SUMMER 2014
PUbLicaTioN oF aSSociaTED bUiLDERS aND coNTRacToRS oF micHiGaN
GOVERNOR SIGNS ABC BACKED EDUCAtION BIll Also:
A Foundation of Giving:
ABC Members Give Back to Communities Survey Results Show Construction Industry Improving Economic Outlook Forecasts Modest Growth in Industry w w w. a b c m i . c om
S UMMER 2014
1
EVERYTHING EXTERIOR SID ING - WIN DOW S
- GUT TER S - ROO FIN
O SIDINGW
G - DEC KIN G
R LD.COM
We’ve Got You
COVERED
VINYL WINDOWS
SIDING Certainteed Napco Exteria Quality Aluminum James Hardie
SANFORD
CLIO
FENTON
WATERFORD
ROOFING
CHESTERFIELD
MADISON HEIGHTS
Atlas Certainteed Inspire American Building Component Metal Sales Quality Aluminum
LIVONIA
BATTLE CREEK
DETROIT
JACKSON
WYANDOTTE INKSTER
KALAMAZOO SOUTH BEND
SEAMLESS ALUM GUTTERS 18 Colors in Stock Run To Any Length While U Wait
TOLEDO
GOSHEN
STONE ClipStone Ply Gem StoneCraft
SAGINAW
New Construction & Replacement Vinylmax Ply Gem Silverline Weathershield Pella Alliance Windows
ALUMINUM TRIM COIL 60 Colors in Stock Quality Aluminum Napco
SUBCONTRACTOR REFERRALS FOR YOUR PROJECT
If Your Subs Don’t Use SIDING WORLD You Are Probably Paying Too Much
CHECK US OUT!
6460 E. Eight Mile Rd Detroit, MI 48234 313.891.2902
11240 N. Saginaw Cilo, MI 48420 810.687.4730
5211 Williams Lake Rd Waterford, MI 48329 248.674.1300
30626 W. Eight Mile Rd Livonia, MI 48152 248.478.8984
3000 Middlebelt Rd Inkster, MI 48141 734.728.0400
562 S. Reynolds Rd Toledo, OH 43615 419.535.1100
2151 Eureka Rd Wyandotte, MI 48192 734.284.7171
5393 N. Michigan Rd Saginaw, MI 48604 989.754.3440
49599 N. Gratiot Chesterfield, MI 48051 586.598.7600
418 Blackport Rd Goshen, IN 46528 574.532.1591
517 Comstock Ave Kalamazoo, MI 49048 269.382.6260
3505 Ann Arbor Rd Jackson, MI 49202 517.764.0888
30391 Stephenson Hwy Madison Heights, MI 48071 248.585.9050
2262 Meridian Rd Sanford, MI 48657 989.687.7313
1605 W. Columbia Ave Battle Creek, MI 49015 269.969.2806
2
S U M M E R 2014
51236 SR-933 South Bend, IN 46637 574.272.8200
195 S. Alloy Dr Fenton, MI 48430 810.714.9300
mi cHiGaN mERiT
inside 4
Executive Perspective ABC and ABC members are making a lasting and positive difference in our communities and in the future workforce of our industry.
6
A Foundation of Giving: ABC Members’ Charity Helps Build Communities ABC members’ benevolence takes many forms and makes a lasting impact on individuals, families and organizations in their communities.
12
18
Economic Outlook Michigan construction industry volatility continues. Since 2010 the industry in our state has seen growth of about 8.8 percent.
22
ABC and MIOSHA Form Alliance to Promote Safety Public/private alliance will work to enhance safety in the state wide construction industry.
30
Get to Know Your lawmaker Meet the 81st District Representative Dan Lauwers (R-Brockway Twp.) and his constituent ABC Member Mike Grover from MDG Enterprises in St. Clair.
24
Government Affairs Governor signs Michigan Merit Curriculum revisions to promote student access to skilled trades training and career classes.
Legislature passes higher education budget which includes language requiring neutrality with regard to union organizing activities
VoLUmE Viii, iSSUE 3 ABC Members give of their time, money and skills to help improve their communities across the state.
e 5 ON THE COVER (L TO R): Brian Stadler, Wolgast Corporation, ABC of Michigan 2014 Board Chairman; Chris Fisher, President, ABC of Michigan; Governor Snyder; Perry Merlo, Merlo Construction, ABC Southeastern Michigan Chapter 2014 Board Chairman; and Mark Sawyer, w w w. aABC bcm i . c om Michigan Chapter. Photo courtesy of Mark Sawyer. President, Southeastern
Contractors See Evidence of Improving Construction Sector ABC member survey results support economic forecasts of improvement in the construction sector, the need for more qualified, skilled workers and more.
S UMMER 2014
3
ASSOCIATED BUILDERS and CONTRACTORS of MICHIGAN 2014 BOARD of DIRECtORS Brian Stadler, Chairman Wolgast Corporation Greater Michigan Chapter Dan Murphy, Vice-Chairman MAG Insulation Greater Michigan Chapter
ABC members support communities; New law will foster skilled trades careers
Dave Sheffield, Secretary-Treasurer Onslow-Sheffield, Inc. Southeastern Michigan Chapter Chris Beckering, Immediate Past Chair Pioneer Construction Western Michigan Chapter
This edition of Michigan Merit focuses on two important ways ABC and ABC members are making ABC members a lasting and positive around difference.
Jim Cripps Cripps Fontaine Excavating, Inc. Western Michigan Chapter Mike Houseman Wolverine Building Group Western Michigan Chapter Rick Jackson Jackson Associates, Inc. Southeastern Michigan Chapter Michael Marks The Mackenzie Companies Greater Michigan Chapter Dave Mollitor Consolidated Electrical Contractors Greater Michigan Chapter Bill Molnar Wm. Molnar Roofing Co., Inc. Southeastern Michigan Chapter Jack VandeGuchte Western Michigan Chapter Daniel Welch Welch Tile & Marble Company Western Michigan Chapter
Michigan are known for their hard work and the tremendous job they do building our state.
ABC members around Michigan are known for their hard work and the tremendous job they do building our state. In addition to building top quality construction, ABC members are also some of the most giving and community-driven people anywhere. Every year ABC member companies and their employees give back, volunteer and make a difference, which is a huge source of pride for us. This issue illustrates just a tip of the iceberg look at ABC making a positive difference in the lives of others, everyday.
MICHIGAN MERIt CONtRIBUtORS Publisher: Christopher Fisher Managing Editor: Mary Boardway, CAE Communications Coordinator: Elise Layton ABCMI Economist: Don Wilson Design and Printing: Keystone Millbrook Advertising: Strategic Value Media
ABC also makes a lasting impact through our commitment to education and training. On June 25th, after 18 months of lobbying and meeting with lawmakers, educators, businesses, parents and students, ABC of Michigan witnessed Gov. Snyder’s signing of legislation to strengthen Michigan high school graduation requirements. The new law will give students better opportunities to take relevant and rigorous vocational, career and technical education to prepare them for rewarding and much in demand skilled trades career opportunities.
Editorial: Lezotte Miller Public Relations Michigan Merit (ISSN# 1938-9051) is the official publication of Associated Builders and Contractors Inc. of Michigan (ABC of Michigan) and is published quarterly at 230 N. Washington Sq., Suite 202, Lansing, MI 48933, (517) 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
S U M M E R 2014
By standing up to improve the Michigan Merit Curriculum, Michigan lawmakers and Gov. Rick Snyder rightly affirmed that the four-year college path doesn’t have a monopoly on rigorous standards or relevance. When the legislation takes effect, Michigan will have a Twenty-First Century high school curriculum that prepares students for a four-year university, as well as for technical and trade schools. Here’s to all the ways ABC and our members are making a difference across our great state. Yours for the Merit Shop,
Chris Fisher mi cHiGaN mERiT
Now there is a new resource for construction hiring and job opportunities in Michigan, the Michigan Construction Job Center. Michigan Construction Job Center connects construction talent with great Michigan companies. Job seekers — upload your resume today so your talents and skills can gain you great new job opportunities. Construction employers — access this targeted and qualified pool of talent by advertising your jobs on the site or searching resumes by skill types. Employer Features • An affordable option that gives you the right candidates • Easy tools to post your positions • Search the resume bank — pay only for resumes of job seekers interested in your position • Set-up pre-screen filters to deliver the best candidates directly to you • Anonymity available if desired Job Seeker Features • Find open positions in construction • Free for job seekers • Get your resume in front of construction companies who are hiring • Increase your visibility in the industry • Anonymity available if desired • Let us do the job searching for you by setting up email job alerts
MICHIGAN CONSTRUCTION
CENTER
Where Great Contractors Hire Great People
Visit us at www.MIConstructionJobCenter.com EMPLOYERS: ONE FREE RESuME DOwNLOaD Use coupon code “RESUME” to receive one free resume download with your 30- or 60-day job posting.
Need more information? Call us at 517.853.2545 or email MIConstructionJobCenter@gmail.com.
w w w. a b c m i . c om
S UMMER 2014
5
6
S U M M E R 2014
m mii cHi cHiGaN GaN mERi mERiT T
ABC members’ charity helps build communities rick and mortar structures leave a tangible legacy of Associated Builders and Contractors of Michigan members’ impact on their communities, but another lasting contribution is the community support they provide across the state. ABC members’ benevolence takes many forms, from roofing companies that empower employees to perform — with little fanfare — basic repair jobs for low-income or elderly homeowners, to chapters that hold well-organized and heavily publicized fundraising events to draw attention to and raise money for the good deeds performed by charities. “There are countless examples of ABC of Michigan members who give back to their communities — far too many to mention in a single magazine article,” says Chris Fisher, president and CEO of ABC of Michigan, “although by spotlighting a few projects we can at least provide a sense of the collective difference the members of our organization make in people’s lives. I know from experience that our members are a bunch of doers, and if they see a need in the community, they go out and address it.” ABC Southeastern Michigan Chapter member Molnar Roofing replaced the roof on a house for a family whose father was paralyzed in a freak w w w. aaccident. b c m i . c om trampoline
S UMMER 2014
7
Community Construct, a nonprofit started by Erick Forshee of the Fisher Companies in Midland, built a ramp on this home in Midland.
ABC Cares Donna Puglisi, public relations manager for ABC National, said members’ charitable involvement ties in with the ABC mission statement, which reads in part that the organization works for “the betterment of the communities in which ABC and its members work.” Puglisi oversees the ABC Cares program, which for about 25 years has highlighted projects in which members and chapters throughout the country are involved, featuring them in videos and blogs. “It’s just kind of an interesting way to publicize the different organizations our members are involved in,” she said. The ABC Cares program also provides a toolkit to help members and chapters that don’t have their own marketing or public relations staffs craft news releases and media advisories about their projects or events. Much of members’ community outreach is related to construction, such as volunteering or donating materials to Habitat for Humanity, Puglisi said. “Our members are so highly skilled that it’s only natural they put their abilities to good use,” she said, “but they find plenty of other ways to give back too.” Making Dreams Come True Falling into the latter category is the annual fundraiser staged by ABC’s Greater Michigan Chapter for Make-A-Wish Michigan, which aims to fulfill wishes for children facing life-threatening illnesses. Rebecca Kaiser, the chapter’s director of marketing and communications, says members adopted the cause 29 years ago. “People felt there was a need and it just has stuck,” she 8
S U M M E R 2014
explains. “It’s been something that both ABC members and nonmembers have really rallied around.” The chapter stages an annual dinner/dance that includes a silent auction and raffle for the benefit of Make-A-Wish. Over the years, the event has raised nearly $500,000, allowing wishes to be granted to more than 90 children within the Great Lakes Bay Region. The chapter this spring was recognized by Make-A-Wish Michigan as one of 30 Leaders in Joy statewide, “community partners who have been game changers for our organization and impacted our ability to deliver our mission,” says Leah Borst, Make-A-Wish’s communications manager. Members of the public are invited to attend the dinner/dance, along with Make-A-Wish families. While the event certainly presents the ABC name in a good light — “some people who attend don’t know what ABC does, and this gives them the first taste of what we’re all about,” Kaiser says — the overriding cause is to raise awareness of Make-A-Wish. Answering the Call Not all community outreach is as formal as the Greater Michigan Chapter’s. “It’s not something we plan,” says Mark Sawyer, executive director of ABC’s Southeastern Michigan Chapter. “We’re all coming out of a tough time, but when the calls go out, we jump in.” Southeastern Michigan Chapter member Molnar Roofing of Riverview this year promptly answered a call that was transmitted through the ABC grapevine about a family that was in need. Former ABC of Michigan president Andrew Anuzis is cofounder of the private Cornerstone Schools in Detroit, where McKea Miller is a teacher. Her husband, Mike, was paralyzed in a freak accident during a birthday party at a trampoline jump gym in 2013. Anuzis informed Sawyer about repairs — including roof patching — needed to the family’s home in Warren and he spread the word to Southeastern Michigan Chapter members. Molnar volunteered to perform the roof work and wound up fulfilling far more than was originally requested. “The roof wasn’t completely shot, but it certainly wasn’t going to last a heck of a lot of longer, so we decided to give them an entirely new roof (valued at $15,000),” Robert Molnar, chief financial officer of the family-owned company, explains. “It’s long been a philosophy of our family that we’re willing to help out people who are willing to help themselves.” Molnar said he was impressed by the Miller family’s positive and grateful attitude. Molnar asked employees to donate their time for a weekend in March to complete the Miller project. He offered each one a $50 m mii cHi cHiGaN GaN mERi mERiT T
gift card as an incentive. Many of the 26 employees who showed up told him to keep the card and give it to the family. Molnar Roofing has also lent its skills to the Detroit Mercy School of Law, for which it replaced the roof on a renovated building that now houses the school’s 10 legal aid clinics in downtown Detroit. That donation, valued at $45,000, held special meaning for Molnar, a graduate of the law school. The company also routinely performs several smaller-scale gratis repairs for elderly or low-income homeowners. “We tell our crews that if it’s something small, like replacing a few shingles in an hour or two, to just go ahead and do it,” he notes. “Charitable work is something we’re probably known for a little bit. It’s just doing your part. If you know somebody that needs help and you’re in a position to do it, why not?” Filling Several Needs Erick Forshee aims to benefit multiple segments of society through his Community Construct organization, which he created four years ago in Midland. The nonprofit has completed such projects as ramps for handicapped residents, rebuilt porches for indigent families, benches for local baseball fields and a Humvee-shaped bed (complete with toy box) that was sold to raise funds for a women’s shelter. Just as important as the projects themselves, however, is the labor used – area high school students, including those enrolled in ABC Greater Michigan Chapter’s Jump Start program, which introduces kids to careers in the construction industry; and youth assigned to the local juvenile detention center. “A major intention was to help kids complete something and see some fulfillment,” Forshee, director of environmental health and safety at Midlandbased Fisher Companies, explains. “What’s really neat is for these kids to see what they’ve done for a family.” Families assisted by Community Construct are grateful for the help, including the mother of a young handicapped girl for whom the organization built a ramp. w w w. a b c m i . c om
TOP: An auction is part of the annual fund raising effort the Greater Michigan Chapter undertakes for Make-A-Wish Michigan. BOTTOM: ABC Western Michigan Chapter member Buist Electric operates a food pantry that serves residents of southern Kent County.
S UMMER U MMER 2014
9
Community Construct uses youth, including some assigned to a juvenile detention facility, to complete construction projects throughout the Midland area, such as the ramp to this house
10
S U M M E R 2014
“When we told her we could help her, she just broke out in tears,” Forshee recalls, adding that area firefighters also appreciate the organization’s efforts because the projects help ensure access to homes. Beyond benefiting the general community and potentially putting some youth on the right path, Forshee’s aim with Community Construct is to boost the local construction industry by helping to train a new generation of workers. “I thought it was a neat way to combine it all.” Buist Electric of Byron Center, a member of ABC’s Western Michigan Chapter, also aims for wide-reaching impact with its charitable initiatives. Its community outreach, based on Christian principles, is performed in three primary ways: corporate giving (the company aims to donate 15 percent of annual profits to charities), the Buist Community Assistance Center (a pantry that supplies food and clothing to needy residents of southern Kent County) and the Buist Foundation (which provides financial assistance, such as covering auto repairs, rent payments or utility bills for families in need).
mi cHiGaN mERiT
On top of all that, to celebrate its 50th anniversary in 2014, Buist is making $200,000 in grant funds available to nonprofit organizations and individuals in need. “The culture of our company is pretty unique,” explains Brent Brinks, Buist vice president. “Leadership in our whole organization is really geared toward serving other people. You won’t see a press release about it. You won’t see us bragging about what we’re doing. We do it because we just genuinely care about people.” One beneficiary of Buist’s giving agrees. “They are very unique,” says Bernita Tuinenga, co-executive director of Volunteers in Service, a Grand Rapids organization that links volunteers from area churches with community organizations. “They’re very concerned about the needs of the community.” Tuinenga says a recent grant from Buist will allow the organization to add staff and further its work — including providing volunteers for the Buist Community Assistance Center, which was the brainchild of company founder Larry Buist. “His passion is the pantry,” Brinks explains. “It started with us sponsoring a mobile food pantry with trucks from Feeding America, and then it turned into wanting to do more.” Larry Buist owns the 7,500-square-foot Byron Center building in which he opened the pantry five years ago. It now benefits an average of 250 families a week and distributes 2.5 million pounds of food annually. Buist employees also are integral to the company’s charitable giving. The Buist Foundation is funded by employee donations (about $20,000 a year) and the sale of the company’s scrap copper (about $300,000 annually). A byproduct of the company’s charitable mission is a motivated, productive workforce — which in turn leads to greater profits for funding additional good works. “To work here, you’ve got to have the right values,” Brinks notes. “I’d say we have 280 people who are very appreciative of our culture.” MM w w w. a b c m i . c om
TOP: ABC Western Michigan Chapter member Buist Electric sells its scrap copper to fund a foundation that supports charitable causes. BOTTOM: About 50 Molnar Roofing employees volunteered their time on a Saturday in March to replace the roof of a house for a family whose father was paralyzed. OPPOSITE: ABC’s Greater Michigan Chapter has raised nearly $500,000 over the years by staging a fund raising ball for Make-A-Wish Michigan.
S UMMER U MMER 2014
11
article
F E At U R E
Contractors see evidence of improving construction sector
M
ichigan’s construction economy is coming back, say an overwhelming number of Associated Builders and Contractors of Michigan members. A survey conducted during May 2014 found that contractors have improving confidence in the state’s economy – almost seventy-five percent believe the state’s economy has gotten better during the past year and most say that business has improved specifically for their own construction companies. Optimism on the part of Michigan’s construction industry leaders is fueled by many factors, but contractors noted an increase in private sector projects over the past year, more activity in the commercial sector and greater access to capital. “The results clearly speak to an improving business climate, thanks to the pro-growth policies put into place by the current legislature and administration,” says Chris Fisher, ABC of Michigan president. “It’s encouraging to see ABC members with higher confidence in the economy and more skilled workers with jobs. However, unfinished legislative
12
S U M M E R 2014
What’s your current biggest obstacle to doing business? Health insurance for employees, 8.5%
Other, 5.1%
Compliance with regulations, 3.4% Getting paid for projects, 5.9%
Bid opportunities, 16.1%
Bid opportunities / getting jobs Labor problems on the job site, 1.7% Labor problems on the job site
Staffing problems (inability to find skil workers or adequate workers) Increasing / increased costs of doing business Getting paid for projects Increased costs of doing business, 22%
Staffing difficulties, 37.3%
Safety concerns
CHART 1 Compliance with regulations
business is continuing to have a realworld impact – contractors are still seeing the impact of regulatory over-reach and Michigan’s burdensome Prevailing Wage law.” Members note that there’s still work to do - more than eighty percent of contractors noted that Michigan’s prevailing wage law is a hindrance to their companies’ growth. An additional
10% support a more reasonable reform of the law, with “a ‘real prevailing wage’, not Finding or affording health insurance union contract rates.” health benefits for your employees Skilled workers are in high demand amongst ABC members, with about sixty percent of contractors indicating that their demand for workers has increased in the past year. On the other hand, the Affordable Care Act (ACA), more popularly known as “Obamacare,” was
mi cHiGaN mERiT
article
F E At U R E
noted by about half of members to have had a negative impact on construction companies’ hiring practices, and about twenty percent of contractors had also noted the law’s negative impact on their customer base. Construction Economic Comeback – Improving Climate, Still Work to Do More than seventy-five percent of contractors say they believe Michigan’s overall economy has gotten better, while twenty percent say it has remained the same and only about 5 percent maintain it has gotten worse in the past year. As for their own business, around 60 percent said they have seen improvement, thirty percent responded that it is about the same and 9 percent said things have gotten worse (see chart 1). Private sector work has increased (about half of contractors have said they’re doing more work now than they were a year ago); and, at the same time, public sector work has remained steady. This correlates directly to the fact that about two-thirds of the contractors responding noted evidence of an improving overall nonresidential construction market, while only 7 percent answered that the nonresidential market has gotten worse. About a third of respondents said their current backlog is higher than a year ago, and more than half expect it to increase. The average backlog is about four months for most
Overall Michigan economy About the same,
19.1%
Worse,
5.5%
Better,
75.5%
CHART 2
Michigan contractors. Correlating with higher materials costs and higher labor costs, contractors noted that their prices quoted have also increased, although, interestingly, about 5% note that their prices are lower than a year ago. On the financing front, almost sixty percent said access to capital has remained the same during past year, but a strong thirty-five percent said financing options have increased from a year ago and only 8 percent said financing has gotten worse. Perhaps unsurprisingly, the same segment of respondents who
have seen less financing options have also noted that they perceive a decline in their businesses, the non-residential construction market, and the Michigan economy as a whole. Respondents were asked to identify their single biggest obstacle to growth (chart 2).The two biggest problems identified were: staffing difficulties (like finding and keeping qualified workers), at around forty percent, and the increasing costs of doing business overall. Other issues that contractors spend significant time managing include
{Within reach.} Helping you achieve your goals is our highest priority. For more than 87 years, our CPAs, consultants, and strategic business advisors have placed their clients’ interests first. That’s why working with us gives you confidence and puts your challenges into perspective. Helping you reach lofty goals is
a higher return on experience.
Thomas Doyle 248.223.3402 thomas.doyle@plantemoran.com plantemoran.com
w w w. a b c m i . c om
S UMMER 2014
13
article
F E At U R E
finding bid opportunities and providing health insurance to workers. Several respondents who chose the open-ended “other” response indicated that union interference was a big problem for the growth of their business. Contractors were also asked to identify what takes the most time out of their day. About half of contractors indicated that business development was the largest consumer of their time each day. The next largest segment was simply managing employees at about forty percent. Regulatory compliance and financial management are two additional areas upon which managers spend a lot of time. Caution: (Not Enough) Men or Women Working As business improves for most ABC members, however, they say they face worker shortages, with about sixty percent needing to hire additional workers during the past 12 months; finding qualified workers in a resurgent economy remains problematic. Only 7 percent needed fewer employees this year than last year. As mentioned previously, contractor decision-makers said that finding and retaining skilled workers was a top concern (right after the normal dayto-day administration and operations) – see chart 3. Michigan’s construction workforce
Amount of skilled workers needed (over the past 12 months): No change, 31.8%
Needed more workers, 60.7%
Needed fewer workers, 7.5% CHART 3
needs more skilled workers. Not only are construction companies seeing a lack in the amount of workers that they currently have, an even greater number (seventythree percent) said they anticipated needing even more workers over the next 12 months. Less than 2 percent said they’d need fewer workers. “The shortage of qualified employees is a result of the aging workforce with Baby Boomers reaching retirement age,
the recent recession that sent many workers seeking jobs outside of Michigan and education policies that favored encouraging college degrees over trade, technical and vocational education,” Fisher explains. “We lost several thousand qualified construction workers when the recession dried up the market a few years ago. While experienced workers retire, not enough of the younger generation has stepped up to fill the demand.”
Access America’s Top Skilled Craftsmen. Call our office nearest you to access Safe and Productive Craftsmen! Detroit: 877.511.0006 Grand Rapids: 877.942.8933 Kalamazoo: 877.345.3950 Lansing: 888.694.1511 Midland: 877.866.8761 14
S U M M E R 2014
Productivity is Our Priority
tradesmeninternational.com mi cHiGaN mERiT
article
F E At U R E
Even though more workers are needed, Obamacare stunts hiring Nearly half of respondents said the Affordable Care Act (ACA), more popularly known as “Obamacare,” has negatively impacted their hiring decisions. Some contractors also view Obamacare as having a negative impact on their customer base – about 20% of respondents believe that the Affordable Care Act has had an impact on their customer base (and again, the response was unanimously negative). Combined with the knowledge that finding and providing healthcare coverage is a top concern for business owners, it is reasonable to assume that the ACA has increased business owners’ management time and created a stunted hiring environment, even in a field with great hiring potential.
contractors primarily joined abc because of their belief in the merit shop philosophy, the benefit programs offered and education and training opportunities. ABC members united around Merit Shop Philosophy, importance of education and training Contractors were asked why they joined ABC. Belief in the merit shop was the top choice with about two-thirds indicating that they joined because of their common belief in the Merit Shop philosophy of high-quality, affordable, safe and on-time construction. Other
benefits are a common theme for members – the ABC of Michigan SelfInsured Workers Compensation Fund is a big draw, and government affairs representation also placed in the top three. Interestingly, education and training along with apprenticeship training made up about fifty percent combined, placing it second behind the Merit Shop philosophy.
Brook Wood President
260 E. Oak P.O. Box 609 Harrison, Michigan 48625
: (989) 539-1720 : (989) 539-1775 : (989) 429-4077 : brook@mannconstruction.net
1-800-890-8745
WWW.GARBERCHEVY.COM
THE LARGEST WORK-READY, UP-FIT COMMERCIAL INVENTORY IN NORTHERN MICHIGAN WORK TRUCKS • WORK VANS • DUMP TRUCKS • SERVICE BODIES • UTILITY BODIES • CUBE VANS • PLOW TRUCKS • SPECIALTY TRUCK EQUIPMENT
GARBER CHEVROLET INC. 1700 N. Saginaw Rd. Midland,MI
w w w. a b c m i . c om
Brian Strong, Fleet and Commercial Sales Manager
S UMMER 2014
15
article
F E At U R E
Why did you join ABC? Answer Options................................................. Response Percent Belief in merit shop philosophy............................................ 66.4% Workers compensation program ............................................ 50.5% Government affairs representation ........................................ 38.3% To establish or increase my business relationships .......... 35.5% Labor relations assistance ...................................................... 34.6% Other education & training .................................................... 25.2% Apprenticeship training............................................................ 24.3% Member benefits – other than workers comp................... 16.8% Encouraged by an ABC member ........................................... 16.8%
ABC contractor members were asked about the markets that they do business in; eighty percent chose to quantify their business as operating solely in the commercial market, while thirty-eight percent indicated more specialized work in the manufacturing market and thirty-five percent in the office and warehouse market. Other markets included government, healthcare, and civil infrastructure. Nearly half of survey respondents own companies with 11 to 50 employees. About a quarter have 10 or fewer workers and another quarter employ more than 50 employees. The survey was distributed electronically and via fax to 563 member companies. With 120 respondents, the survey had a 21 percent response rate, far above the response rate necessary to be considered “statistically significant.” Thanks to all the contractor members who participated in this survey, helping to shape the policy and direction of ABC of Michigan. MM
For more information, contact the ABC of Michigan offices at (517) 853-2545 or visit www.abcmi.com.
Other ............................................................................................ 1.9%
Authorized Dealer
›› Heating ›› Air Conditioning ›› Ventilation Systems
A Licensed Mechanical Contractor Sales • Service • Installation
Residential • Commercial • Industrial
P.O. Box 130230 • Ann Arbor, MI 48113 Phone: 734.769.8545 • Fax: 734.769.8546 ›› Commercial Kitchens www.qualityairesystems.com • Qaire@aol.com
›› Sheet Metal Fabrication
16
S U M M E R 2014
mi cHiGaN mERiT
Times may be tough. But therE's a brighter tomorrow. In the construction industry, seasonal layoffs can impact your employees’ family lives and job morale.
periods of unemployment. and accessible trust account to draw upon when hard times occur.
www.BCTBenefitPlans.com 877-wage-bct
Contact us today for a free savings analysis, and we will show you how bright the upside of prevailing wage can be.
Innovation, Integrity, Teamwork... We Build Trust
General Contractor Design/Build Rough & Finish Carpentry Commercial & Residential
Grand Rapids, MI 49534 Fax: 616-735-3159
CONSTRUCTION GROUP p: 989.205.0487 f: 989.689.1025 PO Box 2410 Midland, MI 48641
INC.
4346 Leonard St. NW Phone: 616-735-3990
cdiconstructiongroup.com
Bay Dust Control DIV. of
LIQUID CALCIUM CHLORIDE SALES, INC.
JIMCO FIRE PROTECTION, INC.
2715 S. Huron Rd. - Kawkawlin, MI 48631 LIQUIDOW™ • DOWFLAKE™ • PELADOW™
P.O. Box 568, 313 N. Court St. • Au Gres, MI 48703
(Concrete Additive • Ice Control • Dust Control) liquidcalciumchloride.com
Phone: (989) 876-6566 Fax (989) 876-7606 jimco@jimcofire.com
(989) 684-5860 Fax (989) 684-9953 rodgerard@gerardgroup.info
ROD GERARD Operations Manager
RAMS UP TO THE 5500 MODELS RAM PROMASTER VANS CHRYSLERS, DODGES, JEEPS PHONE 989-77DODGE HERITAGE AUTOMALL, INC. MT PLEASANT
INDUSTRIAL & CONTRACTOR SUPPLIES TOOLS FOR: IRONWORKERS*MILLWRIGHTS*CARPENTERS*PLUMBERS*ELECTRICIANS KLEIN*KNOXFIT*OCCIDENTAL LEATHER*RIDGID*PROTO*MSA SAFETY EQUIPMENT*SLINGS*GIANT SOCKETS & WRENCHES
Great Lakes Industrial Supply 6612 N. Telegraph Rd. Dearborn Heights, MI 48127 ID
ICHIGAN ATERIALS, INC.
Phone: (313) 274-9800 Fax: (313) 274-7849
MidMichMat.com
O: (810) 327-6251 F: (810) 327-6037 general@MidMichMat.com Concrete & Asphalt Aggregates • Sand & Gravel 6966 Fisher Rd. • Jeddo, MI 48032
SAGINAW
ALPENA
Scientific Brake & Equipment
7230 M-32 West, 49707 (989) 379-2750 (800) 262-9353 Fax (989) 379-4288
Bob Koster Jr.
GAYLORD
314 W. Genesee Ave. 48602 1455 Dickerson Rd. 49735 (989) 755-4411 (989) 732-7507 (800) 292-0235 (800) 292-3081 Fax (989) 753- 3020 Fax (989) 732-6124
MT. PLEASANT
560 W. Pickard St. 48858 (989) 817-4200 Fax (989) 220-4338
Plumbing Co., Inc. COMMERCIAL - RESIDENTIAL Email: rkoster@ksplumbing.com
3115 Dixie SW Grandville, MI 49418
w w w. a b c m i . c om
www.ExcelElectricInc.com Toll Free: (877) 283-3450 Phone: (616) 532-9575 Fax: (616) 532-3632 Contracting – Service – Design – Electrical Excellence – Since 1983 S UMMER 2014 17
Development
BUSINESS
Michigan construction industry volatility continues Unemployment is estimated to have fallen to around 14.5 percent in Michigan in 2013...down from 16.7 percent in 2012 and 19.5 percent in 2011. by Don Wilson Contractors in Michigan shed about 70,200 workers from their payrolls between 2004 — when the value of all construction put into place in the state last peaked — and 2010, when
• • • •
• • • •
•
it bottomed out 35 percent lower following the housing bubble bust and credit crunch accompanying the Great Recession, an analysis of federal government data shows. The employment falloff was primarily due to an 83 percent dive in housing from 2004 to 2009 and a 35 percent
• • •
decline in commercial work between 2008 and 2011, which was partially offset by a 24 percent increase in infrastructure work between 2006 and 2010. As a result, the number of people furloughed or fired from jobs in construction increased to 23.7 percent of the state’s resident construction labor
• • • • •
Get Connected to the Industry’s Largest Network and Build Your Business! More Exposure! More Opportunities! More Productivity!
Visit: www.thebluebook.com/build-biz Call: 800-431-2584 18
S U M M E R 2014
mi cHiGaN mERiT
Development
BUSINESS
force, or 71,000 people in 2009, and then rose again to a 24.8 percent jobless level in 2010. That rate was higher than the 22.8 percent that prevailed across the Great Lakes region, which consists of Michigan, Indiana, Ohio, Illinois and Wisconsin. No data is tabulated about how many former workers in the construction industry are not looking for a job or are discouraged and have given up seeking industry re-entry. The moderate 8.8 percent growth in construction jobs between 2010 and 2013 (portrayed in Exhibit No. 1) reflects how the residential real estate and home building market − a driver of the much faster pace of earlier recoveries − has been restrained by various factors during the current slow-motion recovery. The most significant factors affecting housing include: 1) The overhang of an excessive inventory of foreclosed residential properties; 2) The slow pace of household formation, limiting the number of first-time buyers (down significantly from prior recovery periods) 3) The proportion of homeowners with mortgages underwater (31 percent across Michigan as of the end of 2013) and the more moderate proportion with 20 percent or less equity in their homes, which minimizes the number of potential move-up homeowners; 4) The many small builders finding it hard
Awards Barometer (2007= ! 100) / Employment! (000) / Workers Looking! For Jobs (000)! 250!
200!
MICHIGAN LABOR FORCE TRENDS & CONSTRUCTION ACTIVITY !
EXHIBIT # 1! State & Regional ! Unemployment Rate (%) ! 30!
Construction Contract Awards Barometer! Employment! Unemployed Workers Looking for Jobs! State Unemployment Rate! Great Lakes Region Unemployment Rate!
25!
20! 150! 15! 100! 10!
50!
0!
5!
Source: Bureau of Labor Statistics & Mc Graw - Hill! 04!
05!
06!
07!
08!
09!
10 !
11!
12!
13 Est.!
0!
Exhibit No. 1 compares employment (or the number of jobs in Michigan’s construction industry) with the number in the state’s unemployed in resident labor force (identified as having worked in construction and looking for rehiring in construction), their unemployment rate, the Great Lakes region’s construction industry unemployment rate and a barometer of the value of contract awards for all types of construction − residential and nonresidential building and non-building infrastructure projects.
to obtain loans to build homes due to the number in their ranks going out of business during the financial crisis; and 5) The increase in wariness on the part of lenders. In nonresidential construction, activity has been stifled by: 1) the sluggish growth in employment accompanying the
current recovery; 2) The slack decline in building vacancy due to overbuilding of space during earlier time periods; and 3) An increase in lending standards on the part of banks, insurance companies and other types of lenders. Unemployment is estimated to have fallen to around 14.5 percent in Michigan
JGM Machinery Movers
• Rigging • Plant Relocation • Heavy Hauling • Machinery Storage • Project Management • Full Turnkey Installation • Millwright Services • Fabrication & Welding • Custom Crating • Industrial Electrical • Laser Alignment
JGM Machinery Movers has over thirty years of experience in providing industrial relocation services on a turn key basis with a specialty of serving the automotive and automotive supplier industries.
10271 State Road Otisville, Michigan 48463 w w w. a b c m i . c om
www.jgmmachinerymovers.com
810-631-8816 Office 810-631-4938 Fax S UMMER 2014
19
Development
BUSINESS
in 2013 (based on partially available preliminary data), down from 16.7 percent in 2012 and 19.5 percent in 2011. That compares with an estimated 13 percent joblessness across the Great Lakes region in 2013, 14.9 percent in 2012 and 16.9 percent in 2011. Outlook for 2014 should outpace 2013 Construction industry employment was 1.8 percent lower in 2014’s first quarter than 2013’s corresponding period due to the severity of the winter weather. Employment could climb above 2013 levels, however, if indicators continue to be positive. Contract awards for start of future construction during the first quarter were up 31 percent from year-ago levels, according to data gathered and published by McGrawHill’s Construction Division. Although nonresidential building awards were 31 percent below year-ago levels, residential building was up 13 percent and infrastructure projects were a net 165 percent higher. According to the March 3, 2013 Crain’s Detroit Business (“Building Demand”) 8.4 million square feet of build-to-suit office space is proposed and 8.5 million square feet of industrial space construction is under consideration in southeastern Michigan’s Livingston, Macomb, Oakland, Washtenaw and Wayne counties (Information supplied to Crain’s by Washington, D.C.-based real estate information service Co-Star Group Inc.) Quantities compare
with just 100 square feet of southeastern Michigan office space built in 2013 and 200 feet in 2012 and 700 square feet of industrial space built in 2013 and 2012. Occupational data shows fewer construction workers The collapse in Michigan’s residential real estate market between 2005 and 2011 and the plunge in all types of construction between 2004 and 2010 resulted in 137,000 fewer people identifying themselves as formerly employed in construction. Many left Michigan’s construction labor force to train or join another industry or emigrated from the state. The U.S. Bureau of Labor Statistics does not track the year-toyear number and change in the construction industry labor force residing in a state (those holding jobs, those without a job but actively looking for industry rehiring, those currently not looking or those discouraged and not looking) in specific trades or in other job titles. It does, however, conduct annual surveys of employers to identify employment by occupation in 45 types of jobs in the construction industry. A comparison of the number in those jobs and their average hourly wage rate in 2004, 2010 and 2013, the latest year tabulated, are listed in Table No. 1. MM Prepared by Donald E. Wilson, a consulting economist, with offices in Hartland, Michigan, who specializes in economic and business research for trade associations and banks.
4964 Technical Drive Milford, Michigan 48381
Ready Mixed Concrete
Contact Perry or Ray Merlo
Call 248-714-5486 Fax 248-714-5249
For all of your commercial insurance and bonding needs we’re here to help you succeed.
Call 800.837.2601 2929 Spring Arbor Rd. Jackson, MI 49204
517.787.2600 800.837.2601
TELEBELT MATERIAL PL ACEMENT SERVICE SAGINAW PLANT CARO PLANT 1701 N. First St. 1342 Prospect PH (989) 754-6589 PH (989) 672-6589 Fax (989) 754-5551 Fax (989) 672-5551
DESIGN AND BUILD SPECIALIST * INDUSTRIAL * COMMERCIAL RESIDENTIAL * GENERATORS * COMMUNICATIONS 3079 E COMMERCIAL DR OFFICE: 989-835-2154 P.O. BOX 2264 VALLEY ELECTRIC WEBSITE FAX: 989-835-2693 www.valleyelectricalmidland.com MIDLAND, MI 48641-2264
8 00 -4 19 -51 99
20
S U M M E R 2014
mi cHiGaN mERiT
B UILDING
A SUCCESSFUL BUSINESS
TAKES THE PROPER PLAN AND TOOLS, ALONG WITH EXPERIENCED PROFESSIONALS TO PIECE IT ALL TOGETHER
M I K E W A A L K E S · L I G H T H O U S E G R O U P. N E T 800.344.3531 EXT 7812
for where you are, Accounting and Audit • Tax • IT Consulting • Succession Planning • Business Valuations • Cost Reduction Programs • Cost Segregation Studies • Retirement Plan
for where you’re going.
Development & Evaluation • Bonding/Surety Assistance • Entity Selections
888.754.8478 • www.ahpplc.com
BENEFITS · BUSINESS · LIFE · PERSONAL · TITLE
Auburn Hills • Bay City • Grand Rapids • Greater Lansing • Midland • Saginaw
Insurance for the
Construction Industry Valenti Trobec Chandler, Inc.
1175 West Long Lake Road, Suite 200 Troy, MI 48098 (248) 828-3377 www.vtcins.com
37000 Grand River, Suite 150 Farmington Hills, MI 48335 (248) 471-0970 www.gswins.com Representing:
w w w. a b c m i . c om
S UMMER 2014
21
News
INDUStRY
ABC/MIOSHA alliance to ensure safer construction industry In order to enhance communication and share resources, Associated Builders and Contractors of Michigan (ABC) signed a partnership agreement with Michigan Occupation Safety and Health Administration (MIOSHA). The public/private alliance will work to enhance safety in the industry for the statewide Michigan construction workforce employed by ABC firms. “Our partnership will offer additional resources to ABC members who strive everyday to provide a safe workplace,” says Chris Fisher, ABC president. “With more direct communication from MIOSHA, contractors can better stay up-to-date on best practices and trends in workplace safety. At the same time, our
22
S U M M E R 2014
members can provide feedback and alert MIOSHA to changing needs in the construction industry.” MIOSHA and ABC-affiliated businesses will work collaboratively on training to reduce workers’ exposure to safety hazards, including forums, roundtable discussions and stakeholder meetings. Construction companies will also continue to gain access to ABC’s nationwide “STEP” program, which provides participants ways to measure the effectiveness of their safety procedures. “Working more closely together through a public/private alliance is a more advanced strategy for improving safety,” Fisher
m mii cHi cHiGaN GaN mERi mERiT T
News
INDUStRY
explains. “Communication and information sharing is key to a safer workplace.” “We are pleased to join with ABC of Michigan to protect our working men and women,” said MIOSHA Director Martha Yoder. “The alliance offers great opportunities to provide needed training and help create safer and healthier workplaces throughout Michigan.” MM .
MIOSHA leaders and ABC leaders meet to sign a new alliance agreement. From left to right: William Lykes, MIOSHA Departmental Director ; Martha Yoder, MIOSHA Director; Barton Pickelman, MIOSHA Deputy Director; Nella Davis-Ray, MIOSHA CET Division Director; David Mollitor, ABC of Michigan Board Member; Norm Brady, ABC Western Michigan Chapter President; Mark Sawyer, ABC Southeastern Michigan Chapter President; Perry Merlo, 2014 ABC Southeastern Michigan Chapter Chairman; Chris Fisher, ABC of Michigan President; Jimmy Greene, ABC Greater Michigan Chapter President; and Paul Lemley, 2014 Western Michigan Chapter Chairman. BELOW: MIOSHA and ABC leaders sign the Alliance agreement on June 24, 2014. Photos courtesy of Mark Sawyer.
w w w. a b c m i . c om
S UMMER U MMER 2014
23
affairs
GOVERNMENt
ABC Commends Gov. snyder And LAwmAkers FoR cHaNGiNG micHiGaN mERiT cURRicULUm, ENcoURaGiNG STUDENT SUccESS iN REwaRDiNG caREERS
Governor Snyder addresses students, legislators and ABC members at Dakota High School in Macomb prior to the bill signing. INSET: Chris Fisher introduces the Governor. Photos courtesy of Mark Sawyer.
www.waterworks.hdsupply.com 6575 23 Mile Road Shelby Twp, MI 48316 P 586-323-8800 F 586-323-8812 24
S U M M E R 2014
4901 Dewitt Canton, MI 48188 P 734-398-5950 F 734-398-5970 mi cHiGaN mERiT
affairs
GOVERNMENt
A
ssociated Builders and Contractors of Michigan (ABC) applauded Gov. Rick Snyder and Michigan lawmakers from both parties for adopting a more flexible Michigan Merit Curriculum to give students, parents, and school districts more options for success. The improved standards, which incorporate House Bill 4465 sponsored by Rep. Ed McBroom (R-Vulcan) and House Bill 4466 sponsored by Rep. Joel Johnson (R-Clare), result in greater flexibility for Michigan students to take classes that prepare them for technical and skilled trades careers. Leading Michigan industries like construction, manufacturing, agriculture, and technology, which rely on skilled workers, also benefit with this greater emphasis on flexibility for students to choose in high school if they could benefit from relevant vocational skills. “We know how important career-technical education classes can be to providing students with valuable skills that they can build upon for good jobs,” Gov. Snyder said. “These bills allow districts to have flexibility in the Michigan Merit Curriculum (MMC) requirements, so schools can weave material from algebra 2 and some other high-level, required classes into career tech programs. The goal is to incorporate real-life applications to some of these courses while maintaining the necessary rigor.” “Michigan’s students need to have the opportunity to pursue rigorous job training and vocational skills while they are in high school,” said Chris Fisher, president and CEO of ABC of
GLSTC is a Member-Based Organization Committed to Safety!
TRUEBLUE The Leader in Blue Collar Staffing
Corey Woodward Branch Manager
GLSTC SERVICES:
Instructor Led Classroom Training • Computer-Based Training State-of-the-Art Hands-On Lab • Safety Auditing and Consulting • Background Checks • Customized Safety Services • And Much More! • •
989.837.2332 Call or visit us online for more information!
www.glstc.org
Michigan. “Strengthening Michigan high school graduation requirements by allowing greater access to vocational education and CTE opportunities in high school prepares kids for rewarding skilled trades careers that are in high demand.” Rep. McBroom commented: “It is great to see recognition of and action on a fact that many teachers, students, parents, and employers around the state have long maintained about the MMC – it has been too rigid, with only one supposedly-perfect curriculum for all students. These changes will hopefully lead to a complete recognition that the value of a class must take into account the passions and interests of the student coupled with the real world opportunities they wish to pursue. Whether it is a doctorate in astrophysics; or training and certification in plumbing and pipe-fitting; or a four-year music education degree, students need the flexibility to maximize their limited credit hours during their four years in high school.” “With state mandates as they were, students have not had the time available in their schedules to pursue rigorous trades programs,” said Rep. Johnson. “This legislation will open numerous doors so that young people can consider all possible options in planning for their future careers.” Fisher noted that “the revisions signed today improve the Michigan Merit Curriculum by rightly affirming that the four-year college path doesn’t have a monopoly on rigorous standards or relevance. When they take effect, Michigan will have a twenty-first
Preparing People to Live Safely Every Day!
BROTHERS & BRICKS LLC
INDUSTRIAL COMMERCIAL RESIDENTIAL AGRICULTURAL
SCHEIDEL ELECTRIC, INC. Bus. (616) 866-0192 7137 CHILDSDALE, N.E. ROCKFORD, MICH. 49341
John
w w w. a b c m i . c om
Mike
2235 West Rd., Trenton, MI 48183 | w: 734-362-0580 | c: 636-614-6263 cwoodward@laborready.com | www.laborready.com | NYSE: TBI TRANSPORTATION & LOGISTICS MANUFACTURING Drivers & Warehouse Staff Production Workers SERVICE INDUSTRY STAFFING CONSTRUCTION Retail | Hospitality | Events | Disaster Recovery General Labor & Skilled Trades
Steve
Specialized Masonry Services
Cody Muirhead | codymuirhead@brothersandbricks.com 248.807.1023 | 3507 South Hill Road, Milford, MI 48381 Services include: Specialty brick & block work/repair • Tuckpointing • Crack & Leak repair Stone work • Specialized pre-manufactured masonry panels • AAC (aerated autoclaved concrete)
S UMMER 2014
25
affairs
GOVERNMENt
century high school curriculum that prepares kids for four-year universities, as well as for technical and trade schools.” The State of Michigan and the U.S. Bureau of Labor Statistics both expect skilled and technical careers in industries like construction to be in high demand over the next decade. The state of Michigan alone predicts that demand for skilled trades jobs will be increasing by at least 7.4 percent by the end of the current decade. For many skilled trade industries the demand is much higher: construction (25.3 percent), transportation (54.5 percent) and production (17.3 percent). The U.S. Bureau of Labor Statistics predicts fast growth in the number of skilled trades jobs over the next decade as well – with the construction industry anticipated to grow at more than twice the national average growth rate. Legislative action praised by ABC of Michigan Passage of higher education budget language on June 5 to deter public universities from engaging in unionizing activities is the right move, according to Associated Builders and Contractors of Michigan, which pushed for a legislative response after learning recently that Michigan State University had taken over an AFL-CIO program. “The classrooms of public universities should not be sites where union officials plan efforts to infiltrate private companies,” says Chris Fisher, ABC of Michigan president/CEO. “It’s not an
appropriate use of taxpayer funds.” Language in a conference report requiring neutrality with regard to union organizing activities is part of the 2014/2015 Higher Education budget recommendation, now on its way for final legislative approval. It addresses concerns that ABC of Michigan and other groups raised upon learning that MSU’s School of Human Resources and Labor Relations had taken over the operation of the Building Trades Academy, previously run by the AFL-CIO. Section 271a of the budget language approved June 5 states: “It is the intent of the Legislature that a public university that receives funds under section 236 shall not knowingly and directly use any portion of those funds to offer any instructional activity that targets specific companies or specific groups of companies for unionization or decertification of a union.” Specific course descriptions outline the objectionable curriculum content: “This course offers a comprehensive overview of organizing issues related to the construction industry, offering constructive ways to organize the industry…” Another course focuses on preparing “…building trades organizers to conduct effective in-person meetings with non-union contractors both inside and outside of the context of organizing.” “We appreciate the Legislature’s action to help protect against using taxpayer funds to target companies for unionization,” Fisher notes.
GENERAL CONTRACTING DIVISION L O O M I S , E W E R T, PA R S L E Y, D A V I S & G O T T I N G P. C . A
T
T
O
CONSTRUCTION & BUSINESS LAWYERS
R
N
E
Y
S
A
JEFFREY S. THEUER jstheuer@loomislaw.com
T
L
A
Design Build General Contracting Construction Management
W
124 WEST ALLEGAN, SUITE 700 LANSING, MI 48933 (517) 482-2400
~All Types of Roofing & Related Sheet Metal~Crane Services Available~
P.O. Box 180 • 2322 Brooklyn Rd. • Jackson, MI 49204-0180 Phone: 517-787-2690 • Fax: 517-787-1970 • www.rwmercer.com
Electric
Caro, MI
Commercial & Industrial
Wm. MOLNAR ROOFING, Inc. Riverview, MI
12455 Hale • P.O. Box 2272 • Riverview, MI 48193 WILLIAM MOLNAR, President Office: 734.281.0591 Cell: 313.304.1160 Fax: 734.281.7303 william@molnarroofing.com
ELECTRICAL CONTRACTORS ENERGY SAVING SPECIALISTS COMMERCIAL • INDUSTRIAL • AGRICULTURAL • PETROLEUM WIRING • RESIDENTIAL CONTROL WIRING • DESIGN - BUILD • EMERGENCY POWER SYSTEMS CABELING/NETWORKING • EMERGENCY SERVICES • CAR WASH SYSTEMS
Bill (989) 551-5505
www.GGEMI.com Fax (989) 673-1211
Scott (989) 551-5506
BRAD TEUNIS OWNER
616-299-4446
brad.ecs@hotmail.com • NCCCO mobile crane certifications • Qualifying rigger and signalman programs • Consulting in crane related services • Custom training programs
w w w. e f f i c i e n t c r a n e s o l u t i o n s . c o m
26
S U M M E R 2014
mi cHiGaN mERiT
affairs
GOVERNMENt
Bill sponsors, other legislators and stakeholders flank Governor Snyder to celebrate the signing of the bill. Photo courtesy of Mark Sawyer.
And Insulation Systems, Inc. www.greatlakesroofing.com 800-800-6207 An authorized Duro-Last contractor Flat Roofing, Blown Cellulose & Fiberglass, & Spray Foam Insulations www.greatlakesroofing.com
Landscape Supplies
Septic Services
Grading & Excavating
• Natural Forest Product • Commercial & Residential • Basements Mulch Made On Site • Tank Cleaning • Driveways • Colored and Natural • Septic System Installs • Demolition • Sands & Aggregates • Specialized in Engineered Fields • Road Construction
909 N Milford Rd. Highland, MI 48357 248-887-9700 • jwfield.com
800-800-6207 An authorized Duro-Last contractor
Sales • Service • Rentals • Parts 3310 Hudson Trails Drive, Hudsonville, MI 49426 p: 616.896.7700 • f: 616.896.6700 w: www.grandequipment.com
GBM
R E CY C LE D C ON C R ETE , LLC.
Removal, Trucking & Processing •
Chilson Road, Howell • Kensington Road, Brighton • Hawley Road, Holly
7644 Whitmore Lk. Rd. • Brighton, MI 48116 phone: 810-231-5188 • fax: 810-231-5404
w w w. a b c m i . c om
S UMMER 2014
27
affairs
GOVERNMENt
Legislature passes budget, skilled trades training funds made available The Michigan Legislature passed a budget on June 5 that included additional funding for Michigan’s Skilled Trades Training Fund. ABC members should consider applying for funds to increase their training availability for employees. Applications for funds will be released on October 1, 2014.
The Skilled Trades Training Fund provides competitive awards for employer responsive training that enhances talent, productivity, and employment retention, while increasing the quality and competitiveness of Michigan’s businesses. The Skilled Trades Training Fund ensures Michigan’s employers have access to the talent they need to compete and grow, and individuals have the skills they need for
Specializing in the Construction Industry for More Than Seven Decades crowehorwath.com/construction Audit | Tax | Advisory | Risk | Performance or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and Crowe Horwath International member. Accountancy services in Kansas and North Carolina are rendered by Crowe Chizek LLP, which is not a member of Crowe Horwath International. © 2014 Crowe Horwath LLP CON14015
28
S U M M E R 2014
mi cHiGaN mERiT
affairs
GOVERNMENt
in-demand jobs. Collaboration between the Michigan Works! Agencies (MWAs), economic development, and educational partners are essential to achieve demand-driven training that addresses talent shortages hampering the growth of Michigan’s businesses. Applications are submitted to the State of Michigan on behalf of businesses by the Michigan Works! Agencies. Local Michigan Works! contacts can be found at the Workforce Development Agency website at www.michigan.gov/wda, materials for fiscal year 2015 will be published to the website in September 2014. MM Governor Snyder greets ABC member Perry Merlo, Merlo Construction. Photo courtesy of Mark Sawyer.
SPECIALTY FIRE EXTINGUISHING & SUPPRESSION EQUIPMENT CONTRACTORS 1-800-514-8195
P6 Audit Trail Software Free until 8/31/14
AUTO • HOME • COMMERCIAL • LIFE • EMPLOYEE BENEFITS
“Since 1939”
Toll Free: 1-800-257-7055 Randy K. Tarzwell President Fax: (989) 631-8480 E-mail: randy@baileyinsurance.net
512 W. Buttles Street Midland, MI 48640 Phone: (989) 631-3511 www.baileyinsurance.net
Patrick Faint, General Manager Pat@X-CaliburSheetMetal.com
X-CALIBUR
X-CALIBUR
METAL ROOFING & WALL PANELS
METAL ROOFING & WALL PANELS
27400 Northline Road Romulus, MI 48174
Daniel Rees
Phone: (734) 942-3071 Cell: (248) 320-8208 Fax: (734) 942-3075 www.X-CaliburSheetMetal.com
Estimator/Systems Designer NICET Level III Certification No. 82181
Automatic Sprinkler Systems • Design • Installation • Repair
3735 Plaza Dr. Ann Arbor, MI 48108
w w w. a b c m i . c om
Office: (734) 761-7767 Fax: (734) 761-5388 Cell: (313) 363-7756 Email: drees@annarborfireprotection.com
S UMMER 2014
29
HOUSE DISTRICT 81
LAUWERS
GROVER
State Rep. Dan Lauwers’ opposition to burdensome regulations on the construction industry has Mike Grover, founder of MDG Enterprises in St. Clair, considering him a champion for ABC. “From everything I know of him, his record is 100 percent in line with the common sense approach ABC takes on issues,” says Grover, vice president of a carpentry company that serves the commercial sector. “I support him and feel his work is worthy of all ABC members’ support.” Elected in 2012, Lauwers, R-Brockway Township, earned a bachelor’s degree in agricultural economics at Michigan State University. Since 1993, he has owned and managed Eastern Michigan Grain Inc. of Emmett, which processes grain, seeds,
Fire Sprinklers Save Lives
chemicals and fertilizer for the agricultural industry. He says he recognizes the importance of construction to the Michigan economy and advocates for eliminating prevailing wage and many taxes on business owners. “We have been working to create a stable economy by eliminating the Michigan Business Tax and proposing to eliminate personal property taxes,” Lauwers says. “For the construction industry to be successful, we must have a stable economy and remove cumbersome regulations.” Lauwers also supports the need for Career Technical Education and accessibility in Michigan’s education curriculum and voted for HBs 4465 and 4466 (Michigan Merit Curriculum.) He serves on the Agriculture, Competitiveness, Transportation and Energy and Technology committees. Grover notes that Lauwers is easily accessible and receptive to his input. “When he asks meaningful questions relating to your statements or concerns, you know he’s listening.” Moving forward, Lauwers aims to continue his fight against legislation inhibiting ABC members’ businesses. He says he has had a role in eliminating more than 1,500 regulations to date, and urged members to notify him with additional concerns. “ABC members can always walk in, call or schedule a meeting in the district or Lansing,” Lauwers says. “I make sure I’m available.” Lauwers represents District 81 in the Michigan House of Representatives. Constituents can contact Representative Lauwers at danlauwers@house.mi.gov or by phone at (517) 373-1790. MM
www.brigadefire.com
5701 Safety Drive, Belmont, MI 49306 • Phone: 800-886-1614 • Fax: 616-784-1140 30
S U M M E R 2014
mi cHiGaN mERiT
index
ADVERtISER
ABC Self Insured Workers Compensation Fund ...................... 32 AIS Equipment ........................................................................ 16 Andrews Hooper Pavlik, PLC .................................................. 21 Ann Arbor Fire Protection ....................................................... 29 Arrow Concrete Cutting .......................................................... 20 ASHA Safety ............................................................................ 27 Bailey Agency .......................................................................... 29 BCT Benefits Plan .................................................................... 17 Blackstar Building Group......................................................... 17 Brigade Fire Protection ............................................................ 30 Brothers and Bricks ................................................................. 25 Capital Steel & Builders Supply ............................................... 29 CDI Construction .................................................................... 17 Commonwealth Associates ...................................................... 26 Critical Business Analysis ........................................................ 29 Crowe Horwath LLP ................................................................ 28 Desai Nasr Consulting Engineers ............................................. 25 DJ Maltese Construction LLC .................................................. 29 Efficient Crane Solutions ......................................................... 26 Enterprise Fleet ....................................................................... 27 Excel Electric, Inc. ................................................................... 17 Fisher Companies .................................................................... 24 Fonson, Inc. (GBM Recycled Concrete) ................................... 27 G&G Electric........................................................................... 26 Garber Chevrolet ..................................................................... 15 Grand Equipment Company ................................................... 27 Great Lakes Industrial Supply Co., Inc. ................................... 17 Great Lakes Roofing & Insulation Systems, Inc. ...................... 27 Great Lakes Safety Training Center .......................................... 25 Great Lakes Striping & Sealing ................................................ 31 Guy Hurley Blaser ................................................................... 12 HD Supply Waterworks ........................................................... 24 Heritage Automall ................................................................... 17 Independence Commercial Construction, Inc. ......................... 13 Jackson Associates, Inc. ........................................................... 29 JBS Contracting, Inc. ............................................................... 17 JGM Machinery Movers & Erectors, Inc. ................................. 19 Jimco Fire Protection ............................................................... 17 JW Field Grading & Excavating .............................................. 27
GREAT LAKES
STRIPING & SEALING, INC. Since 1972
K & S Plumbing Co., Inc. ........................................................ 17 Labor Ready, Inc ...................................................................... 25 Lighthouse Insurance Group ................................................... 21 Liquid Calcium Chloride Sales ................................................ 17 Loomis, Ewert, Parsley, Davis, Gotting, PC .............................. 26 Mann Construction ................................................................. 15 Merlo Construction Co., Inc. ................................................... 20 Mid Michigan Materials, Inc. ................................................... 17 Pamar Enterprises.................................................................... 17 Plante Moran ........................................................................... 13 PM Technologies ..................................................................... 20 Pro View (The Blue Book Building & Construction Network) ........ 18 Quality Aire Systems ............................................................... 16 Rapid Fire Protection ............................................................... 29 Rock Products ......................................................................... 20 RW Mercer .............................................................................. 26 Scheidel Electric ...................................................................... 25 Scientific Brake & Equipment ................................................. 17 Selleck Architectural Sales ....................................................... 15 Siding World ............................................................................. 2 Summit Electric ....................................................................... 31 Thermico, Inc. ......................................................................... 18 Timpson Transport, Inc. .......................................................... 25 Titan Interiors ......................................................................... 28 Tradesmen International .......................................................... 14 Valenti Trobec Chandler .......................................................... 21 Valley Electrical Contractors .................................................... 20 Walton Agency ........................................................................ 20 Waterstone Insurance Agency .................................................. 18 Welch Tile & Marble Company ............................................... 21 Wm. Molnar Roofing, Inc. ....................................................... 26 X-Calibur Sheet Metal ............................................................. 29
Summit
electric, inc.
Commercial & Industrial Contractors
P.O. Box 283 • Traverse City, MI 49685 • P: 231-946-8269 • F: 231-946-6044 • C: 231-218-5605
Since 1983
COMPLETE ASPHALT MAINTENANCE
2544 Acacia Troy Michigan 48083 248-689-0300 689-1750 fax www.summitelectric.ws
Sealcoating • Infrared Repair • Crack Filling • Parking Lot Striping • Parking Lot Sweeping BRUCE BIDDINGER - PRESIDENT bruce@glssmiasphalt.com
www.greatlakesstripingandsealing.com
w w w. a b c m i . c om
FREE ESTIMATES
MEMBER WESTERN MICHIGAN
S UMMER 2014
31
PRESoRTED STaNDaRD U.S. PoSTaGE PAID LaNSiNG, mi PERmiT No. 75
Associated Builders & Contractors of Michigan 230 N. washington Sq. Suite 202 Lansing, michigan 48933
Safety
Savings
Premium Returns Ownership Industry-Specific Great Rates Loss Control
Your Self-Insured Workers’ Compensation Fund Returning Millions Back To Members $24.8 Million Since 1995
• Workers’ Compensation Insurance with a 36% Average Premium Return • Safety & Loss Prevention Services • Competitive Up-Front Pricing
abcmifund.org | administered by Regency Group | 800.686.6640
32
S U M M E R 2014
mi cHiGaN mERiT