Merit summer 2010 by ABCofMichigan

PUBLICATION OF ASSOCIATED BUILDERS AND CONTRACTORS OF MICHIGAN SUMMER 2010

Safety is top priority for industry

Also: Reduce Costs With ABC of MI Workers’ Comp Fund Regional Construction Activity Update

GSI

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Gulf States, Inc.

TIC Energy & Chemical, 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:

Core Values:

Industrial services offered: n New Construction n Shutdowns/Turnarounds n Procurement n Pipe Fabrication/Welding n Electrical n General & Electrical Contracting n Steel/Rebar Erection/Structural Steel n Mechanical/Plumbing n Instrumentation/Automation n Concrete-Formwork

Industries served by TIC: n Industrial Construction & Maintenance n Petrochemical/Chemical n Power/Cogeneration/Geothermal n Food Processing n Oil and Gas Refining n Pulp and Paper n Offshore n Pharmaceutical n Manufacturing n Automotive n Mining and Minerals

Can-Do Attitude Aggressively pursue challenges with a sense of urgency, desire to succeed, and a commitment to hard work and having fun.

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.

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.” TIC Energy & Chemical, Inc. Corporate Office & Freeport Division 6711 Hwy. 332 East Freeport, Texas 77541 979-233-5555 800-231-9849 TIC Energy & Chemical, Inc. Michigan Operations Midland Office 3131 South Saginaw Road Midland, Michigan 48640 989-495-9082 Fax: 989-495-9084 Northern Business Leader Erick Forshee (989) 615-2754 - cell

Inside

Perspective 4 Executive Focus on safety pays off for ABC members.

is top priority 5 Safety for industry

Safety-conscious companies are attracting positive attention as the industry keeps workers safe.

management review can 10 Risk reduce workers’ comp costs Fine-tuning the company risk management approach may reduce insurance premiums. ABC’s Self Insured Workers’ Compensation Fund offers an opportunity to cut costs.

Industry shows spotty 12 signs of improvement

Regional study indicates that the construction industry hinted at entry into a recovery mode during March and April. By Don Wilson, ABC of Michigan Economist

19 Advertisers Index VOLUME IV, ISSUE II Contractors are voluntary participants in safety initiatives, say industry members.

Legislative Update 16 l

www.abcmi.com

ABC of MI opposes “Community Benefit Agreements” Dem measures provide special favors to labor ABC MI PAC has 90 percent success rate in primary Summer 2010 3

ASSOCIATED BUILDERS and CONTRACTORS of MICHIGAN BOARD of DIRECTORS Rod Kloha – Chairman Circle “K” Service, Inc. - Saginaw Valley Chapter

Focus on safety pays off for ABC members

Jim Cripps - Vice-Chairman Cripps Fontaine Excavating - Western MI Chapter Dave Sheffield - Secretary/Treasurer Onslow-Sheffield, Inc. - Southeastern MI Chapter John Parish – Past Chairman Parish Corporation - Central MI Chapter Bill Buyak Capital Steel - Central MI Chapter

Safety is priority No. 1 in the construction industry.

Gary Hengesbach Westphalia Builders - Central MI Chapter

More than once a week on average in the U.S., a construction worker walks onto a jobsite never to return home. Nonfatal injuries are an everyday occurrence throughout the industry.

Erick Forshee TIC, Inc. - Saginaw Valley Chapter Mike Laundra Alloy Construction - Saginaw Valley Chapter Rick Jackson Jackson Associates - Southeastern MI Chapter Bill Molnar Wm. Molnar Roofing Co. - Southeastern MI Chapter David Mollitor Jr. Consolidated Electrical - Western MI Chapter Michael Poggi Pinnacle Insurance Partners - Western MI Chapter Jack VandeGuchte Sobie Company, Inc. - Western MI Chapter Daniel Welch Welch Tile & Marble - Western MI Chapter Michigan Merit Contributors Publisher: Christopher Fisher Managing Editor: Mary Boardway, CAE ABCMI Economist: Don Wilson Publication management: Lezotte Miller Public Relations, Inc. Advertising: Arion Media Printing: Bradford Printing 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. 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 Summer 2010

Although we cannot change the fact that construction is more hazardous than other professions, we can mitigate those hazards to ensure a safer and healthier work force. For decades, ABC and its members have worked hard to prevent accidents. Among the tactics used have been toolbox safety talks, ongoing safety education, alliances with MIOSHA, ABC’s Safety Training Evaluation Process (STEP) ABC’s efforts have and ABC of Michigan’s Self-Insured Workers’ Compensation Fund. saved lives and

made our industry

ABC’s efforts have saved lives and safer from one end made our industry safer from one of the state to end of the state to the other. The STEP program has resulted in fewer the other. injuries and workers’ compensation claims for contractors who participate. Even more impressive is the performance of the ABC of Michigan Self-Insured Workers’ Compensation Fund, in which a majority of ABC member contractors participate. The participating companies have 58 percent lower accident costs than nonmembers, thanks in large part to the program’s safety-centered full-risk management approach. In this issue of Michigan Merit, we’re pleased to bring you information on the many safety-training opportunities that ABC makes available to all members to help ensure fewer injuries, better morale, cost savings and higher productivity. Yours for the Merit Shop,

Chris Fisher President Michigan Merit

Safety is top priority for industry Gary Elza recalls how, years ago, risk-takers were admired on construction sites. Now, it’s safetyconscious companies like Elza’s that garner positive attention. “The culture has changed in the entire industry,” says Elza, president and owner of G.E. Insulation Co. of Sanford. G.E. Insulation, along with fellow Associated Builders and Contractors Saginaw Valley Chapter member Valley Electrical Contractors Inc. of Midland, was among 15 companies nationwide — including just five specialty contractors — to win a 2009 National Safety Excellence Award from ABC National. The award was no fluke, Elza says. Rather, it was affirmation of the approach to safety he adopted when he created the business 25 years ago. “Safety is No. 1 as part of our company culture,” says Elza, who now employs 97 workers. “It’s been an ongoing goal since we started in business to keep people from getting hurt.” Indeed, that mind-set has become increasingly common throughout the entire industry. There’s growing realization that keeping workers safe is not only the right thing to do but makes business sense as well, say industry observers and members. “I think that Bulthuis www.abcmi.com

safety is something on which the construction industry in general has had a shift in the past decade or so,” says Mark Bulthuis, safety director at Parkway Electric & Communications in Holland, a member of ABC’s Western Michigan Chapter. “It’s not only a moral imperative, but there are Project owners value contractors with better safety records. practical benefits to it,” he says. remain among the biggest dangers. Among the potential boosts to But statistics bear out that the bottom line Bulthuis and others worksites are becoming safer: cite: lower workers’ compensation Data compiled by MIOSHA show costs, higher employee morale that what the agency labels the and productivity and an enhanced “total case incident rate” of injuries reputation that can help contractors and illnesses on state construction win jobs. sites dropped from 9.2 for every 100 workers in 2000 to 4.4 in 2008. Of those incidents, 1.7 percent resulted Accident rates drop in lost workdays in 2008, down from To be sure, construction remains a 4 percent in 2000. (See chart, pg. 6). dangerous occupation. The industry “The numbers have clearly been comprises just roughly 5 percent of going down, which shows that there the overall work force but accounts are fewer people getting hurt out for around 30 percent of on-the-job there,” Pawlowski says. fatalities, says Robert Pawlowski, There are also fewer workers director of the Michigan Occupational getting killed, MIOSHA statistics Safety and Health Administration’s show. Since 1998, Michigan has Construction Safety and Health averaged nearly 22 constructionDivision. Falls, electrical mishaps related fatalities annually, with a and cave-ins on excavation sites high of 31 in 1999, according to Summer 2010 5

state records. But worksite deaths dropped to a 12-year low in 2009, when there were 10 (2007 and 2008 were also relatively safe years, with 11 and 15 fatalities, respectively). (See chart, pg. 7).

Cooperation called key Chris Williams, ABC National’s director of safety, says those same trends hold true on the national level. He credits education efforts within the industry — “We finally reached a point of saturation in getting the message out,” he says — and a change in approach by regulators at the U.S. Occupational Safety and Health Administration, who dropped their traditional adversarial stance in favor of a cooperative one that emphasizes working with contractors to prevent worksite accidents. “OSHA is using their time not to cite contractors but to train them,” Williams says. “OSHA is now viewed as a resource.” Although there are concerns that the Obama administration will cut funding for some complianceassistance programs, by and large there is no great fear that the new regime will reverse OSHA’s teamwork approach, Williams says. In Michigan, MIOSHA/industry cooperation takes different forms. For example, ABC chapters host MIOSHA training seminars. The agency also enters into alliances with groups — including ABC’s Southeastern Michigan Chapter — that are designed to help members improve their safety and health systems through communication and outreach activities. “There has been a more collaborative approach in the past 10 years,” Pawlowski says. “It’s been very positive. If we can put our compliance folks out of business, that’s fine by us.”

ABC members shine MIOSHA also forms partnerships with companies in the field, such as the one forged in 2007 6 Summer 2010

Summary of Injury & Illness Data for the Construction Industry in Michigan

Incident Rates of Non-fatal Occupational Injuries and Illnesses in Construction (Michigan) Lost

Total Case Incident Year Rate (TCIR)

2000 2001 2002 2003 2004 2005 2006 2007 2008

9.2 8.9 7.8 7.2 7.1 6 4.7 5.8 4.4

Work Day, Restriction or Transfer (DART)

4.7 4.8 4.0 4.0 3.4 2.9 2.5 2.2 2.3

Lost Work Day Injury Rate (LWDI)

4.0 3.7 3.0 2.9 2.6 2.2 2 1.7 1.7

Without Lost Work Days, Transfer or Restriction

4.5 4.1 3.8 3.3 3.7 3.1 2.2 3.7 2.1

Source: The MIOSHA Annual Survey of Occupational Injuries and Illnesses. The Michigan Department of Labor & Economic Growth, in conjunction with the U.S. Department of Labor, Bureau of Labor Statistics (BLS), is authorized to implement an on-going annual occupational safety and health survey program. Data collection is conducted in accordance with provisions of the Michigan Occupational Safety and Health Act (MIOSHA), Public Act 154 of 1974, as amended. More detailed data is available on the MIOSHA website at; www.michigan.gov/miosha.

on the ongoing Michigan Street developments in Grand Rapids with lead contractor The Christman Co. — an ABC Western Michigan Chapter member — and many other ABC members working on the projects. The Michigan Street developments consist mainly of several medical facilities. “The whole idea is to get some of the larger contractors to mentor some of the small companies,” Pawlowski says. “It has been successful in getting much lower injury rates on some of those projects.” Elements of the Michigan Street partnership include mandatory attendance at a project-safety orientation, the use of hardhats and safety glasses at all times on the site, certified operators for all tower cranes, mandatory post-accident substance abuse testing, and a progressive discipline action plan that calls for immediate removal from the project site for intentional disregard of any safety rule. Also, the safety directors for the

various companies involved with the projects have held monthly meetings for the past three years to discuss issues, says John Doherty, president and CEO of ABC’s Western Michigan chapter, a supporting partner to the agreement. Although not all the data are in, anecdotal evidence suggests that safety problems on Michigan Street were “significantly below state averages,” Doherty says. A side benefit to the projects’ safety success is the ammunition it provides against false union-hall claims that ABC members are lax on safety, Doherty says. Union bosses have made such arguments when trying to convince public bodies, such as Michigan State University’s board of trustees, to adopt project labor agreements on developments. ABC members have other safety evidence on their side, such as the performance of ABC of Michigan’s Self-Insured Workers’ Compensation Fund. From 2005 to 2009, according to statistics compiled by the Regency Group, fund administrator, Michigan Merit

ABC fund members outperformed Michigan contractors as a whole (see chart, pg. 10) in terms of loss rates in masonry, plumbing, electrical wiring, concrete flat work, carpentry-cabinet installation, heating and air, and excavation had lower loss rates as a whole than the rest of the industry — and usually significantly so, the data show.

By and large, contractors are now

voluntary participants

in safety initiatives. It’s gone from a cost of doing business to an

opportunity for

cost savings.

Certification is asset in winning bids But Merit Shop politics aren’t at the forefront for those practicing safety in the field, says Williams of ABC National. “Safety isn’t a union or nonunion issue,” he says. “The entire industry — union and nonunion — realizes that safety saves money in the long run.” Among contractors who save the most are those that participate in ABC’s Safety Training and Evaluation Process (STEP). The program, which is free except for those pursuing the highest level of certification (platinum, which costs $195), requires submitting OSHA reports and a 20-point self-evaluation form to ABC National. “It’s a self-evaluation tool and a way to gauge your performance vs. other companies,” Williams says, adding that data show STEP participants generally have betterthan-average safety records. Just the process of filling out the application can pay dividends, says Bulthuis of Parkway Electric, which has maintained gold or platinum STEP status for several years. “It just forces that thinking about safety,” he says. “The discipline of sitting down and completing the task is wonderful.” STEP certification can also serve as a seal of approval that contractors can use when bidding on jobs, Williams says. Project owners value contractors with good safety records because they want to avoid the negative press and production delays that can come with worksite accidents, he says. www.abcmi.com

Construction Safety and Health Division

Fatalities by Type

Electro- Struck Cave Caught Year Falls cution By In By Other

1998 1999 2000 2001 2002 2003 2004 2005 200 2007 2008 2009

8 1 8 13 8 6 10 9 9 5 5 2

Total 93

Total

8 6 7 1 6 7 3 4 3 2 3 2

6 3 1 4 8 3 2 1 5 3 6 2

1 4 2 2 1 2 1 3 3 0 0 1

5 7 4 8 1 6 6 0 3 0 0 2

1-asphyx 1-burn 1 0 0 2-chem 0 0 1-chem, 2-explos. 1-truck cab, crush 1, crushed 1, explosion

29 31 23 28 24 26 22 17 26 11 15 10

262

Summer 2010 7

Safety culture evident on worksites Mark Sawyer, executive director of ABC’s Southeastern Michigan Chapter, is encouraged by member participation in the STEP program and MIOSHA training offered through the chapter. In some cases, however, contractors don’t have much of a choice when it comes to safety training, Sawyer notes. For example, those lacking the proper US Environmental Protection Agency lead-handling certification face stiff fines, he says. By and large, contractors are now voluntary participants in safety initiatives, Doherty and other industry members say. “It’s gone from a cost of doing business to an opportunity for cost savings,” Doherty says. Good safety practices require more of a proper mind-set than a particular

set of skills, industry members say. “There’s no secret to it,” Williams says. “We all use the same practices and procedures. It really is a mind-set. Effective safety programs start from the top.” Parkway Electric uses the proverbial carrot-and-stick approach after putting all employees through extensive safety training as part of their orientation, Bulthuis says. “We might ask them to take a look at a picture of their families and ask them why they wouldn’t want to come home safe and sound at the end of the day,” he says. “We’ll say, ‘Don’t do it for me. Do it for yourself and do it for your family.’” If that tactic doesn’t work, the company will suspend or even fire safety scofflaws, Bulthuis says. “I’ve terminated people for blatant safety infractions, although it’s got to be pretty bad to do that.”

Much of the knowledge about proper safety practices has been accumulated over the years, Bulthuis says. For instance, the cumulative impact of using a saw day in and day out without ear protection is evidenced in old-timers who have lost all or part of their hearing, he says. Those types of examples, coupled with the push from above by company leaders, have helped change the atmosphere on construction worksites, where in times of yore, a macho, getit-done attitude often led to cutting safety corners, industry members say. “The employees and the company have come to a very good understanding on how to be safe,” says Elza of G.E. Insulation. “It’s become very acceptable to question how to do something better. They know you’ll never get in trouble for asking a question about safety.”MM

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Member firms of Associated Builders and Contractors (ABC) that participate in the Safety Training Evaluation Process (STEP) program are among the safest construction companies in the nation. Make STEP part of your company’s strategy Member firms of Associated Builders and Contractors (ABC) that participate in the Safety Training Evaluation Process to improve safety and productivity. (STEP) program are among the safest construction companies in the nation. Make STEP part of your company’s strategy to improve safety and productivity.

www.abc.org/step Figures based on 2009 STEP data compared to 2008 Bureau of Labor Statistics industry averages. Incidence Rate represents the number of OSHA recordable incidents www.abc.org/step per 100 employees per year. OSHA Citation Rate represents the number of citations per OSHA inspection. Experience Modification Rate (EMR) (MOD Factor) measures a 1

company’s safety performance against similar businesses over the past three years and is one of the factors used to determine workers’ compensation rates. 5DART Rate 1 2 Figures based on 2009ofSTEP compared to 2008that Bureau LaborAway, Statistics industry and averages. Incidence represents represents the number OSHAdata recordable incidents involveof“Days Restrictions Transfers” per 100Rate employees per the year.number of OSHA recordable incidents per 100 employees per year. 3OSHA Citation Rate represents the number of citations per OSHA inspection. 4Experience Modification Rate (EMR) (MOD Factor) measures a company’s safety performance against similar businesses over the past three years and is one of the factors used to determine workers’ compensation rates. 5DART Rate represents the number of OSHA recordable incidents that involve “Days Away, Restrictions and Transfers” per 100 employees per year.

www.abcmi.com

Summer 2010 9

Risk management review can reduce workers’ comp costs BUYER’S GUIDE

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Evaluating insurance coverage

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Occupational Safety and Health Administration (MIOSHA) regulations may miss a number of other opportunities to reduce costs. The Associated Builders and Contractors Self Insured Workers’ Compensation Fund offers a good example. A recent study showed that accident costs for members were 58 percent lower than nonmembers. The fund recognizes that safety issues extend beyond MIOSHA compliance standards and require implementation of a fullrisk management approach, which may include drug testing, post-offer physicals, safety training, periodic safety meetings, safety inspections and safety incentive programs. Many members have implemented drug testing programs for not only new hires and post-accident employees, but also random testing of current employees. “Returnto- Work” programs are geared to encourage injured employees to return to the job as quickly as possible, working with doctors to accommodate restrictions.

Injury Prevention ABC members are using loss prevention consultants that provide external resources, such as shop and jobsite visits to help identify potential accident areas and prevention strategies. The visits are consultative in nature rather than inspection-like. ABC’s fund provides training resources such as videos, PowerPoint presentations, onsite training, webinars, computer-based training and safety newsletters.

Michigan Merit

Post Accident Programs Fund members usually understand the importance of prompt action and reporting when an accident occurs. A strong relationship with the claims’ adjuster will help ensure the adjuster understands the member’s business and shares in their return-to-work philosophy. Knowledgeable doctors are likewise key to the process. Some ABC fund members have brought physicians to the company facilities or jobsites for tours and meetings with personnel. Such visits allow the doctor to witness safety efforts in action and understand return-to-work programs. Communication is absolutely critical in the insurance claim process. Many members

have dedicated a person to be Now may be the time to institute responsible for submitting claims changes that could result in cost and coordinating programs with the savings.MM adjuster. For more information or to request a ABC fund members who have quote visit www.abcmifund.org successfully implemented such programs and policies are reaping the benefits of lower costs (see Chart - ABC Fund Loss DESIGN, INSTALL, INSTALL, SERVICE SERVICE & & MAINTAIN MAINTAIN DESIGN, Comparison). DESIGN, INSTALL, SERVICE & MAINTAIN Review your company’s Jackson Jackson Associates, Associates, Inc. Inc. workers’ compensation 1111 1111 West West Oakley Oakley Park Park Road Road program today 1111 West Lake, Oakley Park Road Walled MI 48390 Walled Lake, MI 48390 instead of Walled Lake, MI 48390 248-669-5155 waiting until 248-669-5155 www.jacksonassociatesinc.com www.jacksonassociatesinc.com renewal time. www.jacksonassociatesinc.com

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Michigan Economic Indicators

Industry shows spotty signs of improvement

By Don Wilson, ABC MI Economist

The nation’s construction industry showed signs that hinted at entry into a recovery mode during March and April, according to data published by the U.S. Bureau of Labor Statistics (BLS), American Institute of Architects (AIA) and the Milwaukee-based personnel supply firm Manpower Inc. Monthly BLS surveys showed the rate of change in construction trades employment (seasonally adjusted), though still decreasing, was doing so at a moderating pace and posted two sequential monthly increases before declining in May and in June. The change that occurred in March and April could be interpreted as a sign employers felt confident their business backlog and outlook required no further job cutbacks, meaning business conditions were near a point where employment might stabilize, a prerequisite to the growth that occurs when the number of jobs created

REGIONAL CHANGE IN COMMERCIAL BUILDING Activity MichiganMICHIGAN Regional Change in Commercial Building % Change (Year / Year) 250

ACTIVITY

Saginaw Valley 200

Central Michigan S. E. Michgan Statewide

150

Western Michigan 100

0 07 Q1 07 Q2 07 Q3 07 Q4 08 Q1 08 Q2 08 Q3 08 Q4 09 Q1 09 Q2 09 Q3 09 Q4 10 Q1 10 Q2 -50

-100 Source: Mc Graw - Hill

exceeds the number eliminated. Manpower Inc., in its quarterly Employment Outlook Survey, which measures employers’ intentions to increase or decrease the size of their work force during the next threemonth calendar period, showed in its June 2010 release the construction industry ranked 10th with plans to raise job levels a seasonally adjusted 8 percent from the second quarter. The Billings Index of the AIA, derived from a monthly survey of the change occurring in “work on the boards” at members, rose three consecutive months during February through April from January before easing back in May. The index, when compared with the value of construction work going into place, is a leading indicator of actual nonresidential construction spending nine to 12 months in advance of its occurrence. In the Midwestern states, including Michigan, the Billings Index recorded faster growth than any of the nation’s other regions between January and April before pulling back in May. In Michigan and its several regions, the only measure of activity in commercial construction activity is data on the value of such project awards collected and tabulated on a geographic basis by the Construction Division of the McGrawHill Companies. The trend of yearover-year change occurring in those awards statewide and in the service areas of ABC of Michigan’s regional chapters is portrayed in the chart entitled Michigan Regional Change In Commercial Building Project Activity. The change-occurring contract awards (converted to dollars to account for cost increases or decreases) remained on an expansionary track

-150

12 Summer 2010

Michigan Merit

IN PRIVATE SECTOR Michigan MICHIGAN RegionalREGIONAL ChangeCHANGE in Private Sector Employment EMPLOYMENT

% Change (Year / Year) 8

(except in southeastern Michigan) through 2008’s third quarter, as business employment levels gradually contracted (down 1 to 3 percent) from year-ago levels as illustrated in the chart entitled Michigan Regional Change In Private Sector Employment.

0 07 Q1 07 Q2 07 Q3 07 Q4 08 Q1 08 Q2 08 Q3 08 Q4 09 Q1 09 Q2 09 Q3 09 Q4 10 Q1 10 Q2 -2

-4

Commercial building starts decreased in early 2010 Starting in 2008’s fourth quarter, following development of the credit crunch in the August/September period, nonresidential investment, as measured by the value of commercial building project awards, plunged with the rise in unemployment accompanying the contraction in the credit markets and the downsizing in the motor vehicle and other Michigan industries that eliminated 8.3 percent,

S. E. Michgan -6

Statewide Central Michigan

-8

Western Michigan Saginaw Valley

-10 Source: U. S. & Michigan Departments of Labor -12

or 293,000, of Michigan’s private sector jobs through the final quarter of 2009. In 2010, the overall value of commercial buildings authorized to be started across the stateABC Summer continued to falter through 2010’s

second quarter, except in central and western Michigan, where awards for commercial building resumed a growth pattern. In western Michigan (covering the western and northern Lower and Upper Peninsulas), 7_8_10.pdf 1 7/9/10 7:49 AM building project awards issued in

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Summer 2010 13

January through March, though down 43 percent year over year, turned 48 percent upward in the second quarter from one year earlier and were 250 percent higher than in the preceding quarter. One reason for the improvement was the upturn in employment, which climbed to 5.8 percent in the second quarter from one year earlier. An ABC of Michigan June survey of its regional chapters’ perceptions regarding work going in place during the second quarter indicated there was an increase only in industrial building work, no change in institutional and warehousing/ distribution projects and declines in office, retail, medical and hotel/motel projects. In Central Michigan, (comprised primarily of the Lansing, Jackson and Battle Creek areas plus five peripheral counties) building awards, down 19 percent in the second quarter from the first quarter of 2009, climbed

54 percent in the second quarter from one year ago. The response of the ABC chapter to the June survey indicated there was no change in work going into place in any building class during the second quarter from the first quarter except for an increase in institutional projects. In Southeastern Michigan, (comprised of the Detroit, Ann Arbor and Flint areas) the value of contracts awarded to commercial building contractors in the first quarter was 69 percent lower than one year ago, following a 21 percent upturn in the 2009’s final quarter. Awards then fell 14 percent in the second quarter from 2009 levels. ABC of Michigan’s June regional survey showed work going into place among industrial, institutional and medical projects rose in the April to June period from the first quarter, declined in office and hotel/motel and warehouse/ distribution projects and was

unchanged in the retail category. Commercial building project awards in the Saginaw Valley area, dominated by activity in Saginaw, Bay and Midland counties, rose 100 percent in the first quarter from the year-earlier period and then crumbled by 56 percent in the second quarter. Work going into place during the April–June period, according to ABC’s June survey, was unchanged from the first quarter in office, industrial, retail, institutional and warehouse/ distribution applications, increased at medical sites and was lower at hotel/ motel facilities. The biggest project cancelled in the state during the second quarter was the CMS KarnWealock Power Plant that was to be located near Bay City.MM Don Wilson is the economist for ABC of Michigan. He has researched economic data and trends for trade associations, banks, chambers of commerce and municipalities since 1982.

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Michigan Merit

“ABC is the only association that is an advocate of free enterprise in the construction industry. They lead the fight for the merit shop at the state, local and national levels of government. ABC is our voice at the capitol.” Dan Kozakiewicz, President, Three Rivers Corporation

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Your discounts more than offset the Membership Dues Investment Estimated Product or Service Annual Savings Here’s how much GM, Ford or Chrysler Vehicle 1 vehicle $1,000 a contractor with Super Fleet Discount Card 4 vehicles $ 600 15 employees can Workers Comp Insurance 15 employees $5,700 expect to save in one $ 950 year using just 5 of the Verizon Wireless Cell Phone Plan 5 cell phones Paychex Payroll Service 15 employees $ 250 ABC member benefits and discounts. Total Savings for Year $8,500

ABC Builds & Protects Your Business ABC Annual Membership Directory and Resource Guide – find suppliers, subcontractors and contractors in every area of the state who support the Merit Shop Construction Industry l Legislative Advocacy – ABC is the only Merit Shop lobbying organization, working tirelessly to uphold the free enterprise system at both the state and national levels. ABC is your voice with our legislators. l Find A Contractor – a powerful search tool for the online member database to allow construction buyers and users to find your company easily l Safety Training Evaluation Process – Improves your company’s safety practices and can lower your workers’ compensation insurance rates. l Networking Events – connects you with contractors and leaders in the field on the local, regional and national levels. l Craft Training – accredited local craft training and apprenticeship programs to make your workers top-notch skilled professionals. l PLAWatchMichigan Web site and PLA Taskforce – working to stop the use of forced union agreements on construction projects. l

ABC Keeps You Informed Michigan Merit – Michigan’s premier magazine for the Merit Shop Construction Industry l Merit Minute – semi-monthly electronic newsletter to keep you on top of new developments in the industry and legislative news that affects your business. l Construction Executive – the national publication for the Merit Shop Construction Industry l State Legislative Conference – meet with your legislators in a casual format to discuss issues of importance to your business. l Construction Economic Update – Stay current on economic news that impacts your business. l Competitive Contractors Summit – provides updated regional and state legal and legislative information to assist you in broadening your scope of business within the state. l Legal Resources – for assistance with legal and labor issues. l Help with Labor Issues – Legal and Legislative resources to resolve your situation. l

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ABC Saves You Money Verizon Wireless – save up to 20% on cell phone plans l Chrysler, GM & Ford – save up to $1000 per vehicle plus other incentives l Super Fleet Fuel Card – save 5¢ per gallon of fuel at Speedway, Marathon & Rich Oil l ABC Self Insured Workers’ Comp Fund – average annual return on premium is 35%! l Bulk Fuel Discount – save 10% off margin for bulk fuel delivery anywhere in the state l FedEx – Save 29% on overnight delivery services l Long Term Care and Long Term Disability Insurance – Available at a discount for ABC Members l Supplemental Unemployment Insurance Plan – complies with Davis-Bacon, while saving you money on Prevailing Wage projects l

Associated Builders and Contractores of

Michigan

ABC of Michigan opposes so-called ‘community benefits agreements’ The Michigan House of Representatives narrowly approved a measure to encourage the Michigan Department of Transportation (MDOT) to facilitate a “community benefits agreement” on any international crossings between Michigan and Canada. House Bill 6128, introduced by Rep. Rashida Tlaib, D-Detroit, would be a contract between the state, contractor, developer or concessionaire and any nonprofit organization identified by MDOT. The agreement would implement “sustainable Rep. Tliab benefits” to the community and any benefits required by existing federal, state or local laws, which could include any of the following: l

Preservation, restoration or replacement of community resources directly affected by the project Jobs, employment training and related facilities

Modification or remedies for structures or equipment directly affected by the project

Economic development

Housing and home repair programs

Air-quality programs

Green-development initiatives

benefits agreements have included language (under the heading “Construction Work”) that requires a PLA be negotiated with unions. The language means that to perform work on the project, companies must submit to union agreements. As a result, nonunion firms and their employees are excluded from a chance to work instead of being ensured opportunities based upon abilities and skill. Sometimes, language in community benefits agreements explicitly states a developer must use union-only contractors. In 2006, a community benefits agreement for the Getaway

In a letter to the bill sponsor and key members of the Senate, ABC expressed concern over the lack of assurances that all workers and contractors, union and nonunion alike, would be guaranteed equal opportunity to perform work under the agreements. Although the agreements are new to Michigan, they have been utilized elsewhere and often include provisions to mandate uniononly project labor We are focused on your success by agreements providing solutions that meet your (PLAs). For example, needs both today and tomorrow. in New York Building Information Modeling community Contractor Prequalification

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Center Bronx Terminal Market included a provision stipulating, “The developer will use economically reasonable efforts to promote and work with the unions and coalition…” ABC of Michigan president Chris Fisher provided notice to the bill sponsor that such language would be unacceptable in Michigan. “Neither prohibiting agreements with unions nor requiring agreements with unions is a better approach to guarantee that all contractors and workers are able to perform work, regardless of their union affiliation. Our hope is that this will be the case with House Bill 6128 to ensure everyone in the community truly will benefit.” The bill is currently before the state Senate’s Government Operations Committee.

Dem measures provide special favors to labor Nonprofit organizations and issue advocates will be selectively sidelined in representing their constituencies in Michigan if a sevenbill package is pushed through the House. House Bills 6182-88 would create strict regulations for corporations — but not big labor unions — to

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candidates and issues unfettered by participate in state strict regulations. elections. “The Supreme Court’s decision “The bills are an was for all sides having equal say, attempt to grab headlines but but this package singles out only do not address the corporations and nonprofits a real problem,” in Michigan,” Bolger says. “Such a blatant tactic throws mud right says Rep. Jase Rep. Bolger Bolger, R-Marshall. on the Campaign Finance Act that exists to keep politics aboveboard. “Free speech, the bedrock of our While the package purports to democracy, won’t be free anymore clamp down on special interests, it if this legislation puts up roadblocks to selective groups to be able to take really offers special favors. The kind of shameless partisanship being part in Michigan’s elections. Those attempted by the House Democrats with special treatment by majority is what makes the public cynical Democrats will be left unrestricted about their elected officials.” from these new regulations.” HBs 6183-88 quickly slid through The bills target nonprofit the House along party line votes corporations, such as Associated and now go to the Senate for Builders and Contractors, chambers consideration. of commerce, the National Rifle Association, Right to Life, AARP and the American Legion. The bills would allow organizations to Technical Hot & Cold spend money on Technical Hot & Cold advocacy efforts ▪Heating & Cooling ▪Refrigeration ▪Plumbing▪ for the millions of ▪Heating & Cooling ▪Refrigeration ▪Custom Fabrication & Sheet ▪Plumbing▪ Metal ▪ people each group ▪Custom Fabrication & Sheet Metal ▪Complete Building Services ▪ ▪ represents. The ▪Complete Building Services▪ ▪ ▪ Mechanical Contractor ▪ Mechanical Contractor ▪ bills would also 37667 Cherry Hill 1-888-828-8317 allow unions to 37667 Cherry Hill Westland, MI 48186 1-888-828-8317 Westland, MI 48186 continue funneling www.technicalhotandcold.com millions of dollars www.technicalhotandcold.com to preferred

Summer 2010 17

Legislative Wins ABC MI PAC has 90 percent success rate in primary

PAC Dollar Wins

10%

Wins

Losses

In the August 3, 2010 Michigan primary election race, ABC of Michigan PAC had a success rate of 90 percent in electing pro-Merit Shop candidates throughout the state. In addition, the ABC MI PAC dollars that were spent resulted in 98 percent success. These were PAC dollars targeted for support of candidates who will defend and advance the free enterprise philosophy of the Merit Shop. The ABC of Michigan PAC is a principled PAC, which means it supports only those candidates that go on record as supporting the

90%

98%

values, principles and core issues of our members. The ABCMI PAC uses a candidate questionnaire to determine which candidates are proMerit Shop. Watch for the ABC of Michigan Voters Guide in the fall issue of Michigan Merit to assure you and

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Michigan Merit

Directory 2010-11 correction: The named representative of Constructive Sheet Metal on page 127, 154, 169 and 172 should be listed as Tab DeJonge, tab@constructivesheetmetal.com. ABC of Michigan regrets any inconvenience.

Advertisers Index BCT Benefits.......................................................... 14 The BlueBook......................................................... 14 Capital Steel........................................................... 17 Gulf States, Inc......................................................... 2 J.E. Johnson........................................................... 19 Jackson Associates, Inc.......................................... 11 Kal-Blue................................................................... 16 Lezotte Miller Public Relations Inc.......................... 16 Mass Mutual Financial Group................................. 11 Pinnacle Insurance Partners................................... 13 Regency Group....................................................... 20 Rhoades McKee..................................................... 13 Smith Haughey Rice & Roegge.............................. 18 Summit Training Source............................................ 8 Technical Hot & Cold............................................... 17 Tradesmen International......................................... 11 Valenti Trobec Chandler, Inc.................................... 18 Welch Tile & Marble.................................................. 8 Wm. Molnar Roofing Inc........................................ 17

Discount Bulk Fuel Member Benefit If you are buying gasoline, diesel or dyed diesel in bulk, your ABC membership now saves you money.

Now ABC Members can save 10% off the margin per gallon of fuel through a special arrangement with four oil companies across the state. Over the course of the year that could add up to a significant savings for your company. l

This program covers diesel fuel, dyed-diesel and gasoline in bulk quantities. Covers wet-hosing, on-site fueling, above-ground and below-ground tanks. New and current ABC member customers of these vendors are both eligible for the discount. Vendors available across the state to serve the entire ABC of Michigan membership. These vendors are: Brenner Oil, Eiseler Oil, Foster Oil and Blarney Castle Oil. Members can also buy fuel at a fixed price for delivery over an extended period of time. This may allow you to bid jobs more accurately by locking in the price of fuel for the entire job.

Contact Brian Wohlscheid at (616) 218-3813 or brianw@brenneroil.com; or Mary Boardway at 517-853-2545 or boardway@abcmi.com to begin saving money on bulk fuel today! This is one more way that your ABC membership pays for itself. www.abcmi.com

Associated Builders and Contractores of

Michigan

Summer 2010 19

PRESORTED STANDARD U.S. POSTAGE PAID LANSING, MI PERMIT NO. 193

Associated Builders & Contractors of Michigan 120 N. Washington Square, Suite 805 Lansing, Michigan 48933

Take Control of Your Take Control of Your Workers’ Compensation Costs Take Control of Your Workers’ Compensation Costs

Workers’ Compensation Costs ABC of Michigan Self-Insured Workers’ ABC of Michigan Compensation Fund Self-Insured Workers’ • $2,300,000of Distributed to Participants in 2010 ABC Michigan Compensation Fund • Over $14.7 Million Returned Since 1995 Self-Insured Workers’

• $2,300,000 Distributed Participants in 2010 Members Average a 35%toReturn of Premium

Compensation Fund • Over $14.7 MillionLoss Returned 1995Services Industry-specific ControlSince & Safety • • • • • • •

Members Average a 35%toReturn of Premium Aggressive Claims Handling $2,300,000 Distributed Participants in 2010 Industry-specific Loss ControlSince & Safety Competitive Up Front Pricing Over $14.7 Million Returned 1995Services Aggressive Claims Handling Membership Required with an ABC of Members Average a 35% Return of Premium Competitive Up Front Michigan Chapter Industry-specific Loss Pricing Control & Safety Services Membership Required with an ABC of Aggressive Claims Handling Michigan Chapter Competitive Up Front Pricing Membership Required with an ABC of Michigan Chapter

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