Salvaging Construction Industry

Address Delivered by Wm. Simpson, Vm. Simpson Construction Co., Los Angeles, at the Tri-Annud Conference of the Millwork fnstitute of California.

Your Mr- Didesch has desiglated on your program a subject for my address. Although he has the same general thought as I have, it will probably be b-tter to bq more definite, so am changing it to "Salvaging the Construction Industr.y."

ett men interested in the Construction Industry must admit that the business is not conducted is it should be, and neither does it compensate in the proper proportion to the responsibility assumed, or to the time and effort given. Not only do those affiliated with the Industry admit it is permeat-ed with bad practices and is manned in many cases by irresponsibleg, but bankers, business men and the general public know it and at the same time they all acknowledge fhe tremendous importance of the Construction Industry. Fortunate' ly, there are many firms who 1re conducting their business -along the proper lines, and they shouH feel proud of their determination to so carry on.

'We must be more than builders of structures of concrete and steel, We must be builders of proper business principles an4 economic procedure, which will take us out of the position the Industry now holds and make it second to none. We must overcome the efiect produced by the holding lack element. We must actively oppose those who deliberately refuse to follow. We must educate the man who does not know.

All must concentrate to rid t-he Industry of the pernicious practices now in vogue and which qie creating a most chaotic condition, which in turn is spelling final ruin to many reputable firms. A large Eastern Contractor stated that "unfair competition is pinching the pocket books of some of the oldest and largest firms in the East, and realization is beginning to dawn that to preserve the Industry everyone concerned must pull to-gether and effect a stabilization."

Again permit me to reiterate to you my statement of three years ago. "The Industry that does not scrutinize its present status, analyze its problems, devise proper methods of broadcasting its findings, will be superseded by one that vri!!."

The paramount question is 4ot what to do, but how to do it; through what medium is the work to be carried on? Before we try to answer these questions let us first recognize that the ailments do not pertain to Los Angeles or the Pacific Coast alone, but exist over the whole country. They are not peculiar to the Millwork Institute or its ramifications, but afiect the entire Industry. When a gentleman was asked what his solution was he answered: "If I knew, I would dernand $500,000.00 and 'expect to get it." The situation is very grave and calls for imme{iate action by sincere and energetic men.

Realizing that something must be done collectively to effect a remedy,.the Associated Gener-al Contractors of Los Angeles appointed a committee known 4s the "Construction Industry Joint

Committee." The purpose of t-his Committee was to bring tog-ether the various groups -mai.ittc up ihe Industry to handle th-e legislative prob.lems that confronted them, ,lnd to launch a state wide,campaign igainst day labor methods in public construction. This Committee siarted work and accomplished a great deal, spending annually in the neighborhood of $20,000.00.

Feeling that they weie really getting somewhere the Association again stirted a second Committee known as the Better Relations C-ommittee." The purpose of this Committee wa.9 Jo call together all the elements for-the purpose of stabilizing conditions, eradicating those things that were -rapidly destroying the principles for which the Association stood, and improve the relations between the vartous groups. For two years thii -Committee conduc-ted an open -forum in which all troubles were aired openly and remedies suggested.

Feeling that success of these two Committees was practic-ally-assured, it was decided to combin-e their efiorts in one council. This council was to be patterned aftei a movement started in Oregon ald one in New York City. The riame of this combination was to be the "Construction Industry Council." The purpose was to take up all problems and thoughts that were directly effecting the IndustrS iroi them out, and afler conclusions were reached to see that its findings were put to proper use. The first 4e.eting wa-s-.called -by Mr. Alrthur S. Bent, prominent contractor in this city. His call for a meeting included the followiryg:

"As you know, the thought has been in the minds of many men over the country, that the Construction Industry greatly needs i coordinating council made up o-f representatives of all its varied ele. ments, in order that a united-voice may speak to the public and united efiorts be made on all matters of comrnon interest.

"It is pretty generally recognized that while the, many associations now existing among material men, equipment men; builders, subcontractors, general contractors, surety companies, engineers, architects, etc., hive their very impgrtant functions, there is great need of a clearing house through whigh their activities may be made more effective. There is much important ground upon which we can all stand, and from which construgtion as a whole should be in a position to speak much more effectively than it can at present."

At this meeting there were in attendance approximatety forty of the leaders of the Constructio4 Industry. Some were favorable t6 such a movement and some were not, but without hesitation the work was started and practically fifteen or twenty of the major As-, sociations signed up to see what could be done. This tast incl'uded the American Institution of Arglitects, the Associated General Contractors, the Millwork Institut-q the Surety Association and riran} other outstanding organizations. For over a period of two years th€

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