SPRING 2008 Publication of ASSOCIATED Builders and Contractors of Michigan
ABC of Michigan Taking Steps to be great in 2008
also:
G i l l e spi e B r o t h e rs M o v e t h e capita l cit y f o r w ar d M ic h igan N e e d s W o r k e r Fr e e d o m o f c h o ic e www.abcmi.com
spring 2008
i1
NOW AT ED ACCEPT ,500 5 R OVELOCATIONS! VE UP TO PLUS, SA 4¢ /GAL.
Card is accepted at all Speedway, SuperAmerica, Marathon, Rich Oil, Pilot Travel Centers and Valvoline Instant Oil Change locations.
Association Fueling Program
Saves Time and Money
up to 4¢/Gallon Through • Save your Association Accepted at over 5,500 locations • Nationwide • No Set Up, Annual or Monthly Fee • No Charge for Cards No Charge for Detailed • Reporting Car Wash • Discounted Program
off all Oil Changes • 1at5%Valvoline Instant
For more information or to apply contact your local representative: Western MI Members – Brian Porter – (517) 490-2081 or blporter@ssallc.com All other ABC MI Members – Tom Farnham – (989) 615-2736 or tcfarnham@ssallc.com
Oil Change
All this at no cost to you!
No Minimum Purchase Required
SuperFleet wants to be your business partner.
ACT NOW AND SAVE 5¢ PER GALLON FOR THE FIRST 90 DAYS!
Have union-only project labor agreements (PLAs) kept you from being awarded a project? As an independent contractor and a taxpayer, you have good reason to oppose union-only PLAs. Now you can take action to help turn around the trend toward PLAs here in Michigan. The new tool in this effort is PLA Watch Michigan and it is now available on the Web at www.plawatchmichigan.com. ABC of Michigan has launched PLA Watch Michigan to reduce the number of union-only PLAs in Michigan by: t Educating and informing ABC membership and interested non-members about PLAs and their affect on the construction industry. t Encouraging ABC members to act when they become aware of PLAs or potential PLAs. t Giving ABC members the tools they need to report PLAs and potential PLAs. Help ABC of Michigan stop union-only Project Labor Agreements on construction projects in your area. Visit www.plawatchmichigan.com for information on what you can do to ensure your company is not discriminated against in bidding projects in Michigan. Together we can make a difference!
2 i Michigan Merit
spring 2008
spring 2008
Contents
Vol.2, Issue 1
page 8
4 Executive Perspective
5 gillespie brothers move the capital city forward Pat and Scott Gillespie are developing downtown Lansing to
make it a first class Capital City. Their development of the Stadium District and Old Town has generated tremendous, positive momentum and is creating a ripple effect for other surrounding properties.
7 ABCMI Legislative day is first step in pivotal election year ABC of Michigan’s Legislative Day was a great way to begin
election year activities. More than 100 ABC members, plus state representatives, senators and congressmen gathered to highlight issues important to the Merit Shop.
8 congressmen walberg and rogers urge involvement in 2008 election Congressmen Walberg and Rogers, support ABC of Michigan
by addressing over 100 ABC members at one of the best attended state-level Legislative Days to date.
9 a supplemental unemployment benefit plan may increase your profitability
Compliance with Michigan’s Prevailing Wage Act and the Federal Davis-Bacon Act can be a burden to contractors. Adopting a supplemental unemployment benefit (SUB) plan is one way to do so.
16 michigan needs worker freedom of choice Voluntary unionism is not anti-union. It yields a healthier
Page 5 The Gillespie Brothers downtown Lansing Stadium District development has started a ripple effect for surrounding properties.
economy, which benefits all of us and gives workers options and opportunities they don’t have in a compulsory environment.
18 ABC workers comp fund distributes $1.8 million to fund members ABC Fund Members will be receiving one of the largest
returns on profit the Fund has ever made. The $1.8 million distribution is the 2nd largest return in Fund history.
23 advertisers index
SPOTLIGHT on MEMBERs
Spotlighting ABC MI members at Leg Day 2008
Page 11
legislative update
Leading the fight in the “Hire Michigan First” farce
Page 12
around the state
Chapter News
Page 14 www.abcmi.com
spring 2008
i3
EXECUTIVE PERSPECTIVE ASSOCIATED BUILDERS and CONTRACTORS OF MICHIGAN
BOARD OF DIRECTORS
Dan Kozakiewicz - Chairman Three Rivers Corporation - Saginaw Valley Chapter John Parish - Vice Chairman Parish Corporation - Central MI Chapter David Sheffield - Secretary/Treasurer Onslow-Sheffield, Inc. - Southeastern MI Chapter Jim Struble - Past Chairman RCI Electric - Southeastern MI Chapter Bill Buyak Capital Steel - Central MI Chapter Jim Cripps Cripps Fontaine Exc. - Western MI Chapter Richard Dvorak Answer Heating & Cooling - Saginaw Valley Chapter Gary Hengesbach Westphalia Builders - Central MI Chapter Rod Kloha Circle “K” Service, Inc. - Saginaw Valley Chapter Aileen Leipprandt Smith, Haughey, Rice & Roegge - Western MI Chapter Bill Molnar Wm. Molnar Roofing Co., - Southeastern MI Chapter Dave Mollitor Consolidated Electrical - Western MI Chapter Fred Pylman P & K Steel - Western MI Chapter Jack VandeGuchte Sobie Company, Inc. - Western MI Chapter Dan Welch Welch Tile & Marble - Western MI Chapter Michigan Merit Contributors
Publisher - Christopher Fisher Managing Editor - Mary Boardway, CAE Editing & Advertising: Public Relations Enterprises Printing: BRD Printing, Inc. Art Direction: Connection Graphics, LLC 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 120 N. Washington Sq, Suite 805, 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.
A key tenant of the Merit Shop is the principle of equal opportunity. In fact equal opportunity and the Merit Shop are so intertwined that one cannot fully exist without embracing the other. Across Michigan ABC members are united under a basic belief that the law should defend the inherent rights of the individual regardless of race, creed, age, sex, color or membership or non-membership in a union organization. Even today and perhaps more than ever, our local chapters along with state and national organizations need to stand firm and remain ever vigilant against those who seek to undermine the equal opportunity cause of the Merit Shop. When we see powerful special interests seek to pursue policies of blatant discrimination based on union affiliation. When we then see these same interests actively seek to undemocratically rob working men and women of their long established and fundamental right to private, secret ballot elections. So they can interfere with a worker’s right to make a free decision whether or not to join a union — we are reminded of the reasons ABC was founded many years ago. Already in 2008 we have seen attempts throughout Michigan to institute union-only project labor agreements (PLAs). These PLAs constitute nothing more than defacto discrimination aimed at depriving working men and women of equal opportunity. PLAs violate the spirit of the Merit Shop by prohibiting those construction workers who choose to be non-union, from working on construction projects financed by their own tax dollars. So far this year ABC of Michigan has continued to fight discriminatory PLAs as they arise locally, at the state level and nationally by making the principled case that all workers, union and non-union, deserve equal opportunity. Indeed, no person should ever be subjected to a form of discrimination that judges working men and women not based on their abilities and character, but instead judges them based on their union affiliation. ABC fights against PLAs and other issues like card check legislation that would subject workers to coercion and strip them of their rights to a federally supervised private ballot election during union organizing. We advocate for the Merit Shop and the rights of workers because it is the right thing to do. This commitment has allowed ABC to stand tall for decades and it is our ongoing embrace of equal opportunity that keeps the merit shop a leader in our communities and willing, able and ready to defend our members and their employees anytime discrimination, in any form, poses a threat. H
Yours for the Merit Shop, Chris Fisher President
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 i iMichigan MichiganMerit Meritspringspring 2008
2008
FEATURE Article
Gillespie Brothers Move the Capital City
Forward
Stadium District Condo Complex, a project of the Gillespie Group.
When Pat and Scott Gillespie were contemplating their future
professional career choices, they turned to their father for advice. A Lansing area auto dealer, he encouraged them not to follow the car business path. Both sons listened to dad, took his guidance to heart, enrolled at nearby Michigan State University in the Building Construction Management Program and as the saying goes, “the rest is history.” Pat, president of the Gillespie Group, has been the visionary for the Stadium District development located on Michigan Avenue in downtown Lansing, right across from Oldsmobile Park. “It has generated tremendous, positive momentum in the area. Once it is completed and we have new retail stores and residents sitting out on their patios and decks on warm summer days it is going to add an energy level that has not been there before,” he said.
The Stadium District has already started a ripple effect for other surrounding properties. “You now have owners at three or four locations who are thinking about development. I think they may experience a success similar to our experience at nearby Prudden Place, a high-end apartment community,” Pat emphasized. “You are starting to see people who have had success in this area and now others are willing to follow. Bankers want to fund this kind of development.” The Gillespies worked together for 10 years but now run separate companies. Scott started the Gillespie Company in 2006 and he is taking advantage of the ripple effect from the development boom in the Capital area. “I am working on projects in the downtown and Old Town areas of Lansing; I recently completed the renovation of an office/retail building into Loft Apartments that has been very successful and was 100 percent occupied within 15 days following completion.”
“We are looking at making the riverfront the focus with a festive air and an easy connection to Old Town Lansing. There will be opportunities to rent boats and kayaks for river enjoyment, outdoor skating during the winter months as well as, an indoor market.” Pat and Scott Gillespie
Building a First Class Capital City
Together the Gillespies are having a huge impact on the Capital area skyline and the long-term look of downtown. “We got into construction through rental properties. For me I knew real estate is where I wanted to stay and construction and development followed from that,” Scott said. According to Pat, his focus is more on urban redevelopment. He said there are numerous reasons to do this, ranging from financing and incentives to the recognition that urban living is a hot market. “Urban is a niche market compared to the suburbs where development is much slower and softer. Downtown has an energy level and it is where people want to live, work or open an office,” he said. He also noted the www.abcmi.com
spring 2008
i5
FEATURE Article next five to ten years are going to make the current new development happening in Lansing’s downtown look lethargic. “It’s interesting to talk with people who have left the area for several years who return for a visit to see their reactions. I hear a lot of ‘wow this is amazing!’ They haven’t seen anything yet,” Pat added. “You had to build a base and now we have it. Downtown today is looking very different from five years ago. The Gillespies noted that Lansing is often compared to other cities and they
with more retail, hotels, restaurants and entertainment that will give people more reason to come and stay downtown,” Pat outlined. “We are looking at making the riverfront the focus with a festive air and an easy connection to Old Town Lansing. There will be opportunities to rent boats and kayaks for river enjoyment, outdoor skating during the winter months as well as, an indoor market.”
Diversity adds to Lansing’s Appeal
There are seven projects in the works over the next two years. Any one of them is bigger than existing development now underway. Adding to that is the area’s university system which gives the community great diversity. Both Pat and Scott emphasized that Lansing has a real good mix of public and private money— there is great synergy. Continued on page 20
Steel work in the early stages of construction on the Stadium District Condominiums.
continually get the question, “Why can’t we be more like Indianapolis or Columbus?” The fact is the Capital City is moving in a similar direction, developing its own Lansing identity. Lansing is the seat of state government, with a major university, diversified employment, a redeveloping downtown, and a major river running through the city, both Pat and Scott emphasized. “We have everything we need and it is set in place. It’s now time to put the pieces together. We don’t need to be just like any of these other cities. We can take the pieces we like and develop our own identity. We can then say we are Lansing/East Lansing,” Pat explained. Pointing to the Stadium District which opens this spring, Pat and Scott referred to more anticipated development. “Some of the things we are exploring are a new city market and two residential towers,
6 i Michigan Merit
spring 2008
Old Town office space is now converted into lofts for the young urban professional.
FEATURE Article
ABCMI Legislative Day is First Step in Pivotal Election Year
Interaction between members and legislators at an all time high during Legislative Day 08.
The 2008 election will be historic and ABC members will have front row seats
according to Dan Kozakiewicz, newly installed chairman of the ABC of Michigan Board of Directors. He made those observations as part of his welcome comments to members who attended the 2008 Legislative Day Conference held at the Lansing Center in January. “Let’s be great in ‘08 to make a difference in the merit shop movement. We need to protect our way of doing business and keep Michigan competitive which is the best ABC MI Members and Legislators join forces way to promote and expand the economy,” at the 2008 Legislative Day. emphasized Kozakiewicz who went on to outline three major issues that ABC of Michigan will address this year: opposing costly and unnecessary carpenter licensure; prohibiting discriminatory union-only proiect labor agreements (PLAs); and eliminating job killing prevailing wage requirements. ABC Michigan President Chris Fisher said ‘Legislative Day’ was a great way to begin ABC MI Chairman Dan Kozakiewicz election year activities with so much at stake, noting strong support coming from lawintroduces the 2008 Legislative Priorities makers who attended the day’s events. “We had a large turnout of both State Represento both members and legislators. tatives and Senators representing all chapter regions. More than 100 ABC members, state representatives, senators and congressman from all over the state gathered to highlight issues important to the Merit Shop, making it one of the most impressive and best-attended state-level events to date.” Fisher also was pleased with the attendance and support at the PAC reception held later in the day. “It played a critical role for ABC to speak in a unified and strong voice on behalf of the Michigan construction industry,” he said. “We went to work on the first day, holding our annual ‘Legislative Day’ on the same day the Michigan Legislature reconvened for its current session. We did not want to miss the opportunity to get our message out to lawmakers on day-one: advocating for the Merit Shop.” Fisher went on to emphasize the key roles all members have in the success of ABC of Representatives Fulton Sheen and John PasMichigan’s legislative and political agenda in 2008. “ABC of Michigan represents your tor join Congressman Mike Rogers and ABC of Michigan members for lunch. interests here in Lansing. While you run your businesses at home, we are working to promote and protect your interests here at the State Capitol. We can keep you informed on the major issues of the day affecting your business. But we also need your strong voices communicating our positions to lawmakers to make sure we are heard,” Fisher stressed. H www.abcmi.com
spring 2008
i7
FEATURE Article
Congressmen Walberg and Rogers Urge Involvement in 2008 Election First term Congressman Tim Walberg (R-7th District, Michigan) was quick to thank ABC of Michi-
gan for supporting his congressional bid in 2006, during his comments delivered to ABC of Michigan members at the 2008 Legislative Day Conference held in January. “ABC was one of very few organizations to support a challenger against an incumbent,” Walberg noted. “I hold ABC highly because of your support.” Walberg urged ABC of Michigan to continue its involvement in the fight to reduce the size and cost of government and bring back control to the people. “One unique thing that you understand as contractors and builders are the factors of the economy day-in and day-out. It is based on liberty to make those choices and establish your path and benefit from your choices,” he said. “I am trying to do those things that will take us in that direction.”
Congressman Tim Walberg addresses ABC of Michigan Members.
Walberg outlined legislative efforts on energy policy that he wants to focus on at the congressional level by promoting diversified energy supplies through alternative energy sources and an increase in domestic energy production. “We want to get back to a competitive advantage so we can take care of ourselves. That is the entrepreneurial spirit. That is the spirit of liberty,” he emphasized. Walberg, who serves on the House Agriculture, Education and Labor and House Republican Policy Committees, praised the support of organizations like ABC that are willing to “step up to the plate, who will string a chalk line — a line where you don’t cross and extend it to elected officials and public servants to make sure they stand clearly for what this country is about.”
Congressman Rogers, a True Friend of ABC
Congressman Mike Rogers (R-8th District, Michigan) called ABC members true heroes in the fight for keeping their businesses operating and creating jobs. “I want to thank all of you for having the commitment and the courage and the convictions not only to stand up for what you believe in the political arena, but doing it every Congressman Mike Rogers calls ABC of Michigan members true heroes.
8 i Michigan Merit
spring 2008
single day and proving that this is still the greatest nation on the face of the earth. You are the heroes,” Rogers emphasized. Rogers admitted that he is a little frustrated in what he sees today, but he can’t walk away. “If we do we are in trouble. We can’t walk away from who we are and what the previous generations gave us; which is opportunity to make it. Our only real commitment is not only to do well for ourselves, but to give this nation to the next generation in a little better shape than we got it.” Rogers stressed that this doesn’t mean guaranteed outcomes or making it harder for the construction industry to determine who they can employ, or not employ. “It means making sure we have the right size government to stay out of the way so you can make that kind of opportunity.” Rogers, who was encouraged by the ABC member attendance at this year’s legislative day activities, recalled that the riches of America do not belong to the United States government. “It belongs to the sweat equity of those who get up in the morning and take risks. Who are we going to be as Americans in this generation? Are we going to say that we believe in all of the sacrifice and commitment and ingenuity, self governance and individual responsibility? Well I know what ABC is and I know what you’ll do — you’ll stand up tall, stand up loud and you’ll grab some friends and make it known so all Americans understand what is at risk,” he concluded. H
BUSINESS DEVELOPMENT
A SUB Plan May Make You Competitive in Bidding Prevailing Wage Jobs There is no question that compliance with Michigan’s Prevailing
Wage Act and the federal Davis-Bacon Act can be a burden to contractors in Michigan’s current economic climate. ABC of Michigan, Senator Nancy Cassis, Representatives Arlan Meekhof and Dave Hildebrandt; and the Mackinac Center for Public Policy are currently working on measures to minimize the negative effects of Michigan’s Prevailing Wage Act. But in the meantime, contractors can take a proactive approach to manage their costs and compete for prevailing wage and MDOT projects. Adopting a supplemental unemployment benefit (SUB) plan is one way to do so. SUB plans have been available to employers as a way to supplement their employees’ income during slow times for many years, but until recently has been used almost exclusively by major corporations. However, with the distressed construction industry in Michigan, SUB plans are becoming a primary tool for smaller businesses and contractors.
Employers that adopt a SUB plan can, within certain limits, contribute the difference between the prevailing wage for local areas and the employee’s normal wages plus benefits to the SUB plan instead of paying the employee the difference between those amounts as additional wages. Contributions to the SUB plan are put into an interest-bearing trust that can be managed by a third-party administrator instead of the employer. A properly designed SUB plan provides employees with a valuable fringe benefit that can also be credited towards an employer’s prevailing wage obligation. Typically, contributions made to the SUB plan for an employee are credited to an account in the employee’s name. The account is used to provide a supplemental unemployment benefit to the employee during seasonal slow downs or layoffs. SUB benefits provide the employee with a “safety net” to supplement unemploy-
SUB Plan Savings Examples 18.0%
90,000
16.0%
80,000
70,000
14.0%
60,000
12.0%
50,000 Total Labor Cost
10.0%
30%, 10.6% 27% 9.6% 27%, 9 6%
40,000
8.0%
30,000
6.0%
20,000
4.0%
10,000
2.0%
0
27%
30%
45%
Prevailing Wage Labor
81,250
81,250
81,250
Cash Fringe/SUB Plan
28,750
28,750
28,750
Added Labor Burden
7,763
8,625
12,938
Labor Cost Savings
9.6%
10.6%
15.9%
0.0%
Labor Co ost Savings
45%, 15.9%
ment benefits, enabling the employee to continue his or her normal lifestyle yearround. Making contributions to the SUB plan instead of paying additional wages to employees also provides them with access to a level pay scale all year long. They do not have to deal with spikes in income and withholding taxes from a prevailing wage job and then face living on only a small portion of their normal wage if they are laid off or unemployed. The benefit for the employer is a reduction in the ever increasing payroll burden, which has driven the cost of competing for prevailing wage jobs out of control. Employers may also see savings from contributions to the SUB plan as a qualified fringe benefit deduction against prevailing wage obligations. By placing the difference between regular wages and prevailing wages into the SUB plan, the employer avoids the added costs accompanying the payment of wages, because contributions to the SUB plan are generally not subject to payroll taxes, other withholdings, such as garnishments, and additional labor burden. As an example, assume a local contractor, with a cost of labor burden at 27 percent, has been awarded an elementary school project. The contractor’s average employee wage is $17.50 per hour. The employee fringe benefit package of 20 percent brings the total cost of the employee to $21.00 per hour. The required prevailing wage rate for this work classification is $32.50. With the total hours allocated to complete the job being 2500 hours, the contractor is faced with an additional labor cost of $28,750.00 to comply with prevailing wage requirements. If the contractor pays this amount in wages, the cost would be the wages themselves, $28,750.00, plus the additional labor burden of $7,762.50 or $36,512.50. If the
www.abcmi.com
spring 2008
i9
BUSINESS DEVELOPMENT contractor contributes $28,750.00 to a SUB plan, the cost is simply $28,750.00, a savings of $7,762.50 or 9.55 percent. The contractor could expect to fully deduct the SUB plan contributions, just as it could if it paid the amounts to the em-
ployee as wages. The savings documented in the example above are very common among most specialty contractors and have been shown to be greater in classifications such as road and bridge builders, with an
SUB Plan Savings Examples 18.0% 16.0% 45%
45%, 15.9% 14.0%
10.0%
30%, 10.6% 30%
27%, 9.6%
8.0% 6.0%
Total Labor Cost
4.0% 27% 2.0% 0.0% 0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
27%
30%
45%
Prevailing Wage Labor
81,250
81,250
81,250
Cash Fringe/SUB Plan
28,750
28,750
28,750
Added Labor Burden
7,763
8,625
12,938
Labor Cost Savings
9.6%
10.6%
15.9%
LLabor Cost Savings
12.0%
average labor burden between 30 to 45 percent. Using the same example above would result in additional labor burden of $8,625.00 to $12,937.50 or a total cost of $37,375.00 to $41,687.50 for those contractors. If the contractor contributes the $28,750.00 to a SUB plan, the cost remains $28,750.00, generating a savings of $8,625.00 to $12,937.50, or 10.62 percent to 15.92 percent of the total labor cost (see graphs). Savings of this caliber are a very effective tool in reducing a contractor’s bid, increasing profitability, or in multiple applications throughout a contractor’s bidding process and burden applications. For example, reducing labor costs by the percentage savings above and lowering the bid proportionately will result in the same profitability on a project. Alternatively reducing labor costs from any amount between zero and the percentages listed above would result in additional profitability, or a combination of both, depending on the amount bid for the project. Of course, there are costs associated with starting and maintaining a SUB plan. A SUB plan must be submitted to Continued on page 21
Don’t get labor from a temp agency, when you can...
Fire Protection Systems Design, Install, Service, Maintain
Rely on Skilled Craftsmen from a
Construction Labor Support company.
Immediately access productive craftsmen in all trades. Each is guaranteed to be at
Don’t get labor from a temp agency, when the skill level youyou expectcan... and the reliability you demand.All our employees are:
Rely on Skilled Craftsmen from a • Checked carefully through multiple references
o Jacks
Labor company. • RequiredSupport to take 10-Hour OSHA Compliant Safety Training n Associates, InConstruction Immediately •access productive craftsmen in all trades. c. Guaranteed with a written "no-charge" policyEach is guaranteed to be at the skill level you expect and the reliability you demand.SMAll our employees are:
1111 West Oakley Park Road Walled Lake, MI 48390 248-669-5155 www.jacksonassociatesinc.com
10 i Michigan Merit
Also, Tradesmen International has Total Labor Support services that Substantially • Checked carefully through multiple references • Required to take 10-Hour OSHA Compliant Safety Training Reduce labor Costs and Greatly Improve Workforce Productivity! • Guaranteed with a written "no-charge" policy SM For skilled craftsmen orhasto learn about our services that Substantially Also, Tradesmen International Totalmore Labor Support SM Reduce labor Costs and Greatly Improve Workforce Productivity! Total Labor Support solutions call . For skilled craftsmen or to learn more about our SM Total Labor Support solutions call 877.942.8933.
877.942.8933 www.tradesmeninternational.com www.tradesmeninternational.com spring 2008
spotlight on members Spotlighting all the ABC of Michigan Members who made Legislative Day 2008 a HUGE success!
Thank you!
www.abcmi.com
spring 2008
i 11
LEGISLATIVE UPDATE
ABC Leads the Fight Against Unfair Union-bac Once again Prevailing Wage Law
advocates are trying to squeeze Merit Shop contractors by promoting “Hire Michigan First” legislation. In a committee hearing held last month, ABC of Michigan was the only association to publicly testify opposing the program with its supposed goal of promoting the hiring of Michigan construction workers. In reality, the legislation stipulates that contractors must make sure 100 percent of their employees have been Michigan residents for at least one year. However, the legislation as proposed only applies to construction firms who are not “party to collective bargaining agreements.” It is being pushed and supported by nearly every construction trades union and labor organization
in Michigan. In opposing this anti-Merit Shop bill that unions exempted themselves from, ABC of Michigan’s President Chris Fisher attacked the measure as “inequitable” and for creating an “uneven playing field.” In exposing the true intent of the measure Fisher concluded, “This has nothing to do with ‘Hire Michigan First’. What this really calls for is to hire union first from any state, and hire Michigan second.” Another provision that was described by ABC of Michigan as “untenable, unpractical and over-reaching” was a section tied to the “Hire Michigan First” charade. It stipulates that any contractor or subcontractor found to be in violation Michigan’s Prevailing Wage law faces the following:
• The contractor shall not receive any further payments under the contract. • The contractor may be held financially liable for costs incurred to rebid the contract. • The contractor may face debarment from participating in future bidding opportunities. • The contractor may be required to return any payments already received under the contract. Fisher outlined significant and serious flaws with the legislation by pointing out that the bill could actually result in a reputable contractor ending up in violation of the prevailing wage act due to a technical error. For example, an isolated incident resulting from a human resources glitch results in an employee being misclassified and hence underpaid 30 cents per hour for five or six hours. Under this legislation, Fisher emphasized, a contractor could be found in violation even though the technical infringement is found and then corrected. ABC is working with legislative leaders in both the House and Senate to lead the fight against these anti-Merit Shop bills in order to protect the rights and freedoms of our members and to ensure the future of our industry.
ABC Lobbying to Restore Materials Deduction in Business Tax In June, 2007, as agreement on the Michigan Business Tax (MBT)
12 i Michigan Merit
spring 2008
was being finalized, ABC of Michigan members sent over 1000 emails to leaders of the House, Senate and the Governor to successfully avoid an unfair and cascading tax burden for the construction industry. This effort stopped what would have resulted in double and triple taxation for construction firms, and it paid off when bipartisan agreement was reached to allow contractors and subcontractors to deduct the cost of labor and materials (supplies, inventory, etc.) from their gross receipts liability.
backed Prevailing Wage and Hiring Mandates Although it was the intent of the legislature to allow for contractors and subconABC Urges Removal of tractors to take this deduction from gross Prevailing Wage Requirement receipts, over time a question has arisen from Economic Stimulus as to if the MBT language as enacted acPackage tually provides for the deduction of materials. Now, officials in the Associated Builders and Department of Treasury are sugContractors of Michigan gesting that the new tax law is called on the Governor and limited to only those instances lawmakers to create even more where materials are purchased as construction jobs than the part of a subcontract, effectively 28,000 promised by Governor excluding the direct purchase of Granholm’s Economic Stimumaterials. Sen. Cassis, R-Novi lus Package by eliminating the Without a decisive solution state’s outdated prevailing wage to this problem that reflects the requirement. original intent of the legislature, “While ABC greatly apwhich was to allow for the deducpreciates the Governor’s focus tion of directly purchased materion construction jobs, in this als, construction companies may economy especially, it’s imporexperience a significant and dettant that we are doing all we rimental cost of doing business in can to stimulate and promote Michigan. This could result in a Rep. Bieda D-Warren job growth,” said ABC president 600 percent or greater increase of Chris Fisher. “Removing prevailing wage a company’s Michigan Business Tax liamandates from the Governor’s stimulus bility compared to what their Single Busipackage alone would free up an additionness Tax liability was one year ago. al $100 million that could be used for ad To correct this serious concern, ABC of ditional construction projects to improve Michigan has consulted members, CPAs Michigan while creating over 1000 well and other business groups, including paid construction jobs across our state. Michigan Association of Home Builders, Michigan’s Prevailing wage law increasMITA and the American Subcontracting es overall construction costs at least ten Association. ABC of Michigan is meeting percent by dictating that wages and other with ranking lawmakers, forming coalibenefits on all taxpayer-supported contions, distributing memos and position struction projects must be determined expapers and working tirelessly to advocate clusively by labor unions even though 78 for a fair and equitable solution. percent of Michigan’s construction work Additionally ABC had successful meetforce chooses against belonging to a labor ings with Rep. Steve Beida, chair of the union. ‘Prevailing wage’ does not mean a House Tax Policy Committee and Sen. fair market wage, but one artificially inNancy Cassis, chair of the Senate Finance flated by 40 to 60 percent and arbitrarily Committee to correct this flaw with the determined by an ever-shrinking minorMBT. ABC is working to make sure the ity of the construction work force. ABC application of the MBT accurately reflects instead supports competitive wages that the intent of the legislature to allow conare neither artificially high nor low. tractors and subcontractors to deduct the “The fact of the matter is that our state direct purchase of inventory, materials is wasting taxpayer dollars and turning its and supplies from their gross receipts libacks on jobs by recklessly paying wage ability. mandates which take the average com-
petitive construction wage in Michigan and artificially inflates it beyond what the market can handle and what the state can afford,” said Fisher. “Eliminating this provision like other states have done would instantly create thousands of new, good paying jobs that on average pay more than $20 per hour.” In the past year newspapers across the state have been critical of prevailing wage laws including the Detroit News, Lansing State Journal and Grand Rapids Press. Legislation to repeal prevailing wage on school construction has been introduced in the state House by Reps. Dave Hildebrandt, R-Lowell, and Arlan Meekhof, R-West Olive. In the state Senate, Sen. Nancy Cassis, R-Novi, wants to suspend prevailing wages for all state construction whenever state unemployment is higher than the national average. “ABC encourages quick action to promote this much needed reform that will bring jobs and investment to our state at a time it’s needed more than ever,” Fisher concluded.
Western Chapter Testifies on Benefits of Community College/Construction Industry Partnerships Western Michigan ABC President and CEO John Doherty testified
before the Michigan Senate Appropriations Subcommittee on Community Colleges during a special committee meeting recently held in Grand Rapids. Doherty’s testimony focused on community college and ABC partnerships that promote apprenticeship training, continuing education, safety and first aid/CPR, applied technology and most recently “green building”. As the baby boom generation retires, Doherty discussed the need for the construction industry to produce the best craft persons, managers and entrepre-
www.abcmi.com
Continued on page 22
spring 2008
i 13
AROUND THE STATE - Chapter news Central Michigan
The Central Michigan chapter introduced its new President & CEO, Russ Cunningham on February 18. In his most recent position, with Eurich Management, he served as director of membership for six association clients and events director for two groups. Russ succeeds Interim Executive Director John Greenslit. Russ, Welcome to Associated Builders and Contractors! H
Saginaw Valley
The Saginaw Valley chapter invites all
members to join them Thursday, March 27, 2008 for an exciting event; A Merit Shop Celebration: Your Collaborative Commitment To Excellence Is The Key To Building Better Communities. The keynote speaker will be Arnold A. Allemang, senior advisor and member of the board of directors of the Dow Chemical Co. The event will be held at Dow Diamond – Third Floor Suite Lobby, 825 E. Main Street, Midland, MI. Tours are scheduled from 5:30-6:30 p.m. with Social Hour at 6:00 p.m., and Dinner at 7:00 p.m. Please RSVP your attendance at (989) 832-8879 or lbishop@abcsvc.org. The cost is $35.00 per person.
ABC Saginaw Valley Chapter Names New Board Member
The board of directors of the Saginaw
Valley Chapter of Associated Builders and Contractors are pleased to announce the election of Danial L. Murphy to a three year term as director. Dan is the president and majority partner of Metal Arts Construction and MAG Insulation of Mount Pleasant. He is a graduate of Michigan Tech. University and DePaul University and has been an active member of ABC/SVC since 1998. Dan serves on the board of operations for St. John’s Lutheran Church and the board of directors of the Central Michigan Home Builders Association.
14 i Michigan Merit
May Events
Mark your calendars for these upcoming
events: May 9, 2008 - Dinner/Dance benefiting the Make-A-Wish Foundation, Valley Plaza Resort, Midland May 29, 2008 - General Membership Meeting, ABC Construction Academy Graduation Ceremonies May 30, 2008 - PAC Fundraising Golf Outing, Buck’s Run Golf Course, Mt. Pleasant H
Southeastern Michigan ABC SEMI Elects 2008 Board Members
We would like to congratulate Don
Luke, Long Mechanical, Jim Struble, RCI Electric, Tom Campbell, Campbell Industrial, and Mark Onslow, OnslowSheffield on their reelection to the board. All returning board members will serve a Luke three year term which starts January 1, 2008 and expires December 31, 2010. As our chapter looks forward to challenging and exciting opportunities as we move into our new offices and Struble training facility, our chapter will be served well by these four dedicated and experienced board members. Our congratulations to the Campbell four of you on your reelection to the chapter’s Board of Directors. As in previous elections, our chapter will continue to be led by qualified and dedicated individuals in the advancement of free enterprise and Onslow open competition in the construction industry.
spring 2008
Southeastern Michigan Chapter’s New Building
Just in time to meet the deadline,
the Southeastern Michigan Chapter of Associated Builders and Contractors were issued their certificate of occupancy and began moving into their new office. A long time dream come true, the new facility not only holds the chapter offices but their new ABC/CET training facility.
ABC/CET Classes Start In February
The second semester of the 2007/2008
school year began in the new ABC/CET training center on February 4, 2008. The new training center is in need of handson training materials for student projects. CET is a non-profit school and donations may be tax deductible. Please call the education department for information. H
Western Michigan
ABC & ASA Construction Contracts Workshop A Huge Success!!
With just over 150 attendees on a snowy
January day, The Future of Construction Contract Documents workshop has been widely acclaimed by those attending. ABC Board Chair Aileen Leipprandt of Smith Haughey moderated the event. E. Colette Nelson, EVP of ASA, delivered the opening remarks on the history of the contract documents’ revision process. Nelson came in from Washington, DC to be a participant in the workshop. Panelists covered the following items regarding both the ConsensusDOCS and AIA A201 2007 Construction Contract Documents: • Jeff Ammon, Miller Johnson “Payment and Retainage Provisions” • Mike Poggi, Pinnacle Insurance “Insurance and Indemnification Language” • Steve Hilger, Rhoades McKee “Liquidated and Consequential Damages Clauses” • Ben Hammond, Smith Haughey “ADR and Contract Claims Provisions”
Both associations had the opportunity to benefit from the panelists and their high level of expertise and experience. Following the panel members’ presentations, Reactors Joe Erhardt, Erhardt Construction Co., and Jack Austhof, Sobie Co. joined the panelists to give their input covering the new documents and answered questions from the audience. Copies of the handout materials are available from either association. Audio and Video recordings of January 22nd meeting – We have available complete audio and video recordings of The Future of Construction Contracts meeting. These can be purchased for $10 for those who registered and paid for attending the meeting and $60 for those not registered for the meeting. H
Industry Expertise With Personalized Attention Crowe knows how to build construction businesses. Services include: O Strategic Construction Operations Review and Evaluation (SCORE); O Tax ideas to improve your cash flow; O Ownership transition and management succession planning; O Risk management; O Strategy and performance measurement; O Audits and benefit plan services. For more information, please call Rob DeGroot at 616.752.4271 Rhonda Huismann at 616.752.4229
Crowe Chizek and Company LLC is a member of Horwath International Association, a Swiss association (Horwath). Each member firm of Horwath is a separate and independent legal entity. Accountancy services in the state of California are rendered by Crowe Chizek and Company LLP, which is not a member of Horwath. © 2008 Crowe Chizek and Company LLC FW7863
www.abcmi.com
spring 2008
i 15
FEATURE Article
Michigan Needs Worker Freedom of Choice
by Lawrence W. Reed
Michigan is a state rich in natural beauty and resources, skilled labor-
ers and entrepreneurial capability, but our future potential is being frittered away by political leaders who cannot muster the courage to fix the fundamentals. Poor policy and snake-oil remedies have come to define Lansing these days as our state’s economy languishes. Rising taxes and government spending are about to take a bigger bite out of a shrinking private sector. Regulatory agencies that seem to lack adult supervision are choking growth. A pervasive entitlement mentality deters the transformational thinking that the state desperately needs. Politicians call for more money for universities even though students are staying in Michigan for the education but leaving for the jobs. Relative to other states, Michigan’s per capita income has been in freefall since 2000 and now stands at an astonishing 7.8 percent below the national average — un-
16 i Michigan Merit
precedented since the Great Depression. If recent income trends continue, Michigan will be poorer than Alabama during our next governor’s first term. Outbound migration is now almost as high as it was during the painful 1982 recession. It’s time to fix one of the most important fundamentals of them all, our labor climate. The state’s expensive ads featuring actor Jeff Daniels are no match for the ubiquitous perception around the country that compulsory unionism makes Michigan undesirable for business location. Perhaps nothing we could do would more effectively erase that harmful image and help jumpstart our economy than for Michigan to endorse worker freedom of choice through voluntary unionism. Twenty-two states never compel union fees or membership as a condition of employment. A 2007 study by Paul Kersey, director of labor policy for the Mackinac Center, reveals some startling numbers about how Michigan compares with
spring 2008
them. Between 2001 and 2006, gross state product in those states grew by an average of 18.1 percent, compared to Michigan’s paltry 3.4 percent, the slowest of all 50 states. During the same five-year period, employment declined in Michigan by 4.8 percent while it grew in the voluntary union states by 6.4 percent. By any meaningful measure of jobs and income, growth in voluntary union states far exceeds all other states and especially Michigan. Adjust for bonuses and the cost of living and even many non-union auto workers in places like Tennessee are earning more and have more job security than unionized auto workers here. Ultimately, voluntary unionism is not anti-union. It is decisively pro-worker. It encourages unions to be more accountable and responsible.
Employee freedom of choice does not mean unions are forbidden. It simply means they must earn the willing approval of workers. The leadership of organized labor protests that this burdens them with representing “free riders” who opt not to pay dues, but that’s a “burden” they lobby in Washington to keep. Besides, unions are not an unqualified benefit that workers should be forced to pay for, particularly if union policies price some workers out of their jobs or contribute to a business climate that drives employers away. Fixing the labor climate by adopting freedom of choice is not an option in the current Legislature, which will not even seriously consider repealing the state’s costly union subsidy called the Prevailing Wage Act. Gov. Jennifer Granholm has shown utterly no leadership on such
issues. The state’s public sector unions flexed their considerable muscle in Lansing by blocking spending cuts and pushing for job-killing tax hikes in the recent budget debate. If unionism is to be made voluntary in Michigan in the foreseeable future, it must happen by voter initiative through a ballot measure. Ultimately, voluntary unionism is not anti-union. It is decisively pro-worker. It encourages unions to be more accountable and responsible. Not only does it yield a healthier economy, which benefits all of us including schools and governments, it gives workers options and opportunities they don’t have in a compulsory environment. If anyone thinks that what Lansing did in 2007 will make Michigan a magnet for jobs and enterprise, they are sadly mistaken. It’s time to consider what’s proven effective in states that compete with us. The evidence is overwhelming that freedom of choice in the labor market sends an unmistakable message that a state is open for business. Lawrence W. Reed is president of the Mackinac Center for Public Policy, a research and educational institute headquartered in Midland, Mich. H
NOW’S YOUR CHANCE to advertise in the 2008-2009 ABC of Michigan Membership Directory. One ad, in this one publication, puts you in the offices, briefcases and trucks of every ABC member across the state – now that’s value! The 2008-2009 Directory will feature an all new Buyer’s Guide section for easy reference. Contact Greg O’Neil today at abc.org.ads@sbcglobal.net or call (517) 484-0775. Make sure you don’t miss this valuable opportunity – your competitor won’t. www.abcmi.com
spring 2008
i 17
ABC Self-Insured Workers Comp Fund distributes $1.8 Million to Fund Members… . The 2nd Highest Return Ever!!
Congratulations ABC Fund Members - You’ll be receiving one of
the largest returns on profit the Fund has ever made. This year, the Fund was approved to distribute more than $1.8 million of profit back to its members, making this the 2nd largest return in ABC Self-Insured Workers Comp Fund history. The return brings the total profits returned to over $10.8 million since the Fund’s inception in 1995. Keeping the total cost of workers’ compensation down means returning more profit back to the Fund members. With an average profit return of 33 percent each year, the ABC Fund proves to be a true benefit offered exclusively to members of ABC of Michigan. The ABC Fund, a member owned selfinsured workers’ compensation program, has several distinct advantages over most standard insurance carriers. The ABC Fund’s excellent performance has insulated its members from the turbulence of the traditional insurance mar-
18 i Michigan Merit
ketplace. From substantial profit returns to aggressive claims handling, the fund is the most cost-effective workers’ compensation option for its members year after year. Most importantly, fund members receive stable yet competitive upfront pricing. This competitive pricing, along with the ABC Fund’s selective approach to underwriting new members, is designed to save members money on the total cost of workers’ compensation over the long term. Additionally, The ABC Fund takes the responsibility for the costs associated with workplace safety very seriously. The Fund’s Board of Trustees feels that the best way to insure a successful fund is to work with members regarding safety and loss prevention. By focusing on accident prevention and proper claims management, Fund members continue to keep their costs down as low as possible. The Fund offers its members numerous safety resources and loss control programs that are specific to the construction industry. Some of the Fund’s educational training focuses on creating a safety culture in the workplace, by working with owners/supervisors on proper claims handling, accident investigation, return-to-work programs and making every employee accountable for safety on the job. The Fund works with loss control specialists who provide sound guidance and cost-saving solutions on safety and loss prevention for its members. In addition to safety, workers’ compensation claims are treated with great diligence in the way they are handled. The Fund is very loss sensitive and sees every claim dollar being spent as their money. The Fund controls these costs by fighting fraudulent claims and by requiring claim settlements to be authorized by a board of trustees, comprised of Fund members.
spring 2008
How the ABC Self-Insured Workers Comp Fund works for you
The ABC Fund, administered by Regency Group, is owned by its members and operates similar to an insurance company – providing the same employer protection and paying claims to employees injured on the job – without operating like an insurance company. The key difference is that it saves members money by operating with reduced overhead expenses and applies the savings to the group’s premium to pay for claims. The money that is not used to pay for claims, and any interest income, is returned back to the members over time. As the Fund ages, members receive profit returns from a number of Fund years. Also, the ABC Fund is protected from large losses by the purchase of excess loss insurance to further enhance its stability and profitability. For most members, the cost savings are the primary reason they insure with the ABC Fund. It has proven to dramatically reduce the overall costs of their workers’ compensation insurance. Each member can further reduce their costs with the help of the Fund’s loss control resources available to assist in preventing claims and reducing the frequency and severity should claims occur. Over time, Fund members receive credits of over 33 percent of premiums paid. For more information on the ABC Self Insured Workers Compensation Fund visit www.abcmi.com and select Workers Compensation Insurance after clicking on Membership. H
Gulf States, Inc. is one of America’s foremost contractors with a nationally recognized safety program. The following highlights our company and services available to you.
COMPANY HIGHLIGHTS INDUSTRIAL SERVICES OFFERED: INDUSTRIES SERVED BY GSI: x Industrial Construction & Maintenance x Petrochemical/Chemical x New Construction x Power/Cogeneration/Geothermal x Shutdowns/Turnarounds x Food Processing x Procurement x Oil and Gas Refining x Pipe Fabrication/Welding x Pulp and Paper x Electrical x Offshore x General & Electrical Contracting x Pharmaceutical x Steel/Rebar Erection/Structural Steel x Manufacturing x Mechanical/Plumbing x Automotive x Instrumentation/Automation x Mining and Minerals x Concrete–Formwork Core Values Powered by People Success is realized through people. Operations Driven Focus on field operations providing the necessary support, appropriate responsibility, and authority to succeed. Be the Best Strive for excellence, continuous improvement and innovation in everything we do. Integrity Be fair and ethical in all we do. Can-Do Attitude Aggressively pursue challenges with a sense of urgency, desire to succeed, and a commitment to hard work and having fun.
Vision:
“To be the contractor of choice through strategic alliances within the maintenance and general services market by assigning “Can-Do” teams focused on total customer satisfaction through value added services”
GULF STATES, INC. CORPORATE OFFICE & FREEPORT DIVISION 6711 HWY. 332 EAST FREEPORT, TX 77541 (979) 233-5555 (800) 231-9849
GULF STATES, INC. Michigan Operations Midland Office 3213 South Saginaw Road MIDLAND, MI 48652 (989) 495-9082 FAX (989) 495-9084
Michigan Operations Manager Erick Forshee (989) 615-2754
www.abcmi.com
spring 2008
i 19
Continued from page 6
FEATURE Article MSU’s diversity is a plus for the Capital region but the brain drain of young people leaving the area isn’t just from Michigan State University. “Local kids have left for other jobs and the quality of life they bring. We can get those people back, along with keeping the MSU talent that moves here for school if we have the kinds of quality of life opportunities these developments will provide upon completion,” Pat stressed. “The jobs are here. We have a need for getting and retaining a skilled workforce. If you have the skills, the jobs are available. Affordability and quality of life issues will move all of this development forward.” Scott agreed and said that his company has several phone calls a week looking for loft apartments downtown. They aren’t all Cooley law students. “They are young professionals and attorneys who want to work downtown. They are people moving
20 i Michigan Merit
here from Chicago, Miami or California and they want to live downtown. They like the activity and the bars and restaurants and not having to drive in to work. We are getting calls now from businesses that moved out to the suburban office parks, now inquiring about coming to downtown Lansing.” The Gillespie brothers also are active members of ABC of Michigan and ABC’s Central Michigan Chapter. Scott is the secretary of the board of directors for the Central Michigan Chapter. Both had high praise for the work of ABC of Michigan in dealing with the issues facing the construction industry. Most recently an issue directly affecting downtown Lansing development occurred in the fall of 2007. ABC of Michigan learned that the Lansing City Council was attempting to extend prevailing wage requirements to all private
spring 2008
Loft Development by the Gillespie Company
development that was subject to tax credits or abatements. ABC of Michigan quickly organized a public relations effort to halt the proposed ordinance. After several meetings and discussions with the city council and Mayor Virg Benero, the mayor pledged to veto the planned prevailing wage ordinance because it would have brought the redevelopment of the Capital City to an abrupt stop. The Gillespie’s also see smaller numbers of people entering the trade and skilled workforce and that concerns them, but Pat noted that he is pleased with ABC training programs and the association’s efforts to turn this around. Scott said the construction industry is facing a tough time due to the struggling Michigan economy and a lot of contractors are competing for a small amount of work. “We are seeing many trade workers getting closer to retirement, without a lot of new interest in the trades; ABC is very well positioned to promote the construction industry to younger people that are searching for their careers and train them appropriately to ensure the future success.” H
ABC ad
Continued from page 10
the IRS for approval, and should also be submitted to the U.S. Department of Labor for a determination that contributions to it can be credited against prevailing wage obligations. In addition, the SUB plan must be carefully designed to achieve maximum benefits for both the employer and employees. For example, to obtain the most favorable tax treatment, the plan may only pay benefits when an employee is involuntarily laid off or involuntarily terminates employment. In other words, in order to take advantage of opportunities such as a SUB plan, it is important that the contractors obtain specific information, tailored to their firms’ unique situations, from a qualified professional. But in Michigan’s difficult and challenging economic environment, the successful contractor continually will be looking for ways to retain a skilled, satisfied work force, while still controlling the bottom line. Contractors need a way to stay ahead of the competition, and that edge can be a supplemental unemployment benefit plan. H
6/15/07
3:27 PM
Page 1
A Health Care Plan Built For You! • Pre-set, Competitive Rates • Less Than 7% Rate Increases • No Health Questions • Great Coverage—6 Networks • Quick & Easy Enrollment • New H.S.A. Plan Available • Free COBRA Administration For more information contact your local ABC Chapter Director Central Michigan Chapter (517) 394-4481 Southeast Michigan Chapter (248) 399-6460 Saginaw Valley Chapter (989) 832-8879 Western Michigan Chapter (616) 942-9960
This article was written by BCT Benefits, LLC a third party administrator offering a Supplemental Unemployment Benefit Insurance Plan, www. bctbenefitplans.com, in conjunction with Susan Sherman and Peter Kok of Miller Johnson, and Casey Young, CPA of Stonehenge Consulting, PLC all of whom have extensive experience working with employers in the construction industry.
Life just got a little easier.SM
www.abcmi.com
spring 2008
i 21
Continued from page 13
LEGISLATIVE UPDATE neurs, and that to do so we must lean heavily on Michigan’s educational resources. During his remarks Doherty stated that in order to enable ABC member companies and their employees to survive in today’s business climate, “we need to have training partners that understand the marketplace we work in; provide educational opportunities that match industry needs and can be delivered at the speed of change. They need to have people that will anticipate what we need often even before we know ourselves.” The community college system is essential to the training of the next generation of construction industry employees, and Doherty laid out several trends affecting construction industry dynamics. He went on to highlight needed reforms to better enable ABC members to excel in today’s construction marketplace. Doherty concluded that, “we are either going to stay ‘state of the art’ or slip into irrelevancy. Workforce development is critical for any of the skilled trades and applied technologies that are essential for employers to produce buildings or products that fuel our state’s desired economic growth. A trained workforce is essential for us to gain any kind of an edge against competing states or nations.” The Western Michigan Chapter of ABC has collaborated with Grand Rapids Community College, Kalamazoo Valley Community College, Northwestern Michigan College and the M-TEC @ Kirtland. The
We build trust.
Smith Haughey Rice & Roegge can help keep your project on track from day one. For decades, we’ve represented contractors, design professionals, and sub-contractors, in every aspect of the construction process. Today, our Construction Law Team includes 16 attorneys who have specific construction industry experience, so you can rely on us for any legal need that may arise. Put your trust in our knowledge and expertise.
CONSTRUCTION LAW
www.shrr.com 877.833.shrr Serving clients across Michigan. chapter currently has 425 students enABC08.indd gaged in 1formal apprenticeship training in five trades; numerous in safety and first aid/CPR courses and over 110 studying to become LEED Accredited Professionals. H
2/29/2008 4:38:15 PM
2008 SPRINGHIGAN
LDERS
D BUI
TION PUBLICA
OCIATE
AND
RS TRACTO
OF MIC
CON
OF ASS
is your ad missing from the maga zine?
S G STEP N TAKIN ICHIGA 08 M F O C 0 2 AB REAT IN TO BE G
HE OVE T
: ERS M A L S OS P I E B R O T H R W A R D
GILLE L CITY FO EDOM TA R FRE CAPI ORKE m DS W bcmi.co E E www.a N IGAN MICH ICE O OF CH
22 i Michigan Merit
8 G 200
SPRIN
I1
If so, you are missing an opportunity to showcase your company with the construction industry across the entire state. Your ad, in this one publication, will reach all the 1200 ABC of Michigan member companies, several nonmembers and key decision-makers and policy makers throughout the state – now that’s value! Advertising in Michigan Merit is the one-stop source for effectively marketing statewide to the merit shop construction industry in Michigan. Make sure you don’t miss this valuable opportunity again – your competitor won’t. Visit www.abcmi.com or contact Greg O’Neil at abc.org.ads@ sbcglobal.net or 1-800-288-4248.
spring 2008
Advertiser’s index aIS Equipment............................................................................................................................. Page 20 answer heating & COOLING................................................................................................... page 2 access safety............................................................................................................................... page 6 capital steel............................................................................................................................... page 18 Crowe chizek.............................................................................................................................. page 15 CT Electrical service inc..................................................................................................... page 17 dependable fire protection.............................................................................................. Page 21 gulf states inc........................................................................................................................... page 19 jackson associates.................................................................................................................. page 10 J.E. Johnson, Inc............................................................................................................................ page 2 Meadowbrook insurance................................................................................................... Page 21 P&K Steel Service....................................................................................................................... page 23 rci electric.................................................................................................................................. page 12 Regency group................................................................................................................. BACK COVER skilled trades............................................................................................................................. page 21 smith haughey rice................................................................................................................. page 22 three rivers corporation................................................................................................... page 17 tradesman international.................................................................................................. page 10 wells fargo/universal insurance................................................................................. page 15
www.abcmi.com
spring 2008
i 23
ASSOCIATED BUILDERS & CONTRACTORS OF MICHIGAN 120 WASHINGTON SQUARE, SUITE 805 LANSING, MICHIGAN 48933
24 i Michigan Merit
spring 2008
PRESORTED STANDARD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 689