VOL. 60 ISSUE 01 JANUARY2019 • GUAM CONTRACTORSʼ ASSOCIATION
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TABLE OF CONTENTS
CONSTRUCTION NEWS BULLETIN
JANUARY
8
PRESIDENT’S LETTER
6
S.A.M.E. update
8
Military news
10
FEATURE STORY
12
Small business notes
16
NCCER NEWS
18
NEWSLINE
20
REPORTS/INFORMATION
24
2019
S.A.M.E. Update
12
FEATURE STORY
GCA Calendar FEBRUARY
Time:
Venue:
Wednesday
February 6, 2019
7:30
Fiesta Resort
Activities Committee
FRIDAY
February 8, 2019
11:30
GCA Conf. Room
Presidents Day
Monday
February 18, 2019
Joint Membership Luncheon
Thursday
February 21, 2019
11:00
Hyatt regency guam
Small Business Committee Meeting
Tuesday
February 26, 2019
11:30
GCA Conf. Room
Board of Directors Meeting
2 |
Date:
JANUARY2019
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OFFICE CLOSED
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EDITORIALS
CONSTRUCTION NEWS BULLETIN
THEDIRECTORS
THEEDITORIALS
THETEAM
PRESIDENT James Martinez Guam Contractors’ Association
Guam Contractor’s Association (GCA) in conjunction with Adztech and Public Relations, Inc. publishes the Construction News Bulletin (CNB) monthly. Reproduction of materials appearing in this publication is strictly forbidden without written permission by GCA.
PUBLISHER: James Martinez
PAST CHAIRMAN Conchita Bathan Core Tech International CHAIRMAN Mark Mamczarz Black Construction
While we always strive for accuracy, we will from time to time overlook mistakes. In order to help us improve the quality and accuracy of this publication, we ask that you take the time to look at the information provided and notify GCA or Adztech of any corrections as needed. Opinions and editorial content of this publication may not necessarily be those of the publisher, production team, staff, GCA members, GCA Board of Directors and advertisers.
VICE CHAIRMAN Jessica Barrett Barrett Plumbing SECRETARY/TREASURER Peter Errett Hawaiian Rock Products CONTRACTOR DIRECTORS: Joe Roberto East Island Tinting
For more information about advertising in the GCA Construction News Bulletin contact the advertising department at (671) 477-1239/2239 or email at adztech@teleguam.net.
Shoja Rezvani Contrack Watts Zenon Belanger ARS Aleut Remediation
Distributed to GCA members or can be obtained by stopping by the Guam Contractors’ Association office located at 718 N. Marine Corps Drive, Suite 203, East West Business Center, Upper Tumon, Guam.
Harold Cullick Dylan Mechanical John Robertson AmOrient
To find out more about how you can become a GCA member contact Guam Contractors’ Association at Tel: (671)647-4840/41 Fax: (671) 647-4866 or Email: gca@teleguam.net. www.guamcontractors.org
ASSOCIATE DIRECTORS: Jeffrey Larsen TakeCare Asia Pacific Mark Cruz MidPac Far East Camilo Lorenzo Matson Navigation
PRODUCTION TEAM LEAD: Geri Leon Guerrero AD SALES: Jaceth Duenas PRODUCTION: Christopher “Taco” Rowland Jason Davis PHOTOGRAPHERS: Christopher “Taco” Rowland EDITOR: Adztech CONTRIBUTING WRITERS: Pete Diaz R.D. Gibson Albert Sampson Danielle Higley GCA STAFF: Desiree Lizama Elaine Gogue Ann Marie Pelobello COVER: Seeking New Horizons
Postmaster. Send address changes to Guam Contractors’ Association, located at 718 N. Marine Drive Corps Suite 203, East West Business Center, Upper Tumon, Guam.
Lysander Starr Isla Coating and Roofing Supply
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PRESIDENT’S LETTER
CONSTRUCTION NEWS BULLETIN
Dear GCA Members:
President’s Letter
As everyone on Guam is aware, there has been a serious workforce shortage issue here since the U.S. Citizenship & Immigration Services (USCIS) departed from past practice in the issuance of Work Visas under the H-2B program. They interpreted the term “temporariness” to mean short term seasonal work such as in the agricultural industry. Whereas visas for farm workers might have been issued for 3 or 4 months, visas for Guam had been issued for up to 3 years. The result for Guam was that denials went from a low percentage rate to nearly 100%. The impact has been severe for us and the local economy. Military construction was similarly impacted until the Congress included special legislation in the annual National Defense Authorization Act (NDAA) to permit H-2B visas for workers on military and related construction. That now provides for 4,000 temporary visas for military projects and other projects and services that support the military in some manner. After early efforts to influence the USCIS to change course through letter writing and efforts of our Congresswoman, the Governor, the Chamber of Commerce and others failed to bring results, the GCA engaged the services of one of the best immigration attorneys in the nation. That is Jeff Joseph of Aurora, Colorado. His efforts have been supported by local immigration attorneys Melinda Swavely and Jennifer Davis. The Plaintiffs in the case brought in Guam District Court is the Guam Contractors Association plus 12 employers, half construction contractors and half other industries. Defendants in the case are the Secretary of Homeland Security, the Director of the USCIS and other key individuals. We filed a Class Action Lawsuit. A preliminary injunction was granted in January 2018 which ordered USCIS to reverse its previous denials of H2B petitions and to stop the denial of future petitions at least until the merits of the case have been decided. On March 31, 2018, Chief District Court Judge granted class-action certification to the lawsuit, allowing her ruling to apply to the Plaintiffs and other Guam employers filing for H2B petitions. Despite the Judge’s order, the USCIS has approved visas only for those filing under the NDAA exemption and is failing to act on others. More recently, Plaintiffs have filed another motion in the District Court of Guam asking the federal court to hold the USCIS in contempt on the previous rulings by Chief District Court Judge Tydingco-Gatewood and to impose sanctions on the federal agency for its continued denial of H2B petitions from Guam employers. We are currently awaiting a response from the judge on that motion. The continuation of this lawsuit to resolve the H2B denial situation is important to the entire community of Guam, but it has been quite expensive. As a result. the GCA Board of Directors had voted to implement a mandatory assessment on GCA members to cover the cost to continue this lawsuit. The lawsuit, if we prevail, benefits EVERYONE on Guam, not just those contractors seeking to import a supplemental workforce, but also for our residents who are seeking contractors for home renovations or to build new homes. It benefits other businesses on Guam like realtors and bankers who are in the business of buying and selling real estate and providing loans for the purchase of new homes. Hoteliers, restauranteurs and retailers, who may be looking into building new facilities or making improvements and renovations to their existing facilities, may find themselves without contractors to do the job because of the shortage of skilled labor or at the very least, delays in their projects which would cost them additional time and money. The proposed new school for Simon Sanchez may also see delays in building that new facility if this H2B denial issue isn’t resolved. GovGuam infrastructure projects may be delayed or shelved due to the lack of skilled labor needed for these projects. We can go on and on. The adverse effects of this situation trickle down to all industries that are vital to Guam’s economy. The bottom line is that EVERYONE is affected by the reckless actions of USCIS to deny access of H2B Visas at an unprecedented denial rate of 100% overnight and without justification. While we’ve had some relief in the form of the NDAA provisions for military projects, it still falls short for the need of a temporary workforce for civilian and local government projects which is why we need to continue our litigation. GCA continues to seek a more permanent resolution but we also need to seek temporary relief right now. We thank you for your past support and hope that you will continue to support our effort for a resolution for the sake of our industry, economy, safety and the quality of life for the residents of this island we call home. Have a Happy and Prosperous New Year! James A. Martinez President Guam Contractors Association
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JANUARY2019
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S.A.M.E. UPDATE
CONSTRUCTION NEWS BULLETIN
Society of
NEWSLETTER JANUARY 2019
American Military Engineers
ANNOUNCEMENTS · Check out our website for all updates!
VETERANS COMMITTEE RECAP
HOLIDAY GIFT GIVING TO VETERANS
· Charlie Corn Scholarship
applications due on 25 JAN 2019
· Mangkhut/Yutu Typhoon Relief
Drive for American Red Cross to end on 31 JAN 2019
SAVE THE DATE
One of the goals of the SAME Guam Post is to provide outreach to support Veterans and their families every year. We do this to honor the great sacrifice made by Veterans and their families. In previous years, our Post has donated medical supplies including
Local Events: 17 JAN 2019 SAME Guam Post General Membership Meeting Hilton Resort & Spa, Tumon Every 3rd Thursday of the month 21 FEB 2019 Joint Membership Meeting SAME, AWWA-HIWPS, AIA, GSPE, GCA, NAWIC Hyatt Regency Hotel, Tumon 17 - 23 FEB 2019 Engineers Week Bridge Competition, School Presentations; Volunteers Needed! National Events:
wheelchairs and crutches to the Guam Veterans Affairs Office. Our goal this year was to spread some holiday cheer directly to deserving local veterans and their families. The Veterans Committee coordinated a Holiday Gift Giving to Veterans through the Guam National Guard. Six Guam National Guard veterans were selected to each receive a $250 gift for a total donation of $1,500. The recipients, five from Saipan and one from Tinian, faced tough hardships this year with the recent typhoons, impacting their homes and livelihood. Our hope is that our small gift will help bring them some cheer this holiday season. In addition, three cell phones donated by GTA were also provided to the Family Programs Office to be given to deserving veterans.
06-08 FEB 2019 Facilities Management Workshop San Antonio, Texas Upcoming January Meeting
MAI N PRESENTAT I O N Transportation: Planning Your Projects Presented by: Matson Navigation Company 17 JAN 2019
Left to Right: Marlene Slomka, Veterans Committee Chair; Pete Diaz, P.E., Guam Post President; 1LT Chavez Leonen; SSG Mario Salas; MAJ Tarusan-Legaspi; Mrs. Mae Lizama.
SAME Guam Post or log on to www .s am e.or g/ G et - Conn ec te d/F i nd - a -P os t/G ua m 8 | JANUARY2019
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S.A.M.E. UPDATE
CONSTRUCTION NEWS BULLETIN Society of
American Military Engineers
Guam Post
JOINT
HOLIDAY MIXER 12/14/18
EVENT SUMMARY ·
Joint Holiday Mixer
–
14 DEC 2018, 1800 - 2300
–
Hyatt Regency, Tumon
· Society of American Military Engineers, Guam Post
· American Institute of
Architects (AIA) Guam & Micronesia
· Guam Society of Professional Engineers
· American Water Works
Association - Hawaii Section, Western Pacific Subsection
· Total Attendees: 60+ · Donations
─ Canned Goods donated to Sons of Saipan ─ Monetary Donations totaling $1,100 donated to the Ayuda Foundation
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MILITARY NEWS
CONSTRUCTION NEWS BULLETIN
small biz notes Happy New Year! NAVFAC Marianas awarded about $41.5M in contracts on which Small Business (SB) concerns may participate as prime or subcontractors October through December 2018. About $23.5M was awarded to SB concerns on Guam for a variety of products and services. Socio-economic breakdown of the SB awards are: -
$19.6M - Small Disadvantaged Business (SDB) $16.2M - HUBZone Small Business (HZ) $ 543K - Women-Owned Small Business (WOSB) $ 2.3M - Service-Disabled Veteran-Owned Small Business (SDVOSB)
Sum of the figures above exceed the overall SB award of $23.5M because some SB concerns fit multiple socio-economic categories; for example SDVOSB, HZ, and SDB. Significant SB awards:
• Pacific Unlimited, Inc. was awarded about $805K for the 3rd option year of their contract to provide tire and wood collection and disposal services for the commissaries at Naval Base Guam and Andersen AFB. • Wolf Creek Federal Services, Inc. was awarded about $500K for additional family housing maintenance services at Andersen AFB. • APC Construction, LLC was awarded about $589K to perform renovations at the Child Development Center on Andersen AFB, Guam. • Global Food Services, LLC was awarded about $1.4M for the 4th option year to provide galley services at U.S. Naval Hospital Guam. • Ian Corporation was awarded about $1.1M to clean, prepare and seal a utility trench cover at Naval Base Guam.
Source: Federal Procurement Data System – Next Generation (FPDS-NG)
in case you missed it: The GCA Small Business Committee, Guam SBDC, and Guam PTAC co-sponsored a "Tax Updates for Small Businesses" workshop on December 12, 2018 at the University of Guam. Mr. Joe Arnett, Senior Advisor at Delloite & Touche, did a superb job discussing various impacts of the Tax Cuts and Jobs Act of 2017. He also discussed provisions that took effect in 2018 which include lower individual and corporate tax rates, increases in certain business expenses, and repeal of a number of tax credits/deductions.
10 | JANUARY2019
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READY FOR LIFT OFF By: R.D. Gibson
CONSTRUCTION NEWS BULLETIN
FEATURE STORY
Eagles have glided effortlessly through the skies for centuries throughout the world. As they are frequently depicted soaring among the heavens, they are commonly linked to the gods. To Native Americans, eagles are sacred – messengers to the gods, even. Across a spectrum of different cultures and nations, they represent positivity, nobility, and power. They are thought to personify wisdom, intellect, victory, freedom, light, peace, and inspiration – among many other things.
Since then, they have become a leading international ocean carrier. They “offer more than 120 weekly services and call ports in over 70 countries” according to their website. APL took a seven-year hiatus from the island in 2008 when the joint service agreement halted. Their worldwide reach stretched out a little more when they ‘re-entered Guam in 2015’. At that time, they started their GSX (Guam Saipan Express) as an alternative shipping choice and help the island’s trade grow.
As the new year sets its course toward clearer and brighter horizons, so too does the red eagle brazen on the blue APL Vessels. For APL, the symbol represents excellence in transportation, logistics, and related services, according to Charlie Hermosa, General Manager Guam-Micronesia at APL.
In the region, APL operates the weekly U.S. flagged service with APL Guam and APL Saipan. The GSX connects Guam and Saipan to their global grid through Busan and Yokohama where cargo is received from the U.S. West Coast on their Eagle Express 1 (EX1).
The emblem has been in existence since 1938. At the time Dollar Line was bought out and renamed American President Lines by the United States government. Later, the shipping company would be renamed just APL, but its insignia – its crest – would carry its long, colorful, and accomplished story throughout the world into the 21st century.
Part of what makes their operations also convenient is the use of their project LIFT. “LIFT is a project that integrated our IT systems and resources to better serve our customers,” Hermosa said. He went on to add how the program gave the APL website a ‘facelift’ allowing it to be more user- and mobile-friendly. Further, it was a way for APL to provide a one-stop solution for making bookings and manage shipments.
APL’s voyages started 170 years ago with an inaugural American steamer voyage from New York to the U.S. West Coast – and what a voyage that was. The informational video on APL’s excellent website, draws the voyage outlining the tip of South America.
As businesses look toward the future of commerce, it is important to not only utilize technology well, but find ways to reduce one’s carbon footprint and ultimately incorporate sustainability into the equation. “Responsible environmental management is a cornerstone of [our] operations and
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FEATURE STORY
CONSTRUCTION NEWS BULLETIN
In keeping order to tabs keeping tabs on APL generates and sends In order to on itself, APLitself, generates and sends out quarterly to its customers, proactively out quarterly reports toreports its customers, engagingengaging proactively to “help stay of theirfootprint”, carbon footprint”, to “help them staythem aware of aware their carbon inspir- inspiring collaboration. In to addition to customer engagement, APL ing collaboration. In addition customer engagement, APL have representation on the Clean Cargo Steering Comwill have will representation on the Clean Cargo Steering Committee, will organize “like-minded mittee, which willwhich organize “like-minded shippers,shippers, carriers, carriers, and freight forwarders on the sustainability course and freight forwarders on the sustainability course for clean for clean oceans and to global achieve globalgoals,” climateHermosa goals,” Hermosa oceans and to achieve climate added. added.
But,ofon of its expansive and impressive dediBut, on top itstop expansive and impressive network,network, dedication and commitment Motherand Nature, fancy inforcation and commitment to MothertoNature, fancyand information technology are the wings have lifted mation technology systems,systems, are the wings that havethat lifted to its heights highest so heights so far – the employees. APL APL to itsAPL highest far – the employees. APL has managed a familyits among its local has managed to createtoa create family among local group – agroup – a culture cultivated mutual among respectthe among the companycompany culture cultivated in mutualinrespect ranks, success in and training and professional development, in training professional development, we will persevere in ourfor pursuit for excellence in sustain-ranks, success we will persevere in our pursuit excellence in sustainand a highaverage overall (4.83/5) average (4.83/5) in employee and a high overall in employee satisfac- satisfacable shipping,” said Hermosa. able shipping,” said Hermosa. tion.without It goessaying withoutthat saying APL employees tion. It goes APL that employees love whatlove what do. Itespecially shows, especially when arethe ranked the they do. they It shows, when they are they ranked Moreover, that the company Moreover, he cited he thatcited the company has seenhas a seen a best company andocean the top oceantocarrier best company and the top carrier work to work 50.7-percent carbonemissions dioxide emissions per‘second ‘second 50.7-percent reductionreduction in carbonindioxide per for in in Guam 2018.’in 2018.’ transported per kilometer 2017 compared for in Guam transported containercontainer per kilometer in 2017 in compared to eight years prior. has everything totheir do with their to eight years prior. This has This everything to do with thisthey family, have invigorated the CHamoru And with And this with family, havethey invigorated the CHamoru work to promote for their as well as work to promote efficiencyefficiency for their fleet, as fleet, well as of inafa’maolek their work. “APL is devoted inafa’maolek into theirinto work. “APL is devoted using fuel-efficient And the work is not done, value of value using fuel-efficient vessels. vessels. And the work is not done, Guam andand Saipan and wouldour deploy our resources and Saipan would deploy resources yet. “Navigating have resolved yet. “Navigating forward, forward, [we] have[we] resolved to reduceto reduce to Guam to assist andrelief provide reliefthat needs provide needs maythat arisemay on arise the on the carbonemissions dioxide emissions per TEU transported carbon dioxide per TEU transported by 30% by 30% to assisttoand said Hermosa. He is referring to when APL islands,”islands,” said Hermosa. He is referring to when APL per TEU transported 2015 andHermosa 2025,” Hermosa per TEU transported between between 2015 and 2025,” joined recovery efforts throughout thetoregion efforts throughout the region help to help continued. This target was set parent by theirCMA parent CMA CGMjoined recovery continued. This target was set by their CGM Supertyphoon Yutu-battered Saipan. Shipments Supertyphoon Yutu-battered Saipan. Shipments of food, of food, Group headquartered in Marseille, France according to its Group headquartered in Marseille, France according to its water, and equipment left for Saipan. water, and equipment left Guam forGuam Saipan. website. website.
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FEATURE STORY
The red eagle The red represents eagle represents a commitment a commitment to the islands to the islands “While we “While shipped we shipped the cargothe in-kind, cargowe in-kind, connected we connected and theirand people. their Itpeople. symbolizes It symbolizes the devotion the devotion to the future to the future donors and donors stakeholders and stakeholders quickly, facilitating quickly, facilitating in gettinginthe getting the of the communities they serve. theyKeep serve. your Keep eyesyour toward eyesthe toward the much-needed much-needed help to Tinian help to sooner Tinianthan sooner later,” than Hermosa later,” Hermosaof the communities horizon, you horizon, will probably you will probably see the wings see the of wings the redofeagle the red eagle expressed. expressed. They worked Theywith worked the with American the American Red Cross Red and Cross and that is APL. that is APL. the Federal the Emergency Federal Emergency Management Management Agency. This Agency. speaks This speaks volumes volumes to not just to shipping not just shipping goods, but goods, a commitment but a commitment to to the people thethey people serve they and serve who and workwho withwork them with also. them also. HermosaHermosa said theirsaid company their company and theirand devoted their employees’ devoted employees’ volunteerism volunteerism promotespromotes their commitment their commitment to participate to participate in and support in and toward supportlocal toward sustainability local sustainability programs. programs. He He added, “our added, goal“our will be goaltowill work bewith to work initiatives with initiatives that support that support local educational local educational programsprograms help kidshelp reach kids their reach full their poten-full potential.” tial.” It is kindItofisironic kind of how ironic a shipping how a shipping carrier has carrier an eagle has an aseagle as an emblem, an emblem, right? However, right? However, the symbolism the symbolism behind that behind that eagle cast eagle a shadow cast a over shadow the over irony.the They irony. are They not just are not just Containership Containership OperatorOperator of the Year, of the Best Year, Shipping Best Shipping Line in Line in the Trans-Pacific, the Trans-Pacific, Ship Owner/Operator Ship Owner/Operator Award, and Award, 2018 and 2018 Quest forQuest Quality forAward Quality winners. Award winners. They don’t They justdon’t deliver just deliver medicines medicines and medical and supplies medical supplies throughout throughout South East South East Asian and Asian Latinand American Latin American countries. countries. Their volunteerism Their volunteerism goes waygoes beyond waydisaster beyond disaster relief andrelief aid delivery. and aid delivery.
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SMALL BUSINESS NOTES
CONSTRUCTION NEWS BULLETIN
Wanted: A Few Good Men and Women
The GCA Small Business Committee supports small business members of the association to ensure their voices are heard and needs are met within GCA capabilities. Do you have an issue or concern that we might be able to assist with? Do you have an idea or suggestion that may benefit our small business community? Help us help you by joining us at our monthly meetings or contact: Dave Hayner (Chair) 989-0941 dhayner@relyantglobal.com Jessica Barrett (Co-Chair) 734-5246 swat@guam.net Gerardine Mendiola (Co-Chair) 647-2895 gmendiola@guamptac.com Our next meeting is on Tuesday, February 26th, 11:30 AM at the GCA conference room 202. Please RSVP with Elaine Gogue. Her email address is elaine.gogue@guamcontractors.org
GUAM PTAC
FREE
January 2019 1/24/19 - Teaming and Joint Ventures What are they and which is right for your business? The Guam PTAC will discuss the federal regulations related to these arrangements and discuss ways to use these arrangements effectively.
PUBLIC
WORKSHOPS The Guam Procurement Technical Assistance Center (PTAC) is offering FREE workshops to the public for January 2019. Please spread the word to all local, small businesses. Workshops run from 9am-10am at the University of Guam in the Jesus and Eugenia Leon Guerrero Business and Public Administration Building, Margarita Duenas Perez & Jaime Felipe Tuquero IT&E Lecture Hall, 131 (unless otherwise specified)
1/28/19 - Intro to GSA's OASIS Program Brandy Untalan, GSA Customer Service Director, will host this informative session on GSA's purchasing program, OASIS.
1/31/19 - DLA Internet Bid Board System (DIBBS) The DLA Internet Bid Board System (DIBBS) provides the capability to search for, view, and submit secure quotes for DLA supply RFQs, RFPs, and IFBs. The Guam PTAC will guide you through the process of setting up an account and navigating the system.
For Project Management Professionals, Guam PTAC workshops may count toward your annual Professional Development Unit (PDU) goals! Source: Federal Business Opportunities (FBO) and Federal Procurement Data System (FPDS). Register at: guamptac.ecenterdirect.com
For more information, contact the Guam PTAC at (671)735-2552 or visit www.guamptac.com
16 | JANUARY2019
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NCCER NEWS
CONSTRUCTION NEWS BULLETIN
WOMEN ARE LEADING THE CONSTRUCTION INDUSTRY
AND IT'S PAYING OFF
by Danielle Higley
When it comes to your average construction workers, most people envision a group of men, hammering nails or driving heavy-duty machinery. But did you know that nearly 10 percent of the construction workforce is female? In fact, when it comes to professional opportunities, women may find they have a better future in construction than they first realize. “Once upon a time, men needed to do [construction] jobs because it took so much brute strength to do a lot of the work,” says Debbie Dickinson, CEO of Crane Industry Services (CIS). “[Today], technology and the advancements in hydraulic equipment have made it possible for those jobs to no longer be gender-specific.” Debbie has been in the crane and rigging industry for 20 years, and in honor of Careers in Construction Month, we asked her what it’s like being a woman in this male-dominated field. After all, few little girls fantasize about traveling the world to perform safety and efficiency audits in a pair of steel-toed boots. But maybe, just maybe, 1 in 10 does. As of December 2016, about a third of all women working in construction are in management or professional roles, taking care of business from behind the scenes. Statistically, few are driving forklifts and loaders, but they are making critical decisions about things that affect every other person in the company, like what kind of payroll software gets used or how employees clock in and out.
18 | JANUARY2019
“Whoever is most comfortable with the technology in the office is going to have somewhat of a leadership or inf luencer role, and women are often fulfilling both roles,” says Debbie. She finds that most women shop differently than men, taking into account the way they feel about a company, beyond just the product or service they offer. “Women tend to look at who the company is,” she says. “Who are they as an organization? … We’ll base a decision on ‘Will this do the job? Will this fulfill the job?’ and then if you find two that are equal, the company that is going to be more of a partner or a give-back organization is going to win over the other company, even if the other company is $10 cheaper.”
from the ground up — literally. “In my experience, women are comfortable with this process,” she says. “They are willing to invest the sweat equity as long as the path and timeline to advancement is clear.” Debbie says she’s passionate about a future where women are just as respected as their male counterparts, and if she has anything to say about it, tomorrow’s construction workforce will have more women in hardhats than ever before. Because a woman's place is wherever she wants it to be — even in the cab of a 40-ton bulldozer.
Of course, just because women are calling the shots on software doesn’t mean their leadership doesn’t come into question now and again. Debbie, who’s been a CEO for the last 10 years and serves in a professional capacity herself, understands this better than anyone. “You’ve got to set yourself up for success,” she says. “I don’t know that we work twice as hard throughout the entire scope of work, but I think we do have to prepare twice as hard up front, and that serves us well all the way through.” Debbie firmly believes that people who plan to lead onsite jobs need to gain practical experience. That means working the entry-level jobs and learning to build
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CONSTRUCTION NEWS BULLETIN
NEWSLINE by: stover@abc.org
ABC’s Construction Backlog Indicator Sinks Below Record Highs in Q3 2018
industrial categoriescategories remains elevated remains by elevated by basis,decreased backlog decreased in three out in three of outindustrial of Associated Builders and Contractors Associated Builders and Contractorsbasis, backlog historic standards. historic standards. Backlog in Backlog the heavy in the heavy four major four regional major designations. regional designations. The The reports that its Construction Backlog Backlog reports that its Construction industrial industrial segment remains segmentmore remains thanmore than was the Middle was theStates, Middle where States, a where a IndicatorIndicator contracted to 9.04 months contracted to 9.04 monthsexceptionexception two months twoabove months theabove Q3 2017 the level.” Q3 2017 level.” surge in industrial surge in industrial production production has helped has helped during the third the quarter 2018, down during thirdofquarter of 2018, down bolster economic activity. activity. 8.4 percent the second 8.4from percent from thequarter secondand quarterbolster and economic Highlights Highlights by Region by Region 4.3 percent than the same timesame last time last 4.3lower percent lower than the “Backlog “Backlog in the infrastructure in the infrastructure category category year. year. Backlog•in Backlog the South in the decreased South decreased by by fell belowfell thebelow 10-month the 10-month threshold threshold for the for•the more thanmore a fullthan month a full during month the during the first time first sincetime the third since quarter the thirdofquarter 2015. of 2015. “Construction backlog reached highestits highest “Construction backlogits reached thirdofquarter 2018. Despite of 2018.being Despite being This be the may result be the of aresult temporary of a temporary third quarter level ever level during theduring secondthe quarter,” said ever second quarter,” saidmayThis down roughly down10 roughly percent10(quarterly percent (quarterly and and expansionexpansion in infrastructure-related in infrastructure-related ABC Chief Economist Anirban Basu. ABC Chief Economist Anirban Basu. year overyear year),over theyear), South’s thebacklog South’s backlog due to rebuilding due to rebuilding efforts efforts “While the third the quarter average “While thirdsaw quarter saw averagespending spending remains highest theofhighest any of the of any fourof the four following following natural disasters natural in disasters parts ofin parts of remains the contractorcontractor backlog shrink, indicator backlogthe shrink, the indicator major regions. majorThat regions. said,That the peak said, of the peak of Texas, Florida, Texas,California Florida, California and otherand states other states remains elevated historical standardsstandards remainsby elevated by historical construction spending spending growth ingrowth the in the in recent years, in recent as well years, as as anwell ensuing as an ensuing construction and remains nine months only for only andabove remains above ninefor months South might South be might behindbeus.behind us. inreversal the volume in theofvolume new contractual of new contractual the fourththe time in the 10-year ofhistoryreversal fourth time in thehistory 10-year of activity, which activity, is likely whichtemporary. is likely temporary. the series.the series. • Backlog•in Backlog the Northeast in the Northeast contracted contracted by more than by more a fullthan month a full after month after “By contrast, “By contrast, backlog inbacklog the in the “That said, third-quarter declines were “That said, third-quarter declines were its highestitslevel highest everlevel during ever during commercial/institutional commercial/institutional and heavyand heavy reaching reaching widespread,” Basu said.Basu “Onsaid. a quarterly widespread,” “On a quarterly the second thequarter secondofquarter 2018. There of 2018. areThere are likely many likely reasons manyfor reasons this, including for this, including a recent slowing a recentinslowing global in investment global investment in Northeast in Northeast commercial commercial real estatereal estate and growing and concerns growing concerns regardingregarding overbuilding overbuilding in certaininsegments certain segments and and communities. communities. • Backlog•increased Backlog increased in the Middle in theStates Middle States during the during third the quarter, thirdthough quarter,it though was it was not enormous not enormous (less than(less 0.2 months). than 0.2 months). Moreover,Moreover, the Middle theStates Middle stillStates have still a have a significantly significantly lower backlog lowerthan backlog any than of any of the four major the four regions. major regions. • Backlog•declined Backlog in declined the West, in the partially West, partially attributable attributable to the wildfire to thethat wildfire ravaged that ravaged California. California. Despite this, Despite regional this, regional backlog remains backlog2.7 remains months 2.7higher months higher
20 | JANUARY2019
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their backlog theircontract backlog by contract about one by about half one half of a month. of aMany month. of these Manyfirms of these are firms are exposed to exposed infrastructure, to infrastructure, a categorya category associatedassociated with diminished with diminished backlog backlog during theduring third the quarter thirdofquarter 2018. of 2018. • Average• backlog Averageamong backlogfirms among withfirms with annual revenues annual revenues between $50 between million $50 million and $100and million $100fell million to 10.3 fellmonths, to 10.3 months, a decreasea decrease of more than of more 30 days. than Still, 30 days. Still, backlog inbacklog this firm in this size firm category size category generallygenerally remains elevated. remains elevated.
• Backlog•for Backlog firms with for firms revenues with between revenues between $30 million $30and million $50 million and $50experienced million experienced the steepest thedecline, steepestfalling decline, by falling more by more than 2.3 months than 2.3from months the third from quarter the third quarter of 2017. Increased of 2017. Increased survey participation survey participation may havemay beenhave a factor, beenbut a factor, some but of some of these firms these alsofirms may have also may experienced have experienced a a temporarytemporary reductionreduction in backlogindue backlog to due to wildfires otherand recent other high-impact recent high-impact government local government finances in finances in wildfires and than at the than same at the timesame one time year ago. one year ago. and local and much nation. of theThe nation. decline Theindecline in events. events. Construction Construction activity isactivity poised to is poised to much of the infrastructure-related backlog isbacklog likely is likely remain elevated remain in elevated Seattle;inPortland, Seattle; Portland,infrastructure-related • Backlog•for Backlog firms for withfirms annual withrevenues annual revenues temporary, and it may and be itthat maythe beprior that the prior Oregon; San Oregon; Jose, San California; Jose, California; Los Los temporary, less than million $30fell million to 8.3fell months to 8.3 months surge in backlog surge ininbacklog this category in this was category wasless than $30 Angeles; Denver; Angeles;Salt Denver; LakeSalt City; Lake Boise, City; Boise, during third the quarter thirdbut quarter remains but remains due to Hurricane due to Hurricane Harvey and Harvey otherand other during the Idaho; and Idaho; Phoenix—suggesting and Phoenix—suggesting that that near an all-time near anhigh. all-time Backlog high.in Backlog this in this disasters occurred that occurred in 2017. Given in 2017. Given construction construction industry-related industry-related human humandisasters that segment remains segmentover remains half over a month half a month spate recent of natural spate ofdisasters natural and disasters and capital shortfalls capital shortfalls will continue will to continue to the recentthe higher than higher at the than same at the timesame one time year one year the impact theofimpact improved of improved state and state local and local worsen. worsen. is consistent This is consistent with a stillwith busy a still busy government government finances, finances, backlog inbacklog this in thisago. Thisago. U.S. nonresidential U.S. nonresidential construction construction sector. sector. category is category poised to is poised snap back to snap during back during Highlights Highlights by Industry by Industry the next several the nextquarters. several quarters. • Backlog•inBacklog the commercial/institutional in the commercial/institutional Highlights by Company by Company Size Size segment declined segment during declined theduring third the third Highlights quarter and quarter now stands and now at its stands lowest at its level lowest level • Large firms—those • Large firms—those with annual with annual since the fourth since the quarter fourthofquarter 2016. Many of 2016. Many factors arefactors likely are responsible, likely responsible, including including revenues in revenues excess of in $100 excessmillion—saw of $100 million—saw higher capital higher costs capital for developers. costs for developers. • Backlog•decreased Backlog decreased in the heavy in the heavy industrialindustrial category but category remains butwithin remains within one-tenthone-tenth of a month of of a month the all-time of the all-time high established high established during the during second the second quarter ofquarter 2018. Industrial of 2018. Industrial production production continuescontinues to expandtoinexpand America, in America, but but uncertainty uncertainty regardingregarding future trade future trade policy may policy be hampering may be hampering investment investment in manufacturing in manufacturing and otherand industrial other industrial categories. categories. • Backlog•in Backlog the infrastructure in the infrastructure category category fell beneath fellthe beneath 10-month the 10-month thresholdthreshold for the first fortime the first in more timethan in more three than three years. This years. is particularly This is particularly surprisingsurprising given the given growing the strength growing of strength state of state
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CONSTRUCTION NEWS BULLETIN
ABC Welcomes EPA’s Newly Proposed WOTUS Rulemaking by: stover@abc.org On Dec. 11, the U.S. Environmental Protection Agency and U.S. Army Corps and Engineers jointly issued a proposal to revise the definition of “waters of the United States” to clarify federal authority under the Clean Water Act. The proposed rule seeks to provide businesses and landowners with clear definitions of what are and what are not ‘navigable waters.’ ABC President and CEO Michael Bellaman attended the signing ceremony for the rulemaking at the U.S. EPA. The proposed rule is the second step in a two-step process to review and revise the definition of WOTUS, which comes at the direction of President Trump’s Executive Order, “Restoring the Rule of Law, Federalism, and Economic Growth by Reviewing the ‘Waters of the United States’ Rule.” The agencies had
previously proposed to rescind the Obama administration’s 2015 WOTUS final rule and re-codify the regulations that existed prior to the 2015 rule. ABC submitted comments in support of the agencies’ proposed rescission and commented as a member of the Waters Advocacy Coalition. A final rule to rescind the 2015 WOTUS rule is expected to be issued in March 2019.
EPA and Corps announced that they will hold an informational webcast on Jan. 10, 2019, and will host a listening session on the proposed rule in Kansas City, Kansas, on Jan. 23, 2019. For more information on the WOTUS rulemaking process, visit the EPA’s website https://www.epa.gov/wotus-rule.
The 2015 WOTUS final rule would have dramatically expanded the scope of federal authority over water and land uses across the country, triggering a substantial increase in permitting requirements and leading to project delays and cost increases for construction. The public will have 60 days to comment on the proposed rule once it is published in the Federal Register. Additionally, the
Resources for Contractors Affected by the Federal Government Shutdown by: stover@abc.org The federal government continues to operate under a partial shutdown affecting nine federal departments and a total of about 800,000 federal workers who have been furloughed or are working without pay. Several agencies and programs that serve the construction industry are not affected, including the Departments of Labor, Defense, Education, Energy and Veterans Affairs construction projects. Departments that are affected by the shutdown offer guidance to contractors on an agency-by-agency basis. Contractors performing work for federal agencies should look for information on shutdown/contingency plans on agency websites to learn how the shutdown affects them. Contractors can also consult the Office of Management Budget’s Agency
22 | JANUARY2019
Contingency Plans and FAQs During a Lapse in Appropriations. Additionally, the E-Verify system utilized by contractors performing construction services under federal contracts and certain additional public works contracts to electronically confirm the employment eligibility of their employees is unavailable until the Department of Homeland Security receives funding. Read more details on E-Verify’s website. ABC is continuing to monitor discussions surrounding the shutdown between the White House and Congress and encourages members to reach out to the ABC government affairs team with any questions or concerns.
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11
www.guamcontractors.org TOTAL Construction H-2B Workers
Total OTHER Construction
Construction Equipment Mechanic
Other Construction Occupations
Employers Workplace Monthly Report Statistics
Total Non-Construction H2-B Workers
7
Automotive Mechanic
Other Non-Construction Occupations
GUAM DEPARTMENT OF LABOR Alien Labor Processing Certification Division
5 425
5
8 0 5 10 0 13
Plumber Sheetmetal Worker Heavy Equip. Operator Electrician Camp Cook Welder Total Common Const.
318
425
Total H-2B Employers
Total U.S. Workers Grand Total H-2B Workers
0
50
100
150
200
250
300
350
400
450
Total U.S. Workers
Grand Total H2B Workers
US Workers vs. H-2B
2 8
500
6
Construction
425 0 0 0 0 0 0 0 0 0 425
Non-Construction
Employers By Industry
Philippines Korea Japan Kiribati United Kingdom Australia Italy Peru Thailand Other Total by Nationality
Workers by Nationality
409
0
Structural Steelworker
120
Reinforcing Metalworker
83 170
Carpenter
Cement Mason
Common Construction Occupations
MONTH ENDING: November2018
Korea Thailand 0.00% 0.00%
0.00%
1.95%
0.00%
1.56%
29.34%
2.44%
0.00%
20.2%
Other 0.00%
Peru 0.00%
Welder
Camp Cook
Heavy Equip. Operator Electrician
Sheetmetal Worker
Reinforcing Metalworker Structural Steelworker Plumber
Carpenter
Cement Mason
Other
Thailand
Peru
Italy
Australia
United Kingdom
Kiribati
Japan
Korea
Philippines
United Kingdom 0.00%
Kiribati 0.00%
Prepared By: Sherine Espinosa Contact information: Greg Massey, ALPCD Administrator P.O. Box 9970 Tamuning, Guam 96931 (671)475-8005/8003
41.56%
3.18%
Common Construction Occupations
Philippines 100.00%
Japan 0.00%
Australia 0.00%
Italy 0.00%
H-2B Population by Nationality
REPORTS/ INFORMATION CONSTRUCTION NEWS BULLETIN
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