of key materials and labor across various industries; ongoing strain on global logistics infrastructure; volatility across real estate; Federal Reserve policy; and continued inflationary pressures. We also considered wartime and economic turmoil in various countries (e.g., Russia, Ukraine, China) adding to strain and uncertainty on each of the items listed above.

It is important to recognize that FMI anticipates the U.S. economy will fare better than most countries, as reflected by strong demand for labor and the long-term commitment to infrastructure investments. As a result, the engineering and construction industry is expected to play a major role in our economy’s foundational strength over the coming years, offering a combination of both challenges and opportunities.

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Photo: Ghilotti Construction Co.

KEY TAKEAWAYS n Total engineering and construction spending for the U.S. is forecast to end 2023 down 1% compared to up 11% in 2022 (it should be noted that 2022 was forcast to end up 7%). n Steep declines in single-family residential and residential improvements will lead a contraction in overall industry spending while most nonresidential building and nonbuilding structure segments are expected to experience growth through 2023. n Strong investment growth is expected across lodging, commercial, transportation, manufacturing, highway and street, water supply, and conservation and development, each with year-over-year growth rates nearing or exceeding 10%. Additionally, aboveaverage investment growth is anticipated across office, health care, amusement and recreation, and sewage and waste disposal. n Corrections in residential construction spending are anticipated into 2026, due to softening economic conditions tied to rate hikes and a recession. Consistent with historical industry cycles, similar corrections are expected to bleed over into nonresidential segments beginning late 2023 and into 2024. n The latest Nonresidential Construction Index (NRCI) reflects the fourth straight quarter of ongoing challenges with a reading of 48.0, up slightly from 46.4 in the quarter prior. Sentiment this quarter was slightly improved based on increased optimism toward the overall U.S. economy and local factors impacting the economy and nonresidential industry where participants are operating their businesses. However, the index remains below the growth threshold of 50 and reflects declining engineering and construction opportunities ahead.

Total Nonresidential Construction Spending Put in Place 2022 and Forecast Growth (2022-2027)

by Construction Segment

Source: FMI Forecast Q2 2023

JUNE 2023

15

TRANSPORTATION TRANSPORTATION

TRANSPORTATION

8%

Photo courtesy DMZ Builders

POWERCOMMUNICATION POWERCOMMUNICATIONS

POWER

DRIVERS: Population Government spending Transportation funding

$62 BILLION

3% 2%

DRIVERS: DRIVERS: Population Population Security and Industrial production regulation standards Government spending Private investment Innovation and technology investment

$25 BILLION $112 BILLION

2023/2022 Comparison

2023/2022 Comparison 2023/2022 Comparison

FORECAST

FORECAST

FORECAST 2027

2027

2001

2001

2001

2024

UP

13%

$69 B

2025 2026 2027

UP UP STA

12% 6% 2%

$78 B $82 B $84 B

n More than 7,000 transportation projects, representing

2024 2025 2026 2027

2024UP 2025UP 2026UP 2027STA

UP

6% 8%

UP UP 7% STA 4%

6% $118 B 6% $128 B 6% $137 B 4% $142 B

$27 B $28 B $30 B $31 B

n Several recent project starts within power (including

More 7,000 transportation recent Investment $65 billion from the(including Infrastructure Several projectofstarts withinstrengthening power $185 than billion, were announced projects, last year,representing upholding multiple megaprojects) indicate $185 billion, were announced last year, upholding strong Investment and Jobs Act (IIJA) overlaps with growth and multiple megaprojects) indicate strengthening strong expectations for spending growth over the investment levels over the forecast period. expectations for spending growth over the forecast demands across devices, data centers (i.e., investment levels over theconnected forecast period. forecast period. n Significant planned renewable energy capacity period. office), manufacturing, and logistics and distributions n Electrification investments and clean-energy facility additionsinvestment. create synchronized needs and Significant planned renewable energy capacity additions upgrades represent an increasing area of focus. opportunities in energy storage and transmission Electrification investments and clean-energy facility create synchronized needs and opportunities in energy spending. n upgrades Rail/transit is expected to lead transportation represent an increasing area of focus. storage and transmission spending. investment growth in 2023, tied to increasing and distributed are of expected to n Microgrid the mobile market energy by the end the decade.

manufacturing construction and port activity.

play an increasingly important role in the evolution

Rail/transit is expected to lead transportation investment Microgrid and distributed energy are expected to play an of the U.S. energy sector. growth in 2023, tied to increasing manufacturing Faster and more reliable be U.S. needed to increasingly important role in the networks evolutionwill of the Forecast Q2 2023 construction and port activity. accommodate growingSource: use ofFMI artificial intelligence and energy sector. other cloud service offerings, the Internet of Things as 16 W W W . U N I T E D C O N T R A C T O R S . O R G well as virtual office, learning and entertainment demands.

HIGHWAY AND STREET HIGHWAY AND STREET

HIGHWAY AND STREET

10%

DRIVERS: Population Government spending Nonresidential structure investment

$121 BILLION 2023/2022 Comparison

FORECAST

2027

2001

2024 2025 2026 2027

UP UP UP STA

9% 7% 5% 3%

Concrete When You Need It!

$132 B $141 B $148 B $153 B

n Highway and street construction spending

Highway and rapidly street construction accelerated accelerated toward the spending end of 2022 and rapidly toward the end of 2022 and is expected to is expected to continue to strengthen into 2023, continue to strengthen into 2023, aided by stabilizing aided by stabilizing input prices and an increasing input prices and an increasing number of projects number of projects becoming active in the spring and becoming active in the spring and summer months.

summer months.

n Early IIJA infrastructure funds will prioritize system

Early IIJAand infrastructure funds will prioritize system repairs maintenance. repairs and maintenance.

n Several new bridge programs indicate strong growth over the forecast period. States benefiting from recent Several new bridge programs indicate strong growth over grant awards include California.

Servicing MArin County and San Francisco

the forecast period. States benefiting from recent grant awards include California, Connecticut, Illinois, Kentucky and Ohio.

San Francisco HRC LBE/SBE Certified License #372478 A, C-27 San Francisco CA PH: 415-447-4800 FAX: 415-447-4258 www.baumanland.com

Photo: Ghilotti Bros., Inc. NORTH AMERICAN ENGINEERING AND CONSTRUCTION OUTLOOK

20

JUNE 2023

17

SEWAGE AND WASTE DISPOSAL SEWAGE AND WASTE DISPOSAL L

SEWAGE AND WASTE DISPOSAL

7% 7%

Photo: Flatiron West, Inc.

WATERWATER SUPPLYSUPPLY SUPPLY WATERWATER SUPPLY

WATER SUPPLY

DRIVERS: DRIVERS: Population Population Industrial production Industrial production Government spending Government spending

9% 9%

$34 BILLION $34 BILLION

DRIVERS: DRIVERS: Population Population Industrial production Industrial production Government spending Government spending

$25 BILLION $25 BILLION

2023/2022 Comparison 2023/2022 Comparison

2023/2022 Comparison 2023/2022 Comparison

FORECAST

FORECAST

FORECAST

FORECAST 2027

2027

2001

2001

2024 2025

2024UP 2025UP

2026 2027

2026UP 2027STA

UP UP

6% 6%

UP 5% STA 4%

2027

2027

6% $36 B $36 B 6% $38 B $38 B 5% $40 B $40 B 4% $41 B $41 B

2001

2001

2024 2025

2024UP 2025STA

2026 2027

2026STA 2027STA

UP 6% STA 4% STA 3% STA 3%

6% $26 B $26 B 4% $27 B $27 B 3% $28 B $28 B 3% $29 B $29 B

n Investment in sewage and waste disposal will

n Population growth and increased industrial

n BABAA regulation will reduce owner and

n Industry research is becoming increasingly

Investment sewage and wastewill disposal willto continue to Population Population growth and spending increased industrial Investment in sewagetoin and waste disposal continue growth and increased industrial on investment continue grow as residential and industrial investment will drive ongoing clean investment grow as residential and industrial demands increase. will drive ongoing spending on clean water grow as residential industrial demands increase. will drive ongoing spending on clean water demandsand increase. water infrastructure. infrastructure. infrastructure.

BABAA will reduce and utility BABAA regulation will reduce owner andowner utility plans for plans for utility regulation plans for facility upgrades and deferred focused on understanding exposure and removal facility upgrades and deferred maintenance. research Industryisresearch is becoming increasingly facility upgrades and deferred maintenance.

Industry becoming increasingly focused onfocused on maintenance. of perfluoroalkyl and polyfluoroalkyl substances understanding exposure and removal of perfluoroalkyl understanding exposure and removal of perfluoroalkyl (PFAS). n Severe weather events continue to promote resiliency and polyfluoroalkyl substances (PFAS). and polyfluoroalkyl substances (PFAS).

Severe weather eventsto continue promoteand resiliency Severe weather events promotetoflooding resiliency programs tocontinue address increased cross n Lead service line replacements funded by the IIJA programs address increased flooding andsewage cross programs to addressto increased flooding and crossand contamination between stormwater will help balance losses due to stalled economic contamination between stormwater and sewage and Lead service line replacements funded the IIJA will contamination between stormwater and sewage Lead service line replacements funded by the IIJAby will infrastructure. growth decreased developer-led investment. infrastructure. help balance dueSource: to stalled economic growth and infrastructure. help balance losses duelosses to stalled economic growth and FMI Forecast Q2 2023 developer-led investment. decreased decreased developer-led investment.

18

W W W.U N I T E D C O N T R AC T O R S . O R G

Construction Outlook: Heay Civil Construction Key Findings1 n Total heavy civil construction put in place is forecast to grow significantly in 2023 (6.8%), with every category (except power) expected to grow between 7% to 12%. The biggest increases are in the rail/ transit, water, roadways, and conservation and development segments, with each growing more than 10% in 2023. n Every subsegment of heavy civil construction is expected to grow each year of our forecast period.

The power sub-segment will continue to be the laggard through 2024. However, power will see more robust growth rates in 2025 and grow beyond its previous highs in 2021. n In the near term, both rail/transit and water will post dou-ble-digit growth through 2025. The bridge sector will also increase significantly, reaching strong double-digit growth rates between 2024 and 2026.

Photo: Shimmick Construction Company, Inc.

FMI’s 2023 North American Engineering and Construction Outlook, Q2, 2023 is available online at fmicorp.com. The information in this article has been excerpted from the Outlook to include specifics relating to the markets served by our UCON members. Download the complete document for additional market segments. The Outlook is authored by Jay Bowman, leader of FMI’s research and analytics discipline, jay.bowman@fmicorp.com; Brian Strawberry, a leader in market sizing, forecasting, building products and construction material pricing and consumption trends, brian.strawberry@ fmicorp.com; and Emily Beardall, who develops creative analytical tools, emily.beardall@fmicorp.com.

1. Q2 2023 Heavy Civil Construction Index, FMI CA Lic. #569352

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19

By Kiana Valentine, Executive Director, Transportation CA, UCON Legislative Advocate, Politico Group

CA GOVERNOR’S MAY BUDGET REVISION— A MIXED BAG FOR TRANSPORTATION Industry position on 2023-24 State Budget

T

he Governor released his May Revision to the 2023-24 January budget proposal on May 12th and it’s a mixed mag for transportation.

Transportation funding and policy decisions have a direct and significant impact on the state’s climate and environmental goals, quality of life for Californians, as well as economic output and jobs, including the ability to generate additional tax dollars to fund vital state programs. Federal, state, and local infrastructure funding yields nearly $200 billion in economic activity in California and creates 700,000 jobs each year.

On the one hand, the May Revision proposes to maintain over $10 billion in General Fund for multimodal transportation investments (approximately 80% of the original package) which will create and sustain livingwage construction jobs over multiple years, implement much needed improvements to improve mobility

options, decrease congestion, and reduce negative impacts on air quality and climate change. At the same time, the May Revision also includes a proposal to shift $650 million from state highway investments to backfill cuts to the Active Transportation Program, local climate adaptation projects, and port and freight investments.

Moreover, despite pleas from transit agencies for operations assistance in the state budget to address shortfalls resulting from the pandemic’s ongoing impacts to ridership and travel patterns, the Governor did not propose transit solutions in the May Revise.

Transit has and will continue to face many challenges in the years to come, but transit is a critical part to the state’s mobility and climate goals. Our industry’s skilled workers and employers build and maintain transit and intercity rail systems in addition to state highways, local streets and roads, and bicycle, pedestrian, and accessible infrastructure for the benefit of all Californians. Investing in the future of transit is an investment in living-wage jobs and economic opportunity as well.

Photo: Bay Cities Paving & Grading, Inc. 20

W W W.U N I T E D C O N T R AC T O R S . O R G

Considering the oversized importance of transportation on daily life, the statewide transportation construction industry is urging the Legislature to craft budget solutions to preserve existing transportation investments while also aiding transit systems across the state that are still suffering the negative impacts brought on by the COVID-19 pandemic.

1. Opposition to State Highway Account Fund Shifts. The Governor’s recent May Revision would

shift $650 million from the state highways to backfill programs that were funded with one-time General Fund in the 2022 Budget Act. United Contractors advocated for the passage of the General Fund supported Transportation Package last year to bolster sorely needed multimodal investments.

However, UCON would have strongly opposed the concept of that package being funded with existing dollars and thus we must oppose the Governor’s proposals now.

Prior to the May Revision, the Department of Finance (DOF) had testified to the January Budget’s $500 million SHA fund shift proposal stating it would not have an impact on the current program of projects in the State Highway Operations and Protection Program (SHOPP) —the state’s “fix-it-first” program that funds the repair and preservation, emergency repairs,

CALIFORNIA NEEDS TO DEVELOP LONG-TERM TRANSIT OPERATIONS AND CAPITAL SOLUTIONS AND, IN THE MEANTIME, SHORT-TERM OPERATIONS FUNDING IS NEEDED TO KEEP TRANSIT MOVING. safety improvements, and highway operational improvements on the State Highway System (SHS).

However, now at $650 million, the fund shift could have impacts on the current program of projects and will most certainly have impacts on vital projects in the pipeline.

The Draft 2023 State Highway System Management Plan (Draft 2023 SHSMP)—an investment plan that determines through performance-based analysis the distribution funding to the SHS from the SHA, the Continued on next page

JUNE 2023

21

Photo: Stacy and Witbeck, Inc.

Road Repair and Rehabilitation Account (RMRA) created by SB 1 (Chapter 1, Statutes of 2017), and the federal Infrastructure Investment and Jobs Act (IIJA)—identifies an estimated need of $112.7 billion, including $76.3 billion for the historically reported objectives, $29.8 billion for new objectives, and another $6.5 billion for the highway maintenance program. The 2023 Draft SHSMP, even considering additional funding from IIJA and SB 1, is still facing a $5 billion annual unfunded need. While California has made great strides to improve the safety, condition, and operation of the SHS, the job is far from done.

Further illustrating the need for investments in climate adaptation, the recent winter storms caused significant damage to the SHS. Early estimates indicated over $1 billion in damage to the SHS and this number could grow depending on additional necessary inspection and assessment. Diverting $650 million from the SHA makes these storm damage repairs harder to fund.

2. Support for California Transit Association’s Transit Operations Funding Request. The

statewide transportation construction industry wants transit to be successful in California.

California needs to develop long-term transit operations and capital solutions and, in the meantime, short-term operations funding is needed to keep transit moving. We are supportive of CTA’s request for unallocated cap-and-trade funding for transit operations, the short-term diversion of the General Fund share of diesel sales tax revenue, and the flexibility to use transit capital dollars for operations in the short-term.

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W W W.U N I T E D C O N T R AC T O R S . O R G

3. Opposition to Flexing Federal Infrastructure Investment and Jobs Act (IIJA) Funding from SHA to Transit Operations. For the

same reasons the industry is opposed the SHA fund shift proposal, we are opposed to transit operating funding solutions that jeopardize highway improvements. The Metropolitan Transportation Commission (MTC) recently voted to support a proposal to shift $2.3 billion in flexible IIJA funding from highways to transit—a proposal now championed by Senator Scott Wiener. We question what impacts this proposal would have on other federally funded programs—including regional plans being implemented with State Transportation Block Grant Program funding. How would this flexing of federal funding impact federal performance management requirements, especially on bridges? Would this impact local bring funding which is oversubscribed and vital to the safety of communities in every region of the state? CTA’s solutions outlined above make good use of eligible funding without impacting existing transportation programs and the state’s ability to meet federal performance standards.

Ultimately, the state, regions, and locals need to continue to make investments to expand safe, convenient, efficient, and affordable transit options, support bicycle and pedestrian mobility, and we need to fix our roads to relieve congestion and to ensure people can get to their jobs and homes safely. z Kiana brings more than a decade of policy experience in transportation, local government, and state funding and budget issues. She played a leading role in the passage and implementation of some of California’s most significant transportation funding decisions over the last decade including SB 1. She is the Executive Director at Transportation CA, a Principal at Politico Group, and part of the UCON Legislative Team.

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23

By Dr. Alison Premo Black, Senior Vice President & Chief Economist American Road & Transportation Builders Association (ARTBA)

THE INFRASTRUCTURE INVESTMENT LAW IS WORKING AS INTENDED

C

alifornia has committed over $876 million in federal aid highway funds to support 345 new projects in the first half of Fiscal Year (FY) 2023, according to ARTBA analysis of the latest data from the U.S. Treasury Department.

Photo: Golden State Bridge, Inc.

This is in addition to nearly 950 new projects that received federal funds in the first year of the Infrastructure Investment in Jobs Act (IIJA), signed into law November 15, 2001.

Other law firms interpret construction law.

Carno Law Group Defines it.

The IIJA provides California with $29.93 billion over five years to improve roadway and bridge infrastructure networks. The second installment of that five-year commitment is $4.97 billion for FY 2023 which began October 1, 2022. Of that total, $4.31 billion in formula funds must be committed to new or ongoing projects by October 31.

Some of the most notable projects supported by federalaid formula funds in the Golden State include the I-5 HOV/Truck Lanes SR-14 to Parker Road Project ($179.0 million); Repairs and upgrades to State Route 60 and Interstate 710 in Los Angeles County ($121.7 million); and the State Route 46 Corridor Improvement Project ($119.6 million).

In addition to formula funds, the U.S. Department of Transportation has also announced 20 IIJA discretionary project grants in California, valued at $1.5 billion. These include the Vision 980 Phase 2—Feasibility Study ($680 million); the Golden Gate Suspension Bridge Seismic Retrofit effort ($400 million); and the Otay Mesa East Port of Entry Project ($150 million).

In FY 2022, over half of federal-aid highway projects (55 percent) were for major reconstruction and repair work.

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W W W.U N I T E D C O N T R AC T O R S . O R G

California used 23 percent of federal funds for planning and design work; nine percent to add capacity to an existing roadway; and four percent for new construction.

year 2023, which is June 30 for most states. Over 70 percent of this growth is driven by increased federal investment, including some IIJA projects.

National Leading Market Indicators Are Strong The value of state and local government contracts for highway bridge work increased 25 percent in 2022, reaching $102.8 billion from $82.3 billion in 2021.

In California, the Caltrans budget for capital outlays and local assistance is expected to reach $11.5 billion in state FY 2023, up from $9.9 billion in FY 2002. The total budget is expected to reach $19.6 billion, compared to $17.3 billion in FY 2022.

Contract awards are a leading indicator of future highway and bridge construction activity, as work gets underway. In many cases, larger projects can take several years to complete, and support continued economic growth and jobs in a community.

It is important to remember we are at the beginning of this process—many of the tangible benefits from the IIJA, including improved infrastructure conditions, jobs and economic activity, and safety improvements, are yet to come. z

States are also continuing to invest their own resources in state highway and bridge programs, according to ARTBA analysis of all 50 state department of transportation (DOT) budgets.

Editor’s note: ARTBA tracks the economic impacts of the IIJA in all 50 states and D.C., along with national commodity and material prices for transportation construction. This information can be accessed in the “Economics” section of www.artba.org

Total state highway and bridge capital spending is expected to increase 16 percent before the end of fiscal

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25

By Jon Switalski, Rebuild SoCal Partnership

INFRASTRUCTURE INVESTMENT IN CA: THE KEY TO ECONOMIC BOOM OR BUST

A

s the State of California and our nation face uncertain economic times, the contractor community’s engagement in state project advocacy and policymaking is critical. It’s no secret that federal and state budget challenges exist; however, contractors are best suited to effectively illustrate the numerous ways infrastructure investment serves as one of the most dependable drivers of economic success, delivering a guaranteed return on taxpayer investment.

The challenge of climate change has left our state with an increased need for resources while improvements to crumbling roads, highways, and bridges have become an outsized political issue, halting critical funding streams at every level of government. Policymakers have reduced the number of dollars allocated to transportation solutions.

Furthermore, progress on water storage and capture has stalled over arguments about the best approach, leaving Californians to contend with problems that vastly outpace available funding.

RESEARCH CONSISTENTLY SHOWS THAT INFRASTRUCTURE INVESTMENTS HAVE A POSITIVE RETURN: FOR EVERY BILLION DOLLARS OF INVESTMENT, WE SEE A RETURN OF $2.6 TO $4.1 BILLION DOLLARS AND THE CREATION OF 15,000 JOBS.

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W W W.U N I T E D C O N T R AC T O R S . O R G

We are facing a key inflection point in the history of our state: we must come together to broadly address the lack of infrastructure funding in our communities.

Transportation Policy California’s roads and bridges are overdue for upgrades and repair; however, funding is at risk due to mounting pressure from environmental and progressive advocacy groups, who frequently pit transportation improvements against environmental and equity issues. This is a false choice. We are in fact investing in economic equity and an improved environment. As a result, California’s budget risks underinvestment for repairs and developments that shorten commute times and increase the safety of numerous modes of transportation.

Poorly performing, deteriorating infrastructure leads to disruptions in business activity, traffic congestion, delays in goods movement, and health and safety risks. And conversely, research consistently shows that infrastructure investments have a positive return: for every billion dollars of investment, we see a return of $2.6 to $4.1 billion dollars and the creation of 15,000 jobs.

We can’t rob future generations of mobility and transportation projects with shortsighted policy and funding choices. Contractors must band together to advocate for funding and engage in policy conversations to effectively move projects forward, as was done on SB 1.

Water Policy In Southern California, spending on drinking water infrastructure has declined by 38% since 2010. Statewide

Photo: Royal Electric Company

investments have slowed at a similar pace. Californians depend on aging, unreliable systems while contending with the challenges of a changing climate, which will increase statewide infrastructure needs over the coming decades. One example of an existing need: improving the City of San Diego’s Stormwater infrastructure is estimated to need at least a $2 billion in additional investments.

A reliable supply of water and increased water resilience depends on funding outcomes at all levels of government. To secure funding for projects like the recently completed water recycling plants in Carson and El Segundo, the contractor community must advocate for large water projects that further increase our storage and capture capacity.

Transportation and water infrastructure underpin California’s historically booming economic growth:

we must continue to prioritize both to maintain growth in our state.

UCON is a vital voice only because the contractor community remains engaged. Rebuild SoCal Partnership is proud to join UCON to advance our mutual goals of robust infrastructure investment to support our current economy and provide for future generations of Californians. z Jon Switalski serves as the Executive Director of the Rebuild SoCal Partnership (RSCP). RSCP is comprised of 2,750 construction firms that employ more than 90,000 union workers in the 12 counties of Southern California. RSCP’s mission is to engage elected officials and educate the public on the need for continued infrastructure funding creating thousands of career construction jobs in our communities.

Visit www.rebuildsocal.org for more information.

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2023 UCON PAC FUNDRAISING EFFORT KICKS OFF IN DANA POINT

Garrett Francis, Fryman Management Inc., Ron Bianchini, Preston Pipelines, Inc., Mike Preston, Preston Pipelines, Inc., Wahid Tadros, California Engineering Contractors, Inc.

Southern California members come together to raise $120,000 for UCON’s Political Action Committee On May 25, over 65 members and guests came together at the Salt Creek Grille in Dana Point for the first-ever southern California-based UCON Political Action Committee (PAC) fundraiser, one of two PAC fundraising events this year.

The event kicked off the 2023 fundraising effort, bringing in nearly $120,000 for UCON’s PAC, which is used to elect and protect pro-industry candidates running in the state Assembly and Senate. Fundraising will continue through July, culminating in the iconic “backyard house party” at UCON CEO Mark Breslin’s home in Alamo on July 20.

Tom Donnelly, BrightView Landscape Development, Inc., Kevin Hester, McGuire and Hester, Vince Germann, BrightView Landscape Development Inc.

Steve Yurosek, Sukut Construction, LLC

In attendance were special guests, State Senate Candidate Suzette Valladeras (SD23) and UCON President, Ron Bianchini. Additionally, this was one of the first opportunities for the members of ECA and UCON to meet and get to know each other, post-merger.

UCON Executive Vice President Emily Cohen spoke to the audience, sharing gratitude for their support. “We are incredibly grateful for the trust and generosity of our members, which is what has allowed us to build a milliondollar PAC. We will never take that for granted.”

She continued, “the UCON PAC is one of our greatest tools to advance the interests of California’s union contractors of all sizes and scopes, and to help elect candidates who work with us, not against us, to advance our cause and improve your market share.”

The annual UCON PAC Fundraiser was established by UCON’s PAC Committee Members just six years ago with the goal of raising awareness about the importance of UCON’s work to elect candidates, while raising money for our political allies. The event has quickly emerged as one of the most effective, owner-centric industry fundraiser events in California and has grown into two events—one in southern California and northern California (see page 34)—all for the benefit of the UCON PAC’s mission to elevate the industry.

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W W W.U N I T E D C O N T R AC T O R S . O R G

Matt Scott, Kiewit Infrastructure West Tino Vasquez and Craig Fish, Marina Landscape, Inc.

Thank you to every member who sponsored and supported this unique and critically important event. And a very special thank you to UCON PAC Committee Members: Mike Bauman, Bauman Landscape and Construction, Inc., Steve Concannon, Pavement Recycling Systems, Maryanne and Nick Osborne, Sukut Construction, LLC, Inc., Randy Cram, Tri-West Tractor, Inc., Bruce Daseking, McGuire and Hester, George Furnanz, Stacy and Witbeck, Inc., Rich Gates, DeSilva Gates Construction, Dominic Sposeto, Vanguard Construction, Wahid Tadros, California Engineering Contractors, Inc., Rita Vigil-Ferguson, G&F Concrete Cutting, Inc.

Mike Nelson, Traffic Management, Inc., Robert Chrisp, Chrisp Company, Kurt Kniffin, Stacy & Witbeck, Inc., Jason Osterblad, Chrisp Company

Dave Sorem, Mike Bubalo Construction Co. Inc., Taka Sakai, Zefiro Corporation, Inc.

Ray Baca, UCON (ECA) Regional Director, Southern CA, Candidate Suzette Valladares, SD 23, Kevin Hester, McGuire and Hester, Emily Cohen, UCON EVP

Eric Patterson, Kiewit Infrastructure West

Mark Breslin, UCON CEO, Mladen Buntich, Mladen Buntich Construction, Anna Carno, Carno Law Group

Steve Concannon, Pavement Recycling Systems, Inc., Bryn Burke, Dees Burke Engineering Constructors LLC, Mark Swaney, and Cristy Clark, Maxim Crane Works, LP

Ahron Valverde, Valverde Construction, Inc., Clay O’Neal, UCON VP, Southern California, Nathan Valverde, Valverde Construction, Inc.

Jon Switalski, Rebuild SoCal Partnership

Tom Donnelly, BrightView Landscape Development, Inc., Bill Boyd, Sully-Miller Contracting, Co., Brendan McFadden, BrightView Landscape Development, Inc.

Debbie Anderson and Brendan Slagle, J.F. Shea Construction, Inc. JUNE 2023

29

Maizer Ouijdani, The Conco Companies, Tim Saenz, RMA Group, Inc., JP Madigan, The Conco Companies

Shauna Miller, MPWR Coaching, Inc., Lyndsie Lovingier, JMH Engineering and Construction, Inc.

Lou Rendon, Rendon & Associates, LLP, Chris La Vache, Trench Shoring, Inc., Barry Corea, Trench Shoring, Inc.

Cody Miller, MPWR Coaching, Inc., Jim Nelson, Western Paving Contractors, Inc., Emily Cohen, UCON EVP, Matt Lovingier, JMH Engineering and Construction, Inc.

Scott Salandi, Patriot Risk & Insurance Services, Inc.

Fernando Soriano, Traffic Management, Inc., Garrett Francis, Fryman Management Inc.

Mike Buntich, Mladen Buntich Construction Co., Paul Moralez, Diversified Landscape,

Ray Baca, UCON (ECA) Regional Director, Southern CA, Steve Ward, Pavement Recycling Systems, Inc.

Victor Sella, UCON Vice President of Labor Relations, Vicki Moralez, Diversified Landscape

Join us for our Northern CA PAC event on Thursday, July 20, 2023 at the home of UCON’s CEO, Mark Breslin, in Alamo, CA. Enjoy premium wines, great food, specialty cocktails, and networking with industry leaders in support of UCON’s Political Action Committee (see page 34).

WWW.UNITEDCONTRACTORS.ORG/PAC2023 Photography by BreslowImaging.com 30

W W W.U N I T E D C O N T R AC T O R S . O R G

THANK YOU PAC EVENT SPONSORS FOR YOUR TRUST, GENEROSITY AND SUPPORT ________________ TRAILBLAZERS – $9,000 ________________

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UP

By Angelica Gouig, Director of Events and Education

PROFESSIONAL DEVELOPMENT E N GAG E | G R OW | I N S P I R E | L E AD

C OU R S E CATA LOG

JUNE COURSES: JUNE 6

The Art of Supportive Leadership Tuesday, June 6; 2:30pm-4:00pm Instructor: David Gamow, Clarity Seminars Class Style: Virtual Class Limit: Unlimited Cost – Member: Free Non-member: $100

JUNE 8

The Critical Processes that Drive Project Success Thursday, June 8; 2:30pm-4:30pm Instructors: Luke Matelan, FMI Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100

JUNE 14

Fearless Field Leader (Northern CA) Previously Fearless Foreman

Wednesday, June 14; 4:30pm-8:00pm Instructor: Mark Breslin, United Contractors Class Style: In-person | Class Limit: 110 Cost – Member: $225 | Non-member: $325

JUNE 27

Construction Estimating—A Quick Start Guide Tuesday, June 27; 2:30pm-4:30pm Instructor: Paul Stout, Power Summit Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100

JUNE 29

Creating Pathways into Construction Thursday, June 29; 2:30pm-4:30pm Instructors: Stephane McShane, Maxim Consulting Group Class Style: Virtual | Class Limit: Unlimited Cost – Member: FREE | Non-member: $100

Location: San Ramon Marriott, San Ramon 2600 Bishop Drive, San Ramon, CA 94583

408.337.5016

32

W W W.U N I T E D C O N T R AC T O R S . O R G

2023

M

ore classes have been added to our 2023 Professional Development schedule! Take advantage of our 40+ classes (Leadership, Safety, Compliance, HR, Construction Specific and more); most classes FREE to UCON members. Download the latest 2023 UCON Professional Development catalog, and/or register: www.unitedcontractors.org/calendar

Professional Development June/July 2023 JULY COURSES:

JULY 19 - OCTOBER 11

UCON’s Project Management Career Advancement (PMCA) Program

JULY 13

CPM Scheduling— Just the Basics

Wednesdays, July 19 - Oct 11; 9:000am-12:00noon Instructors: Various Instructors Class Style: Virtual | Class Limit: 25 Early-Bird Cost (expires June 19): Member: $2,185; Non-member: $2,285 Standard Cost: Member: $2,200; Non-member $2,300

Thursday, July 13; 2:30pm-4:30pm Instructor: Paul Stout, Power Summit Class Style: Virtual |Class Limit: Unlimited Cost – Member: Free | Non-member: $100

MEMBER ONLY BENEFIT: UCON LIBRARY—COURSES ON-DEMAND UCON has a library of courses on our website available for members only. If there was a class you missed, check with your manager and take it ondemand. Select the Education Library option on the member homepage.

JULY 26

Communicate with Different Personality Styles Wednesday, July 26; 2:30pm-4:30pm Instructor: Carly Dixon, Dale Carnegie Class Style: Virtual Class Limit: Unlimited Cost – Member: Free | Non-member: $100

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UP

By Christine Traina, Event Manager

PROTECTING OUR FUTURE please join us for a special evening to benefit the ucon pac

northern california: july 20, 2023 | Thursday, 5:00 - 8:00pm Location: Alamo, CA, home of Mark Breslin, UCON CEO Enjoy premium wines, great food, specialty cocktails, and networking with industry leaders in support of UCON’s Political Action Committee.

The UCON Political Action Committee (PAC) exists to improve your business environment by strengthening the political voice of union contractors.

To learn more, or register, visit: unitedcontractors.org/PAC2023

34

W W W.U N I T E D C O N T R AC T O R S . O R G

Thank you to all of our sponsors who supported and attended our PAC event in Southern CA on May 25! (see pages 28-31)

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LEAD

BUILT ON TRUST

WORKFORCE REALITIES 2023

By Sue Dyer, Sudyco.com

Dear Sue, I had to tell my client this week that I didn’t have enough people to complete our project within the schedule. To put it mildly he really didn’t take it well. I need to figure out how to expand my workforce asap. Any thoughts?

— Not Enough Hands

Dear Not Enough, The good news is that you are not alone. The bad news is that it will take a while to bring people up to the level you need, but now is the time to start!!

O

ne of the biggest barriers the industry faces, is that people are not coming into construction today in the numbers needed.

There are 500,000 empty construction jobs today, and more openings coming as journeymen continue to retire in the next couple of years. The scenario that you explain in your question is something we are seeing on more and more projects. There just aren’t enough people to do the work.

So, why not look to half of the population, women, to fill this need? And of course, others who are not now drawn to the industry. But women are a great place to start.

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I’ve been doing a series on my podcast on Bringing Women into Construction. This is the brain child of Emily Cohen, EVP of UCON—and wow, have I learned a lot! (Read Emily’s article on page 20).

I’ve done over twelve hours of interviews of some remarkable women working in the industry. They come from all levels and perspectives. From a President of a billion-dollar company, to a CEO of a construction tech start up, to construction craft trainers, and construction field superintendents and project managers. These women are remarkable. Most have been in the industry for a while and have some key lessons for all of us to learn. Here are twelve lessons we can all use starting today.

LESSON #1: When recruiting people to your

company, people who have a family member in construction or farming are more likely to come.

LESSON #2: Many women (and others) don’t come to construction, because they didn’t know it was an option. Make it known that construction is an option for women.

LESSON #3: Create a good home for women who are

good at what we do. You need your current employees to welcome the women (and others) to the company.

Many people didn’t come because they didn’t feel welcomed.

LESSON #4: If you are a woman in construction and you aren’t in a company that supports and welcomes you, there is a company that will love having you.

LESSON #5: Women can do the work! They need the

same kind of support any newer hand would need. Be a mentor.

Image originally from www.bigrentz.com/blog/women-construction

LESSON #6: Women (and men) want to have other women around, so they aren’t isolated. When you hire, hire more than one woman.

LESSON #7: Women need to see role models, to know what is possible in construction as a career.

LESSON #8: We do need a path for women with children, maybe an off ramp to estimating or a job where with more flexibility for those few years. Or the father can have the off ramp. Either way works.

you ask your people if they have daughters, sons, etc. who might want to become a part of your company.

Gone are the days you can expect to get someone from the union bench. You need to create your own bench and help the union help you train them. If you start now, you might find some good people and then keep doing it to make sure you can grow and sustain your company over the years to come. Of course, you can pick up people from other companies, but this will not grow the workforce needed for the industry and we need to address the need for more people coming to the industry, NOW! z Sue Dyer, MBA, is a Master Partnering Facilitator for OrgMetrics, WSJ bestselling author and trainer on Trusted Leadership for construction leaders, and Founder of the International Partnering Institute.

Send your questions for Sue to answer at suedyer@orgmet.com, (510) 504-5877.

LESSON #9: We need to start helping our girls see construction as a wonderful career and show them the different paths they can take.

LESSON #10: Women enhance communication and foster collaboration. Research shows that with more women, and diversity on your team, you get better problem solving and decision making.

LESSON #11: Women you recruit need to be okay

with the nature of construction—get up early, work outside, get dirty. Also, work as a team, achieve success together, build things. They will appreciate the wages and fringes too.

LESSON #12: The Construction Trades are starting

women focused apprentice and pre-apprentice programs. Check them out, and if you don’t see what you need, ask for one to be started.

Not Enough, I hope that this gives you several ideas on what you can do today to build up your workforce. Women and others who are not typically in our industry, are who you need to start recruiting. Start now and make sure

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JUNE 2023

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Photo courtesy Pavement Coatings Co.

MEMBER ANNIVERSARIES: JUNE United Contractors would like to take this opportunity to recognize and thank the following companies who are celebrating their anniversary of membership with our organization in June:

48 YEARS – 1975

Associate Member: ICONIX Waterworks, Inc. Michael Potter

46 YEARS – 1977 Associate Member: Forterra Luis Santana

42 YEARS – 1981

Associate Member: CliftonLarsonAllen LLP Mary Short

35 YEARS – 1988 Contractor Member: Knife River Construction - Chico Rene Vercruyssen

Associate Member: Johnston, Gremaux & Rossi, LLP Ed Lampe

29 YEARS – 1994

Contractor Member: DeSilva Gates Construction Rich Gates

26 YEARS – 1997 Contractor Members: AJW Construction Alfonso Quintor Chrisp Company Robert Chrisp Associate Member: Liberty Mutual Surety Lisa Merlin

25 YEARS – 1998 Contractor Members: Bay Pacific Pipelines Eugene Carew

Tennyson Electric, Inc. Matt Tennyson

23 YEARS – 2000 Contractor Members: Lorang Brothers Construction, Inc. Michael Lorang Martin Brothers Construction, Inc. Felipe Martin

18 YEARS – 2005

Contractor Members: Carone and Company, Inc. Lloyd Carone Half Moon Bay Grading & Paving, Inc. Cynthia Giovannoni 40

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17 YEARS – 2006 Contractor Member: Bentancourt Bros.

Construction, Inc. Jeff Bentancourt

16 YEARS – 2007 Contractor Members: R.A. Nemetz Construction Co. Rob Nemetz

Schembri Construction Company, Inc. Charles Schembri

15 YEARS – 2008

Contractor Member: Platinum Pipeline, Inc. Manuel de Freitas

12 YEARS – 2011

Contractor Members: W. R. Forde Associates Inc. Candace Clapp Associate Member: ICC Equipment & Rentals Greg Aguilera

11 YEARS – 2012 Associate Member: Summit Financial Group, LLC Don Ledoux

10 YEARS – 2013

Contractor Members: Brosamer & Wall, Inc. Charles Wall JCC, Inc. Craig Johnson

9 YEARS – 2014

Contractor Member: MJG Inc. dba MJG Constructors Inc. Allen Wilson

8 YEARS – 2015

Contractor Members: Dutch Contracting, Inc. Nicholas Zwetsloot Pacific Infrastructure Construction LLC Jay Zoellner

7 YEARS – 2016

Associate Members: Nixon-Egli Equipment Co. Vern Gunderson Smith Currie & Hancock, LLP Arpi Alajaji

6 YEARS – 2017

Contractor Members: Champion Contractors Peter Knuth Liberty Contractors, Inc. Joe Capriola

Shimmick/Danny’s Joint Venture Wendy Bonnell

M.A. McClish Excavating, Inc. Michael McClish

4 YEARS – 2019

OHL USA, Inc. dba Group OHL North America Tony Bagheri

Contractor Members: American Civil Constructors LLC Nicole McCraven Minerva-Graniterock JV Shirley Ow Teichert Solar Tom Griffith

3 YEARS – 2020

Contractor Members: Garrison Demolition and Engineering Inc. Kris Huff International Line Builders dba ILB Electric William Davenport

1 YEAR – 2022

Contractor Member: Bess Testlab Inc. dba Bess Utility Solutions Joseph Bohorquez Papich Construction Company, Inc. Jason Papich

Pavement Coatings Co. Doug Ford

Strive Concrete Cutting, Inc. Sandra Chavez

RK Engineering Inc. Thomas Carroll

WGJ Enterprises, Inc., dba PCI William Jacob

Associate Member: CPM Logistics Abbigail Brown

Western Paving Contractors, Inc. Jim Nelson

2 YEARS – 2021

Contractor Member: EverLevel Holding LLC Gunnar Lee-Miller Associate Members: Rebuild SoCal Partnership Jon Switalski

In 2021, LIUNA’s commitment to training and apprenticeship in California included:

635,709 HOURS OF TRAINING

4,782

CLASSES PERFORMED

1,881

APPRENTICESHIP GRADUATES

26,957 STUDENTS TAUGHT

JUNE 2023

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SUMMER’S HERE! DON’T MISS UCON’S EVENTS:

SOUTHERN CA

Join Us! Thursday, June 22, 5:30pm-8:30pm The Huntington Beach House 21601 PCH Huntington State Beach

22

JUN THURSDAY

(Hosted Parking)

NORTHERN CA

GREAT FOOD, FRIENDS & MUSIC

42

THE

2023 SUMMER

BEACH BASH The Huntington Beach House

AUG 3

THURSDAY • 4:30PM

BBQ & Chili Cook-Off CHILL & GRILL

W W W.U N I T E D C O N T R AC T O R S . O R G

Alameda County Fairgrounds Pleasanton OVER 1,000 OF YOUR FRIENDS WILL BE THERE!

EXCAVATION OF SOIL IS DANGEROUS WORK and can lead to severe injuries and even death if the excavation process is not properly addressed. National Trench Safety has a full complement of excavation support systems as well as engineering and training services to ensure you have the equipment needed to perform the job safely and effectively.

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*Offer of 0% is for a loan term of 24 months which offer is only valid from January 1, 2023 through June 30, 2023 on new compact (compact track loaders, compact wheel loaders, micro/mini excavators, skid steer loaders) and small (backhoe loaders, telehandlers, small track type tractors, small wheel loaders) Cat® machines sold by participating Cat dealers to customers in the USA or Canada. The credit of up to $500 USD for CVA purchase can only be applied toward the purchase of a qualifying Cat Customer Value Agreement (CVA). Purchases (both machine and CVA) and machine delivery must occur during offer period. Offer subject to machine availability and credit approval by Cat Financial. Not all customers will qualify. Amount of the CVA credit cannot exceed the price of the qualifying CVA. CVA must include 1-year Preventative Maintenance Parts Kit, TA1 annual Inspection, signed CVA contract, and Product Link™. Amount of credit towards CVA is the same for all models. Offer may change without prior notice and cannot be combined with any other offers. Additional terms and conditions will apply. Contact Peterson Cat for details.

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