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PUbLicaTioN oF aSSociaTED bUiLDERS aND coNTRacToRS oF micHiGaN
Also:
Endorsements for State & U.S. Congressional Races Contractors: How the Supreme Court’s Affirmative Action Decision Impacts You www. a b c m i . com
2014 VOTER’S GUIDE
ABC Endorses Governor Snyder’s Re-election
U.S. Senate: ABC Backs Terri Lynn Land1 FALL 2014
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mi cHiGaN mERiT
inside 4
Executive Perspective A remarkable construction industry comeback over the next 4 years — let’s keep the momentum going this November.
6
2014 Voters’ Guide Michigan goes to the ballot box. See endorsements for Governor, Lt. Governor, Attorney General, Secretary of State, Michigan House and Senate, State boards, Supreme Court and federal candidates.
14
ABC Members Say Snyder is Rebuilding Economy An in-depth analysis of Michigan’s huge improvement in economic outlook and construction industry business climate since Gov. Snyder’s election in 2010.
17 20
National Elections Overview: All Elections are Important Easy ways to make a big impact on behalf of free enterprise and open competition. A Contractor’s Guide to Michigan’s Affirmative Action Ban Contractors: The Supreme Court’s recent reinstatement of Michigan’s Affirmative Action ban will impact your business.
VoLUmE Viii, iSSUE 4 © iStock.com/Steve Debenport
www. a b c m i . com
24
Government Affairs Attorney General Schuette receives ABC of Michigan Liberty award
ABC commends Livingston County for repealing prevailing wage requirements
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ASSOCIATED BUILDERS and CONTRACTORS of MICHIGAN 2014 BOARD of DIRECTORS Brian Stadler, Chairman Wolgast Corporation Greater Michigan Chapter Dan Murphy, Vice-Chairman MAG Insulation Greater Michigan Chapter
We hope you’ll take some time with this edition of Michigan Merit to think about the importance of November’s election not only for our state, but also what it means for your company, Michigan’s construction workforce and the overall Merit Shop construction industry.
Dave Sheffield, Secretary-Treasurer Onslow-Sheffield, Inc. Southeastern Michigan Chapter Chris Beckering, Immediate Past Chair Pioneer Construction Western Michigan Chapter Jim Cripps Cripps Fontaine Excavating, Inc. Western Michigan Chapter Mike Houseman Wolverine Building Group Western Michigan Chapter Rick Jackson Jackson Associates, Inc. Southeastern Michigan Chapter Michael Marks The Mackenzie Companies Greater Michigan Chapter Dave Mollitor Consolidated Electrical Contractors Greater Michigan Chapter Bill Molnar Wm. Molnar Roofing Co., Inc. Southeastern Michigan Chapter Jack VandeGuchte Western Michigan Chapter Daniel Welch Welch Tile & Marble Company Western Michigan Chapter MICHIGAN MERIT CONTRIBUTORS
During the past eight months ABC of Michigan has met with more than 100 Our job this candidates for office, worked to educate and year is to inform decision-makers make sure on issues of importance we keep our for our industry and foot on the has worked with our government affairs gas pedal to committee to make sure that the voices of ABC members the continued across Michigan are heard both in Lansing and Washington benefit of DC.
ABC members everywhere.
The last few years have been remarkable for construction in Michigan. Since Gov. Snyder and current legislative leaders took office, Michigan has gained construction jobs year after year in a remarkable industry turnaround. Not only have total construction jobs increased, construction incomes have also increased every year to the benefit of our overall construction economy.
Publisher: Christopher Fisher Managing Editor: Mary Boardway, CAE Communications Coordinator: Elise Layton ABCMI Economist: Don Wilson Design and Printing: Keystone Millbrook Advertising: Strategic Value Media Editorial: Lezotte Miller Public Relations Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 230 N. Washington Sq., Suite 202, Lansing, MI 48933, (517) 8532545. Please direct all inquiries to the previous address. Articles written by outside authors do not necessarily reflect the views of Associated Builders and Contractors Inc. of Michigan. ABC of Michigan reserves the right to reject or edit all material submitted for publication. The appearance of an advertisement in Michigan Merit does not constitute endorsement of the advertiser, its products or services, nor do Michigan Merit or Associated Builders and Contractors Inc. of Michigan guarantee or warrant any claims or offers made by the advertisers. Permission to reprint in whole or in part is hereby granted, provided the following credit line is used: “Reprinted by permission from Michigan Merit, a publication of Associated Builders and Contractors Inc. of Michigan.”
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It all amounts to more and better jobs for the construction industry in Michigan. Our job this election year is to make sure we keep our foot on the gas pedal to the continued benefit of ABC members everywhere. We have seen firsthand the benefits of free enterprise and equal opportunity regardless of labor affiliation. We have also seen firsthand the benefits of living in a right to work state and having passed the most comprehensive law in the country to reform the discriminatory use of union–only project labor agreements. All this has been possible because of our efforts to engage elected officials and through a lot of hard work. This election year it’s crucial that we make sure we do all we can to protect our industry and grow it even further. Please take the time to review the election guide enclosed in this magazine and share it with others who care as much as you do about construction in Michigan. Yours for the Merit Shop,
Chris Fisher
mi cHiGaN mERiT
Photo by Thiel Harryman, Nova Group – Underground Construction Co., Inc., a Joint Venture
Make sure your hard work doesn’t go to waste
VOTE
FREE ENTERPRISE
ALLIANCE
ON NOVEMBER 4
abcvotes.com
www. a b c m i . com
FALL 2014
5
Governor oF MichiGAn
rick Snyder/BriAn cALLey Associated Builders and Contractors of Michigan proudly and enthusiastically endorses the re-election of Gov. Rick Snyder and Lt. Gov. Brian Calley, who since taking office in 2011 have relentlessly worked to put the state back on the path toward economic prosperity. Gov. Snyder has implemented a wide range of economic reforms that prove he is the voice for construction that Associated Builders and Contractors of Michigan wants in Lansing.
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Throughout his time in office, Snyder has held true to his platform and valued job creation in both the private and public sectors. Among his many notable achievements: • A ban on government-mandated project labor agreements, ensuring that Merit Shop contractors are allowed to compete on a level playing field on all state-funded construction projects • Tax reform that eliminated the unfair and unpopular
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g,
cy Contractin , Robert Clan Robert Clancy . rs es be ris em rp m te C (L to R): AB ver, MDG En d Michael Gro Gov. Snyder an
businesses, including many ABC of Michigan members • Enactment of Right to Work legislation, further promoting free-market competition in Michigan and helping the state compete for jobs-producing industries with other states • Elimination of regulatory red tape, making it easier for ABC
Attorney GenerAL oF MichiGAn
BiLL Schuette
ABC of Michigan endorses the retention of Bill Schuette as Michigan’s attorney general. Schuette has reflected ABC’s principles throughout his time as attorney general, a U.S. congressman, director of the state’s Department of Agriculture, a state senator and a state Court of Appeals judge. Attorney General Bill Schuette has a strong record of championing the rule of law and equal opportunity for all. Schuette has been a part of the Snyder administration’s strong focus on getting Michigan back on its feet economically, but he has also been a strong advocate for protecting Michigan’s Constitution, fighting for elimination of government-mandated Project Labor Agreements and defending Michigan’s Right to Work legislation. Schuette brought a wealth of legal and political experience to the attorney general’s office. His advocacy for business and opposition to special interests shines throughout his record as a lawmaker and jurist. Schuette’s opponent will be Mark Totten, an MSU legal professor who has been endorsed by every major union in the state. www. a b c m i . com
of Michigan members to do what they do best — produce quality work in a safe environment It’s for those reasons and more that construction employment and wages have increased each year Snyder has been in office. More broadly speaking, since December 2010, nearly a quarter million private sector payroll jobs have been created in Michigan and unemployment has reached its lowest point in six years. The rest of the country is taking notice, as evidenced by Fitch raising Michigan’s credit rating for the first time since 2007. The evidence is clear that Snyder has steered Michigan away from bloated and inefficient government and toward a path of economic prosperity. Michigan’s long-awaited economic reinvention is well under way, and it’s astounding what the Snyder administration has accomplished in four years. ABC of Michigan has every confidence that Snyder and Calley will continue to improve our economy, reform state government and keep Michigan’s comeback going strong during a second term in office.
MichiGAn SecretAry oF StAte
ruth JohnSon
The Michigan Secretary of State oversees elections and campaign finance laws in Michigan, as well as administers vehicle registration and licensing of drivers. ABC of Michigan has endorsed incumbent Secretary of State Ruth Johnson for a second term in office. Johnson, a Republican, has handled the duties of her office in the past four years in an even-handed, efficient manner. She has worked hard to reduce delays, improve online services and increase innovation. Since ABC members register thousands of work vehicles each year and the customer service and technological innovations made possible by Johnson help them do business more efficiently and more effectively, we are proud to support her campaign for reelection. A former Oakland County commissioner, Johnson has also previously served as a state representative, and then as the first woman elected to serve as Oakland County clerk. Johnson’s Democratic opponent in November will be Godfrey Dillard, a Detroit civil rights attorney. FALL 2014
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MichiGAn SenAte
MArGAret o’Brien
ken horn
SENaTE DiSTRicT 20
SENaTE DiSTRicT 32
The Michigan Senate is currently Republican controlled by a margin of 26-12, and is likely to remain majority GOP. However, with term limits, retirements, and redistricting that takes effect in this election, Republicans will not take any victories for granted this year. ABC Spotlight Races: The Democratic caucus hopes to take seats like the 20th District, a district that is currently represented by Republican Tonya Schuitmaker. Sen. Schuitmaker will run in the newly redistricted 26th District, while Republican nominee and current State Rep. Margaret O’Brien (61st District) faces off against fellow State Rep. Sean McCann, a Democrat who
8
District
Party Affiliation
1st District 2nd District 3rd District 4th District 5th District 6th District 7th District 8th District 9th District 10th District 11th District 12th District 13th District 14th District 15th District 16th District 17th District 18th District 19th District
R R R R R R R R R R R R R R R R R R R
FALL 2014
Name
Barry Berk Mark Price Matthew Keller Keith Franklin Jennifer Rynicki Darrell McNeill Patrick Colbeck (i) Jack Brandenburg (i) Hawke Fracassa Tory Rocca (i) Boris Tuman Jim Marleau (i) Marty Knollenberg David Robertson (i) Mike Kowall (i) Mike Shirkey Dale Zorn Terry Linden Mike Nofs (i)
represents the 60th District. ABC has endorsed Rep. O’Brien in the 20th Senate District for her proven record on job creation and free enterprise. In the 32nd District, ABC has endorsed Republican former State Rep. Ken Horn, who faces stiff competition from Democratic State Rep. Stacey Erwin Oakes for a seat being vacated by Sen. Roger Kahn. The Senate will only remain a pro-growth chamber if ABC members and other like-minded voters turn out at the polls in November. The list below represents ABC’s endorsements in the election. 20th District 21st District 22nd District 23rd District 24th District 25th District 26th District 27th District 28th District 29th District 30th District 31st District 32nd District 33rd District 34th District 35th District 36th District 37th District 38th District (Key: (i)=incumbent)
R R R R R R R R R R R R R R R R R R R
Margaret O’Brien John Proos (i) Joe Hune (i) Craig Whitehead Rick Jones (i) Phil Pavlov (i) Tonya Schuitmaker Brendt Gerics Peter MacGregor (i) Dave Hildenbrand (i) Arlan Meekhof (i) Mike Green (i) Ken Horn Judy Emmons (i) Geoff Hansen (i) Darwin Booher (i) Jim Stamas Wayne Schmidt Tom Casperson (i)
mi cHiGaN mERiT
MichiGAn houSe oF repreSentAtiveS cAroL Ann FAuSone hoUSe DiStrict 21
donijo dejonGe hoUSe DiStrict 76
toM BArrett hoUSe DiStrict 71
The Michigan House is currently a Republican majority chamber as well – but Democrats are working hard to change that. The balance in the 110-member chamber is 59-50 (one independent), with many races in play this year. Since 2010, the House has passed major reforms, including a ban on government-mandated Project Labor Agreements (PLAs) in 2011 and 2012, and Right to Work in 2012. In addition, the current majority leadership has worked hard on trimming regulation and taxation in conjunction with the Snyder administration’s pro-jobs, pro-growth agenda. ABC Spotlight Races: New to the political scene in Lansing, but certainly no stranger to leadership, former Michigan Air National Guard Brigadier General Carol Ann Fausone (Republican) is seeking the 21st District seat in the Canton-Belleville area. Fausone has an excellent opportunity to win the seat. In the 76th District, former Grand Rapids controller and Grand Valley State District
Party Affiliation
1st District
R
2nd District
Name
University professor Donijo DeJonge (Republican) looks to unseat Rep. Winnie Brinks (D). DeJonge has a background in public budgeting and finance and strong free enterprise bona fides. Also seeking to switch a Democratic seat is Tom Barrett (Republican), a Michigan civil servant and Iraq War veteran who is looking to defeat Democratic Rep. Theresa Abed in vulnerable Eaton County. ABC of Michigan has endorsed Fausone, DeJonge, and Barrett in these races. Each of the races listed below plays a crucial role in defending the Merit Shop gains of the past four years, and in giving us the opportunity to make even more gains as we forge ahead and advocate for free enterprise, open competition, and increased opportunity. Encourage your friends and employees (see ABCVotes.com sidebar on pg. 23 for tips on how to appropriately discuss elections with employees) to be engaged this November! 13th District
R
Harry Sawicki
John Hauler
14th District
R
Nathan Inks
R
Daniel Lamar
15th District
R
Johnnie Salamassi
3rd District
R
Dolores Broderson
16th District
R
Steve Boron
4th District
R
Edith Floyd
17th District
R
Charles Londo
5th District
R
Dorothy Patterson
18th District
R
Roland Fraschetti
6th District
R
Tairia Bridges
19th District
R
Laura Cox
7th District
R
David Bradley
20th District
R
Kurt Heise (i)
8th District
R
Christopher Ewald
21st District
R
Carol Ann Fausone
9th District
R
James Stephens
22nd District
R
Jeff Bonnell
10th District
R
Matthew Hauser
24th District
R
Anthony Forlini (i)
11th District
R
Jim Rhoades
23rd District
R
Pat Somerville (i)
12th District
R
Kelly Thompson
25th District
R
Nick Hawatmeh
www. a b c m i . com
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MichiGAn houSe oF repreSentAtiveS (cont.) District
Party Affiliation
26th District
R
Greg Dildilian
27th District
R
Michael Ryan
28th District
R
Beth Foster
29th District
R
David Lonier
30th District
R
Jeff Farrington (i)
31st District
R
Phil Rode
32nd District
R
Andrea Lafontaine (i)
33rd District
R
Ken Goike (i)
34th District
R
Bruce Rogers
35th District
R
Robert Brim
36th District
R
Peter Lucido
37th District
R
Richard Lerner
38th District
R
Kathy Crawford
39th District
R
Klint Kesto (i)
40th District
R
Mike McCready (i)
41st District
R
Martin Howrylak (i)
42nd District
R
Lana Theis
43rd District
R
Jim Tedder
44th District
R
Jim Runestad
45th District
R
Mike Webber
46th District
R
Bradford Jacobsen (i)
47th District
R
Henry Vaupel
48th District
R
Stephanie Stikovich
49th District
R
Lu Penton
50th District
R
Craig Withers
51st District
R
Joseph Graves (i)
52nd District
R
John Hochstetler
53rd District
R
John Spisak
54th District
R
Ed Moore
55th District
R
Leonard Burk
56th District
R
Jason Sheppard
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Name
57th District
R
Nancy Jenkins (i)
58th District
R
Eric Leutheuser
59th District
R
Aaron Miller
60th District
R
Mike Perrin
61st District
R
Brandt Iden
62nd District
R
John Bizon
63rd District
R
David Maturen
64th District
R
Earl Poleski (i)
65th District
R
Brett Roberts
66th District
R
Aric Nesbitt (i)
67th District
R
John Hayhoe
68th District
R
Rob Secaur
69th District
R
Frank Lambert
70th District
R
Rick Outman (i)
71st District
R
Tom Barrett
72nd District
R
Ken Yonker (i)
73rd District
R
Chris Afendoulis
74th District
R
Rob Verheulen (i)
75th District
R
John Lohrstorfer
76th District
R
Donijo Dejonge
77th District
R
Tom Hooker (i)
78th District
R
Dave Pagel (i)
79th District
R
Al Pscholka (i)
80th District
R
Cindy Gamrat
81st District
R
Dan Lauwers (i)
82nd District
R
Todd Courser
83rd District
R
Paul Muxlow (i)
84th District
R
Edward Canfield
85th District
R
Ben Glardon (i)
86th District
R
Lisa Posthumus Lyons (i)
87th District
R
Mike Callton (i)
88th District
R
Roger Victory (i)
89th District
R
Amanda Price (i) mi cHiGaN mERiT
MichiGAn houSe oF repreSentAtiveS (cont.) 90th District
R
Daniela Garcia
101st District
R
Ray Franz (i)
91st District
R
Holly Hughes
102nd District
R
Phil Potvin (i)
92nd District
R
Ken Berman
103rd District
R
Bruce Rendon (i)
93rd District
R
Tom Leonard (i)
104th District
R
Larry Inman
94th District
R
Tim Kelly (i)
105th District
R
Triston Cole
96th District
R
Carlos Jaime
106th District
R
Peter Pettalia (i)
97th District
R
Joel Johnson (i)
107th District
R
Lee Chatfield
98th District
R
Gary Glenn
108th District
R
Ed McBroom (i)
99th District
R
Kevin Cotter (i)
109th District
R
Pete Mackin
100th District
R
Jon Bumstead (i)
110th District
R
Bob Michaels
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MichiGAn SupreMe court JudGe JAMeS redFord FULL TERm
JuStice dAvid viviAno PaRTiaL TERm
JuStice BriAn ZAhrA FULL TERm
The Michigan Supreme Court primarily reviews decisions by the Michigan Court of Appeals, granting review to cases with importance to the general public. Two of the seven seats are up for a full-term election this year, with one partial term also on the ballot. ABC has endorsed three rule of law judges (whose judicial philosophy is to interpret what the law is, not to decide what it should be); these individuals will protect the integrity of our political system by ensuring that each branch of government stays within its mandated role. Michigan citizens will vote for two of five candidates on the ballot for full eight year terms. For these positions ABC endorses incumbent Justice Brian Zahra, who has been on the court since
his appointment in 2011. For the second open position, ABC endorses Circuit Court Judge James Redford, a retired Navy Judge Advocate General with a distinguished civilian legal career. Voters will also chose from three candidates for a partial term ending in 2017. ABC endorses incumbent Justice David Viviano, who has been serving since his appointment by Governor Rick Snyder in 2013. The Court currently has a 5-2 conservative majority; re-electing Justices Viviano and Zahra and electing Judge Redford would retain the conservative majority and ensure that Michigan’s laws are protected.
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For the first time in a long time, there is a very competitive United States Senate seat in play. Republican Terri Lynn Land, the former Michigan Secretary of State, has been proudly endorsed by ABC in this race. After long-serving Senator Carl Levin (D) announced his retirement, Land has been campaigning on bringing the same common sense solutions to Washington that have worked so well in getting Michigan back on track. Land has proven experience with improved efficiency and fiscal responsibility as Secretary of State, and as a small business owner and native Michigander, she has a ground-level view of the problems that excessive government regulations can cause. Her emphasis has been on repealing and replacing Obamacare with real health care reform, a message that resonates strongly with ABC members. Land faces Democrat U.S. Rep. Gary Peters (MI-14) in the general election, with a race that promises to be close.
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MichiGAn conGreSSionAL rAceS
John MooLenAAr
coNGRESSioNaL DiSTRicT 1
Mike BiShop
tiM WALBerG
coNGRESSioNaL DiSTRicT 8
Michigan’s Congressional delegation will look significantly different when the 114th Congress takes office in January 2015. Long-time Congressmen Dave Camp (R-MI-04), Mike Rogers (R-MI-08), and John Dingell (D-MI-13) each announced their retirements from Congress early this year. Competitive races in other House seats mean ABC members need to work hard to elect and re-elect candidates who will fight for ABC issues. ABC Spotlight Races: In the 4th District, State Senator and strong Merit Shop advocate John Moolenaar won a hotly contested Republican primary for the right to run in November’s general election against Democratic candidate Jeff Holmes. The 8th District will see a fight between Republican former State Senator Mike Bishop (who bested current State Rep. Tom McMillin in the GOP primary) and Democrat Ingham County Clerk Eric Schertzing. The 7th District is seeing a showdown between Republican
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coNGRESSioNaL DiSTRicT 7
incumbent Rep. Tim Walberg (who has been strongly supportive of free enterprise during a career in both state and federal government) and Democrat Pam Byrnes, a former legislator and attorney. In Northern Michigan (including the Upper Peninsula), incumbent Republican Rep. Dan Benishek defends his 1st District seat against Jerry Cannon, a former military officer. Rep. Benishek has been endorsed by ABC. Michigan must put up a strong showing for its free enterprise, open-competition candidates in this federal election. Although this is not a presidential election year, these federal candidates will each make a huge impact on Michigan builders and contractors. ABC members should consider how their election day choices could strike a blow against federal overreach and jobkilling mandates like federal prevailing wage (Davis-Bacon) and Obamacare.
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united StAteS houSe oF repreSentAtiveS endorSeMentS District
Party Affiliation
Name
1st District
R
Dan Benishek (i)
2nd District
R
Bill Huizenga
3rd District
R
Justin Amash (i)
4th District
R
John Moolenaar
5th District
R
Allen Hardwick
6th District
R
Fred Upton (i)
7th District
R
Tim Walberg (i)
8th District
R
Mike Bishop
9th District
R
George Brikho
10th District
R
Candice Miller (i)
11th District
R
Dave Trott
12th District
R
Terry Bowman
13th District
R
Jeff Gorman
14th District
R
Christina Conyers
univerSity BoArdS ABC of Michigan endorses the candidates below for the state university boards because they stand for free and open competition in the management of these taxpayer-funded institutions. District
Party Affiliation
MSU Trustee
R
Melanie Foster
MSU Trustee
R
Jeff Sakwa
University of Michigan Regent
R
Rob Steele
University of Michigan Regent
R
Ron Weiser
Wayne State Board
R
Michael Busuito
Wayne State Board
R
Satish Jasti
StAte BoArd oF educAtion The Michigan State Board of Education provides key policy guidance and direction for the state’s educational system. ABC has endorsed the candidates below. MM District
4346 Leonard St. NW Phone: 616-735-3990
Name
Party Affiliation
Name
State Board of Education
R
Maria Carl
State Board of Education
R
Jonathan Williams
Grand Rapids, MI 49534 Fax: 616-735-3159
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abc mEmbERS Say
SNYDER IS rebuilding
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EcoNomy
An Associated Builders and contractors of Michigan Analysis While economists cite various statistics as evidence that Michigan’s economic environment has markedly improved during Gov. Rick Snyder’s tenure, Associated Builders and Contractors members such as Dave Tebben point to other, less tangible but perhaps just as persuasive indicators. “I tell people I think the biggest difference is people are optimistic again,” says Tebben, president of K&H Concrete Cutting of Lansing, an ABC of Michigan member. “Four years ago, people were just grateful if they had a good month — they had 16
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no hope it would continue. But now, if they have a good month, they’re talking about adding equipment and guys. There’s been a huge shift, and I think it’s a reflection of the political climate and manufacturing coming back.” Indeed, ABC members credit various policy changes enacted since Snyder took office in 2011 for what they say are vast upgrades in the state’s business climate: the banning of government-mandated project labor agreements on publicly funded construction projects, tax restructuring, adoption of rightto-work and a reduction in regulatory red tape. The Snyder-crafted reform of unemployment insurance and mi cHiGaN mERiT
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workers compensation insurance, will further make the state a better place for businesses, observers say. Michigan Becomes More competitive In endorsing Snyder for re-election, ABC of Michigan noted that construction jobs and salaries have increased each year the governor has been in office. When asked to identify members who have benefited from policies implemented by Snyder, ABC of Michigan President Chris Fisher opened the association’s membership directory and randomly started pointing at names, indicating the wide-ranging
gains the industry has made since 2011. “I’d think that everyone would say there’s no comparison in the state’s business environment now vs. how it was four years ago,” Fisher says. “Gov. Snyder has proved himself to be a great friend of the construction industry and Associated Builders and Contractors of Michigan.” Timothy Nash, vice president for strategic and corporate alliances and the Fry endowed professor in free market economics at Northwood University, says the construction industry’s resurgence is part of the state’s overall rebound. “The state of Michigan is in economic recovery,” he says, noting that Michigan led the Great Lakes states in average gross state product growth from 2011 to 2013 and ranked a solid 20th in the nation in that category in 2013. How much of the job creation and economic growth is directly attributable to Snyder’s policies is open to interpretation, given the complexity of the economy, economists say. Anirban Basu, chief economist for ABC at the national level, said he believes elected officials generally get both too much credit and too much blame for an economy’s performance. National economic policy also largely dictates economic activity at the state level, Nash says. “Michigan can do only so much. The rest of it is hugely dependent on what happens in Washington.” Still, Basu says, there’s no denying that Michigan has undergone “unimaginable, bold change” under Snyder. Many aspects of the new direction, such as Michigan becoming a right-to-work state, will allow the state to better compete on a regional and national basis, he explains. “What it’s done is removed a disadvantage, especially with Indiana (also a right-to-work state) right on the border.” A change in Attitude Snyder critics contend that Michigan’s economy had nowhere
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to go but up when he took office as the nation was emerging from the depths of the great recession. “You could argue that things could not have gotten worse in Michigan,” Nash says. “But people were also saying that in 2002, 2006, 2010 … and they still did.” To be sure, various economic indicators show that Michigan is no longer the national economic laggard that it was for much of the earlier part of the millennium. Basu notes that Michigan’s unemployment rate still hovers above the national average — 7.4 percent in August vs. 6.1 percent nationally — but not by nearly as much as it once did. For example, when the U.S. unemployment rate stood at 9.9 percent in December 2009, Michigan’s rate was a full 4 percentage points higher at 13.9 percent.
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“I think that is a clear indication of economic progress,” says Basu. Perhaps as important as specific policy changes is the change in tone from state government toward the business community, Nash notes. “To me the biggest thing Rick Snyder has brought to the game is not an anti-business mentality.” Larry Clark, president of the Clark Companies of Lansing, an ABC of Michigan member, echoes those sentiments. Under Snyder, there’s less interference in how he operates his business, Clark says, pointing to right to work and the government-mandated PLA ban in particular as initiatives that have created more of a free-market environment within the state.
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“The construction industry is going forward,” Clark said. “In the state of Michigan, we are beginning a rebound.” pLA Ban provides a Boost Michael Marks, vice president of operations at E.T. MacKenzie Co., a Grand Ledge-based ABC of Michigan member, cites a list of regulatory and policy changes implemented under the Snyder administration that have greatly improved the business climate for merit shop contractors. “Doing away with the Michigan Business Tax is something I think everyone has approved of,” he says. At the beginning of 2012, the complicated and unpopular Michigan Business Tax was replaced by a flat-rate corporate
income tax — a measure that lowered overall business taxes by $1.6 billion a year. Under the change, small businesses such as those organized as S corporations or partnerships were exempt from any state corporate income tax on their operations, leaving just C corporations to pay a flat 6 percent rate. Nash says tax reform likely benefited a large percentage of ABC members, many of which are smaller contractors not organized as C corporations. Marks also applauded Snyder’s work toward reducing unnecessary and overlapping rules and regulations, making it easier to conduct business in general. Snyder created the Office of Regulatory Reinvention in 2011 to increase the effectiveness of state government. The office has rescinded around 2,000 rules
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deemed obsolete, burdensome or duplicative, with the goal of improving regulatory efficiency and saving businesses time and money. But, as with many ABC members, the elimination of governmentmandated project labor agreements has had the biggest direct impact of all Snyder-era policy changes on E.T. MacKenzie, Marks says. Snyder in 2011 signed legislation banning governmentmandated PLAs on publicly funded construction projects in Michigan, supporting ABC’s research showing that governmentmandated PLAs are discriminatory against nonunion contractors and wasteful because they stymie competition by effectively preventing merit shop contractors from bidding on projects. The ban was initially struck down by a U.S. district judge in Detroit but was eventually upheld by the U.S. Court of Appeals. “Project labor agreements, for us personally, were a huge issue,” Marks says. “When PLAs were legal, it effectively cut us out of 25 percent of our typical market, so it’s made a big difference for us.” Marks notes that MacKenzie has long had an office in Ann Arbor,
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where it has worked on a number of sewer, water and road projects for the city. During the heart of the great recession, however, Ann Arbor leaders began requiring PLA-type construction unity board agreements on public construction projects, shutting MacKenzie out of the marketplace. “It was the worst timing for us because it was at a time when the market was incredibly bad,” Marks explains. “As soon as PLAs were illegal, we started getting City of Ann Arbor work again right away.” An economic Foundation to Build upon The latest report from the Research Seminar in Quantitative Economics (RSQE) at the University of Michigan noted that Michigan gained a healthy 70,000 jobs in 2013, similar to 2012. While job creation slowed in the first quarter of the year, perhaps due to the harsh winter, it was expected to strengthen the rest of the year and hold steady through 2015, RSQE projected. The UM forecasters also said construction will rank as one of the top three job-producing industries over the next two years.
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As Michigan continues its economic rebound and its tax base grows, public financing for construction projects that dried up during the recession and in its aftermath will begin to flow again, Basu predicts. “Those contractors who stuck it out in Michigan are going to reap the fruit of that,” he says.
With a friend of business presiding over state government, it’s easier for contractors to plan for the future, Tebben says. “You know that there’s nothing too crazy coming down the pipe. You just get the feeling that there’s a lot of confidence in our state right now.” MM
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NATIONAL ELECTIONS OVERVIEw
All Elections are Important
By chris Singerling, ABc national Senior director of political Affairs It has been said time and again how this year’s election is the most important in a generation (or a lifetime). Well, the truth is every election is important. Much is at stake this November and it is going to require complete political engagement from ABC members and their employees to ensure candidates that support free enterprise and open competition are sent to state capitals and Washington, D.C., next year. In November, all 435 members of the U.S. House of Representatives and 36 U.S. Senate seats are up for election; not to mention 36 governor’s mansions and thousands of state legislative races in every state. In Washington, D.C., Speaker John Boehner (R-Ohio) currently controls a fragile 17-seat majority in the U.S. House of Representatives. Amazingly, less than 30 of the 435 congressional districts across the country are considered to be competitive. That means less than 7 percent of those races will decide which party holds the speaker’s gavel next January. While maintaining a pro-business majority in the House is essential, all eyes will be on the U.S. Senate. Sen. Harry Reid (D-Nev.) currently controls a six-seat majority, and anywhere from eight to 12 Senate races are considered competitive. In short, those races will determine control of the U.S. Senate. • Montana, South Dakota and West Virginia: All of these seats
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are currently held by long-serving Democrats who have decided to retire. All three states overwhelmingly voted for Mitt Romney in 2012. Assuming the Republican candidates run good campaigns, they should win in November. • Alaska, Arkansas, Colorado, Louisiana and North Carolina: In each of these states, the Democrat incumbent must defend votes on the Patient Protection and Affordable Care Act (PPACA) and the American Recovery and Reinvestment Act. Current polling and credible candidates on the Republican side have put all of these races in the “toss-up” category. • Iowa and Michigan: These are the two outliers. Both states went for President Obama in 2012, but currently have Republican governors and legislatures. Republicans appear to have drawn the better candidates in their respective races; both have put up female candidates running against congressmen who voted for the PPACA and the stimulus package while serving in the U.S. House. In Michigan, ABC has endorsed former Michigan Secretary of State Terri Lynn Land (Republican). There is a very real chance for significant Republican gains this November. Strong fundraising numbers and consistent messaging will be the keys to victory. Associated Builders and Contractors’ political action committee (ABC PAC) has raised $1.2 million in 2013-2014 and contributed more than $1 million to more than 240 pro-business candidates this election cycle. In addition, ABC’s Free Enterprise Alliance -- which advocates for small businesses and open and fair competition through research and national media campaigns -- has a robust plan in place for this fall. See the ABCvotes sidebar for information on resources you can use to be informed and prepare for the upcoming election. MM
ABcvoteS Following are a few easy things individuals can do to prepare for yet another important election: • be on the lookout for the re-launch of abcvotes.com—a nonpartisan online election resource for companies and their employees. • Download the abc action app for iPhone and android smartphones. This cutting-edge app is a “starter kit” to getting involved in the issues that impact the construction industry. • Visit FreeEnterprisealliance.org and share the link with employees and colleagues. while there, consider making a contribution to the Free Enterprise alliance to help impact the outcome of the November elections. Talking about politics can be prickly, but voting and being involved in the electoral process should not be a sensitive issue. Regardless of political affiliation, everyone needs to know that protecting free enterprise ultimately means more jobs, income and wealth for more people. This isn’t a Democrat or Republican principle; it’s an american principle.
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Development
BUSINESS
By: keith e. eastland and kelley e. Stoppels, Miller Johnson
L
CONTRACTORS: HOw THE SUPREME COURT’S AFFIRMATIVE ACTION DECISION IMPACTS YOU
ast spring, the United States Supreme Court reversed a lower federal court decision and reinstated Michigan’s constitutional amendment banning affirmative action in admissions to our state’s public universities. Schuette v. Coalition to Defend Affirmative Action, 134 S.Ct. 1623 (Apr. 22, 2014). Although much of the media attention surrounding this case has focused on the impact of this decision on college admissions, merit shop contractors should note that the constitutional provision adopted in 2006 also prohibits discrimination or preferential treatment on the basis of race, sex, color, ethnicity or national origin in “public contracting.” In short, although the “public contracting” part of the amendment was not challenged, the Supreme Court’s recent decision serves as a reminder that the State of Michigan (including any city, political subdivision, county, public college, public university, community college, school district or similar government instrumentality) cannot grant preferences in awarding public construction contracts based on the prohibited characteristics above, provided that granting such preferences are not required by federal mandates to preserve funding for the project.
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Michigan’s Affirmative Action Ban The Michigan voter initiative leading to the 2006 constitutional amendment (Proposal 2) was approved by 58% of Michigan’s voters, and our state’s constitution was amended to include the following restrictions with respect to affirmative action programs: Section 26 Affirmative Action programs (1) The University of Michigan, Michigan State University, Wayne State University, and any other public college or university, community college, or school district shall not discriminate against, or grant preferential treatment to any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting. (2) The state shall not discriminate against, or grant preferential treatment to any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting. (3) For the purposes of this section “state” includes, but is not necessarily limited to, the state itself, any city, county, any public college, university, or community college, school district, or other political subdivision or governmental instrumentality of or within the State of Michigan not included in sub-section 1. (4) This section does not prohibit action that must be taken to establish or maintain eligibility for any federal program, if ineligibility would result in a loss of federal funds to the state.
After this constitutional amendment passed, groups in favor of using affirmative action more broadly in the context of college admissions filed a federal lawsuit attempting to block its implementation. In 2008, a federal district court rejected this attempt and upheld Section 26 as a valid restriction requiring neutrality in public education, employment, and contracting. In 2012, however, the United States Court of Appeals for the Sixth Circuit changed course, ruling 8 to 7 that Michigan’s constitutional amendment restricting affirmative action in college admissions violated the federal Constitution’s Equal Protection Clause. The case then moved to the United States Supreme Court. the Supreme court’s decision On April 22, 2014, the Supreme Court reversed the split decision of the Sixth Circuit and reinstated the affirmative action restrictions on Michigan public colleges and universities under Section 26. In doing so, the Supreme Court ruled that the lower court lacked authority to set aside the 2006 provision because it reflected the choice of Michigan’s citizens. The Court’s majority explained that “this case [was] not about how the debate about racial preferences should be resolved.” Rather, the question for the Court was “who may resolve it.” The Supreme Court made clear that this question could be decided by the citizens of each state through the electoral and political process. More specifically, by approving Proposal 2 and
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adding Section 26 to the Michigan constitution, the Court found that “Michigan voters exercised their privilege to enact laws as a basic exercise of their democratic power, bypassing public officials they deemed not responsive to their concerns about a policy of granting race-based preferences.” practical impact: What does this Mean for Michigan construction contractors? There are a few important “take-aways” from this decision for merit shop contractors. First, the Supreme Court’s decision confirms that the State of Michigan, including “the state itself, any city, county, any public college, university, or community college, school district, or other political subdivision or government instrumentality” may not discriminate or give preferences in awarding construction contracts on the basis of race, sex, color, ethnicity, or national origin. Any state rules, processes, or bidding procedures that grant such preferential treatment are unlawful. A good example of such a policy was the “Equal Business Opportunity-Construction Policy” of the City of Grand Rapids. That policy, which was found unlawful in a 2007 Attorney
• • • •
• • • •
•
General Opinion Letter, applied to contractors submitting bids to the City on construction projects of $10,000 or more. The City’s process discounted construction bids for Disadvantaged Business Enterprises (“DBE’s”). DBE was defined as “women, Black Americans, Hispanic Americans, Native Americans” and persons of other ethnic groups who are presumed to be “socially disadvantaged individuals.” The Attorney General found that this process was improper under the constitutional ban on affirmative action because it provided an advantage to certain contractors based upon a prohibited factor. Such policies, and others like it, continue to be unlawful in Michigan. Second, contractors should remember that Michigan’s ban on affirmative action in public contracting has important exceptions. Most importantly, the restrictions apply to state public contracting only. They do not prohibit affirmative action on a federal level, such as may be required under the Davis-Bacon Act or pursuant to Executive Order 11246. The constitutional provision carves out from its restrictions any action “that must be taken [by a state or local governmental entity] to establish or maintain eligibility for any federal program, if ineligibility would result in a loss of federal funds to the state.”
• • •
• • • • •
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Thus, the ban does not apply to state bidding procedures or policies if those procedures or policies must comply with federal affirmative action requirements as a condition for continuing to receive federal funding. Third, the constitutional ban does not prohibit the state from granting preferences based on other lawful factors or characteristics.
Should you have questions about a specific situation or state policy or bidding procedure, we encourage you to contact your employment law counsel or one of the authors below. MM Keith E. Eastland and Kelley E. Stoppels are attorneys with Miller Johnson, an ABC member law firm in Grand Rapids. Keith can be reached via email at eastlandk@millerjohnson.com and Kelley can be reached at stoppelsk@millerjohnson.com.
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GOVERNMENT
ATTORNEY GENERAL SCHUETTE RECEIVES ABC OF MICHIGAN LIBERTY AwARD ABC of Michigan presented its prestigious Liberty Award to Michigan’s Attorney General Bill Schuette on July 25 at the ABCGreater Michigan Chapter’s annual golf outing event, held at the Sawmill Golf Course in Saginaw. Schuette, who was elected as the state’s Attorney General in 2010, has amassed an impressive record while in office. Because Schuette’s job is to represent the state in any court proceedings, he has been able to put up a strong and spirited defense of Michigan’s ban on government-mandated Project Labor Agreements (PLAs), defending the Fair and Open Competition in Governmental Construction Act. Schuette has also taken a strong interest in the Affordable Care Act (Obamacare), submitting an amicus brief to the U.S. Supreme Court arguing that Obamacare violates the U.S. Constitution by improperly allowing the Internal Revenue Service to allow tax credits for buying insurance through the federally established exchange. His stated main focus is as Michigan’s “Voice for Victims” and he fills that role very well, advocating for Michigan’s citizens on everything from equal opportunity for both union and non-union contractors on government jobs, to ending human trafficking in Michigan. ABC of Michigan CEO Chris Fisher presented Schuette with the award and noted that “Attorney General Schuette has a strong record of championing the rule of law and equal opportunity for all. Michigan needs Attorney General Schuette to protect the rights of Michigan citizens.” Prior to his election as Michigan’s Attorney General in 2010, Schuette served in the U.S. Congress, as Michigan’s Director of Agriculture, in the Michigan State Senate, and as an appellate judge. He also practiced law in the private sector, and has been appointed to numerous positions in the public sector. Schuette’s Democratic opponent in November will be Mark Totten, an MSU legal professor who has been endorsed by every major union in the state. ABC has endorsed Schuette in November’s election. MM
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affairs
GOVERNMENT
ABC COMMENDS LIVINGSTON COUNTY FOR REPEALING PREVAILING wAGE REqUIREMENTS Associated Builders and Contractors of Michigan (ABC) commended the Livingston County Board of Commissioners for an August 4 decision repealing a job-killing prevailing wage mandate on county-funded construction projects. “Livingston County commissioners have chosen to stand up for public accountability and affordability in construction,” noted Chris Fisher, ABC of Michigan President & CEO. “Livingston County taxpayers now have a more competitive construction market, and that in turn will create more jobs and opportunities in Livingston County.” Michigan prevailing wage calculations exclusively mirror union agreements regardless of whether the workers on the job belong to a union, ignoring the fact that only 18 percent of
Fire Sprinklers Save Lives
construction workers chose to belong to a union in Michigan. Prevailing wage mandates typically inflate the cost of construction labor by 40-60 percent more than the already-high market wage. ABC encouraged the Livingston County Board to repeal the local mandate, pointing to studies that indicate prevailing wage increases costs unreasonably, infringes upon the integrity of the competitive bidding process, and denies taxpayers the fiscal accountability they deserve. “We look forward to continuing to see growth in Livingston County now that the costly prevailing wage mandate has been removed,” commented Fisher. Livingston County now joins a super-majority of Michigan counties who do not have a prevailing wage mandate. MM
www.brigadefire.com
5701 Safety Drive, Belmont, MI 49306 • Phone: 800-886-1614 • Fax: 616-784-1140 Patrick Faint, General Manager Pat@X-CaliburSheetMetal.com
X-CALIBUR
X-CALIBUR
METAL ROOFING & WALL PANELS
METAL ROOFING & WALL PANELS
27400 Northline Road Romulus, MI 48174
Daniel Rees
Phone: (734) 942-3071 Cell: (248) 320-8208 Fax: (734) 942-3075 www.X-CaliburSheetMetal.com
Estimator/Systems Designer NICET Level III Certification No. 82181
Automatic Sprinkler Systems • Design • Installation • Repair
3735 Plaza Dr. Ann Arbor, MI 48108
www. a b c m i . com
Office: (734) 761-7767 Fax: (734) 761-5388 Cell: (313) 363-7756 Email: drees@annarborfireprotection.com
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Now there is a new resource for construction hiring and job opportunities in Michigan, the Michigan Construction Job Center. Michigan Construction Job Center connects construction talent with great Michigan companies. Job seekers — upload your resume today so your talents and skills can gain you great new job opportunities. Construction employers — access this targeted and qualified pool of talent by advertising your jobs on the site or searching resumes by skill types. Employer Features • An affordable option that gives you the right candidates • Easy tools to post your positions • Search the resume bank — pay only for resumes of job seekers interested in your position • Set-up pre-screen filters to deliver the best candidates directly to you • Anonymity available if desired Job Seeker Features • Find open positions in construction • Free for job seekers • Get your resume in front of construction companies who are hiring • Increase your visibility in the industry • Anonymity available if desired • Let us do the job searching for you by setting up email job alerts
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Need more information? Call us at 517.853.2545 or email MIConstructionJobCenter@gmail.com.
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index
ADVERTISER
ABC Self Insured Workers Compensation Fund ...................... 32 AIS Equipment ........................................................................ 27 Andrews Hooper Pavlik, PLC .................................................. 20 Ann Arbor Fire Protection ....................................................... 29 Arrow Concrete Cutting .......................................................... 25 ASHA Safety ............................................................................ 12 Bailey Agency .......................................................................... 28 BCT Benefits Plan .................................................................... 15 Blackstar Building Group......................................................... 15 Brigade Fire Protection ............................................................ 29 Brothers and Bricks ................................................................. 14 Capital Steel & Builders Supply ............................................... 29 CDI Construction .................................................................... 13 Commonwealth Associates ...................................................... 11 Critical Business Analysis ........................................................ 28 Crowe Horwath LLP ................................................................ 27 Desai Nasr Consulting Engineers ............................................. 12 DJ Maltese Construction LLC .................................................. 29 Efficient Crane Solutions ......................................................... 11 Enterprise Fleet ....................................................................... 12 Excel Electric, Inc. ................................................................... 19 Fisher Companies .................................................................... 19 Fonson, Inc. (GBM Recycled Concrete) ................................... 12 G&G Electric........................................................................... 11 Garber Chevrolet ..................................................................... 18 Grand Equipment Company ................................................... 12 Great Lakes Industrial Supply Co., Inc. ................................... 13 Great Lakes Roofing & Insulation Systems, Inc. ...................... 13 Great Lakes Safety Training Center .......................................... 11 Great Lakes Striping & Sealing ................................................ 31 Guy Hurley Blaser ................................................................... 21 HD Supply Waterworks ........................................................... 19 Heritage Automall ................................................................... 18 Independence Commercial Construction, Inc. ......................... 17 Jackson Associates, Inc. ........................................................... 24 JBS Contracting, Inc. ............................................................... 19 JGM Machinery Movers & Erectors, Inc. ................................. 23 Jimco Fire Protection ............................................................... 13 JW Field Grading & Excavating .............................................. 13
GREAT LAKES
STRIPING & SEALING, INC. Since 1972
K & S Plumbing Co., Inc. ........................................................ 19 Labor Ready, Inc ...................................................................... 11 Lighthouse Insurance Group ................................................... 20 Liquid Calcium Chloride Sales ................................................ 18 Loomis, Ewert, Parsley, Davis, Gotting, PC .............................. 11 Mann Construction ................................................................. 18 Merlo Construction Co., Inc. ................................................... 25 Mid Michigan Materials, Inc. ................................................... 19 Pamar Enterprises.................................................................... 19 Plante Moran ........................................................................... 17 PM Technologies ..................................................................... 25 Pro View (The Blue Book Building & Construction Network) ........ 26 Quality Aire Systems ............................................................... 27 Rapid Fire Protection ............................................................... 24 Rock Products ......................................................................... 25 RW Mercer .............................................................................. 11 Scheidel Electric ...................................................................... 14 Scientific Brake & Equipment ................................................. 19 Selleck Architectural Sales ....................................................... 18 Siding World ............................................................................. 2 Summit Electric ....................................................................... 31 Thermico, Inc. ......................................................................... 26 Timpson Transport, Inc. .......................................................... 12 Titan Interiors ......................................................................... 27 Tradesmen International .......................................................... 22 Valenti Trobec Chandler .......................................................... 21 Valley Electrical Contractors .................................................... 25 Walton Agency ........................................................................ 25 Waterstone Insurance Agency .................................................. 26 Welch Tile & Marble Company ............................................... 21 Wm. Molnar Roofing, Inc. ....................................................... 11 X-Calibur Sheet Metal ............................................................. 29
Summit
electric, inc.
Commercial & Industrial Contractors
P.O. Box 283 • Traverse City, MI 49685 • P: 231-946-8269 • F: 231-946-6044 • C: 231-218-5605
Since 1983
COMPLETE ASPHALT MAINTENANCE
2544 Acacia Troy Michigan 48083 248-689-0300 689-1750 fax www.summitelectric.ws
Sealcoating • Infrared Repair • Crack Filling • Parking Lot Striping • Parking Lot Sweeping BRUCE BIDDINGER - PRESIDENT bruce@glssmiasphalt.com
www.greatlakesstripingandsealing.com
www. a b c m i . com
FREE ESTIMATES
MEMBER WESTERN MICHIGAN
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PRESoRTED STaNDaRD U.S. PoSTaGE pAid LaNSiNG, mi PERmiT No. 75
Associated Builders & Contractors of Michigan 230 N. washington Sq. Suite 202 Lansing, michigan 48933
Safety
Savings
Premium Returns Ownership Industry-Specific Great Rates Loss Control
Your Self-Insured Workers’ Compensation Fund Returning Millions Back To Members $24.8 Million Since 1995
• Workers’ Compensation Insurance with a 36% Average Premium Return • Safety & Loss Prevention Services • Competitive Up-Front Pricing
abcmifund.org | administered by Regency Group | 800.686.6640
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