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CONTENTS VOLUME IX, ISSUE 3
FEATURES
6
6
Brighter Futures for Veterans and Construction Careers
8
Training Funds to Create Jobs
10
MSF-Approved Projects Attract Residents by Kathleen Achtenberg
14
Michigan Construction Leadership Summit Review
16
Business Development: NLRB Ruling
DEPARTMENTS
22
14
10
5
Executive Perspective by Chris Fisher
12
Economic Update: How the Current Recovery in Construction Compares by Don Wilson
18
Government Affairs: Long-Term Funding for Safer Roads and Bridges
22
Get to Know Your Lawmaker
26
Advertiser Index
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EXECUTIVE PERSPECTIVE
S CHRIS FISHER President & CEO ABC of Michigan 2015 BOARD of DIRECTORS Dan Murphy, Chairman MAG Insulation Greater Michigan Chapter 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 Mike Waalkes Lighthouse Insurance Group Western Michigan Chapter
ince ABC of Michigan was founded more than half a century ago there has been a steadfast commitment to remembering, hiring and supporting the military men and women who defend our nation. Throughout the years this has taken on many forms and today, as much as ever, that commitment remains undeterred, especially as our nation’s veteran’s return from the battlefield and adapt to civilian life. As this happens, ABC members are eagerly working to offer our American heroes exciting and rewarding careers that allow them to help build the country they have defended. From job training opportunities at ABC-affiliated trade schools, to employment opportunities and beyond, the construction industry offers our veterans a slice of the American Dream and even the chance to eventually own their own company. This issue of Michigan Merit gives thanks to those men and women who fight for our country, and shares some insights on how the Merit Shop is giving back and offering terrific opportunities for veterans within the construction industry.
From job training opportunities at ABCaffiliated trade schools, to employment opportunities and beyond, the construction industry offers our veterans a slice of the American Dream and even the chance to eventually own their own company.
In addition to this feature article, we bring you some promising news on community improvement projects and skilled trades training funds, which will help to grow the construction industry. Both initiatives mean more jobs for Michigan men and women, and a stronger workforce for members. We had a great year, and look forward to all the work to be done in 2016. Stay engaged with us online at www.abcmi.com, and on Facebook at facebook.com/ABCMI. Yours for the Merit Shop,
Feature
A
ndrew Foss has served his country in the military, and now — with assistance from a groundbreaking program operated by ABCs Greater Michigan Chapter — he’s serving to help fill a talent gap in the construction industry. The National Guardsman is in his third year of a fouryear training program at Greater Michigan Construction Academy (GMCA), where he is honing his skills while working at G.E. Insulation, an ABC Greater Michigan member in Sanford. GMCA is the only training facility operated by an ABC chapter with Veterans Administration certification, meaning veterans are eligible to apply their VA education benefits toward the costs of attending the academy. The program not only represents ABC’s commitment to serving veterans, but it is also providing a source of skilled trades workers to employers in desperate need of them, says Jimmy Greene, CEO and president of ABC Greater Michigan. With construction on the upswing, many contractors are “starving for people,” Greene explains, noting that with GMCA training, “Vets can translate competencies that they picked up in the military back into the work world.”
STATEWIDE SUPPORT GMCA’s VA certification is part
of the chapter’s contribution toward a broader, statewide effort to transition veterans into construction industry jobs. “As the construction industry continues to grow in the coming years, companies will be looking to hiring employees with the right skills and experience — and they need look no further than Michigan’s veterans,” says Jeff Barnes, director of the Michigan Veterans Affairs Agency (MVAA). “Veterans are strong leaders, quick thinkers and motivated employees, all valuable assets in today’s workforce. In addition, many of the skills veterans learn during their time in the military are highly transferrable to the construction industry. Whether they were electricians in the Marines or plumbers in the Army, veterans already have many of the tools necessary for the job, along with the ability to learn quickly and work as part of a team,” he says. Foss says his military background has prepared him well for the civilian workforce. “It definitely gives you a lot of confidence and makes you think you can do anything in the world,” says Foss, who lives in Hope, north of Midland, began in the military in 2007 as an ROTC cadet at Central Michigan University before enlisting in the National Guard. He says construction meshes well with his skill set — as well as his mind-set. “It’s a good fit for me because soldiers have to be active. They can’t sit behind a desk. We have to have our hands and feet moving or else we’re going to get bored.” G.E. Insulation is paying for his current training, but Foss says he may at some point use his VA benefits to return to the academy and study welding to broaden his expertise. For its part, MVAA has focused on identifying ways to facilitate the transition from military to civilian life by reducing barriers to employment. In partnership with the Michigan Legislature, several licensing and credentialing reforms have been enacted in recent years, allowing for a quicker transition to the civilian workforce. For example, fees can be waived for honorably discharged veterans who are plumbers, boilermakers, mechanical contractors and electricians and can demonstrate comparable levels of experience gained through their military service. The state also allows veterans with certain skills obtained during their military service to substitute their training for additional training and education requirements that are required for licensure. Veterans can substitute their military training in trades such as hydronic heating and cooling process piping, HVAC equipment, ductwork, refrigeration, limited or unlimited service in heating or refrigeration and fire suppression. Veterans can also substitute military experience for up to 60 hours of pre-licensure
“It’s a good fit for me because soldiers have to be active. We can’t sit behind a desk. We have to have our hands and feet moving or else we’re going to get bored.” – Andrew Foss, National Guardsman education requirements for residential builders or residential maintenance and alternation contractors. SEEKING MORE CONNECTIONS Norm Brady, president and CEO of the ABC West Michigan Chapter, says there’s a strong desire among many ABC members to show appreciation for those who have served in the military by hiring them, but the infrastructure to match veterans to job openings is lacking. “I’ve had more than one member say, ‘I need help hiring these vets,’” he says. “Where are they? We haven’t really figured it out yet.” Mike Parsons, president of Valley Electrical Contractors of Midland, an ABC Greater Michigan Chapter member, says simple demographics can limit the pool of veterans looking to enter the construction industry. For example, a veteran who has had a long military career might not be willing to enroll in a multiyear apprenticeship program, opting instead for a more direct career path. Still, while few ABC members may have formal programs for hiring veterans, the discipline that vets bring to a workforce is highly valued. “If you’re a journeyman and veteran, that really says something,” Parsons says. Valley Electrical has several veterans on staff, although their military service was not necessarily the main reason they were hired, he says. A military background might help workers “get in the door, but it doesn’t keep them there.” “We hire the best person,” Parsons explains. “But definitely if it comes head to head between two equal candidates, it’s going to the veteran over someone else.” For veterans who are leaving the military and transitioning into civilian life, the academy is an alternative to traditional full-time college attendance, says Greene. As opposed to attending school full time, veterans at GMCA receive classroom instruction and earn a paycheck while participating in on-the-job training. MM MICHIGAN MERIT • FALL/WINTER 2015
7
FEATURE
TRAINING FUNDS WILL HELP CREATE OVER 3,100 JOBS; RETAIN 10,000 OTHERS More than 13,000 job-seekers and workers will receive training for in-demand technical jobs through grants totaling $12.8 million awarded under Michigan’s Skilled Trades Training Fund, Gov. Rick Snyder announced November 25. The training program was established in 2013 by Snyder and the Legislature to help employers develop the talent they need to fill thousands of available skilled-trades jobs. The fiscal year 2016 funding is on track to create more than 3,100 jobs and retain more than 10,000 positions, with more than 350 employers taking advantage of the program. “Michigan families continue to benefit from a growing economy and a declining unemployment rate,” Snyder said. “Despite these positive trends, there are still too many skilled-trades jobs that employers are struggling to fill. The Skilled Trades Training Fund is an excellent resource that helps employers provide the training that enhances their talent base. The result is more and better jobs for Michigan workers.” The Skilled Trades Training Fund provides competitive awards for employer-responsive training that enhances talent, productivity and employment retention while increasing the quality and competitiveness of Michigan’s businesses. It ensures that employers have the talent they need to compete and grow, and that individuals have the skills they need for in-demand jobs.
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“The program’s success is in large part due to its collaborative nature,” said Stephanie Comai, director of Michigan’s Talent Investment Agency, which administers the fund. “By working with their local education, economic development and Michigan Works! partners, employers are meeting their goals of providing demanddriven training that addresses the talent shortages hampering their GOV. RICK SNYDER growth.” Training programs funded by the program must fill a demonstrated talent need experienced by an eligible participating business. Classroom training must lead to a credential for a skill that is transferrable and recognized by the industry, and leads to permanent full-time employment or continued permanent full-time employment. Since its inception, the Skilled Trades Training Fund has created more than 4,400 jobs and retained more than 15,000. MM
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FEATURE
MSF-APPROVED PROJECTS ATTRACT RESIDENTS
Capital Investment to Kalamazoo, Lansing, Alpena, Dearborn and Romulus BY KATHLEEN ACHTENBERG, MICHIGAN ECONOMIC DEVELOPMENT CORPORATION Michigan Strategic Fund approved on Nov. 24 business expansions and community improvement projects expected to generate nearly $120.6 million in new investments and create 258 jobs. The MSF board approves grants and loans administered by the Michigan Economic Development Corporation, which promotes economic development opportunities, including retaining and attracting business to the state. The projects include: • The city of Lansing’s Brownfield Redevelopment Authority has received approval of $25,195,280 in local and school tax capture for the SkyVue on Michigan project in Lansing. The project will redevelop a former auto dealership on East Michigan Avenue into a viable, mixed-use development with 341 market-rate apartments, commercial space and a multi-level parking structure. The tax capture will alleviate brownfield conditions at the site and make it suitable for redevelopment. The project will be undertaken by Lansing Properties I LLC and will generate a total capital investment of $80 million and create nine full-time jobs. • NoMi Developers, LLC plans to rehabilitate and repurpose a distressed industrial building in the River’s Edge district located between the Kalamazoo River and downtown Kalamazoo. The completed project will consist of a mixeduse development with restaurant space and 47 residential units. The project will generate a total capital investment of nearly $4.5 million and create five full-time jobs, resulting in a $665,000 Michigan Community Revitalization Program performance-based grant. In addition, the city of Kalamazoo’s Brownfield Redevelopment Authority has received approval of $605,000 in local and school tax capture to alleviate brownfield conditions at the site and prepare it for development. The city of Kalamazoo is also providing a $250,000 loan from its economic initiative fund. • The city of Alpena has been awarded $891,591 in Community Development Block Grant funds for façade improvements needed for the Alpena Furniture and Flooring building and the Old Owl restaurant in downtown Alpena. 10
ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
Photo taken by Mark Sawyer
RENDERING OF SKYVUE ON MICHIGAN PROJECT
RENDERING OF PLANNED RIVER’S EDGE DISTRICT
This funding will be part of a façade/housing grant agreement in the amount of $1,291,591, comprised of $891,591 from the MSF and $400,000 from the Michigan State Housing Development Authority. Alpena Furniture and Flooring is a long-standing retail operation in the city. The building will undergo historic renovations and interior improvements that will create 10 residential apartments in the building. The Old Owl restaurant, also a longtime stakeholder in the city, is currently closed due to change of ownership. The new owner plans to make major renovations to both the exterior and interior of the restaurant.
The two projects are expected to generate a total private investment of more than $1 million. • Rivian Automotive LLC, established in 2009, is an automotive design company focused on creating software to be used in next-generation vehicle design. The company plans to establish a research and development center in the city of Dearborn, investing nearly $29.5 million and creating 174 jobs. As a result, the company has been awarded a $1.77 million Michigan Business Development Program performance-based grant. Michigan was chosen over competing sites in California and Florida. The city of Dearborn has offered support to the project in the form of property tax abatement. Individuals interested in career opportunities with Rivian should visit www.rivian. com. • The city of Romulus’ Brownfield Redevelopment Authority received approval of $1,283,181 in local and school tax capture for non-environmental activities associated with the Packaging Specialties, Inc. (PackSpec) expansion in Romulus. PackSpec is at capacity due to rapid growth and plans to renovate a building near its current facility to consolidate its operations under one roof. The project will generate a total capital investment of $5.6 million and create 50 jobs within the first two years, with an additional 20 jobs added within 10 years. Michigan was chosen over a competing site in Ohio. The tax capture will assist with lead and asbestos abatement activities and substantial exterior and interior demolition costs, as well as demolition costs related to upgrades to heating, electrical and plumbing. The city of Romulus has an Industrial Facilities Tax (IFT) abatement agreement with the developer which will cap the actual local and school tax capture at the maximum amount approved for reimbursement, less the imputed value of the IFT abatement.
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The project is also requesting $86,175 in tax increment financing for environmental activities from the Michigan Department of Environmental Quality. MM THIS ARTICLE WAS ORIGINALLY POSTED NOVEMBER 24, 2015 BY KATHLEEN ACHTENBERG OF THE MICHIGAN ECONOMIC DEVELOPMENT CORPORATION ON MICHIGANBUSINESS.ORG.
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MICHIGAN MERIT • FALL/WINTER 2015
11
ECONOMIC UPDATE
HOW THE CURRENT RECOVERY IN CONSTRUCTION COMPARES TABLE 1
BY DON WILSON, ECONOMIST ABC OF MICHIGAN In the economic update column of the spring, 2015 issue of Michigan Merit, there was a graphic portrayal of the history of the annual value of Michigan nonresidential building starts, an indicator of the funds authorized for future spending, from the beginning of their decline in 2006 to their lowest level in the 2009 recession and their subsequent path during the following recovery. Exhibit # 1 shows, that five years after bottoming out in 2009, the value of those starts in Michigan indicate such year to year authorized spending can be interpreted as only stabilizing, lagging behind the uptrend in statewide private sector employment (86% of all jobs) and business activity, as tracked by the Michigan Business Barometer. If you look at the rate of growth in earlier recoveries, it is confirmed that latest come back is atypical compared with the four earlier recoveries since 1970. At the nationwide level, in the four economic recoveries, preceding the latest one since mid-year 2009, one of the features of any earlier period, was that the long term pace of their upturn was that it was always robust because the bigger the preceding downturn the more vigorous the comeback. With regard to the non-
Michigan Change in Non-Residential Building Construction Starts by Year After Recession’s Bottom (% Year / Year)
Recovery Period
1st
2nd
3rd
1976-79
8.2 26.2 5.9 3.7 -- --
1983-87
6.9 61.9 13.0 23.7
22.8 --
1994-99
16.5 12.0 -2.9 5.3
.09 35.5
2003-06
6.8 -7.3 -5.0 32.3 -- --
2010-14
14. -1.5
5.4
4th
5th
6th
-26.4 50.9 N/A*
Not Available
*
residential structure component of nationwide business investment, spending (state in inflation adjusted dollars) increased an average of 7% annually during all the earlier expansion periods. In the six-year period from beginning in 2009’s third quarter through 2015’s second quarter, outlays for structures shrank 8%, or an average of 1.5% per year. In Michigan, a report of the State Tax Commission summarizes the equalized tax value of real property across the state’s eighty-three counties. These data indicate the impact of the recession in Michigan shrank the value of commercial and industrial real property by $3.6 billion in 2008 and 2009. From the start of the recovery in Michigan in the first quarter of 2010, as identified by the Michigan Business Barometer, through the end of 2014, Tax Commission data shows a $16.7 billion increase in new investment (based
on assessed values) in commercial and industrial real property. Despite the new investments, overall assessed value of real property investment decreased by $21.3 billion due to declines in selling price, demolitions and the shuttering of facilities with discontinuance or relocation of operations. Comparison of investment with earlier business cycles in Michigan is not feasible due to lack of readily available historical information on assessed values. Long term non-residential structural investment in Michigan can only be measured by review of the value of contract awards for non-residential building construction starts. How such authorized spending changed in Michigan during the latest recovery compared with the earlier four recoveries, since 1970, is summarized in Table 1. The value of contract awards (adjusted for inflation by the Detroit regional non-resi-
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
dential building cost index) indicates growth in non-residential building construction starts averaged 17.9% annually in Michigan in the four earlier recoveries, compared with 6.3% in the 2010-14 period. Much of the slowdown in the state’s pace of growth in non-residential construction starts can be attributed to the slower rate of such spending in southeastern Michigan where 62% of all statewide industrial and commercial assessed value is concentrated. Commercial construction spending in the region in 2010-14 was only three-tenths the pace in the four previous comeback periods. Another significant depressant of construction activity during Michigan’s current business recovery, besides slow job growth and excessive building vacancy, has been the effect of commercial mortgage backed security delinquency on credit conditions. In 2005-07, the billions of 10 year loans backed by commercial mortgages securities were issued when properties were at or near peak value. At the start of the recovery on January 1, 2010, according to reports on commercial mortgage backed securities from Morningstar, an independent investment research firm, commercial mortgage loan delinquency in the Detroit region had risen to $912 million or 11.1% of the total loans outstanding compared with a nationwide average of 5.2%. By January 1, 2015, the delinquency balance had declined to $584 million, or 8.0% of total loans outstanding compared with a U. S. average of 3.9%. While the statewide Michigan delinquency rate, also, recorded a substantial increase during and following the recession, it moderated faster than in the Detroit area. How much that slower rate of decline in delinquency influenced willingness to invest in the state, if any, is open to conjecture. Employment in the state, after growing at a rate of 2.4% in 2011 and 1.9% in 2012, slowed to 1.3% in 2013 and 1.0% in 2014. Building vacancy across the state for all major types of building classes, which had slid to 87.6% at the opening
MICHIGAN BUSINESS ACTIVITY / PRIVATE SECTOR EMPLOYMENT / NON-RESIDENTIAL BUILDING CONSTRUCTION STARTS! Business Barometer /
EXHIBIT # 1!
Construction Starts Index (2007=100)!
Employment (000,000)! 3.8!
120! Business Barometer! Non-residential Construction Starts Index ! Private Sector Employment!
110!
3.7!
100!
3.6!
90! 3.5! 80! 3.4!
70!
3.3!
60!
50!
Source: Dodge Data, Automotive News, Michigan Dep't of Treasury, Major Utilities, Bureau of Labor Statistics & ! Select Real Estate Advisory Organizations ! 04!
05!
06!
07!
08!
09!
10!
11!
12!
13!
MICHIGAN BUSINESS BAROMETER / PRIVATE SECTOR EMPLOYMENT!
Business Barmeter (2007=100)! 100! 98!
14!
3.2!
EXHIBIT # 2! Emloyment! (000,000)! 3.7!
Michigan Business Barometer! Private Sector Jobs!
3.6!
96! 3.5!
94! 92!
3.4!
90! 3.3!
88! 86!
3.2!
84! 82! 80!
3.1! Source: Dodge Data, CMD Group, Bureau of Labor Statitics, Automotive News, Michigan Department of Treasury, Major Utilities & Select Real Estate Advisory Organizations !! ! 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 !10 Q1! Q2! Q3!! ! Q4! Q1! Q2! Q3! Q4! Q1! Q2! Q3! Q4! Q1! Q2! Q3! Q4! Q1! Q2!
of 2010, climbed to 89.1% by January 1, 2013 and 92.6% on January 1, 2015. With identification of another source of data on statewide construction starts in early 2015, after cessation of similar reporting from a previous source in late 2014, more insight was available regarding the recent trend of value of non-residential building activity in Michigan. Exhibit #2 contrasts quarterly business activity, as measured by the Michigan Business Ba-
14 Q3!
14 Q4!
15 Q1!
15 Q2!
3!
rometer, with private sector employment, which confirms the state remains on an expansion track. Exhibit # 3 compares a quarterly index of leasing activity in major classes of non-residential structures with the level of building occupancy and the value of construction starts whose linear trend line shows such authorized spending has not only stabilized, but is now on an expansion track more in alignment with leasing demand and occupancy. MM
MICHIGAN MERIT • FALL/WINTER 2015
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SUMMIT REVIEW
September 30 – October 2, ABC of Michigan hosted the inaugural Michigan Construction Leadership Summit. More than 170 construction executives, leaders, speakers, and guests joined us on Mackinac Island for three days of learning, networking, and fun at the Grand Hotel. The summit featured keynote speakers Bob Tagatz (Grand Hotel Historian), Col. Steve Gray (USAF-RET.), and Steve Ford (son of former president Gerald Ford). In addition, there were sessions on leadership, workforce development, and two panels featuring additional keynote speaker: Anirban Basu (Chief Economist for ABC National). Outside of the education, attendees had the opportunity to network and enjoy time with their peers at nightly receptions on The Grand’s Front Porch and the Jockey Club, and dinners in the Grand Hotel and at the Gate House. ABC of Michigan thanks all of the sponsors and speakers that made this event a huge success! Stay tuned for details on upcoming events hosted by ABC of Michigan.
100% OF RESPONDENTS STRONGLY AGREED/AGREED THE SPEAKERS WERE KNOWLEDGEABLE, ENGAGING AND INTERESTING.
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
SUMMIT REVIEW
94%
OF RESPONDENTS STRONGLY AGREE/AGREE THEY WOULD COME BACK TO THE ISLAND FOR ANOTHER CONFERENCE.
MICHIGAN MERIT • FALL/WINTER 2015
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BUSINESS DEVELOPMENT
NLRB RULING: CONTRACTORS OBLIGATED TO NEGOTIATE WITH UNIONS A recent ruling by the National Labor Relations Board (NLRB) undermines the independent business model and upends 30 years of labor standards, creating extra burdens for contractors across the country. The case, Browning-Ferris Industries of California, hinged on whether contractors are “joint employers” of subcontractors’ employees. The NLRB determined such employees are indeed jointly employed by the contractor, and therefore the contractor is obligated to negotiate with the union. “(The) ruling overturns decades of standards that have worked both for business owners and employees,” said ABC Vice President of Government Affairs Geoff Burr. “Contractors may find themselves vulnerable to increased liability, making them less likely to hire subcontractors — most of whom are small businesses — to work on projects.”
The repercussions may apply beyond the construction industry. For example, as Forbes.com reported, franchisers, such as fast-foot restaurant chains, can be held liable for hiring and firing decisions made by individual franchisees. Burr says the NLRB’s action will undermine the relationship between contractors and subcontractors. “The ruling threatens both responsible contractors who have established sound workplace protocols and subcontractors by deeming them joint employers of the subcontractor’s employees.” ABC has vigorously opposed radical changes to the joint employer standard. It filed an amicus brief condemning the NLRB for creating unnecessary uncertainty throughout the business community. Earlier this year, ABC sent a letter of opposition to proposed changes to the U.S. Senate’s Health, Education, Labor and Pensions Committee. MM
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
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MICHIGAN MERIT • FALL/WINTER 2015
17
GOVERNMENT AFFAIRS
LONG-TERM FUNDING PLAN FOR SAFER
ROADS AND BRIDGES M
ichiganders will have safer roads and stronger bridges to travel on, after Gov. Rick Snyder signed a seven-bill package implementing the state’s legislative solution to infrastructure funding. The governor signed the bills in a public ceremony, where he was joined by Lt. Gov. Brian Calley, Senate Majority Leader Arlan Meekhof, House Speaker Kevin Cotter, lawmakers, officials representing community, labor and business organizations, and numerous other stakeholders who worked diligently on a road funding solution. “This package provides the single largest investment in transportation funding over the last half century. It will go a long way to improve Michigan’s roads and ensure a safe and efficient system of transportation essential to a stronger future,” Snyder said. “Residents and visitors alike deserve much better than what we drive
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
on today. This targeted, ongoing investment will help preserve and fix our infrastructure now and in the future, which is fundamental to continuing and accelerating our economic comeback.” Meekhof said: “State government has a responsibility to maintain safe roads and bridges and the people of Michigan expect the legislature to meet basic infrastructure needs. The road plan redirects existing resources to reflect roads as a priority in the state budget, generates new revenue for a long-term solution and returns taxpayer dollars to our hardworking families. We neglected our roads for too long. Now we have a commonsense plan of action to improve our roads and make government more efficient and accountable.” “This plan will allow our road and bridge repairs to ramp up and continue for years to come,” Cotter said. “Everyone in Michigan knows our roads are a mess and that they have been that way
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Senate Majority Leader Arlan Meekhof for far too long. Now that our economy is growing, we need a real solution that fixes our roads and keeps them in good condition for the foreseeable future. This is that plan.” The comprehensive plan raises 20 percent more revenue than the last roads plan in 1997 and adds the important component of adjusting for inflation. 61 percent of dollars will go to local road agencies in communities across the state – while 39 percent will be dedicated to state highways. Local agencies will be permitted to use up to 10 percent of funding for mass transit, with the exception of Detroit, which may use up to 20 percent. General Fund dollars allocated for roads will be a 5-year phase-in period to allow fiscally responsible adjustments over time, beginning with $150 million in Fiscal Year 2019, $325 million in FY 20 and $600M in FY 21. When all the components of the phased-in funding plan are added together, it results in the significant, much-needed investment of the $1.2 billion required to fix Michigan’s roads and bridges. The funding bills signed by the governor are: • House Bill 4736, sponsored by state Rep. Michael McCready, which updates vehicle and motorcycle registration fees beginning Jan. 1, 2017. Registration and truck weight fees will increase by 20 percent. It is now PA 174 of 2015. • HB 4737, also sponsored by McCready, restricts State Trunkline Fund administrative expenses at the Michigan Department of Transportation to 8 percent of expenditures, down from 10 percent, and requires warranties on all local road projects over $2 million dollars. It is now PA 175. • HB 4738, another McCready bill, updates taxes on fuel by 7.3 cents to 26.3 cents per gallon for all motor fuels, including diesel and natural gas, starting Jan. 1, 2017. Beginning Jan. 1, 2022, the tax rate will be indexed to inflation. It is now PA 176. • HB 4614, sponsored by state Rep. Andrea LaFontaine, applies the truck fuel tax to natural gas and gasoline used by interstate trucks, starting Jan. 1, 2017. It is now PA 178. • HB 4616, also sponsored by McCready, ties the tax rate on diesel fuel to the same level as the tax on gasoline, making the per-gallon rate equal for all fuels. It is now PA 179. • Two other bills in the package, HB 4370 & SB 414, implement targeted tax relief to offset the burden to Michiganders. MM
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MICHIGAN MERIT • FALL/WINTER 2015
19
GOVERNMENT AFFAIRS
PROTECTING MICHIGAN TAXPAYERS
FILES NEW BALLOT LANGUAGE FOR DRIVE TO REPEAL PREVAILING WAGE Protecting Michigan Taxpayers (PMT) announced that the petition gathering process to repeal Michigan’s Prevailing Wage Act will continue to move forward through the winter months. In October, PMT asked the Board of State Canvassers not to certify previously submitted petition signatures for citizen-initiated legislation to repeal the state’s costly prevailing wage mandate. Instead, PMT filed new language with the Secretary of State to ensure voters’ voices will be heard, and begin again the process of collecting sufficient signatures for repeal. The decision not to seek certification of previously submitted petitions came after a careful analysis by PMT of the petition signatures submitted on September 14, 2015. PMT’s independent analysis showed that duplicate signatures—the signatures of voters who may have mistakenly signed the petition more than once—were incorrectly submitted to the Bureau of Elections. “Hundreds of thousands of Michigan voters demanded that Lansing spend their tax dollars more wisely, and that work isn’t finished,” said Chris Fisher, President of ABC of Michigan “Out of respect for the integrity of the petition process, we look forward to Protecting Michigan Taxpayers being successful with new pe-
“Repealing this costly and wasteful government regulation is too important not to finish the fight.” Chris Fisher, ABC of Michigan tition language and look forward to additional signatures being collected to again to ensure voters’ voices will be heard. “Repealing this costly and wasteful government regulation is too important not to finish the fight,” added Fisher. Protecting Michigan Taxpayers is a grassroots organization that aims to keep Michigan moving forward by ensuring fairness for our state’s taxpayers. ABC of Michigan and other groups advocating repeal of prevailing wage have been in support of PMTs petition gathering effort to enact citizen-initiated legislation that repeals Michigan’s Prevailing Wage Act. MM
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
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CONGRESSMAN TIM WALBERG Congressman Tim Walberg ran for office to reduce the size and cost of government and empower families in the community. He believes that limited government works best for the people when it is closer to them. Since first taking office, he has hosted hundreds of coffee and town hall meetings to better understand the thoughts and concerns of the district. Walberg is serving his fourth term in Congress as the representative of south-central Michigan. The diverse constituency of Michigan’s 7th District encompasses Branch, Eaton, Hillsdale, Jackson, Lenawee and Monroe Counties, along with parts of Washtenaw County. Prior to his time in public office, Walberg served as a pastor in
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ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
Michigan and Indiana, as president of the Warren Reuther Center for Education and Community Impact, and as a division manager for Moody Bible Institute. He also served in the Michigan House of Representatives from 1983 to 1999, and is proud to bring his reputation as a principled legislator, fiscal reformer and defender of traditional values to Washington. In the 114th Congress, Walberg serves on the House Education and the Workforce Committee as chair of the Workforce Protections Subcommittee and in addition, serves on the House Oversight & Government Reform Committee. He and his wife Sue have been married for more than 40 years, and enjoy spending time outdoors and riding on their Harley. They live in Tipton, Michigan, where they raised their three children: Matthew, Heidi and Caleb. Why did you run for office, and what are you most passionate about in your position? I ran for office to reduce the size, scope, and cost of government and empower the working families in our communities. Limited government works best for the people when it is closer to the people and when solutions are advanced from the grassrootsup, not from the top-down. Big government and regulatory over-
GET TO KNOW YOUR LAWMAKER
reach are increasing the cost of daily living, stifling opportunity, and reducing freedom. We need to return to the principles of free enterprise and limited government where every American has the opportunity to pursue their dreams without the heavy hand of government standing in the way. Do you remember your first interaction with ABC? What impact has that had on your legislative efforts? ABC was one of the first organizations who supported me during a six-way primary in 2004. I’m thankful to continue to have their support and a strong working relationship on important issues facing Michigan and our nation. Listening to stories from ABC members has given me many illustrations from the real world of how big government, a complicated tax code, and a burdensome regulatory structure is impinging upon small businesses who supply good-paying jobs and help grow our economy. Of which legislative effort are you most proud? I’m proud to be part of the effort to regain the majority in the House in 2010, which gave us the ability to set the legislative agenda and hold hearings. As a result, I became Chairman of the Workforce Protections Subcommittee which has a direct impact on a wide range of issues that affect employers and employees alike. The proposed silica rule, overtime rule, minimum wage issues, the Fair Labor Standards Act, the Equal Employment Opportunity Commission—all of these are issues that have the ability to either help or impinge upon the success of independent contractors and small business people. Unfortunately, we’ve lacked a willing partner in the Senate on many of these issues, but we have been able to hold the light of day to this Administration’s efforts to push more regulations through and add greater costs to job creators, and ultimately, hardworking taxpayers.
REP. AMANDA PRICE Ottawa County Republican works to improve business climate State Rep. Amanda Price ran for office in 2010 to help “turn Michigan around.” Price was first elected to serve in the House in 2010. Her Ottawa County district includes the townships of Grand Haven, Olive, Park, Port Sheldon, Robinson, Blendon, Crockery and Spring Lake, and the cities of Ferrysburg and Grand Haven. She was re-
What do you believe is the single biggest issue facing Michigan now and what do you think is the best solution to that issue? As I travel across Michigan, creating good-paying jobs and building a healthy economy remains the issue I consistently hear the most about. Many issues are directly related. It’s improving our roads and infrastructure, and the good construction jobs that go along with that. It’s reducing unnecessary regulation and taxation that comes from the federal level. It’s moving federal jobs training programs back to the state and local level—which we did by passing the Workforce Innovation and Opportunity Act—to help train and equip our tradesmen and women for the future. How can ABC members continue keeping lawmakers up to date on key issues and priorities for their businesses and employees? ABC has a strong leadership team and active membership that has continued to keep me informed in many ways: Attending town hall meetings, frequenting my offices, sending letters and other written materials. By making sure we are aware of your concerns at a local level, I can carry them to Washington and be your voice. What are your top legislative priorities in 2015? We need to hold this administration back from doing any more damage to our economy by pushing some of the proposed rules that could negatively impact small businesses and our economic competitiveness. At the same time, working with my colleagues in the House, we also need to come together to enact some key tax reforms, regulatory reforms and showing why our solutions of free enterprise and limited government will lead to more opportunities and a better future for our children and grandchildren.
Children learn to read by third grade and after that they use those skills to read to learn. If not reading by 3rd grade, children are 4-8 times more likely to drop out of high school. ...Only 50 percent of our kids are reading at grade level in third grade. This is unacceptable to me and needs concerted effort to improve. elected to her third term in November 2014. Price serves as chair of the House Education Committee. She also serves as vice chair of the Local Government committee and is a member of the Communications and Technology, Joint Committee on Administrative Rules, and Workforce and Talent Development committees. Price served as Park Township trustee for ten MICHIGAN MERIT • FALL/WINTER 2015
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GET TO KNOW YOUR LAWMAKER
years and supervisor for two years. She is a former legislative aide to Sen. Patty Birkholz, and also was the public affairs manager for SemcoEnergy. The Michigan State University graduate attended the Institute for Paralegal Training in Philadelphia and holds a master’s degree in public administration from Western Michigan University. Price has been married to her husband Rodger for more than 30 years. Their family includes two sons, Nate and Collin, Nate’s wife Dina, a granddaughter, Evelyn, and a grandson, Braxton. They attend Fellowship Reformed Church. She has served on the boards of several charitable organizations, including the Holland Area Chamber of Commerce, Macatawa Area Coordinating Council Policy Committee, West Michigan Airport Authority and the
Children’s Advocacy Center. Why did you run for office, and what are you most passionate about in your position? Michiganders can vividly recall the state of Michigan in 2009. We were suffering through a deep recession and many of the state laws and regulations needed to be updated and revised to help improve Michigan. I ran for office in 2010 to help turn Michigan around, and to a great extent I feel that we as legislators have been successful in helping reposition Michigan for a brighter future. In this context, I am most passionate about the re-set/reforms Michigan has undergone. Examples include: elimination of the MBT and transition to the Corporate Income Tax; Right to Work;
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Tenure Reform and thousands of regulations that have been eliminated. Do you remember your first interaction with ABC? What impact has that had on your legislative efforts? I do not distinctly remember my first interaction with ABC, but have appreciated your voice and advocacy. It is widely felt. Of which legislative effort are you most proud? Although not through the Senate, I am most proud of my legislation and efforts to improve our literacy rates in Michigan. Children learn to read by third grade and after that they use those skills to read to learn. If not reading by 3rd grade, children are 4-8 times more likely to drop out of high school. As I write this answer, the new state wide test scores have been released. The scores point out that only 50 percent of our kids are reading at grade level in third grade. This is unacceptable to me and needs concerted effort to improve. HB 4822 will improve those outcomes. What do you believe is the single biggest issue facing Michigan now and what do you think is the best solution to that issue? The biggest issue facing Michigan is finding a solution for improving Michigan’s roads and infrastructure. If I were “in charge” and could craft a solution to road funding, it would possibly look much different to what is actually passed and put into law. I equate the road funding debate to a tennis match. The House lobs a package of bills to the Senate, the Senate may amend the pack-
age and send it back to the House and we would go to conference committee and hopefully agree on what is in the best interest of the residents. If it was easy, it would be done by now. How can ABC members continue keeping lawmakers up to date on key issues and priorities for their businesses and employees? In my experience, the most listened-to and effective lobbyists are my constituents. They have first-hand knowledge of the impact of a law or a regulation on their business. To keep your legislator up- to- date follow these simple steps: • Contact your legislator and explain your concerns. • Follow-up with written information. • Be persistent. • Attend the office hours that the Legislator holds. • Schedule time with them when they are in the district. • Send letters and emails. • Be persistent. Legislators often work 16-18 hour days, and we meet with 10-12 different interest groups on those days. It is very difficult to keep a single group’s concerns at the forefront of our memories. What are your top legislative priorities in 2015? • Third grade reading (HB 4822) • Teacher Evaluations (SB 103) • Journeyman Electrician Apprenticeship Ratio (HB 4813) • Public Notice Legislation (HB 4183) • Coercive Abortion Legislation (HB 4787, 4479 MM
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
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MICHIGAN MERIT • FALL/WINTER 2015
25
ADVERTISER INDEX FALL/WINTER 2015
MICHIGAN
A PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN
CONTRIBUTORS PUBLISHER Chris Fisher fisher@abcmi.com MANAGING EDITOR Breanna Cope cope@abcmi.com GRAPHIC DESIGN Melissa Travis Ink Ideas Graphic Design, LLC www.inkideasgraphicdesign.com PRINTING Keystone Millbrook www.keystonemillbrook.com ADVERTISING Strategic Value Media www.svmmedia.com 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) 853-2545. 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.”
ABC Self Insured Workers Comp Fund........28
Jimco Fire Protection....................................25
AIS Equipment...............................................2
K&S Plumbing Co., Inc................................27
Andrews Hooper Pavlik, PLC.......................27
K&T Electric................................................24
Ann Arbor Fire Protection............................17
Kent Companies.............................................9
Arrow Concrete Cutting...............................11
Kolbi Pipe Marker Co...................................19
ASHA Safety.................................................25
Liquid Calcium Chloride Sales.....................27
Attitude & Experience..................................12
Livingston County Concrete.........................24
Bailey Agency...............................................25
Loomis, Ewert, Parsley, Davis, Gotting..........16
BCT Benefits Plan.........................................27
Lyman & Sheets Insurance...........................21
Blackstar Building Group.............................21
Maner Costerisan.........................................27
Blue Book Building & Construction Network.................2
Merlo Construction......................................20
Bobcat Excavating Grading & Service...........21 Brigade Fire Protection...................................4 C&E Pipeline Services..................................19 Capital Insurance.........................................11 Capital Steel & Builders Supply......................2 CDI Construction...........................................2 Covenant Occupational Health & Wellness..........................................4 Creative Window Treatments........................17 Crowe Horwath LLP.....................................25 Desai Nasr Consulting Engineers..................21 DJ Maltese....................................................21 EJH Construction.........................................12 Fisher Companies.........................................19 Focal 5 Group..............................................16 GBM Recycled Concrete...............................21 G&G Electric...............................................25 Grand Equipment Company..........................4 Great Lakes Industrial Supply......................21 Guy Hurley Blaser Heuer..............................20 HD Supply Waterworks..................................8 Hickey Electric.............................................16 HNI........................................................11, 21 Independence Commercial Construction......17 Jackson Associates, Inc...................................9 JBS Contracting, Inc.....................................17 JE Johnson.....................................................2
Metrocom Technologies................................27 Michigan Cat..................................................9 Mid Michigan Materials, Inc.........................16 Mike’s Finish Carpentry................................17 Pamar Enterprises........................................27 Plante Moran................................................21 Power Doors...................................................9 R Bruton Electric............................................2 RCI Electric....................................................8 Rehmann........................................................4 Rock Products................................................8 Ronald B Rich...............................................16 RW Mercer...................................................21 Schaefer & Bierlein.........................................2 Scheidel Electric...........................................20 Scientific Brake & Equipment........................2 Summit Electric............................................16 Timpson Transport, Inc................................16 Titan Interiors..............................................19 Tradesmen International...............................24 Universal Spiral Air......................................27 Universal Wall Systems...................................8 Valenti Trobec Chandler.................................9 Valley Electrical Contractors...........................4 Vanguard Fire Security Systems....................21 Walton Agency.............................................27 Wm. Molnar Roofing, Inc...............................8
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