Construction in America

JUNE 2019 | FUTUREOFBUSINESSANDTECH.COM

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CONSTRUCTION IN AMERICA

Mike Holmes

shares what he thinks is the key to success in the construction business

Discover how technological innovation adds more transparency in construction Learn TV’s Mike Rowe’s advice for finding the right career

TV’s Mike Holmes Talks Best Practices in the Industry tar of TV’s “Holmes on Homes” and “Holmes Makes It Right” shares his knowledge on how to stay successful, safe, and innovative in construction.

I would say communication or lack thereof is very challenging when planning a project or when in the midst of one. As the general contractor, you are the lead and need to have a clear scope of the project, and communicating this to your team and trades is key.

Have one point person to communicate all the aspects of the job to your client. Depending on the size of the project, this could be the general contractor or a designated alternative point person. This is key, as it avoids confusion and miscommunication, and the client knows who they can contact for all their questions and concerns from the onset of the project.

Make sure you have a written contract. A contract protects the general contractor, as well as the

PHOTO: THE HOLMES GROUP

What’s the most diffıcult aspect of ensuring seamless collaboration between all parties involved with a construction project? What steps have you taken to improve collaboration and communication?

homeowner, and it should clearly state the details of the project, budget, materials, timelines, etc.

Make sure the client understands the ramifications of any changes, as these usually affect budget, costs, and/or timelines, etc.

What are the most important steps you take early on in the construction process to ensure projects are completed safely and on time?

I like to have the project planned out on paper and in a project management program with some buffer days for the unexpected. The more organized and detailed-oriented you are, the more successful your project will be.

What steps do you take to build a worksite culture, which empowers health and safety for all team members?

Safety should be the No. 1 priority for every general contractor, as you are liable. Ensuring the work environments and job sites are safe, free from obstacles, and have clearly marked hazardous areas and materials is key. Also, make sure all your crew is familiar with standard health and safety practices and wear the proper PPE, which includes construction boots, hardhat, safety eyewear, facemasks (respirators), and hearing and eyewear protection.

Besides for your phone, what is one piece of technology you could not work without?

Depending on your needs and how big your business is, you may want to look into a good project management software program.

However, I do need to say this: your phone, laptop, or tablet can help you become more efficient and organized, but ultimately you need to be skilled, have good business sense, and good people management skills. Technology will help streamline your company and projects, but if you don’t have the smarts and common sense, then no amount of technology is going to help you. n

Publisher James Cannino Business Developer Abraham Freedberg Managing Director Luciana Olson Designers Tiffany Pryor, Marie Coons Copy Editor Travis Atwell Director of Sales Shannon Ruggiero Director of Business Development Jourdan Snyder Director of Product Faye Godfrey Lead Editor Mina Fanous Production Manager Josh Rosman Content Strategist Vanessa Rodriguez Cover Photo The Holmes Group All photos are credited to Getty Images unless otherwise specifıed. This section was created by Mediaplanet and did not involve USA Today.

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How AI Innovation May Be the Future of Construction As artifıcial intelligence has become a more familiar reference point in the business world, the construction industry is beginning to rely more on this concept.

The rise of AI and machine learning in construction has helped workforces catch more mistakes as they happen as well as manage project timeliness and efficiency. You’ll find, however, that machine learning in construction has its issues.

Uses for AI in construction Construction technology has seen

a surge in investment and interest in the last several years. Much of that investment has gone into replacing paper files with digital tools to improve workflow processes and increase the amount of project data available.

Artificial intelligence construction technology combines an array of tools. These include cognitive computing, machine learning, image recognition, speech recognition, predictive application programming interfaces, and many more.

Robotic solutions are already becoming a primary source on

jobsites for applications such as bricklaying, demolition, and concrete dispensing.

issues quicker and determining factors ahead of time that could delay the project cycle.

Collaborating with AI AI in construction management is used to quality-check critical elements of designs and plans.

Plans are checked for accuracy and verified while project managers can forecast and schedule as these plans take shape.

AI techniques can also optimize development and perfect quality control of design structures. As the technologies continue to advance, virtual personal assistants can help at the office and the jobsite, creating a smarter workplace for construction companies.

Resistance to change While AI in construction management is becoming a trend, it has also been met with resistance. Fear of the unknown and questions over implementation are understandable reasons for that resistance. Security standards, from an IT perspective, are a concern regarding AI influence in construction technology.

Developers are exploring whether AI technology can perform site surveys in intrinsically safe environments.

Some workers believe their jobs will be made redundant due to AI or that they will need to understand the intricacies of data science to keep up. As upgraded tools emerge, however, AI can become easy to use for taking on more straightforward, programmable tasks, leaving the tougher work to skilled human professionals. n

Staying a step ahead In addition to scheduling and forecasting, artificial intelligence in construction ensures the process stays a step ahead.

From predictive maintenance to weather forecasting, AI enables project managers to have a sharper focus, spotting

Sandra Mason, Director of Public Relations, Association of Equipment Manufacturers

Why the Future of Construction Is in the Cloud SPONSORED

Construction will always require hands-on, real-world work — but cloud-based collaboration software is making that work smarter and more effıcient.

The construction industry is worth $10 trillion globally, but growth has been an anemic 1 percent for decades. Inefficiency is to blame; many projects lose a third of their value

to waste. One technology that’s emerging as a solution is collaboration software.

“A construction site is made up of different experts with one goal: Get the project done,” says Elizabeth Long, vice president of marketing and sales at Touchplan, a construction collaboration software provider. “Cloudbased collaboration software gives everybody on the job an easy way to communicate.”

“There is a ton of information passed back and forth on every project,” adds Jennifer Nussinow, Touchplan’s director of marketing. “The goal is to get everyone communicating together in one common place.”

Nussinow and Long emphasize three ways construction businesses can benefit from collaboration tools: 1. Get started easily “The technology mimics simple processes the team is already using,” says Nussinow. “We’re able to get trades and project teams up and running in 15 minutes.”

2. Streamline day-to-day operations “Collaboration software empowers leaders on the job to facilitate discussions,” Long says. “[This brings] experts in all the trades together as opposed to copy-

ing and pasting a schedule that nobody’s actually following.”

3. Improve the bottom line “It’s not just time and money,” says Nussinow. “It’s manpower, it’s mental and physical exhaustion. It shows up in the bottom line in dollars and cents, but it also translates to a better project experience.”

This is about more than the bottom line, however. “We’re trying to change the way that all construction works,” Long says.

“These tools offer the superpower of being proactive, rather than dealing with the complications after the fact.” n Jeff Somers MEDIAPLANET • 3

Experts in Construction Share Their Knowledge of the Industry Our panel of leaders and innovators in the business discuss the highs, lows, and potential for the future.

Kenny Ingram Global Industry Director, IFS

Shyam Veeramachineni Global Practice Leader, Infrastructure, Intertek

Tyson Cartwright Business Development Manager, Centennial Woods Inc.

What major challenges are construction teams looking to overcome today?

In 2019, what major challenges are construction companies looking to overcome?

These challenges include poor profit margins, flat rates in productivity, labor and skills shortage, inconsistent and unpredictable project-delivery performance, competition intensifying from local and global entities, as well as industry outsiders, and adapting to new business models.

The biggest issues in the construction industry are the scarcity of skilled workers and the rising material prices. Companies will need to look at their speed and efficiency to hold the line on profitability, and they need to carefully manage risk throughout the project lifecycle.

What is the biggest challenge facing the construction industry today and what is the biggest misconception surrounding sustainable building materials?

How can technology help construction professionals overcome the looming skills shortage?

What steps can construction professionals take on every project to create a worksite which empowers health and safety for all individuals?

Productivity can be improved by using integrated systems, with less reliance on Excel. Secondly, using an offsite manufacturing model can also improve workforce productivity. Third, using labor and project management software tools can improve efficiency and project delivery performance.

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Caring for safety by all employees is critical, from senior-level employees through the youngest of apprentices. Awareness at every moment, by every member of the team, in all places, is the best way to ensure safer job sites. Flag the obvious risks and share near-misses so everyone stays aware.

I think it’s finding truly sustainable building materials. Many products claim to be sustainable because it’s a buzz word, but when you start digging, you quickly realize they are not.

The biggest misconception regarding sustainability is people think because a product is sustainable it’s more expensive.

What advice would you give to a young professional who is just starting out their career in construction?

Don’t accept statements from companies at face value. Do your own homework and decide if a company truly aligns with your principles.

How Construction Leaders Are Innovating Technology and Recruiting the Next Generation of Workers

One of the biggest threats to the construction industry is the lack of skilled technicians and operators. Industry leader Komatsu America Corp., a leading global heavy equipment manufacturer, is taking a multifaceted approach to recruiting and retaining technicians.

They’re engaging students at a younger age, developing partnerships with technical colleges, focusing on training service managers, and improving technician efficiency.

They’re digging into the stigma of the career too.

“The construction industry as a whole is not always portrayed as the most glamorous and the rewards of a machine operator career are generally not well known,” says Jason Anetsberger, senior product manager for Komatsu America Corp.

“This has made it hard for contractors to attract talent and grow skilled operators.”

He says this isn’t the old school construction industry you imagined as a kid.

Technology effıciency It takes years of experience to operate the machines manually at the highest performance levels. But new technology is

PHOTO: COURTESY OF KOMATSU

SPONSORED

making construction jobs easier for workers and more efficient for companies.

Komatsu is innovating industry technology including GPS positioning, advanced machine automation, edge computing, 3D visualization, augmented and virtual reality, and artificial intelligence.

Six years ago, the company launched the world’s first intelligent machine control bulldozers and excavators using GPS satellite navigation to drastically increase machine productivity, upwards of 50 percent, regardless of operator skill level.

Here’s how it works: GPS knows exactly where the machine is on the jobsite; 3D design data files are loaded into the machine knowing the intended or target shape of the terrain; and advanced algorithms automate the movement of the machine.

Each pass of the machine is controlled so that the dozer automatically tries to push no more

or no less than optimum. Anetsberger says accuracies are as tight as +/-30mm with the operator not even having to move the blade themselves.

The technology gives the operator the highest levels of performance, equivalent to many years of experience. That makes running a jobsite more efficient and on budget.

Komatsu’s SmartConstruction suite of solutions make it easier for site managers of all levels to increase productivity and shorten schedules. For example, high precision drones map the entire site’s terrain much faster than traditional ground surveys and intuitive analytical web portals calculate quantities of materials and visualize site progress.

The next generation While technology is progressing quickly, technician supply is not keeping up with demand. It’s essential to the industry to train the next generation of workers, as a third of the current techni-

cian workforce in the construction industry is expected to retire in the next decade.

“Future construction workers must be engaged much earlier in their education to learn job skills, discern career paths, and envision their future impact on the industry,” says Bill Chimley, director of training and publications for Komatsu America Corp., who calls technician recruitment and retention one of the top three determining factors for future success in the industry.

They’re promoting industry related curriculum and programs in high school, creating robust intern programs, and helping students visualize a career in the industry.

They’ve successfully used virtual reality simulators to connect high school gamers to their products. They also support multiple technical colleges that allow Komatsu dealers to recruit students, provide them with a specialized degree, and hire them immediately after graduation.

Once employees are hired it’s important to keep them on the job. Komatsu is working to ensure service managers are ready to identify, grow and retain talent. For example, many of their dealers have trainers to teach technicians how to support and repair the latest model or technology. The technician trusts the trainer which can be a key to improving retention.

The future is promising and Komatsu is committed to growing the technology and supporting the people in the industry. n Kristen Castillo MEDIAPLANET • 5

You won’t fınd many trade careers on a Top 100 list, but that isn’t stopping skilled workers from loving their jobs.

A couple years ago, I was dropped into a 60-foot prospect shaft about the size of a manhole, somewhere in The Australian Outback. I was profiling a jolly pair of opal miners, and getting a taste of what their work was like day in and day out. As they lowered me further and further into the narrow tube, my focus shifted from looking for opals to not losing my mind. The claustrophobia was palpable, and by the time I got to the bottom, the sky above me was just a blue dot. I yelled up to the men far above me, “Do you guys really love this?” They yelled back in unison, their voices faint but clear, “Best job I ever had!”

Building a successful career I’ve asked the same question to hundreds of people over the years — roughnecks, crab fishermen, welders, roustabouts,

plumbers, lumberjacks, truck drivers, soldiers, blacksmiths, electricians — and they all answered the same way. And yet, none of those vocations appear on anyone’s list of “Top Jobs.”

How come?

According to the Bureau of Labor Statistics, nearly 3 million jobs are available for those who are willing to learn a skill that’s in demand. The vast majority of these jobs do not require a fouryear degree; they require training. Fortunately, many excellent training facilities exist all over the country. And yet, none of those schools are ever included in the “Top 100 Colleges in America.” Why? The perks of skill-based education Last year, my foundation sent dozens of people to trade schools that most parents have never heard of to pursue skills that few guidance counselors affirmatively encourage. Many of these jobs lead to six-figure salaries, quickly. I’ve partnered

PHOTO: MICHAEL SEGEL

How to Find Meaningful Work Outside the Conventional Model

with several companies that assist potential employees with vocational training. Caterpillar has a program that will train you for free to be a dealer technician.

Categorically, I can tell you that these people love their work.

Many have gone on to start their own businesses.

It’s impossible to know who or what will influence our capacity to learn or challenge our intellect

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Speeding Up Trust in Construction and Law Lawyers and contractors have long-standing problems with infrastructure projects that can be solved with new ideas.

According to the U.S. Bureau of Labor Statistics, the design and construction (A/E/C) industry is the only industry that has become less efficient and productive since 1964. Construction jobs have great home field advantage that can create the infrastructure foundation we need for future success, but without innovation we will miss a golden opportunity.

Wrapped in legal battles The A/E/C industry is fragmented and slow-moving. The legal industry, which drives the structural relationships in construction contracts, is even slower. The combination has us stuck in contractual silos that create confrontation that can lead to claims and litigation.

Stay true to your word A better foundation to build requires trust, collaboration, and innovation. Your word is your bond, so use it wisely. Lack of communication can lead to failed projects.

Believe in high-tech options There has never been a time when there was a greater incentive to build more efficiently.

Execution is better, safer, and more valuable to the end-user when you maximize the impact of technology.

To build a better way, you have to try something new.

Brian Perlberg, AGC Senior Counsel & Consensus Docs Executive Director

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Bryan Baeumler’s Tips for a Successful Construction Business TV’s construction guru tells us what it takes to make it in the business and how technological innovation is shaping the industry.

What’s the biggest misconception behind a career in the construction industry?

You have to be highly educated to go into specialties.

There is good earning potential and the only difference is the amount of sweat you may drop during the day.

What’s the one piece of advice you’d give to a construction business entrepreneur?

My one piece of advice to the younger people in the trades is to take an online course, go to night school, learn how to run a business.

You can be the most highly skilled person in the world at your specific trade, but if you don’t know how to run a business you won’t be able to do the marketing, make the sales, account for everything, pay your taxes, or put a little bit away for a raining day. Grow your business

and actually enjoy it and profit from it.

For someone just starting out with a construction business, what is one common mistake that could be avoided?

You need to put the hours in. I think the guys that first get into business and pay everyone else to do the work, that’s where the mistake is. You need to put in the hours, put in the sweat equity. You need to keep going, keep doing it.

Are there certain steps you take during every building project to ensure long term success of the project?

We make sure we are starting every project with clear expectations and understandings of the homeowner and of ourselves and we make sure that they line up. It really is communication, communication, com-

munication. That is the No. 1 cause of any breakdown in any business relationship.

Be open and honest, and you really can’t go wrong.

How has your team embraced technology over the past decade?

The availability of tools, new laser measuring devices, 3D devices, and all kinds of things help speed up our process. The other side is smart home technology in general has changed so much. You can plan things more offsite, put more things in the blueprint and the planning process upfront. We can create, change, and modify things in real time in 3D right in front of the customers face, so that’s helped with decision making. I think in general it has really opened the door to communication at the end of the day. n

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Creating Workforce Efficiency With the Power of Data Discover how one company, Eyrus, is using innovations in data forecasting to revolutionize the construction industry.

In a time of increased project complexity, tighter schedules, and a growing lack of skilled labor, construction technology and project data come at a high demand. The construction industry is experiencing a new wave of technology that’s shedding light on project activity in ways we’ve never seen before. Workforce data collected straight from the site is changing the way we make critical decisions, view site productivity, and determine deployment for our teams.

At Eyrus, we create predictive resource deployment models that are based on the project’s schedule and financials. These

models benchmark how many skilled trade workers need to be on site to accomplish the scheduled tasks. The forecast is compared to detailed workforce data collected in real time. We utilize cutting-edge technology to seamlessly and automatically track individuals moving on and off the construction site. This combination enables managers of all experience levels to have enhanced, structured insights using more visibility than even the most experienced professional would have.

Streamlined staffing Transparency created by the technology is also helping fill the gaps of the skilled trade labor shortage. Today, contractors struggle with over-staffing, under-staffing, or idle staffing

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sites, which creates inefficiencies in an already thin labor force. This can be avoided by understanding exactly how many people per trade need to be on each site every day. Forecasts combined with short term labor planning (pull-planning) enable each contractor to have visibility of their weekly deployment across multiple sites.

Innovating from the ground up In addition to transferring experience and providing transparency, technology creates efficiencies for the whole team across the project. Automated project reporting and compliance documentation significantly reduce administrative cost and time. Furthermore, each contractor’s progress, safety, and daily reports can

be seamlessly shared and analyzed. Arguably, however, the most important outcome of the use of transparent data is the reduction of claims and associated disruptions across all project teams.

Construction is facing a pivotal point of projects becoming more complex, shortages in the workforce, and the eruption of technology across the industry. It’s essential to understand the importance of workforce data from these technologies and continue to train and educate the industry on how to use it properly. This will support efforts to bridge the gaps created by labor shortages while simultaneously redefining metrics for project success. n Hussein Cholkamy, COO, Eyrus Alexandra McManus, CEO, Eyrus

Ethics and Integrity Build Foundations for Remodeling Contractors How following a code of ethics improves communications, expectations, and supports business success in the remodeling industry.

The values and norms an organization adheres to and expects from its employees is at the root of any code of ethics. By defining these expectations, it establishes the way in which an organization will make decisions and perform its duties and paves the way for growth.

The remodeling industry has a broad spectrum of services — from handyman tasks to large-scale home additions and renovation projects. Home-

owners may be overwhelmed when searching for a remodeler, regardless of the size of the project. A proliferation of home improvement shows and social media content using the magic of editing to depict wholehome updates in the confines of a 30-minute show or in simple before-and-after photos can make expectations difficult to manage. Adding to the confusion is the number of services that promise to connect homeowners with professional contractors.

Between unrealistic expectations and a plethora of “find a contractor” services, it may be difficult for remodeling contractor companies to stand apart.

Ethical frameworks The National Association of the Remodeling Industry (NARI) provides a code of ethics for remodeling companies that ensures integrity, ethical behavior, and supports homeowner trust. Founded in 1982 with roots dating back as early as 1935, NARI provides a unified code for business conduct that supports ethical, trustworthy, and professional behavior.

Each member of the National Association of the Remodeling Industry pledges to observe high standards of honesty, integrity, and responsibility in the conduct of business under the following guidelines:

• Promoting only those products and services which are functionally and economically sound and consistent with objective standards of health and safety • Making all advertising and sales promotion factually accurate, avoiding deceptive or misleading practices • Writing all contracts and warranties in compliance with federal, state, and local laws • Promptly acknowledging and taking appropriate action on all customer complaints Refraining from any act • intended to restrain trade or suppress competition • Obtaining and retaining insurance, licensing, and/ or registration as required by federal, state, and local authorities • Taking appropriate action to preserve the health and safety of employees, trade contractors, and clients Benefits of responsible practice Adhering to a code of ethics helps mitigate risk. For a remodeling contractor company, obtaining and retaining insurance and licensure from federal, state, and local authorities protects the business. Managing employee safety by following best practices and health and safety guidelines is another way to build trust, demonstrate integrity, and manage risk.

Remodeling projects can be complex. It is not uncommon for changes in the project due to product availability, unforeseen issues, or plain miscommunication. The key to success is to have a foundation in place to support communication and behavior to build trust while managing risk for any business.

For more information on NARI visit: www.nari.org. n Robert Kirsic, CRPM, President, National Association of the Remodeling Industry MEDIAPLANET • 11

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