Digging Deep for Market Share

Florida SMACNA and Local 15 are working together in America’s toughest non-union market

By / Jessica Kirby

Local 15 and Florida SMACNA have a treasure, and they are guarding it fiercely. Despite a steady decline of union sheet metal market share in their Local area, their working relationship is excellent and stronger than ever.

“In state of Florida, the union market share is 4% to 5% and in our local area, it is closer to 2%,” says Local 15 Business Manager, Patrick O’Leary. “We have been a little higher and it seems like every year it is getting more difficult because contractors move here from up north looking to do their own thing. People want to live in the sunshine and good weather.”

Dan Lapin is owner of Lapin Sheet Metal in Orlando and president of SMACNA Florida. He says there are several reasons Florida is America’s toughest non-union market, including the fact that the large, out-of-state, non-union mechanical contractors tend to do their own sheet metal.

“They take a big portion of the market share,” he says. “They operate in more than one state and have the resources to underquote and get better prices from various suppliers. That gives them an obvious advantage.”

O’Leary points to the most glaring reason for the tough market share—Florida being a right-to-work state (the first, actually, along with Arkansas) and the implications of this on training.

“This has affected how we approach our apprenticeship program and make sure the curriculum is meeting contractors’ needs as they are trying to bid projects and make sure our skilled laborers are going out,” O’Leary says. “But with the whole country being short on labor, all the trades I know of are having trouble getting enough people.”

With this kind of pressure, it is imperative that labor and management tackle the market together, combining forces in key areas, like targeting work, recruitment, and training.

As a contractor, Lapin has been working with the union for 10 years. He is a second-generation sheet metal worker raised on trade union membership. That’s why he knows how important labor-management relationships are to success in any market.

“Our relationship with Local 15 is strong, and we both strive to reach goals that benefit both union members and contractors,” he says. “I feel like we have a good understanding of each other’s wants and needs, and if something is on my mind, I don’t hesitate to call Pat and express my concerns, needs, or wants. He’s pretty open to it. We are both straight shooters.”

“What I don’t do is look at the Local members as the enemy,” he adds. “We are all here for the same reason, and I look at it like a partnership, and in some instances, I consider us friends. We have to work together to help reach our goals. Open communication gets us where we need to be.”

O’Leary has been in trade for 35 years. Florida is his home Local where he served his apprenticeship, worked on the tools, and took on the business manager position. During 15 years in office, O’Leary has experienced the benefits of positive labor-management relations, including positive, open communication. “We work together and try to reach an agreement on issues as they come up,” he says. “Then we come up with a solution together.”

For starters, Lapin says large mechanicals’ method of swallowing up huge swaths of work is back-firing for non-union companies who then must rush in with poor workpersonship and an impossible schedule to complete all the work they’ve won underbidding. That’s where quality and integrity win the day.

“The market is booming, so a lot of non-union get full plates,” Lapin says. “That opens a door for us. They get their workloads and quotas full, and that gives us an upper hand on being selective with taking on projects that are larger and practical for our operations.”

The labor shortage has created a monumental push in recruitment and retention initiatives, because being short of labor and on work to keep existing labor busy makes it hard to secure long-term union members.

Local 15 participates in a number of recruitment initiatives, including job fairs and school visits, and keeps a healthy wordof-mouth network flowing so everyone knows what the other needs. Florida SMACNA participates when possible, but also supports the efforts with open communication, joint planning, and event promotion on social media.

“If they have the bodies and want to bring people, they will,” O’Leary says. “They will help in any way they can, and we know we can approach SMACNA if we need to.”

Together, they also target jobs and team up to find the best way to win the work. As partners, they will estimate the shop and field labor, and assess the competition. About 90% of the time, they can reach an agreement.

“General contractors on big projects will also recommend good contractors to the mechanical contractors, and because we can get the job done, they keep giving us recommendations,” Lapin says.

O’Leary says those reputations are rooted in training the best workforce available so that they stand out in a highly competitive market.

“You need a skilled workforce,” he says. “With our reputation and training, we get the job done on time and under budget. We do the best we can, and we work to stay competitive. We look good and do everything we can to show general contractors that hiring union is clearly the best choice.”

“Contractors and unions operating in tough markets have to remember that they have more knowledge and are better at their craft than that competition, and that is where they will always shine above,” Lapin adds.

For labor-management partners currently struggling to communication and work together, O’Leary has some sage advice.

“Today, contact your reps and chapter and get the lines of communication going,” he says. “Pay attention to their reactions, set up meetings, and listen to each other. Build the relationship that way. Communication is the key. You have to be able to listen and act on what you need to do.” ▪

Jessica Kirby is editor-publisher for Point One Media, a small but sturdy family-owned trade magazine creator representing some of North America’s best construction associations. She can usually be found among piles of paper in her home office or exploring British Columbia’s incredible wilderness.