WINTER 2015
PUbLicaTioN oF aSSociaTED bUiLDERS aND coNTRacToRS oF micHiGaN
JOINT VENTURES OFFER OPPORTUNITY, REQUIRE COUNSEL
Also:
Michigan’s Prevailing Wage Law is 50 Years Old: Time for Repeal Recent History Offers Economic Insight www. a b c m i . com
WI N TER 2015
1
EVERYTHING EXTERIOR SID ING - WIN DOW S
- GUT TER S - ROO FIN
G - DEC KIN G
OR LD.C SIDINGW
OM
We’ve Got You
COVERED
VINYL WINDOWS
SIDING Certainteed Napco Exteria Quality Aluminum James Hardie
SANFORD
CLIO
FENTON
WATERFORD
ROOFING
CHESTERFIELD
MADISON HEIGHTS
Atlas Certainteed Inspire American Building Component Metal Sales Quality Aluminum
LIVONIA
BATTLE CREEK
DETROIT
JACKSON
WYANDOTTE INKSTER
KALAMAZOO SOUTH BEND
SEAMLESS ALUM GUTTERS 18 Colors in Stock Run To Any Length While U Wait
TOLEDO
GOSHEN
STONE ClipStone Ply Gem StoneCraft
SAGINAW
New Construction & Replacement Vinylmax Ply Gem Silverline Weathershield Pella Alliance Windows
ALUMINUM TRIM COIL 60 Colors in Stock Quality Aluminum Napco
SUBCONTRACTOR REFERRALS FOR YOUR PROJECT
If Your Subs Don’t Use SIDING WORLD You Are Probably Paying Too Much
CHECK US OUT!
6460 E. Eight Mile Rd Detroit, MI 48234 313.891.2902
11240 N. Saginaw Cilo, MI 48420 810.687.4730
5211 Williams Lake Rd Waterford, MI 48329 248.674.1300
30626 W. Eight Mile Rd Livonia, MI 48152 248.478.8984
3000 Middlebelt Rd Inkster, MI 48141 734.728.0400
562 S. Reynolds Rd Toledo, OH 43615 419.535.1100
2151 Eureka Rd Wyandotte, MI 48192 734.284.7171
5393 N. Michigan Rd Saginaw, MI 48604 989.754.3440
49599 N. Gratiot Chesterfield, MI 48051 586.598.7600
418 Blackport Rd Goshen, IN 46528 574.532.1591
517 Comstock Ave Kalamazoo, MI 49048 269.382.6260
3505 Ann Arbor Rd Jackson, MI 49202 517.764.0888
30391 Stephenson Hwy Madison Heights, MI 48071 248.585.9050
2262 Meridian Rd Sanford, MI 48657 989.687.7313
1605 W. Columbia Ave Battle Creek, MI 49015 269.969.2806
2
W I N T E R 2015
51236 SR-933 South Bend, IN 46637 574.272.8200
195 S. Alloy Dr Fenton, MI 48430 810.714.9300
mi cHiGaN mERiT
Ph
inside 4
Executive Perspective Contractors should be aware of two key components that help ABC members deliver work safely, effectively, and affordably.
6
Joint Ventures Offer Opportunity, Require Counsel Joint ventures can be an effective way to help contractors looking to expand or enter new markets. Although the opportunities can be enticing, companies need to proceed with guidance from trusted counsel.
10
12
Recent History Offers Economic Insight With job formation at a reduced rate, will there be sufficient economic momentum to further accelerate the growth rate in commercial construction in 2015?
22
ABC of Michigan 2014 Annual Report
24
Get to Know Your Lawmaker Meet the new Senate Majority Leader Arlan Meekhof (R- West Olive) and newly elected Representative Jim Tedder (R-Clarkston) of the 43rd District.
28
Government Affairs The Michigan Supreme Court Will Hear ABC’s Appeal on Lansing Prevailing Wage
Ambush Rule Moves Forward; Employers Should Seek Legal Counsel
Photo taken by Trumpie Photography
VoLUmE iX, iSSUE 1
Time for Repeal: The Outdated Prevailing Wage Law Turns 50 The Prevailing Wage law is 50 years old. Will 2015 bring long-awaited relief to Michigan taxpayers and ABC members?
Legislature Approves Plan for Increased Road Funding, Public to Vote in May 2015
www. a b c m i . com
WI N TER 2015
3
ASSOCIATED BUILDERS and CONTRACTORS of MICHIGAN 2015 BOARD of DIRECTORS Dan Murphy, Chairman MAG Insulation Greater Michigan Chapter
MovINg oNWaRd IN 2015
Mike Houseman, Vice-Chairman Wolverine Building Group Western Michigan Chapter Dave Sheffield, Secretary-Treasurer Onslow-Sheffield, Inc. Southeastern Michigan Chapter Brian Stadler, Immediate Past Chair Wolgast Corporation Greater Michigan Chapter Chris Beckering Pioneer Construction Western Michigan Chapter Jim Cripps Cripps Fontaine Excavating, Inc. 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 MICHIGAN MERIT CONTRIBUTORS Publisher: Christopher Fisher Managing Editor: Mary Boardway, CAE Communications Coordinator: Elise Layton ABCMI Economist: Don Wilson Printing: Keystone Millbrook Graphic Design: Ink Ideas Graphic Design 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.
With 2015 already in full swing, ABC of Michigan has geared up to defend and advance the ability of Merit Shop contractors by helping members develop people, win work and deliver that work safely, ethically, profitably and for the betterment of the communities in which Efforts are ABC and its members underway work. both in the This issue of Michigan courts and the Merit explores two legislature to issues that affect end prevailing winning work and delivering it to the betterment of our wage as we communities. The first is our cover story about joint ventures and when they are a good idea, as well as a word of caution know it, not for when they aren’t necessary. just at the state level, but The other hot topic is the latest effort to improve Michigan locally as well. and our communities by taking on the state’s prevailing wage law which is costing communities more than $250 million every year and harming the ability of construction projects to get underway. Efforts are underway both in the courts and the legislature to end prevailing wage as we know it, not just at the state level, but locally as well. More than ever, ABC members are leading the way to help build our state and create positive and lasting change. Onward! Yours for the Merit Shop,
Chris Fisher
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.”
4
W I N T E R 2015
mi cHiGaN mERiT
Electric
Caro, MI
Bay Dust Control DIV. of
LIQUID CALCIUM CHLORIDE SALES, INC.
ELECTRICAL CONTRACTORS ENERGY SAVING SPECIALISTS
2715 S. Huron Rd. - Kawkawlin, MI 48631 LIQUIDOW™ • DOWFLAKE™ • PELADOW™
COMMERCIAL • INDUSTRIAL • AGRICULTURAL • PETROLEUM WIRING • RESIDENTIAL CONTROL WIRING • DESIGN - BUILD • EMERGENCY POWER SYSTEMS CABELING/NETWORKING • EMERGENCY SERVICES • CAR WASH SYSTEMS
Bill (989) 551-5505
www.GGEMI.com Fax (989) 673-1211
Scott (989) 551-5506
(Concrete Additive • Ice Control • Dust Control) liquidcalciumchloride.com
ROD GERARD Operations Manager
4346 Leonard St. NW Phone: 616-735-3990
(989) 684-5860 Fax (989) 684-9953 rodgerard@gerardgroup.info
Grand Rapids, MI 49534 Fax: 616-735-3159
State Legislative Day Downtown Lansing
2/11/2015
Register by 1/30/15 for $10 off your registration! Special discount pricing for groups of 3 or more.
www.abcmi.com/15legday
Includes: Breakfast with Legislators & Special Awards Luncheon Meetings on the Hill Special Keynote Speakers: House & Senate Leadership www. a b c m i . com
WI N TER 2015
5
Joint Ventures
offer opportunity, require counsel
FISHER
6
W I N T E R 2015
GUDMUNDSEN
McNALLY
ROBER
STADLER
mi cHiGaN mERiT
whether to increase the flow of new business from a trickle to a steady stream, gain an inside track on a potential contract or to fulfill a minority requirement, joint ventures can help contractors looking to expand or enter new markets. although the opportunities can be enticing, companies need to proceed with caution and with guidance from trusted counsel.
L
ike a growing number of Associated Builders and Contractors of Michigan members, Saginaw-based Wolgast Corp. has entered into joint ventures with other contractors in order to help keep work in the company’s pipeline. “Every few years we get involved in one,” says Wolgast President Brian Stadler. “In theory, one or the other contractor couldn’t get the job by themselves, but together they have all the capabilities to win the contract.” Often, it’s the case that one contractor has the expertise or specific skill that’s required for the job, while the other party has a relationship with the project owner, engineer or architect that gives it an inside track. Wolgast has been on both sides of that equation, Stadler says. In another common joint venture scenario, government contracts often require that a certain amount of the work go to a minority- or women-owned firm, which then partners with another, typically larger contractor. Also, it’s common for companies to band together to ensure financing or bonding capacity. Whatever the reasons, joint ventures are becoming an increasingly popular way for contractors to keep work flowing or enter new markets. “I think that they have become much more common,” says Sean McNally, an attorney at Kotz Sangster Wysocki P.C., and ABC member with law offices in Detroit, Bloomfield Hills, Ada and Niles. “I think in the last five to seven years, you’ve seen much more of it.” From the owner’s perspective, the appeal of joint ventures is simple, says Gary G u d m u n d s e n , an attorney with Braun
www. a b c m i . com
Kendrick Finkbeiner P.L.C., an ABC member with law offices in Saginaw, Mt. Pleasant and Midland. “More than anything, they’re just looking to identify the partner who has the resources to get the job done at the right price point,” he says. Stadler says joint ventures are one way for owners to ensure competition for a job by increasing the pool of qualified bidders. Otherwise, perhaps only a couple of large contractors will have the expertise, experience or financial wherewithal to meet the job’s requirements, he says. ‘Win-Win Situation’ Although it may be a trend, joint ventures aren’t always necessary, cautions Chris Fisher, ABC of Michigan president. Too often, for various reasons, a project owner or architect will require a joint venture on a project even when bidders are fully capable of meeting the contract’s requirements on their own, he says. “Sometimes in hindsight, contractors have recognized that the joint venture wasn’t really necessary,” he explains. “The company was fully capable of handling the entire project but didn’t recognize it up front. By bringing in an outside entity, the job took on more complexity, added more paperwork and didn’t really enhance the final outcome for the client. A careful assessment going in is essential to avoiding regrets later.” Still, in today’s marketplace, the reality is that contractors often must be willing to consider entering a joint venture in order to win work or expand their operations geographically or into a new market sector, advisers say. The economy — in particular, the doldrums the construction industry entered during the 2008 economic downturn — is one factor driving the increasing use of joint ventures. As work became harder to come by in Michigan, many contractors began looking for out-of-state opportunities, says Doug Rober, a partner in the East Lansing office of accounting firm Plante Moran, an
WI N TER 2015
7
TIPS FOR SUCCESS
JointVentures ABC member. For example, Rober says, a Michigan company might have the expertise to complete an out-of-state job but it lacks the local connections or workforce, so it teams up with a contractor from that area that offers both. The converse might also hold true, in which an out-of-state company supplies the expertise and the ABC of Michigan member brings its local ties to the table. “It’s usually a win-win situation,” Rober says. “Neither of the contractors would have been able to win the contract on their own otherwise.” Teaming with a contractor with a specialized expertise can also pay dividends long after the joint venture is dissolved, Rober says. It may help a company gain a foothold in a certain sector, such as medical facilities, and effectively burnish its resume so that it can present itself as fully qualified in that particular field going forward — perhaps to the extent that it won’t need to form a joint venture for a future RFQ involving a similar project, he says. But as advantageous as joint ventures might sometimes be, attorneys and certified public accountants who advise ABC of Michigan members say contractors would be wise to consider several issues before entering into one.
Sean McNally, an attorney at Kotz Sangster Wysocki P.C., offers this checklist to help ensure joint venture success: • Involve legal and accounting professionals when establishing the joint venture, in order to save time and money later. • Make sure you understand how money will flow in and out of the joint venture. • Do not reuse joint venture agreements from other projects. You run the risk of leaving specialized provisions in (or out). • Understand the duties and risks imposed on you by the agreement. • Cancel the general agreement of indemnity when the project ends to avoid exposure to your partner’s obligations on other projects. • Understand the licensing requirements for the work to be performed.
Building your business requires the right tools Rehmann’s dedicated team of professionals has the seasoned wisdom and industry experience you need to prosper in construction today. From analyzing your indirect costing system to evaluating performance-based incentive compensation, our comprehensive services are designed with your success in mind. Just think of us as the world’s best-dressed toolbox.
Andrew Rose, CPA Principal 866.799.9580 andrew.rose@rehmann.com
19 offices across Michigan, Ohio, Florida and Indiana rehmann.com 8
W I N T E R 2015
mi cHiGaN mERiT
Conduct due diligence Gudmundsen says that while there’s no “cookie-cutter approach” to forging joint venture agreements, the same types of considerations go into structuring each of them. Broadly speaking, each agreement must spell out the legal and tax framework of the joint venture, as well as the operational aspects of the business relationship. The fine details of the ultimate structure, however, will depend on the nature of the project and the partners involved. “All partners will have certain items that are important to them,” Gudmundsen says. McNally cites a number of considerations involved with structuring a joint venture, including: • Entity choice — Three basic types are used to form joint ventures: corporation, partnership or limited liability company • Management structure • Dispute resolution, in the event of a management impasse or member default • Capital contributions, both initial and ongoing • Distributions of profits, during the project and at its conclusion • Reimbursements for labor, equipment, etc. • Member indemnity for claims and losses • Bonding • Licenses and regulatory requirements • Division of work or scope Once the specific parameters are agreed to, the legal
Landscape Supplies
Septic Services
documentation required for a joint venture is typically straightforward, Gudmundsen says. “You just want to avoid leaving things open-ended,” he notes. “The more defined you can make it, the better.” avoid “Culture Clashes” While attorneys and accountants can help ensure that the paperwork requirements are sewn up tight, a joint venture’s ultimate success comes down to a less cut-and-dried consideration: choosing the right partner. “I’ve not seen a lot of significant issues for joint ventures that I’ve been involved in, but I have heard of some,” Rober says. “Usually it’s a result of not picking the right partner up front and there being a bad culture fit. It is very important to know who you’re getting involved with.” Rober says common membership in industry associations, such as ABC, is one way to screen for possible culture clashes. Stadler agrees that industry networking is part of the vetting process to ensure that a potential joint venture partner has the capacity and character to properly complete a project. Wolgast also identifies partners that have the necessary expertise by conducting research on the Internet. “You can’t possibly cover every aspect of a project in a contract,” Stadler says. “A lot of it is who are the people personally. In every joint venture, one partner will have more control or power, and you need to know they’re reliable.” MM
Grading & Excavating
• Natural Forest Product • Commercial & Residential • Basements Mulch Made On Site • Tank Cleaning • Driveways • Colored and Natural • Septic System Installs • Demolition • Sands & Aggregates • Specialized in Engineered Fields • Road Construction
909 N Milford Rd. Highland, MI 48357 248-887-9700 • jwfield.com
1-800-890-8745
WWW.GARBERCHEVY.COM
THE LARGEST WORK-READY, UP-FIT COMMERCIAL INVENTORY IN NORTHERN MICHIGAN WORK TRUCKS • WORK VANS • DUMP TRUCKS • SERVICE BODIES • UTILITY BODIES • CUBE VANS • PLOW TRUCKS • SPECIALTY TRUCK EQUIPMENT
GARBER CHEVROLET INC. 1700 N. Saginaw Rd. Midland,MI
www. a b c m i . com
Brian Strong, Fleet and Commercial Sales Manager
WI N TER 2015
9
TIME FOR REPEAL THE OUTDATED PREVAILING WAGE LAW TURNS 50 IN 2015 Prevailing Wage Repeal is Legislature’s First Introduced Bill of 2015 As 2014 drew to a close, Michigan’s prevailing wage law was still on the books — and, notes Chris Fisher, Associated Builders and Contractors of Michigan president, continuing to drain millions of dollars a year from the state’s public universities, community colleges and school districts by driving up construction costs. But 2015 may bring long-awaited relief to Michigan taxpayers and ABC members who have had to contend with the law’s oftenbyzantine wage calculations for nearly 50 years. The very first House and Senate bills introduced in the 98th Legislative Session are both bills that would repeal prevailing wage requirements on state government-backed construction projects. The primacy of this issue on the legislative calendar is a key indicator that the newly configured Legislature, in which Republicans hold a 63-47 majority in the House and a 27-11 advantage in the Senate, is ready to tackle the issue head on. Reps. Amanda Price and Brad Jacobsen, along with Majority Floor Leader Aric Nesbitt, are the sponsors of the legislation in the House. Also a promising sign for repeal, Senate Majority Leader Arlan Meekhof has sponsored 10
W I N T E R 2015
the Senate version and remains a key proponent of killing the outdated wage requirements. Fisher is certainly hopeful that 2015 will bring an end to prevailing wage in Michigan. “Every indication is that the new Legislature is poised to have a healthy discussion on the wastefulness of prevailing wage,” he says. “I’m also confident that a close examination of the law will lead to its repeal.” Michigan’s prevailing wage law, on the books since 1965, requires that wages on construction projects whose financing is backed by the state adhere to the “prevailing” wage for the area in which the project is located. The law requires all construction firms to pull these wage rates and corresponding work rules from provisions in union agreements, even though unions represent less than 20 percent of the construction workforce. Prevailing wage opponents argue that Michigan’s law lacks transparency, as taxpayers, public officials, and educational entities have no place at the bargaining table when wage mandates are issued. mi cHiGaN mERiT
article
F E AT U R E
While the ultimate fate of the introduced repeal legislation is to be determined, Fisher says, “I can say with certainty that ABC of Michigan is planning a concerted push to highlight the absurdity and blatant unfairness of ‘prevailing’ wage mandates, especially at a time when government units are coping with tightening finances.” Toward the end of 2014, ABC scored a victory when the Michigan Supreme Court agreed to hear its lawsuit that charged the city of Lansing’s prevailing wage ordinance is unconstitutional, an action that could lead to the invalidation of all local wage mandates in the state. Many local government entities such as cities and counties require their own, separate prevailing wage agreements, leading to increased costs and further administrative complexity. As the court prepares to hear the local level prevailing wage case, ABC of Michigan is preparing an all-out lobbying and public relations blitz to repeal the state level law. It’s not unlike battles the association has fought before. In 2011, ABC of Michigan successfully worked to pass legislation to end government-mandated Project Labor Agreements. Four years later (and two years after the state’s adoption of Right to Work), ABC members say their highest legislative priority is an end to prevailing wage in 2015. Legislation that would have repealed the law was also introduced in both legislative chambers in 2014 but failed to gain traction as the legislature grappled with road funding and other contentious issues. Now, as freshmen legislators – many of whom are Merit Shopfriendly – get up to speed in their new offices, the effort is more about educating lawmakers who are likely to prove receptive to ABC’s free-market message, Fisher says. Not only a Lansing effort, ABC members must engage directly with legislators to show the real-world impact of this costly law on their businesses. “We have always had the facts on our side,” notes Fisher. “Prevailing wage is a special interest-driven wage monopoly that runs contrary to the best interests of Michigan citizens and communities.” Fisher continues, “not only is the law costly and outdated, but it also denies local choice to school and university leaders who are
Specializing in the Construction Industry for More Than Seven Decades
entrusted by citizens to wisely manage financial resources. Prevailing wage requires the public to pay artificially high wages on state-backed construction projects, reducing money for other vital needs with no return on investment for such unjustifiable cost overruns.” A 2013 study by East Lansing-based Anderson Economic Group (AEG) added to what Fisher calls the ever-mounting evidence about the wastefulness of prevailing wage. “Over the past 10 years, Michigan taxpayers spent $224 million more on construction projects for K-12, community colleges, and higher education than they would have without the state’s prevailing wage law increasing construction costs,” says Alex Rosaen, a senior consultant at AEG and one of the study’s authors. Fisher maintains the amount of money lost to educational prevailing wage waste over the past decade could have financed the construction of more than 315 elementary school buildings at no additional cost to the public. In addition to the law’s costliness, some see the issue as one of creating a competitive business environment as Michigan seeks to solidify its economic comeback of the past four years. Michigan is one of just 6 states that have similar laws applying to the construction industry. The other 44 either have no such mandate or more fairly and accurately determine wages based on an actual sampling of construction workers. The artificially high wage mandates equate to well above the $47,000 earned annually on average by the state’s construction workers. That average salary, according to statistics from the Bureau of Labor Statistics, is already a good wage. “Construction is already more highly compensated than most other industries in Michigan,” Fisher notes. “The unnecessary overspending is money that could have been invested in necessities such as hiring new teachers, upgrading technology or building new schools.” “Michigan’s taxpayers have already paid dearly for prevailing wage mandates during the past five decades,” he says. “I’m hopeful that the current Legislature will finally put an end to the wastefulness by killing the law once and for all.” MM
GENERAL CONTRACTING DIVISION Design Build General Contracting Construction Management P.O. Box 180 • 2322 Brooklyn Rd. • Jackson, MI 49204-0180 Phone: 517-787-2690 • Fax: 517-787-1970 • www.rwmercer.com
crowehorwath.com/construction Audit | Tax | Advisory | Risk | Performance or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and
8 0 0 -4 1 9 -5 1 9 9
Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2014 Crowe Horwath LLP CON14015
www. a b c m i . com
WI N TER 2015
11
Development
BUSINESS
REcENT HiSToRY oFFERS
ECoNoMIC INSIgHT By don Wilson Statewide value (adjusted for inflation) of construction put into place in nonresidential structures in Michigan dove 32% in 2013, following an 11% drop in 2012, a 34% surge in 2011, a 9% rise in 2010 and a 40% dive in 2009, as portrayed in Chart #1. Job change (advanced one year as a leading indicator of construction spending), after dropping 4.7% in 2008 and 5.5% in 2009, increased just 1.4% in 2010, 2.4% in 2011 and 1.9% in 2012. The reason for such moderate job creation is that the business sector, as in many other areas of the country, has had little incentive to expand business operations in recent years. Also, commercial and industrial space vacancies were high and loans for commercial mortgages have been hard to obtain due
to high default rates. As a result, the proportion of construction spending related to redevelopment, alteration, or renovation rose and work for building of new space diminished. Job creation in Michigan grew 1.3% year over year in 2013 and only 1.0% through the first six months of 2014. With job formation at this reduced rate the question then arises whether there will be sufficient economic momentum, besides job creation, to further accelerate the growth rate in commercial construction in 2014 and 2015? The expansion following the prior most serious contraction of the nation’s economy (in the early 1980s) can provide an interesting case study to help answer that question. Current economic growth is much slower than the 1980s expansion because of a slower rate of spending and investment. Overall economic recovery since the start of 2009’s third quarter has grown just 9.1% following the 4.2% downturn in 2007-2009,
MICHIGAN NON-RESIDENTIAL CONSTRUCTION PUT IN PLACE / CHANGE IN PRIVATE & PUBLIC SECTOR Value of Constructtion EMPLOYMENT!
(2007$-Billions)! 10000!
Chart # 1!
Employment (000)! 150!
Value of Construction Put in Place! Change in Miichigan Non-farm Employment (Advanced One Year)!
9000!
100!
8000! 50! 7000! 0!
6000! 5000!
-50!
4000!
-100!
3000! -150! 2000! -200!
1000! 0!
12
Source: U. S. Bureau of Labor Statistics & Bureau of Census surveys ! 1997!
1998!
W I N T E R 2015
1999!
2000!
2001!
2002!
2003!
2004!
2005!
2006!
2007!
2008!
2009!
2010!
2011!
2012!
2013!
-250!
mi cHiGaN mERiT
Development
BUSINESS
as measured by Gross Domestic Product (GDP) – the value of U.S. output of all goods and services. 1980’s first and third quarters saw an economic shrinkage of 2.2%, followed by a 2.7% shrinkage in the third quarters of 1981 through 1982; the economy then grew
26.1% during the 1983-87 period. Thus, the current recovery’s upturn is only 35% of that late 1980s growth. Table #1 provides more insight into annual change in the major sectors of Gross Domestic Product (adjusted for inflation), since
TABLE #1 TREND OF CHANGE U.S. GROSS DOMESTIC PRODUCT (% Year Over Year) Sector
1983
1984
1985
1986
1987
09Q3-10Q2 10Q3-11Q2 11Q3-12Q2 12Q3-13Q2 13Q3-14Q2
Gross Domestic Product
6.4
6.3
4.1
3.1
3.9
0.2
2.3
2.0
1.9
2.4
Consumer Spending
6.3
5.0
4.9
4.1
3.6
0.2
2.6
1.8
2.1
2.4
Residential Investment
43.6
7.7
4.4
11.8
-0.3
-7.9
-5.1
8.9
14.0
6.2
Export Trade
0.6
8.4
2.7
8.4
13.8
3.4
10.0
4.5
2.4
3.6
Import Trade
20.2
18.2
6.6
8.4
5.7
-0.1
10.8
3.3
0.9
2.7
Government Spending
3.4
4.6
6.7
5.1
2.3
1.8
-1.7
-2.6
-1.5
-1.5
Non-residential Investment Structures
5.9
16.0
2.8
-13.7
1.8
-23.7
-6.1
13.2
2.0
5.1
Equipment
12.7
16.2
3.4
0.3
2.5
-4.5
16.9
11.8
3.6
5.4
Source: U.S. Bureau of Economic Analysis. Exports and imports are for both goods and services. INDUSTRIAL & CONTRACTOR SUPPLIES TOOLS FOR: IRONWORKERS*MILLWRIGHTS*CARPENTERS*PLUMBERS*ELECTRICIANS KLEIN*KNOXFIT*OCCIDENTAL LEATHER*RIDGID*PROTO*MSA SAFETY EQUIPMENT*SLINGS*GIANT SOCKETS & WRENCHES
Great Lakes Industrial Supply 6612 N. Telegraph Rd. Dearborn Heights, MI 48127
Phone: (313) 274-9800 Fax: (313) 274-7849
BROTHERS & BRICKS LLC
Specialized Masonry Services
Cody Muirhead | codymuirhead@brothersandbricks.com 248.807.1023 | 3507 South Hill Road, Milford, MI 48381 Services include: Specialty brick & block work/repair • Tuckpointing • Crack & Leak repair Stone work • Specialized pre-manufactured masonry panels • AAC (aerated autoclaved concrete)
AUTO • HOME • COMMERCIAL • LIFE • EMPLOYEE BENEFITS
JIMCO FIRE PROTECTION, INC. P.O. Box 568, 313 N. Court St. • Au Gres, MI 48703 Phone: (989) 876-6566 Fax (989) 876-7606 jimco@jimcofire.com
“Since 1939”
Toll Free: 1-800-257-7055 Randy K. Tarzwell President Fax: (989) 631-8480 E-mail: randy@baileyinsurance.net
512 W. Buttles Street Midland, MI 48640 Phone: (989) 631-3511 www.baileyinsurance.net
For all of your commercial insurance and bonding needs we’re here to help you succeed.
Call 800.837.2601 2929 Spring Arbor Rd. Jackson, MI 49204
517.787.2600 800.837.2601
3115 Dixie SW Grandville, MI 49418
www.ExcelElectricInc.com Toll Free: (877) 283-3450 Phone: (616) 532-9575 Fax: (616) 532-3632 Contracting – Service – Design – Electrical Excellence – Since 1983 www. a b c m i . com
SPECIALTY FIRE EXTINGUISHING & SUPPRESSION EQUIPMENT CONTRACTORS 1-800-514-8195 WI N TER 2015
13
Development
BUSINESS
mid-year 2009, compared with 1983-87. Consumer spending (two-thirds of the GDP comprising durable and non-durable goods and services outlays), up 9.4% (from the start of July 2009 and ending June 2014), climbed above the 3% level just twice over those twenty calendar quarters. That is just about a third (36%) as much as 1983-87’s growth rate of 26.4%. Consumer purchasing power remains constrained by slow growth in employment and wage and salary earnings (adjusted for inflation) which have risen by only 4.3% nationwide over that same July 2009-June 2014 period, compared with 2.8% in the 2002-06 expansion and 36% in 1983-87. Many households are still paying down debt obligations, thinking twice about new borrowing and keeping more cash on hand in their checking accounts. Housing activity, including purchase of new and existing homes (an important stimulant of consumer spending), is only improving slowly. Residential investment usually drives some non-residential outlays, especially during periods of brisk economic growth. Dampened by an excessive inventory of foreclosed properties, high unemployment and tight mortgage lending standards, housing investment increased only 15.3% from July 2009
• • • •
• • • •
• 14
W I N T E R 2015
through June 2014, an amount that is just one-fifth of the 80% growth posted in 1983-87. Residential investment slowed again in 2014 for three reasons: an increase in mortgage rates since early 2013, the unusually cold winter, and another modest tightening in lending standards. The trend of the numbers shown in Table #1 indicate there is plenty of world demand for U.S. products and services. Export trade rose 5.2% per year on average during the current recovery, just two-thirds the 1983-87 growth rate. Import trade increased 3.7% (per year) annually in the current recovery (three-tenths the 11.5% growth rate in 1983-87). The increase in domestic manufacturing and petroleum exploration and production is having a favorable effect on reducing our reliance on overseas supplies, but the rates mentioned above also indicate sluggishness in consumer goods purchasing. In contrast to the 1983-87 period, expenditures by all levels of government declined in the period from June 2010 through June 2014 (after increasing in July 2009 to June 2010 with passage of the 2009 stimulus legislation). Reductions in state and local budgets account for much of the spending cutback as units of government grappled with the decrease in taxes that followed the
• • •
• • • • • mi cHiGaN mERiT
Development
BUSINESS
decline in assessed property values, and the effects of weakening household earnings caused by higher jobless rates. Federal spending was also cut following the one time “stimulus” in fiscal 2009-10. Non-residential investment, as summarized in Table #1, includes capital expenditures for structures, equipment, and software (excluding inventories). Investment in all types of nonresidential structures (adjusted for inflation), has shrunk 2.7% on average per year from mid-year 2009 through June 2014, nine times the annual 0.3% slippage in the five year period of 1983-87. Table #2 summarizes the impact that changes in the broad
national economic sectors listed above has had on value (adjusted for inflation) of U.S. contract awards for non-residential structures and construction put in place. To provide some insight into the effects that changes in broad sections of the economy at the national and state level have had on non-residential building construction at the state level, the subsequent tables and paragraphs compare data from the current recovery in Michigan, the Great Lakes area, and the U.S. as a whole with similar information for the vigorous 1983-87 recovery. Consumer spending at the state level is only measureable by estimates of retail spending as featured in Table #3. Since the start
TABLE #2 TREND OF CHANGE IN U.S. NON-RESIDENTIAL CONTRACT AWARDS & CONSTRUCTION PUT INTO PLACE (% Year Over Year) 1983
1984
1985
1986
1987
09Q3-10Q2 10Q3-11Q2 11Q3-12Q2 12Q3-13Q2 13Q3-14Q2
Contract Awards
1.5
13.8
7.3
-3.1
6.2
-5.1
-5.9
-4.0
-1.1
3.2
Construction Put in Place
7.6
19.5
15.1
-7.8
-1.7
-21.0
-9.0
19.0
5.0
8.0
Source: U.S. Bureau of Economic Analysis and Bureau of Census
Access America’s Top Skilled Craftsmen. Call our office nearest you to access Safe and Productive Craftsmen! Detroit: 877.511.0006 Grand Rapids: 877.942.8933 Kalamazoo: 877.345.3950 Lansing: 888.694.1511 Midland: 877.866.8761
Productivity is Our Priority
tradesmeninternational.com
JGM Machinery Movers
• Rigging • Plant Relocation • Heavy Hauling • Machinery Storage • Project Management • Full Turnkey Installation • Millwright Services • Fabrication & Welding • Custom Crating • Industrial Electrical • Laser Alignment
JGM Machinery Movers has over thirty years of experience in providing industrial relocation services on a turn key basis with a specialty of serving the automotive and automotive supplier industries.
10271 State Road Otisville, Michigan 48463 www. a b c m i . com
www.jgmmachinerymovers.com
810-631-8816 Office 810-631-4938 Fax WI N TER 2015
15
Development
BUSINESS
TABLE #3 TREND OF CHANGE IN RETAIL SALES (% Year Over Year) 1983
1984
1985
1986
1987
09Q3-10Q2 10Q3-11Q2 11Q3-12Q2 12Q3-13Q2 13Q3-14Q2
Michigan
9.7
10.9
11.3
7.2
4.5
-1.2
7.3
3.5
4.3
0.6
Great Lakes Area
7.7
9.8
8.2
4.6
4.4
-1.4
5.0
4.1
3.8
2.4
U.S.
9.5
10.0
6.8
5.4
6.3
0.7
6.5
6.7
4.0
4.5
Source: State Departments of Revenue & U.S. Bureau of Census
TABLE #4 TREND OF CHANGE IN RESIDENTAL INVESTMENT (% Year Over Year) 1983
1984
1985
1986
1987
09Q3-10Q2 10Q3-11Q2 11Q3-12Q2 12Q3-13Q2 13Q3-14Q2
Michigan
50.7
29.4
35.7
25.5
-1.3
8.9
17.3
14.4
45.1
19.0
Great Lakes Area
72.9
14.4
24.6
41.8
13.0
2.0
-9.3
13.5
29.3
16.9
U.S.
71.1
12.1
9.3
16.1
-0.3
0.6
-5.0
20.0
35.4
14.9
Source: U.S. Bureau of Census
BRAD TEUNIS OWNER
616-299-4446
brad.ecs@hotmail.com • NCCCO mobile crane certifications • Qualifying rigger and signalman programs • Consulting in crane related services • Custom training programs
w w w. e f f i c i e n t c r a n e s o l u t i o n s . c o m
Ready Mixed Concrete
TELEBELT MATERIAL PL ACEMENT SERVICE SAGINAW PLANT CARO PLANT 1701 N. First St. 1342 Prospect PH (989) 754-6589 PH (989) 672-6589 Fax (989) 754-5551 Fax (989) 672-5551
And Insulation Systems, Inc. www.greatlakesroofing.com 800-800-6207 An authorized Duro-Last contractor Flat Roofing, Blown Cellulose & Fiberglass, & Spray Foam Insulations www.greatlakesroofing.com
800-800-6207 An authorized Duro-Last contractor
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 ID
ICHIGAN ATERIALS, INC.
Phone: (734) 942-3071 Cell: (248) 320-8208 Fax: (734) 942-3075 www.X-CaliburSheetMetal.com
MidMichMat.com
O: (810) 327-6251 F: (810) 327-6037 general@MidMichMat.com Concrete & Asphalt Aggregates • Sand & Gravel 6966 Fisher Rd. • Jeddo, MI 48032
16
W I N T E R 2015
mi cHiGaN mERiT
Development
BUSINESS
of the current recovery, retail sales (not adjusted for inflation) across the nation have risen at only 42% of the 1983-87 increase. In Michigan, retail spending has improved at only 29% of its 1983-87 growth and in the Great Lakes states at just 36% of the mid-1980s’ rates. Even though the labor market is delivering jobs, retail spending remains weak as a result of slow job creation, skimpy earnings growth, and slower consumer debt growth, all of which curtail household spending power. Table #4 profiles residential investment (not adjusted for inflation). In the five year period from mid-year 2009 through mid-year 2014 compared with 1983-87, home building was 56%
lower in Michigan, 32% nationwide and 20% in the Great Lakes states, according to surveys of municipal and county building departments. Housing activity slackened in the last year due to rising mortgage rates, the severe 2013-14 winter and a tightening in lending standards since 2013. Residential investment also has another influence on nonresidential. In recent years, some construction trades personnel have been able to maintain their skills by working in the housing sector while awaiting an increase in non-residential building work. Table #5 compares trend changes in the value of the export
TABLE #5 TREND OF CHANGE IN EXPORT TRADE OF GOODS (% Year Over Year) 1983
1984
1985
1986
1987
2010
2011
2012
2013
2014
Michigan
28.3
8.4
3.0
-6.4
35.8
37.3
13.8
11.7
2.8
18.0Est
Great Lakes Area
25.3
12.0
4.6
4.4
28.1
25.0
17.2
6.7
0.6
15.0Est.
U.S.
-4.4
9.0
-1.8
3.4
12.0
20.5
16.2
4.2
2.0
25.0Est.
Source: U.S. Bureau of Census. Only export data of goods were tabulated by state in the 1980s.
Insurance for the
Construction Industry
GBM
R E CY C LE D C ON C R ETE , LLC.
Removal, Trucking & Processing •
Chilson Road, Howell • Kensington Road, Brighton • Hawley Road, Holly
7644 Whitmore Lk. Rd. • Brighton, MI 48116 phone: 810-231-5188 • fax: 810-231-5404 Estimator/Systems Designer NICET Level III Certification No. 82181
Daniel Rees
Valenti Trobec Chandler, Inc.
1175 West Long Lake Road, Suite 200 Troy, MI 48098 (248) 828-3377 www.vtcins.com
37000 Grand River, Suite 150 Farmington Hills, MI 48335 (248) 471-0970 www.gswins.com Representing:
Automatic Sprinkler Systems • Design • Installation • Repair
3735 Plaza Dr. Ann Arbor, MI 48108
Office: (734) 761-7767 Fax: (734) 761-5388 Cell: (313) 363-7756 Email: drees@annarborfireprotection.com
Cliché? Sure. On the mark? 100%. For over ten decades, The Blue Book Network has been the industry leader in delivering information solutions that help connect – and build businesses. Through prosperous and challenging times, we have weathered the race with you – and for you. Let us help you put your company ahead of the pack!
(800) 431-2584 | www.thebluebook.com www. a b c m i . com
WI N TER 2015
17
Development
BUSINESS
TABLE #6 TREND OF CHANGE IN GOVERNMENT SPENDING (% Year Over Year) 1983
1984
1985
1986
1987
2010
2011
2012
2013
2014
6.4
6.8
4.8
11.7
5.1
3.7
2.4
N/A
N/A
N/A
10.9
1.6
9.5
5.3
-0.2
-1.2
N/A
N/A
N/A
N/A
State & Local
6.6
7.6
6.8
8.9
6.5
5.3
2.2
N/A
N/A
N/A
Federal
17.8
-2.0
10.3
6.7
0.1
-4.0
N/A
N/A
N/A
N/A
State & Local
12.7
3.0
9.7
9.3
8.3
2.0
0.3
2.2
1.2
N/A
Federal
11.4
4.0
8.9
5.4
2.0
1.2
N/A
N/A
N/A
N/A
Michigan State & Local Federal Great Lakes Area
All States in U.S.
Source: U.S. Bureau of Census N A.: Not Available. Comprehensive data for state and local spending is not available after fiscal year 2011 due to the time required to complete and tabulate surveys at all levels of public administration, judiciary and education. Federal data was discontinued after 2010.
GLSTC is a Member-Based Organization Committed to Safety! GLSTC SERVICES:
Instructor Led Classroom Training • Computer-Based Training State-of-the-Art Hands-On Lab • Safety Auditing and Consulting • Background Checks • Customized Safety Services • And Much More! • •
989.837.2332 Call or visit us online for more information!
www.glstc.org
Preparing People to Live Safely Every Day!
Bob Koster Jr.
Plumbing Co., Inc. COMMERCIAL - RESIDENTIAL Email: rkoster@ksplumbing.com
Fire Sprinklers Save Lives
www.brigadefire.com
5701 Safety Drive, Belmont, MI 49306 • Phone: 800-886-1614 • Fax: 616-784-1140 18
W I N T E R 2015
mi cHiGaN mERiT
Development
BUSINESS
trade of products (not adjusted for inflation). Exports in Michigan during 2010-14 rose slower than during the 1983-87 period, at 59% of that pace, while the Great Lakes states area was at just 27%, and the U.S. as a whole was at 57%. Much of the activity in Michigan and the Great Lakes area in 2014 is estimated to have declined due to the 2013 winter’s harsh effect on transportation and some production. Table # 6 compares a partial profile of the annual value (not adjusted for inflation) of federal outlays and statewide and local government expenditures by fiscal year. No meaningful comparisons are feasible because of the lack of timely information later than 2011. Table #7 profiles the influence of change in all economic
sectors on employment and approved investment plans for construction of commercial space, as measured by the value (adjusted for inflation) of non-residential contract awards authorizing start of work. Also included is U.S. investment in business equipment. Data on equipment investment by state is not available. Employment in Michigan has grown by an average of 1.6% per year since mid-year 2009 (compared with 4.1% in 1983-87); 1.1% in the Great Lakes States (3.1% in the mid-eighties); and 1.2% across the U. S (3.4% in the mid-eighties). Contract awards in Michigan during the current recovery shrank by 3.7% per year (versus 24.7% growth in 1983-87); declined 6.5% in Great Lakes states (compared to a 15.7% increase in
TABLE #7 TREND OF CHANGE NON-RESIDENTAIL BUILDING CONTRACT AWARDS & EMPLOYMENT (% Year Over Year) 1983
1984
1985
1986
1987
09Q3-10Q2 10Q3-11Q2 11Q3-12Q2 12Q3-13Q2 13Q3-14Q2
Employment
5.4
4.2
5.6
2.0
2.0
0.6
2.0
2.1
2.1
0.9
Awards
7.8
58.4
16.5
19.1
22.0
-19.8
24.0
- 6.6
-1.2
-14.9
Employment
3.4
3.5
2.5
2.2
3.1
-0.4
1.2
1.8
1.1
1.2
Awards
25.8
19.1
11.8
5.9
15.9
-27.9
8.6
-12.5
3.3
-4.0
Employment
4.7
4.7
2.6
1.9
3.4
0.4
1.1
1.6
1.7
1.9
Awards
-2.0
16.7
9.9
-1.8
7.6
-5.4
-5.9
-4.0
-1.1
3.2
Equipment
12.7
16.2
3.4
0.3
2.5
-4.5
16.9
11.8
3.6
5.4
Michigan
Great Lakes Area
All States in U.S.
Source: U.S. Bureau of Census, Bureau of Labor Statistics & McGraw-Hill
GREAT LAKES
STRIPING & SEALING, INC. Since 1972
P.O. Box 283 • Traverse City, MI 49685 • P: 231-946-8269 • F: 231-946-6044 • C: 231-218-5605
COMPLETE ASPHALT MAINTENANCE
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
WI N TER 2015
19
Development
BUSINESS
the mid-eighties); and decreased 2.6% annually across the U.S. (versus a 10.6% yearly increase in 1983-87). Nationwide investment in equipment since 2009 has increased at a 6.6% annual rate compared with 7.0% growth in 1983-87. At present, investment in commercial structures nationwide is still 18% below its 2008 peak, while residential investment is 43% beneath its 2005 crest. There is still excess production capacity and commercial building vacancy. Credit standards remain high for many, too, especially for small businesses. A bright spot: profits, a key driver of investment, continue to improve. The lackluster performance in the overall U.S. economy over the last five years has curtailed American business owners’ expectations for growth, resulting in only modest increases in hiring. One of the objectives of investment is to increase productivity to offset rising labor costs and increase profits. Wages and salaries, however, have risen only 4.3% during the current recovery, or the equivalent of just under 0.9% per year. Much of this is due to the fact the overall labor supply remains plentiful in many areas, with shortages in only some skilled occupations such as construction. Implementation of the federal Affordable Care Act (ACA)
in 2014 has also put another dampner on expansion and job creation. Many employers have initiated action to avoid ACA requirements by limiting the number of workers on their payroll and cutting weekly work time from forty to thirty hours or less. The missing component for the current economic recovery nationwide to be quicker or more robust seems to be a higher level and rate of investment, which is absent for the reasons noted above. The good news is that many of the indicators discussed above are just slightly better in Michigan than in the nation as a whole (as compared to the mid-eighties’ recovery). MM Don Wilson is a consulting economist, with offices in Hartland, Michigan, who specializes in economic and business research for trade associations and banking institutions.
~All Types of Roofing & Related Sheet Metal~Crane Services Available~ Commercial & Industrial
Wm. MOLNAR ROOFING, Inc. Riverview, MI
12455 Hale • P.O. Box 2272 • Riverview, MI 48193 WILLIAM MOLNAR, President Office: 734.281.0591 Cell: 313.304.1160 Fax: 734.281.7303 william@molnarroofing.com TRUEBLUE The Leader in Blue Collar Staffing
M I K E W A A L K E S · L I G H T H O U S E G R O U P. N E T 800.344.3531 EXT 7812
Corey Woodward Branch Manager 2235 West Rd., Trenton, MI 48183 | w: 734-362-0580 | c: 636-614-6263 cwoodward@laborready.com | www.laborready.com | NYSE: TBI TRANSPORTATION & LOGISTICS MANUFACTURING Drivers & Warehouse Staff Production Workers SERVICE INDUSTRY STAFFING CONSTRUCTION Retail | Hospitality | Events | Disaster Recovery General Labor & Skilled Trades
RAMS UP TO THE 5500 MODELS RAM PROMASTER VANS CHRYSLERS, DODGES, JEEPS PHONE 989-77DODGE HERITAGE AUTOMALL, INC. MT PLEASANT
for where you are, for where you’re going.
{Within reach.} Helping you achieve your goals is our highest priority. For more than 87 years, our CPAs, consultants, and strategic business advisors have placed their clients’ interests first. That’s why working with us gives you confidence and puts your challenges into perspective. Helping you reach lofty goals is
a higher return on experience.
BENEFITS · BUSINESS · LIFE · PERSONAL · TITLE
20
W I N T E R 2015
Thomas Doyle 248.223.3402 thomas.doyle@plantemoran.com plantemoran.com
mi cHiGaN mERiT
B UILDING
A SUCCESSFUL BUSINESS
Brook Wood
TAKES THE PROPER PLAN AND TOOLS, ALONG WITH EXPERIENCED PROFESSIONALS TO PIECE IT ALL TOGETHER
President
: (989) 539-1720 : (989) 539-1775 : (989) 429-4077 : brook@mannconstruction.net
260 E. Oak P.O. Box 609 Harrison, Michigan 48625
Accounting and Audit • Tax • IT Consulting • Succession Planning • Business Valuations • Cost Reduction Programs • Cost Segregation Studies • Retirement Plan Development & Evaluation • Bonding/Surety Assistance • Entity Selections
Sales • Service • Rentals • Parts
888.754.8478 • www.ahpplc.com Auburn Hills • Bay City • Grand Rapids • Greater Lansing • Midland • Saginaw
3310 Hudson Trails Drive, Hudsonville, MI 49426 p: 616.896.7700 • f: 616.896.6700 w: www.grandequipment.com
INDUSTRIAL COMMERCIAL RESIDENTIAL AGRICULTURAL
SCHEIDEL ELECTRIC, INC. Bus. (616) 866-0192 7137 CHILDSDALE, N.E. ROCKFORD, MICH. 49341
John
Mike
Steve
P6 Audit Trail Software Free until 8/31/14
DESIGN AND BUILD SPECIALIST * INDUSTRIAL * COMMERCIAL RESIDENTIAL * GENERATORS * COMMUNICATIONS 3079 E COMMERCIAL DR OFFICE: 989-835-2154 P.O. BOX 2264 VALLEY ELECTRIC WEBSITE FAX: 989-835-2693 www.valleyelectricalmidland.com MIDLAND, MI 48641-2264
SAGINAW
GAYLORD
314 W. Genesee Ave. 48602 1455 Dickerson Rd. 49735 (989) 755-4411 (989) 732-7507 (800) 292-0235 (800) 292-3081 Fax (989) 753- 3020 Fax (989) 732-6124
ALPENA
Scientific Brake & Equipment
www. a b c m i . com
7230 M-32 West, 49707 (989) 379-2750 (800) 262-9353 Fax (989) 379-4288
MT. PLEASANT
560 W. Pickard St. 48858 (989) 817-4200 Fax (989) 220-4338
www.waterworks.hdsupply.com 6575 23 Mile Road Shelby Twp, MI 48316 P 586-323-8800 F 586-323-8812
4901 Dewitt Canton, MI 48188 P 734-398-5950 F 734-398-5970
Summit
electric, inc.
Commercial & Industrial Contractors Since 1983
2544 Acacia Troy Michigan 48083 248-689-0300 689-1750 fax www.summitelectric.ws WI N TER 2015
21
report
ANNUAL
The YeAr iN review A Look at How ABC of Michigan Fought for Your Business in 2014 Much of the association’s work in 2014 was driven by the General Election in November, since maintaining the Merit Shop momentum of the past four years was a critical element of how successful the Merit Shop in Michigan can be in the future.
micHiGaN coNTRacToRS oF ED bUiLDERS aND PUbLicaTioN oF aSSociaT
SPRING 2014
MIOSHA & ABC:
SAFETY PARTNERS IN
Also:
Get to Know Your Lawmaker lines Gov. Snyder Head State Legislative Day
SPRING 2014
1
www.ab cmi.com
ABC of Michigan is pleased to report that the election was an overwhelmingly positive success for our members. Our endorsement win rate for the election was 93%, and our state legislature is now more Merit Shop friendly than ever before, with the election giving us a net gain of pro-growth lawmakers. This was made possible by two years of advocacy, lobbying, and fund raising across the state.
ABC and MIOSHA leaders sign safety alliance agreement.
22
W I N T E R 2015
In 2014, ABC of Michigan members raised more funds than ever before in the history of the PAC, which included candidate events, direct PAC fund raising and candidate support, and independent expenditures on behalf of candidates. In addition, the association launched a new tool to assist in our advocacy efforts – a Super PAC aptly named the ABC of Michigan Merit Fund. In 2014, the Merit Fund allowed us to assist candidates who were in the most contested races in the state with mailings and radio spots that made the difference in the final days of most of those races. This legislative and election work allows ABC of Michigan to be an effective partner for its nearly 1000 member companies to grow and be successful in a Merit Shop friendly business environment. In addition to election victories, ABC of Michigan saw several pieces of legislation successfully passed that promote fair labor practices and give Merit Shop firms a greater opportunity to win work and do it more efficiently and profitably in the state. A major piece of legislation also passed this year provides Michigan’s students with greater opportunity to pursue skilled trades training, which should help fill the skilled worker pipeline for our state. The spotlight of the year should truly be focused on the ABC of Michigan membership, which showed our communities, once again, that they care and are committed to giving back to those communities. The Michigan Merit summer 2014 issue featured a number of member companies throughout Michigan that make helping others in their communities a key part of their businesses’ operations. In 2014, ABC of Michigan’s key accomplishments supporting the growth of your business included: • Repealed Prevailing Wage in Livingston County • Passed legislation prohibiting union organizing classes at Michigan universities • Took local prevailing wage pre-emption legislation to the Michigan Supreme Court • Passed a landmark law creating more flexibility in schools so students can pursue CTE and vocational classes • Had the most successful PAC fund raising year in our history • Grew the Michigan Construction Jobs Center web site • Represented the Merit Shop with statewide media including ABC, CBS, NBC and FOX television and radio affiliates, the Detroit Mi chi gan Meri t
report
ANNUAL
• • • • • • •
News, Grand Rapids Press, Detroit Free Press, Midland Daily News and M-Live Launched a partnership with MIOSHA to enhance safety in the Michigan construction industry Prepared to launch the new ABC of Michigan Health Benefit Trust for ABC members Pushed for enactment of the Michigan Skilled Trades Training Fund Launched re-designed ABC of Michigan web site Published & distributed comprehensive Voters Guide for the November 2014 election Worked to get ABC members appointed to the State Bureau of Construction Codes Redesigned the State Legislative Day and saw a record number of members & legislators participating
Member Benefits ABC of Michigan’s top rated benefit is the Self Insured Workers Compensation Fund. The Fund has returned over $22 million dollars in premium to subscribers since its inception in 1995. This past year the Fund returned over $2 million to its members. That represents an average of more than 36% return on premium for members. This one benefit alone more than pays the average annual dues for Fund members. Businesses have seen a huge increase in their fuel expenses over the past several years, particularly if they own equipment as well as a fleet of vehicles. The ABC SuperFleet Discount Fuel Plan saves every participating member 5 cents a gallon on their fuel without an annual fee or minimum purchasing requirement. For members who have fuel tanks or need equipment filled daily on-site (wet hosing) ABC has a Bulk Fuel Discount Plan. Fuel tankers come to you and your savings is 10% per gallon off margin. The program covers diesel fuel, dyed diesel and gasoline in bulk quantities. In addition, ABC members can take advantage of many more discount programs at the national or local level. Each quarter of the year ABC of Michigan produces its award winning magazine, Michigan Merit. The publication covers important construction and business topics with informative articles and columns. It helps to communicate the truth about Merit Shop construction companies to our membership, our state legislature and others. Michigan Merit magazine is a great resource for our members and an excellent marketing tool for our industry. Merit Minute is one of the best ways to get news to the full membership as quickly as possible and engage the full power of our nearly 1000 member companies almost immediately. With our communications efforts complemented by advocacy tools, ABC of Michigan responds to any Merit Shop issue presented in Lansing with accuracy and timeliness. www. a b c M i. c oM
ABOVE: Gov. Rick Snyder (R) with ABC of Michigan leadership following signing of legislation to improve skilled trades options for students. RIGHT: ABC members raise money for Make-AWish Foundation at an annual auction.
Each year the state office produces a Membership Directory covering members across the entire state. This directory is available both in a paper format and online using a mobile device or computer. Both formats feature a separate listing for each chapter with a buyer’s guide by specialty to make it simple to find a supplier or associate in each chapter area. It is a useful tool for companies that perform work in multiple areas of the state, allowing them to easily find other ABC member companies wherever their job is located. In 2014 ABC of Michigan introduced its first ever constructiononly jobs web site – MichiganConstructionJobCenter.com. The site assists member companies in finding new skilled staff members, and has already grown to be the first place many Merit Shop companies place their jobs and find their next great hire. Premiering in 2015 will be the ABC of Michigan Health Benefit Trust – an employee health benefit resource for the construction industry that allows employers to be more competitive by lowering the payroll burden for prevailing wage and offering dollar banking for hourly field workers. MM WI N TER 2015
23
Senator arlan Meekhof New Senate Majority Leader Arlan B. Meekhof (R-West Olive) is no stranger to Associated Builders and Contractors of Michigan. Sen. Meekhof’s legislative priorities priorities have aligned with ABC’s many times with in the past, and moving forward, his leadership of the Senate promises to have a positive impact. Sen. Meekhof was first elected to serve the 30th Senate District in November 2010 and assumed office in January 2011. Prior to being elected Senate Majority Leader, Sen. Meekhof was the majority floor leader for the GOP Senate caucus, where he ensured that legislative priorities would move forward. Sen. Meekhof also served four years in the Michigan House of Representatives in the 89th District from 2007-2010. During that time, Sen. Meekhof was selected to his first leadership post midway through his first term, and was elevated to the position of assistant leader in January 2009. He lives in Olive Township with his wife, Barb. The Meekhofs have three adult children and two grandchildren. Michigan Merit (MM): Why did you run for office, and what are you most passionate about in your position? Arlan Meekhof (AM): Like many of my colleagues, I ran for office because I wanted to have an impact in my community. I began my career in politics at the local level and moved up to higher office as I recognized that I want to be part of helping to solve bigger challenges, not just those facing the residents of Ottawa County, but of the state, too. MM: do you remember your first interaction with aBC? What impact has that had on your legislative efforts? AM: I have a long relationship with ABC. I introduced my first bill related to prevailing wage in 2007. ABC has been very helpful 24
W I N T E R 2015
in communicating the needs of their members. My interest in reforming prevailing wage and in project labor agreement legislation has made me a natural ally with ABC. MM: of which legislative effort are you most proud? AM: Sponsoring and helping to pass Freedom to Work [in 2012] was my greatest accomplishment in the Senate. I heard from so many men and women who were struggling to find value in their union representation and that legislation made it possible for a worker to hold the union more accountable. MM: What do you believe is the single biggest issue facing Michigan now and what do you think is the best solution to that issue? AM: There is not one specific issue that keeps me awake at night. Instead, I am passionately focused on how we in state government can continue to improve upon the work we’ve done over the past four years. Michigan is beginning to turn around and I want Michigan to continue to improve. I want our state to be a place where parents can feel confident that Michigan is a place where their children and grandchildren can one day live, work and raise a family. MM: What recommendations do you have to improve aBC members’ communication with legislators? AM: It sounds obvious, but hearing from a constituent in my district has the greatest impact when I am considering legislation. I believe local voices have the biggest impact on elected representatives. After all, I came to Lansing to represent the interests of my neighbors and [the communities in my district]. ABC does a great job of connecting legislators with members living and working within their districts and for me, that local voice has a tremendous impact on how I do my job. MM: What are your top legislative priorities for 2015? AM: Energy reform and increased accessibility. Technology makes it possible for us to harness energy from a variety of sources. We need to work harder to collect, store and make that energy available to our citizens. Greater accountability for education dollars. Children and parents deserve quality schools that graduate students who are mi cHiGaN mERiT
Lawmaker
GET TO KNOW YOUR
ready to achieve their future goals. We all agree that money spent on education is money well-spent, but we need to make sure schools are living up to the expectations of parents and students. Prevailing wage reform is an issue that I have been interested in since I was a township official and it is an issue I want to pursue in 2015. Also, I would like to work to give back to our taxpayers. As our state begins to turn around, we need to share that success with our citizens by returning their hard earned tax dollars when possible.
Representative Jim Tedder Newly-elected State Representative Jim Tedder (R-Clarkston) fills the 43rd District seat vacated by term-limited fellow Republican Rep. Gail Haines (R-Waterford). (R-Waterford). The 43rd District contains part District of Waterford Township, the city of Lake Angelus, the village of Clarkston city and Independence Township. As a businessman Jim has served the community as a member of the Clarkston Area Chamber of Commerce for over 10 years and as a Lecturer to graduate business students through the Department of Marketing and Management at Oakland University. Rep. Tedder is well versed in the Merit Shop as a former staff member for ABC National in Washington, D.C. Prior to his election to the House, he was an administrator with Clarkston Community Schools and he is the owner of Jim Tedder Productions, a small business based in Clarkston.
Rep. Tedder and his wife Nancy reside in Clarkston and have three school-aged children. Michigan Merit (MM): Why did you run for office, and what are you most passionate about in your position? Jim Tedder (JT): I have been a grassroots Republican activist for 24 years, and an active member of many local political organizations and precinct delegate. Timing and opportunity ultimately prompted me to run for office. I felt that my backgrounds in business, government relations, and education made me a balanced and qualified candidate. I am most passionate about two areas: promoting free enterprise and improving education. MM: do you remember your first interaction with aBC? What impact has that had on your legislative efforts? JT: Yes, I vividly remember my first interaction with ABC National, the organization that offered me my first professional work experience. I started out as Assistant of Political Action, [where I] helped fundraise and host meet and greets between ABC members and congressional leaders. Shortly thereafter, I was promoted to Manager of State and Local Government Affairs, serving as the conduit between ABC national and membership across the country. I consider these experiences foundational to my development as a government affairs professional. Promoting the Merit Shop principles served to reinforce my previously held beliefs on the limited role that government should play in a free enterprise system. MM: of which legislative effort are you most proud? JT: Since this is my first elective office, I do not have a specific legislative effort that I am proudest of. However, I look forward to protecting recent legislative efforts that have put Michigan in competitive standing with other states. I was pleased to see Michigan become the nation’s 24th right to work state. I also applauded passage of House Bills 4465 and 4466, offering greater flexibility under the Michigan Merit Curriculum. I would like to build upon these achievements.
Times may be tough. But therE's a brighter tomorrow. In the construction industry, seasonal layoffs can impact your employees’ family lives and job morale.
periods of unemployment. and accessible trust account to draw upon when hard times occur. Contact us today for a free savings analysis, and we will show you how bright the upside of prevailing wage can be.
www. a b c m i . com
www.BCTBenefitPlans.com 877-wage-bct
WI N TER 2015
25
Lawmaker
GET TO KNOW YOUR
MM: What do you believe is the single biggest issue facing Michigan now and what do you think is the best solution to that issue? JT: I believe that the single biggest issue facing our state is the lack of adequate road funding. This is a difficult issue to tackle as the current lame duck legislature considers the possibility of raising taxes during a delicate time of recovery in our state. I personally support Speaker Bolger’s plan that would dedicate all revenue generated at the pump to road funding. If passed, I would work to guarantee the preservation of adequate school aid funding. [Editor’s note: Rep. Tedder answered these questions during December 2014]. MM: What recommendations do you have to improve aBC members’ communication with legislators? JT: Looking through the lens of an incoming freshman, I suggest 4964 Technical Drive Milford, Michigan 48381
Fax 248-714-5249
26
W I N T E R 2015
MM: What are your top legislative priorities for 2015? JT: My top legislative priorities for 2015 include: improving education by providing more educational options, including greater access to career and technical education; fixing our roads by prioritizing spending and relying on tax increases as an absolute last resort; and, removing structural barriers to free enterprise including repeal of prevailing wage and other burdensome regulations. MM General Contractor Design/Build Rough & Finish Carpentry Commercial & Residential
Innovation, Integrity, Teamwork... We Build Trust
CONSTRUCTION GROUP p: 989.205.0487 f: 989.689.1025 PO Box 2410 Midland, MI 48641
INC.
Contact Perry or Ray Merlo
Call 248-714-5486
that members approach legislators with issues of importance backed by data and supporting evidence. Personally, I will rely on the data presented by groups like ABC to strengthen my positions on issues. I also encourage members to regularly visit and/or e-mail their legislators, especially those ABC is ideologically aligned with. This will help members of the legislature to maintain a pulse on the concerns of the ABC membership and to advocate on their behalf.
cdiconstructiongroup.com
mi cHiGaN mERiT
SAVE THE DATE
The Grand Hotel, Mackinac Island
September 30 - October 2, 2015 A summit designed to provide innovative and informative best practices, leadership development, and growth strategies for Michigan construction decision-makers.
 Â
www. a b c m i . com
WI N TER 2015
27
affairs
GOVERNMENT
SUPREME COURT WILL HEAR ABC APPEAL ON LANSING PREVAILING WAGE The Michigan Supreme Court has granted a leave for appeal
in Lansing on Monday, a prevailing wage project in Ann Arbor
by Associated Builders and Contractors of Michigan (ABC), an
on Tuesday, and a project in Detroit on Wednesday may have
action that could lead to local prevailing wage ordinances being
to alter his or her pay and benefit package three times in three
invalidated throughout the state.
days. Michigan’s construction industry workforce is more highly
“Given the conflicting court cases over the past few years, we
compensated than most other vocations in the state, but neither
agree with the Supreme Court that the legality of excessive and
Lansing’s nor the state’s prevailing wage mandate aligns with these
expensive local prevailing wage schemes needs to be taken under
already competitive market rates. A 2013 non-partisan Anderson
review,” said Chris Fisher, ABC of Michigan President. “We believe
Economic Group study found that prevailing wage in the
a strong case will be made that these mandates are illegal, and that
education sector alone cost taxpayers an additional $2.25 billion
the Supreme Court will ultimately rule on the side of Michigan
over the past decade with no corresponding benefit.
taxpayers.”
“Prevailing wage ordinances, like other wage and benefit
Prevailing wage mandates create a hodgepodge of wage and
issues, are properly under the purview of the state, not the 1,800-
benefit classifications and payment schedules that exist only
plus local units of government that can come up with 1,800
for taxpayer-funded construction. ABC and others have long
inconsistent sets of rules to navigate. We trust that a consistently
maintained that these government construction schemes are
applied decision from the Court will settle this confusing issue
complicated, costly, and create an administrative burden.
and bring about a level playing field that encourages growth,
A contractor working on a prevailing wage project
opportunity and economic development statewide,” noted Fisher.
Photo 28 taken byW Trumpie Photography INTER 2015
m mii cHiGaN cHi GaN mERi mERiT T
affairs
GOVERNMENT
‘AMBUSH’ RULE MOVES FORWARD: EMPLOYERS SHOULD SEEK LEGAL COUNSEL On Dec. 12, 2014, the National Labor Relations Board (NLRB) issued its long-awaited final rule that overhauls the procedures for union representation elections. Under this controversial rule, the amount of time between when a union files a representation petition and an election takes place likely will dramatically be reduced from the current average of 38 days. The changes are currently scheduled to take effect on April 14, 2015, unless a court or Congress blocks enforcement of the new rule. The NLRB Achieved this drastic reduction in time primarily by: • Combining pre- and post-election appeals • Shortening pre- and post-hearing procedures (requiring that pre-election hearings begin within eight days and that post-election hearings be held within 14 days of the final tally of votes in the election) • Limiting the types of issues an employer can raise at a pre-election hearing (determining which employees are
Authorized Dealer
›› Heating ›› Air Conditioning ›› Ventilation Systems
A Licensed Mechanical Contractor Sales • Service • Installation
Residential • Commercial • Industrial
P.O. Box 130230 • Ann Arbor, MI 48113 Phone: 734.769.8545 • Fax: 734.769.8546 ›› Commercial Kitchens www.qualityairesystems.com • Qaire@aol.com
›› Sheet Metal Fabrication
considered supervisors, and which employees constitute a potential bargaining “unit” are no longer permitted before the election takes place) • Reducing the amount of time an employer is allotted to provide a list of eligible voters and increasing the amount of personal information that must be disclosed to unions The shortened time period for union elections will place a premium on rapid response by employers to union organizing activity. Employers are encouraged to speak with their labor counsel now about putting in place a rapid response plan for management because they may not get a second chance to prepare for sudden union organizing activity. In addition, ABC is considering a legal challenge to the rule in federal court, and will continue to keep members informed about any legal challenges that deal with procedures for union representation. “The ambush rule released [Dec. 12, 2014] by the NLRB further demonstrates the Board’s shift from neutral arbiter of labor law to cheerleader for big labor,” said ABC National Vice President of Government Affairs Geoff Burr. “ABC opposes this erosion of workplace and privacy rights, which will lead to the unsolicited distribution of employees’ personal contact information and drastically shorten the period of time between when a petition is filed and when a representation election is held. This rule adds unnecessary pressure to employers and deprives employees of valuable time needed to make a well-informed decision and we will continue to lead the fight against ambush elections through every available avenue.”
L O O M I S , E W E R T, PA R S L E Y, D A V I S & G O T T I N G P. C . A
T
T
O
CONSTRUCTION & BUSINESS LAWYERS
www. a b c m i . com
R
N
E
Y
S
A
T
L
A
W
124 WEST ALLEGAN, SUITE 700 JEFFREY S. THEUER LANSING, MI 48933 jstheuer@loomislaw.com (517) 482-2400
WI N TER 2015
29
affairs
GOVERNMENT
LEGISLATURE APPROVES PLAN FOR INCREASED ROAD FUNDING, PUBLIC TO VOTE IN MAY 2015 The Michigan Legislature approved a plan for increased road funding in the early morning hours of Friday, December 19, 2014, that sends the issue to the Michigan public for a special vote in May 2015. The plan calls for an increased sales tax (from 6 percent up to 7 percent), along with an increase to school budgets and a switch in the fuel tax structure along with a restoration of the Earned Income Tax Credit. As the Legislature prepared to adjourn for the 2013-2014 legislative session preparatory to reconvening in January with a new crop of lawmakers, outgoing term-limited quadrant leaders in both the House and Senate bargained and attempted to work out the differences between competing House and Senate plans. Governor Rick Snyder (R) has made road funding a centerpiece of his legislative priorities and pushed both chambers hard to iron out a plan before the end of the year. While the whole road funding package was made up of two resolutions and 11 bills, the final vote on the sales tax increase received a 94-16 approval in the House and 26-11 in the Senate. Some House members who voted no on that bill expressed disappointment that the final plan included a tax increase, which was not part of the original House-approved road funding bill sponsored by Speaker Jase Bolger (R-Marshall) which passed in early December. State Rep. Tom McMillin
30
W I N T E R 2015
The road funding plan calls for an increased sales tax (from 6 percent up to 7 percent), along with an increase to school budgets and a switch in the fuel tax structure along with a restoration of the Earned income Tax credit. (R-Rochester Hills) was vocal about his disappointment, telling reporters that failing to find cuts in the existing budget to cover the needed funds for infrastructure improvements was “Not outstanding. [It’s] sad.” House, Senate, and Executive leadership all seemed supportive of the plan, with outgoing Senate Majority Leader Randy Richardville (R-Monroe) noting that the plan offered the public a chance to be involved in the solution. Because the legislature’s plan involves a change in sales tax, it requires a constitutional amendment, which must be voted on in a special election by the public. If the amendment fails to pass, the Legislature must start over and work out another plan to come up with the necessary funds. MM
mi cHiGaN mERiT
index
ADVERTISER
ABC Self Insured Workers Compensation Fund ...................... 32
JGM Machinery Movers & Erectors, Inc. ................................. 15
AIS Equipment ........................................................................ 26
Jimco Fire Protection ............................................................... 13
Andrews Hooper Pavlik, PLC .................................................. 21
JW Field Grading & Excavating ................................................ 9
Ann Arbor Fire Protection ....................................................... 17
K & S Plumbing Co., Inc. ........................................................ 18
Arrow Concrete Cutting ............................................................ 9
Labor Ready, Inc ...................................................................... 20
ASHA Safety ............................................................................ 21
Lighthouse Insurance Group ................................................... 20
Bailey Agency .......................................................................... 13
Liquid Calcium Chloride Sales .................................................. 5
BCT Benefits Plan .................................................................... 25
Loomis, Ewert, Parsley, Davis, Gotting, PC .............................. 29
Blackstar Building Group........................................................... 5
Mann Construction ................................................................. 21
Brigade Fire Protection ............................................................ 18
Merlo Construction Co., Inc. ................................................... 26
Brothers and Bricks ................................................................. 13
Mid Michigan Materials, Inc. ................................................... 16
Capital Steel & Builders Supply ................................................. 5
Pamar Enterprises.................................................................... 16
CDI Construction .................................................................... 26
Plante Moran ........................................................................... 20
Commonwealth Associates ...................................................... 29
PM Technologies ..................................................................... 11
Critical Business Analysis ........................................................ 21
Pro View (The Blue Book Building & Construction Network) ........ 17
Crowe Horwath LLP ................................................................ 11
Quality Aire Systems ............................................................... 29
Desai Nasr Consulting Engineers ............................................. 27
Rapid Fire Protection ............................................................... 13
DJ Maltese Construction LLC .................................................... 5
Rehmann ................................................................................... 8
Efficient Crane Solutions ......................................................... 16
Rock Products ......................................................................... 16
Enterprise Fleet ....................................................................... 27
RW Mercer .............................................................................. 11
Excel Electric, Inc. ................................................................... 13
Scheidel Electric ...................................................................... 21
Fisher Companies .................................................................... 26
Scientific Brake & Equipment ................................................. 21
Fonson, Inc. (GBM Recycled Concrete) ................................... 17
Selleck Architectural Sales ....................................................... 27
G&G Electric............................................................................. 5
Siding World ............................................................................. 2
Garber Chevrolet ....................................................................... 9
Summit Electric ....................................................................... 21
Grand Equipment Company ................................................... 21
Thermico, Inc. ......................................................................... 14
Great Lakes Industrial Supply Co., Inc. ................................... 13
Timpson Transport, Inc. ............................................................ 5
Great Lakes Roofing & Insulation Systems, Inc. ...................... 16
Titan Interiors ......................................................................... 26
Great Lakes Safety Training Center .......................................... 18
Tradesmen International .......................................................... 15
Great Lakes Striping & Sealing ................................................ 19
Valenti Trobec Chandler .......................................................... 17
Guy Hurley Blaser ................................................................... 14
Valley Electrical Contractors .................................................... 21
HD Supply Waterworks ........................................................... 21
Walton Agency ........................................................................ 13
Heritage Automall ................................................................... 20
Waterstone Insurance Agency .................................................. 18
Independence Commercial Construction, Inc. ......................... 16
Welch Tile & Marble Company ............................................... 27
Jackson Associates, Inc. ........................................................... 19
Wm. Molnar Roofing, Inc. ....................................................... 20
JBS Contracting, Inc. ............................................................... 19
X-Calibur Sheet Metal ............................................................. 16
www. a b c m i . com
WI N TER 2015
31
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
32
W I N T E R 2015
mi cHiGaN mERiT