PartnersINProgress SMACNA & SMART—Building a Future Together
March2021
In the Beginning: The First Five Decades of Labor-Management Partnerships Explored (Part I of a IV-Part Series)
PartnersINProgress
© Can Stock Photo / khunaspix
SMACNA & SMART—Building a Future Together
JOSEPH SELLERS, JR. ANGELA SIMON Co-Publishers KAARIN ENGELMANN editor@pinpmagazine.org Editor-in-Chief
CONTENTS
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March 2021 - Volume 15, Number 3
3 SMACNA AND SMART CELEBRATE 75 YEARS OF PARTNERSHIP Through the years, SMACNA and SMART have endured as Partners in Progress.
4 BUILDING A PARTNERSHIP FROM THE GROUND UP 1946-1960 were formative years for the SMACNA-SMART partnership.
Learn how in part one of a four-part historical series on becoming Partners in Progress.
7
TROY MARTELL: MY JOURNEY
helped Troy Martell find his way to the sheet metal trade.
A family legacy, preference for a physical job, and a dislike of desk work
8 IN THE MOMENT
JESSICA KIRBY jkirby@pointonemedia.com Editor POINT ONE MEDIA INC. artdept@pointonemedia.com Creative Services
Partners in Progress is a publication of the Sheet Metal Industry LaborManagement Cooperation Fund. All contents ©2021 by the Sheet Metal Industry Labor-Management Cooperation Fund, P.O. Box 221211, Chantilly, VA 20153-1211. Find Partners in Progress online at pinp.org or at issuu.com/ partnersinprogress. An archive of all issues is available and printed copies may be ordered for a minimal fee. For comments or questions, email editor@pinpmagazine.org.
When owners need home service, make sure SMACNA-SMART Expertise is top of mind.
10 BUILDING TRUST
Sitting on the same side of the table brings people together to build trust and move forward toward the same goal
12 EYE ON 2021
How to create excitement & optimism for the year ahead in your organization
14 TRENDING AHEAD
Survey reveals interest in energy efficiency is a critical HVAC trend. 2 » Partners in Progress » www.pinp.org
S HE E T M E TA L | A I R | R A I L | T R A N S P O R TAT I O N
SMACNA and SMART
Celebrating 75 Years of Partnership Anniversaries are significant milestones. They provide us with the opportunity to look back and reflect on the beginning and evolution of a relationship. The year 2021 has certainly presented significant challenges to all, given the on-going global pandemic, but if we want some positive news, this year also marks the 75th anniversary of the first partnership efforts between SMACNA and SMART. Seventy-Five year anniversaries are commonly referred to as “Diamond” anniversaries because, like diamonds, relationships of that length are strong and valuable, descriptors that certainly describe the SMART and SMACNA partnership. In fact, author Jeffrey Fry once noted that, “Diamonds are lumps of coal that stuck to their job no matter how much heat or pressure they faced.” Long-term relationships are seldom perfect and that includes labor-management partnerships. But those based on trust and mutual respect, like SMART and SMACNA’s can likewise withstand heat and pressure and overcome any challenges to work to promote the best interests of the industry and their members. “Building a Partnership from the Ground Up,” beginning on page 4, explains why 1946 was such a landmark year for SMACNA and SMART. That year marked the first ever meeting of the national associations to discuss industry challenges and to explore whether joint cooperation might lead to the best solutions. This article is the first in a four-part series for Partners in Progress that will examine the reasons that influenced the two national associations to approach important industry issues collaboratively, their efforts to promote joint problem solving at the local level, and the programs and services developed for those labor, contractor, and chapter leaders in our industry who recognize the value of partnering at all levels. Last month’s “My Journey” featured Jud Martell, Training Coordinator for SMART Local 280. At the time he spoke to our writer, Jud proudly noted that he was one week away from his eldest child turning out as a journeyman sheet metal worker. We thought it would be a great follow-up to hear from one of Local 280’s newest journeymen, Troy Martell (page 7). Troy describes what drew him to the trade and provides advice for new apprentices that includes, “Listen to your journeyperson, always carrying a tape measure, and work safely.” There are events in homeowners’ everyday lives that can trigger the need to purchase a home service, such as HVAC service, and while some of those are planned, a great many are not. The Best Practices Market Expansion Task Force developed the HVAC Expertise program several years ago to give SMACNA contractors and their skilled laborforce an easy to recognize brand that ensures their expertise is top of mind when homeowners need help from HVAC professionals. See
page 8 for “In the Moment”, a look at how to leverage the HVAC Expertise brand and its marketing materials. Early on in their long lasting partnership, SMART and SMACNA learned that lining up across the table from each other only when there are divisive matters like contract negotiations or a grievance creates an “us versus them” culture for labor and management. On page 10, Trust Practice Leader Randy Conley explains how all successful intertwined relationships must be built on a foundation of trust and how developing an atmosphere of sitting on the same side of the table serves to establish that trust. Looking for optimism in 2021? Who isn’t? might be a better question. “Eye on 2021” (page 12) explains how the best companies do not allow externalities like the pandemic to define them. Rather, they rely on their grounded vision and agile operations to migrate to new markets, niches, and geographies, while protecting their most profitable work from growing competition. Learn how to be among the innovative companies and unions who convey a “We’ve got this” attitude to retain existing and attract new customers. What markets and niches offer contractor and union partners the best opportunities in 2021? Check out “Trending Ahead” on page 14 and make plans to capture the projected onslaught of energy efficiency, smart building technology, air treatment, filtration and ventilation work that owners will be investing in to assure the health and safety of their facilities. The Partners in Progress editors, writers and staff congratulate SMART and SMACNA on the 75th Anniversary of their partnership and look forward to their future accomplishments.▪
« SMACNA-SMART Partnership Turns 75 in 2021 » SMACNA and SMART have been Partners in Progress for 75 years, and it is time to celebrate. Tell us about your partnership success story, share your organization’s partnership initiatives, or send in photos—recent or historical—that show off your labor-management partnership to editor@pinpmagazine.org Partners in Progress » March 2021 » 3
Building a Partnership from the Ground Up: Part I Photo: Early meeting of SMACNA and SMART’s Labor and Arbitration Committees, circa 1947. Courtesy of SMACNA.
SMACNA and SMART are leaders in the construction industry because they know how to build quality things that last. Their building expertise is not limited to the complex HVAC, architectural, and industrial projects for which they are known. That same planning and expertise has enabled SMART and SMACNA to build the foundation for one of the strongest labormanagement partnerships in the construction industry. Readers of Partners in Progress know that SMART and SMACNA are staunch believers that labor-management collaboration is the key to success in the sheet metal industry. Every Partners in Progress article provides insight into establishing labor-management partnerships and provides examples of local partnerships that are making a difference in the industry. SMACNA and SMART have not always been partners in the sense that they are now. This article is the first in a threepart series that will trace the journey of the two organizations in establishing, building, and continuously improving their partnership. In the Beginning… We have all seen the SMART logo, which proudly denotes that the union (formerly the Sheet Metal Workers International Association or SMWIA**) was established in 1888. Obviously, sheet metal contractors employed the union workers of the 19th century, but there was no formal national association of union contractors until 1910. 4 » Partners in Progress » www.pinp.org
In his white paper titled, “The History of SMACNA: The First Twenty-Five Years,” author Joseph D. Wilder, former executive vice-president of the Sheet Metal Contractors’ National Association or SMCNA** (SMACNA’s predecessor), described the vexing issues that led to the formation of the national association. Interestingly, many of those issues still periodically challenge the industry over a century later: a shortage of skilled mechanics, superintendents, and forepersons and the need for a standardized method of training and apprenticeship training manuals. The difference then was that the contractors’ association was grappling with those tough issues alone, at least up until the Great Depression and the National Industrial Recovery Act (NIRA), which fixed wages, working hours, and selling prices for all industries and managed to put SMACNA and hundreds of other national associations out of business. While the NIRA was declared unconstitutional in 1935, it took eight years for the national association to re-group, and that occurred prior to government action prohibiting the meeting of associations in the wake of World War II. 1946 – 1949: Pivotal Years for Sheet Metal Partners In Looking Back and Moving Forward, A History of SMWIA: From SMWIA to SMART 1888–2012, author Grace Palladino notes that, “with the rise of SMACNA in the 1940s, the national contractors’ association and SMWIA agreed that ῾proper labor relations would ensure prosperity for all’.” 1946 was a landmark year for SMACNA and SMART.
“1946 was a landmark year for SMACNA and SMART. SMACNA proposed and SMART agreed to the first meeting of the national associations to discuss pressing problems in the industry and to determine if joint cooperation might resolve such problems.”
SMACNA proposed and SMART agreed to the first meeting of the national associations to discuss pressing problems in the industry and to determine if joint cooperation might resolve such problems. That same year saw the formation of the first-ever joint labormanagement committee in the sheet metal industry. The two associations formed an apprenticeship committee and began meetings to study the national apprenticeship and training standards for the sheet metal industry. In 1946, SMACNA and SMART went jointly to Washington, DC, to ask if War Protection Board (WPB) controls might be relaxed for the industry. The joint committee was granted a hearing, but the federal government did not agree to help. Still, that meeting marked the first labor-management joint lobbying initiative at the national level. The first formal joint labor relations committee was formed in 1947. That committee’s work led to the agreement by both national associations that future Standard Form of Union Agreements (SFUAs) should be jointly drafted to and agreed by both parties. This was a milestone accomplishment as the SFUA serves as the basis for over 95% of all industry collective bargaining agreements (CBAs), and revisions are still jointly drafted and agreed to by SMART and SMACNA. By 1948, the two national associations were meeting jointly to resolve jurisdictional issues with other trades. In 1949, SMCNA and SMWIA were meeting to discuss whether health and welfare plans were best implemented at the national or local level. 1950s–1990s The bold steps taken in the 1940s provided a solid foundation for SMACNA and SMART to build upon their partnership in the decades to come. The progress has been substantial, and all the accomplishments of the partnership are too lengthly to list. Below provides a brief overview of the most significant: • The early 1950s found labor and management partners navigating Korean War-time controls affecting metal shortages and wages. The national associations were discussing travel pay and encouraging their chapters and unions to meet locally to develop travel pay solutions. Records indicate that the two national associations were discussing growing concerns about non-union dealers in the residential sector of the industry.
• In 1955, the parties agreed that the National Joint Adjustment Board (NJAB) would be an additional and final step in the industry grievance arbitration process. The NJAB was comprised of equal numbers of contractor and union representatives who met to resolve industry disputes to deter strikes and stabilize the industry. • A National Joint Apprenticeship and Training Committee was formally approved by both associations in 1957. That committee was tasked with preparing annual apprenticeship contest materials, developing material for apprenticeship testing, providing recommendations on financing for local apprenticeship training, recommendations for journeyman refresher training, and developing career material for high school guidance counselors. • In the early 1960s, the partners discussed the importance of having industry fund contributions incorporated into local CBAs as a way of funding local contractor associations. Then SMWIA General President Edward F. Carlough sent a letter to all local unions suggesting that a strong national association of contractors and strong local contractor associations were desirable and encouraged inclusion in local CBAs. As noted by Palladino in Looking Back, the concept was that both arms of the industry had to succeed as partners or face the consequences. Industry funds were first added in an addendum to the SFUA and later incorporated into the SFUA. Mutual respect for the funding of the International and local unions and national SMACNA and its chapters is an important partnership foundation that continues to this day. • The NJAB met for the first time in 1962 to resolve grievances that were not resolved at the local or panel stages of the industry grievance procedure. In the 1970s, concerned that industry strikes at contract expiration were not in the best interest of the union industry, SMACNA and SMART added interest arbitration to the SFUA, which enabled parties to submit locally deadlocked contract renewals to the NJAB for resolution. • Over the decades, the SFUA was amended to include funding for the International Training Institute (iTi), which provides resources and oversight of industry training; the National Energy Management Institute (NEMI), which provides research and resources for entry into new markets; and the Partners in Progress » March 2021 » 5
Insightful SMART and SMACNA partners realized early on that the best way to work on common goals and solve industry problems is to meet regularly and discuss these matters around—not across—the table.
Sheet Metal Occupational Health Institute Trust (SMOHIT), which promotes the safety and health of the sheet metal workforce. All these accomplishments demonstrate an important conviction of SMACNA and SMART: It is outdated and illadvised to view the labor-management relationship as an adversarial one in which parties only meet across the table at grievance arbitration hearings or at contract expirations. Insightful SMART and SMACNA partners realized early on that the best way to work on common goals and solve industry problems is to meet regularly and discuss these matters around— not across—the table. This latter approach allowed the national associations’ relationship to literally survive several wars and related war-time controls and regulations. It provided a solid foundation for the national associations to train their workforce, provide industry stability, jointly lobby on common interests, and collectively promote the industry. Why Partner? Any number of reasons influenced SMART and SMACNA to consider the value of working collaboratively at the national level. Several of the most compelling include: • When interactions between contractors and unions are limited to emotionally charged situations, like discussing contract violations or negotiations, the relationship becomes defined on an adversarial “us versus them” basis. More frequent meetings to discuss industry needs and concerns fosters the type of labor-management relationship that will be successful in advancing common interests and resolving challenges. • Bargaining on a multi-employer basis is advantageous for both labor and management. From an employer perspective, it helps to put the bargaining parties on more even footing, as opposed to small contractors having to bargain on their own with the union that represents all the workers in a jurisdiction. 6 » Partners in Progress » www.pinp.org
For unions, multi-employer bargaining is more efficient in terms of time and resources than bargaining individually with employers, and it promotes the union’s core values on equity in terms of pay and conditions for its members. • A standardized grievance and interest arbitration process at the national level provides one more opportunity to settle local disputes. National SMACNA and SMART arbitrators and mediators who are not involved in the local dispute or negotiations can be of tremendous assistance in helping local parties to resolve their differences without resorting to strikes or lockouts that can lead to irreparable harm to the image and future of the industry. • Ensuring sufficient numbers of properly trained workers is best accomplished by a joint effort. Employers have the best projections for required workers on upcoming jobs. Industry training can best be standardized and funded on a group basis. • Numbers matter to politicians. Labor and management have more clout lobbying jointly than individually on issues advantageous to the union sheet metal industry. • Perhaps most importantly, collaboration by SMACNA and SMART at the national level provides a framework to encourage their affiliate chapters and unions to work together in the best interests of the industry in their local markets. While there were substantial accomplishments at the national level, there was another challenging chapter in the works for SMART and SMACNA—promoting partnership at perhaps the most important level, the local one. Tune into next month’s Partners in Progress to learn how SMART and SMACNA have worked to bring local labor and management together to convince their local unions, SMACNA chapters, and contractors of the importance of working collaboratively in the best interests of the industry. ▪ ** SMART was originally the Sheet Metal Workers International Association. SMACNA has had several name changes over the years. For brevity and consistency, the current SMART and SMACNA names are used throughout this article. Sources: The History of SMACNA: The First Twenty-Five Years, Joseph D. Wilder, 1968; Looking Back & Moving Forward: A History of the Sheet Metal, Air, Rail & Transportation Workers Association: From SMWIA to SMART 1888 – 2012, Grace Palladino, 2013; A History and Explanation of the Standard Form of union Agreement for the Sheet Metal Industry, Robert J. Fenlon and Stephen J. Burton, 1997.
TROY MARTELL: MY JOURNEY Journeyperson Termell Industries Ltd. I became interested in the sheet metal industry for a few different reasons. My family has history in sheet metal, and I started working at a sheet metal shop as my first job.
I liked learning, but I never really liked having to do a lot of written work or being stuck at a desk. I did well in sports at school, so I thought I might like physical work, and I enjoyed metal working class in high school. I am interested in all aspects of sheet metal, but I am leaning more towards industrial work. Learning the trade has been interesting because I have moved around a bit and had different experiences. I did a lot of HVAC work, and the company I am at now does more industrial. What I like about that kind of work is that I am able to build projects that are more complex than putting duct together. It requires more thinking, and at the end of the job, it feels more productive. Sheet metal could be for anyone who is willing to work at whatever job comes their way and not complain, especially at the beginning. Some people don’t realize that it is hard work and others don’t want to be pushing a broom in the beginning of their careers, but that is part of it. You need to be able to work at what you are given and do the best you can with it. You will get a lot farther that way than you will complaining. I feel grateful I learned good communication skills, teamwork, organization, and a strong work ethic from my training and this industry. The kind of people who will most like a career in sheet metal are those who feel accomplished seeing a project go from a pile of materials to a full product or project. That part makes the job very enjoyable and satisfying. I think holding presentations at high schools or job fairs is a great way of introducing young people to the trades. When I was in high school, we weren’t really given the same information on trades as we were about other post-secondary options. It’s important that young people know that a trade gives you a chance to work and learn at the same time, without having to worry about debt or paying for more schooling. My advice for anyone considering a trade is to stick with it for a while to see if you like it, and respect the process of learning the trade. And, of course, listen to your journeyperson, always carry a tape measure, and work safely. I plan to eventually get more involved with my union while staying at the shop where I’m currently working. I have a family legacy to work with at the union. I’d like to run for a board position and maybe bring a newer or more open perspective to that work. ▪
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I think holding presentations at high schools or job fairs is a great way of introducing young people to the trades. When I was in high school, we weren’t really given the same information on trades as we were about other post-secondary options.
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Partners in Progress » March 2021 » 7
In the Moment
Marketing SMACNA-SMART Expertise means being there, top of mind when owners realize their HVAC system needs work. Marketing is one of those ongoing commitments that is as important to an organization’s success as bookkeeping and recruitment, even though the benefits aren’t always immediately obvious. Building a reliable, recognizable brand is often the only way tradespersons can get the word out among the busyness of everyday operations, and this is especially important among residential service providers trying to stand out in the digital age. In this realm, hundreds of companies are just clicks away—how can SMACNA contractors stand out and reassure owners that their expertise and highly trained workforce is the best choice among hundreds? Brand builder, marketing expert, and author John Tyreman says the first step is understanding the customer’s process when engaging a service provider. He says there are events in our everyday lives that can trigger the need to purchase a home service, and while some of those are planned, a great many are not. “For example, when my basement flooded because of a busted hot water heater, there was an important and urgent need to get it fixed,” he writes in an article for HVAC Insider. “The only time I had to think of what kind of specialist to look for was while I was mopping up the mess. The first thing I did after mopping was go online and search for “plumbing companies near me.” Honestly, I just wanted it fixed. Fast.” These are the kinds of moments SMACNA contractors want to be top of mind. In the throes of crisis, homeowners and building owners need to know that experts are at the ready and they don’t want to think too deeply about it. So, how can SMACNA contractors make that happen? A new research report from Silverback Strategies shares research collected from 724 buyers of home services, and overviews how they approach finding a contractor. The study outlines key marketing actions service professionals should take, beginning with understanding a service buyer’s journey. The study distills the process into five stages: • Realization — the moment when customers recognize they have a problem to solve. • Education — how customers gather the information they need to make a decision. • Evaluation — the criteria customers use to see if a service provider is a good fit. • Decision — how customers decide on who to work with. • Advocacy — when customers feel compelled to leave a rating or review online. 8 » Partners in Progress » www.pinp.org
Obviously, contractors want to be top of mind during the realization phase, and they want to make their presence known while customers are educating themselves. When it comes to researching choices, online is where it is at. Most buyers surveyed found their contractor of choice using a mobile device, visiting social media or the contractor’s website directly. The key takeaway here is never underestimate the value of online presence, including social media. In fact, 96% of respondents said they used social media at least weekly, citing Facebook, YouTube, and Instagram as the most popular mediums. But here is the truly interesting revelation: More than 1/3 of buyers spoke to only one service provider, who they ultimately hired. The reason for that is that 40% of respondents visited review sites and social media and had conversations with trusted friends for referrals and feedback about the contractors they were researching. That means service seekers are coming to the table having done their research online, having developed a strong opinion about your business, and willing to have a frank discussion about how you can solve their problem. Almost as many respondents called a past service provider for help, though this percentage varied across the age gap. For instance, 39% of Boomers called a past contractor for help, compared with only 15% of Millennials doing so. Of course, being newer to home ownership, Millennials are less likely to have a past service provider to think about; however, it is clear that making an impression before and during services are performed are key marketing tactics. In his article, Tyreman says the key takeaway from his experience was that going online was the go-to strategy for most buyers in 2020; however, he makes a strong case for customer service being the ultimate trump card—especially when doing so leads to positive reviews online. “In my busted water heater example, when I searched for ῾plumbing companies near me’ I called the top three results,” he says. “They were all pay-per-click advertisements. It was Sunday. The first two didn’t pick up the phone. The third company I called was able to come to my home within an hour and they ultimately got my business.” HVAC Expertise hvacexpertise.com A few years ago, the Best Practices Market Expansion Task Force conducted a series of focus groups that determined many people don’t know what work the sheet metal industry performs; however, they do recognize the term “HVAC”. Further, the number one trait customers demand when hiring an HVAC contractor is “expertise”. Thus, SMACNA and SMART developed the Expertise branding program to help identify affiliated organizations as the source of expertise for HVAC, architectural, industrial, and green construction, service, and retrofit work. With areas for homeowners and building owner/managers,
the HVAC Expertise website directs potential customers to easy to follow information on HVAC systems and their benefits, how to choose a system, factors to consider, and most importantly, the benefits of employing a SMACNA contractor and skilled union labor to complete this work. “If you want the HVAC people who come to your home to know what they are doing and be employed by a contractor committed to meeting/exceeding standards and a quality workforce, you want to look for companies that can offer HVAC Expertise,” the site says. For example, the “Choosing an HVAC Expert” section refers to the benefit of maintaining a superior trained workforce, contractors backed by a national support system—including national and local trade associations—in-house design and fabrication, environmental considerations, long-term maintenance, and service related perks. “When you hire a SMACNA contractor, you get more than a single person,” the site advises. “You get professional HVAC craftspersons, whose skills are the product of the industry’s finest nationwide training program. And you can rely on topnotch managers and company executives.” A “Find an Expert” link takes readers directly to the SMACNA website and the membership directory.
Harness your Expertise at: HvacExpertise.com ArchitecturalExpertise.com IndustrialExpertise.com. Link to the Expertise Sites Online Resources to help brand your organization—SMACNA chapter, contractor, SMART Local, training center, or labormanagement cooperation trust—as one with “HVAC Expertise” are free to use upon completion of a licensing application (available on pinp.org). You can place the HVAC Expertise logo (or any of the other Expertise logos) on your web site, social media presence, business cards, stationery, estimates, invoices, trucks, hats, shirts, advertisements, to spread the word about the value our signatory contractors and skilled workforce offer. In addition, you can embed content from or link to the HVACExpertise.com web site, which provides professionally-developed content to help you address potential customers’ questions and demonstrate to them the value of what you offer. (The other Expertise web sites that you can harness are ArchitecturalExpertise.com, and IndustrialExpertise.com.) Other free Expertise resources include print advertisements with the Expertise logo that you can customize with your organization’s logo and contact information, best practices how-to guides, a library of industry photographs, and press releases that highlight the benefits of using contractors and a workforce with Expertise. Visit pinp.org/Resources or contact editor@pinpmagazine.org for more information.▪ Partners in Progress » March 2021 » 9
Building
TRUST by Sitting on The Same Side of The Table
By Randy Conley By their very nature, unionized workplaces and industries often promote a culture of distrust between stakeholders. Each party is suspicious of the other and is afraid of being taken advantage of, so they hold their cards close to their vest and try to cut the best deal possible for their stakeholders. It’s us on one side of the table versus them on the other. Must it be that way? I don’t think so. I think both sides can build trust by sitting on the same side of the table. First, let’s talk about why we don’t trust each other. We refrain from trusting because it involves risk. If there’s no risk involved, then there’s no need to trust. But if you are vulnerable to the actions of another, then trust is required. You have two choices when presented with relationship risk: you can withhold trust to protect yourself, or you can extend trust in the hopes it will be reciprocated and both parties will benefit. 10 » Partners in Progress » www.pinp.org
Reciprocation is a key factor in the development of trust. There is a social dynamic in relationships known as the Law of Reciprocity. Essentially it means that when someone does something nice to us—gives us gifts, shows love, extends trust, gives grace, grants forgiveness—we have a natural human instinct to respond in kind. Unfortunately, the opposite is true, as well. When someone acts cruelly or hostile toward us, we often respond in even more cruel and hostile ways. In the public square these days, negative reciprocity is the norm. Warring factions have developed a singular membership criterion: you’re either with me or against me. We have demonized those whom we believe to be against us. They are no longer honorable, well-meaning people with different ideas. They are mortal enemies who cannot be trusted at any cost. The result is one group treats the other with contempt
and hostility, the other group responds in kind and even turns it up a notch for good measure. Around and round we go in a negative, downward spiral, zero trust loop. Trust cannot begin to grow until one party extends it to the other. Trust must be given before it can be received. It really is that simple. Once you understand someone must make the first move to extend trust, how do you get both parties on the same side of the table? I think it involves having a common mindset and skillset about trust. The trust mindset is understanding the fates of each party are intertwined. All successful relationships are built on a foundation of trust. It doesn’t matter the type of relationship– husband/wife, parent/child, boss/employee, or union/labor– trust is what binds us together. Operating from this mindset eliminates the fear of being disadvantaged by the other party and allows you to work toward solutions that provide mutual benefit. In a relationship of trust, both parties are searching for win-win solutions, not win-lose or win-break even. The skillset of trust involves behaving in a trustworthy manner. Sometimes this is challenging because people have different perceptions of what constitutes trustworthy behavior. That’s why it’s helpful to have a common definition of trust. Research shows there are four key elements of trust. Since every language has an alphabet, we’ve created the ABCD Trust Model to define the language of trust. You build trust with others when you are: Able—You demonstrate competence by having the knowledge, skills, and expertise for your role or profession. You achieve goals consistently and develop a track record of success. You show good planning and problem-solving
skills and make sound, informed decisions. People trust your competence. Believable—Acting with integrity. You tell the truth, keep confidences, and admit your mistakes. You walk the talk by acting in ways congruent with your personal values and those of the organization. You treat people equitably and ethically and ensure that rules are applied fairly. Connected—You care about others. Connected people are kind, compassionate, and concerned with others’ wellbeing. They readily share information about themselves and the organization. Being a good listener, seeking feedback, and incorporating the ideas of others into decisions are behaviors of a connected individual who cares about people. Dependable—People trust others who honor their commitments. DWYSYWD—doing what you say you will do–is a hallmark of dependable people. They do this by establishing clear priorities, keeping promises and holding themselves and others accountable. Dependable people are punctual, adhere to organizational policies and procedures, and are responsive to others. Building trust is not a one and done proposition. Trust is not a destination you reach, but rather a journey that never ends. Extending trust, embodying a mindset of trust, and using the skillset of trust will transform distrustful relationships into trust-filled partnerships that promote the growth and wellbeing of both parties. ▪ Randy Conley, vice president of professional services and trust practice leader at The Ken Blanchard Companies, is the author of the Leading with Trust blog. You can follow Randy on Twitter @RandyConley or connect with him on LinkedIn.
Partners in Progress » March 2021 » 11
eye on 2021 How to create excitement & optimism for the year ahead in your organization
By Gregg M. Schoppman
© Can Stock Photo / khunaspix
It’s probably premature to look at 2021 and simply say, “Well, it certainly can’t be as bad as 2020, right?” There is no shortage of natural disasters, diseases, world-shattering events, etc. that could easily pop up like Cousin Eddie dropping in for the holidays. However, it has been interesting to see the construction world maintain its cool in the face of a tremendous headwind. When one compares the current economic climate to that of the previous recession in 2008, there appears to be a balance of cautious optimism and ingenuity that is emboldening construction organizations across North America. By no means are contractors taunting the karma police, screaming, “Bring it on!” like a petulant teenager, but the best-in-class firms are referring to their playbook and strategic plans, defaulting to the scenarios these plans were created for in the first place. Consider the Great Recession—too many construction firms hunkered down in an attempt to weather a storm that seemingly had no end. Ironically, in stark contrast to those dark times, firms are currently playing a calculated offense on many fronts.
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For instance, construction organizations are aggressively pursuing new markets and opportunities in the short term while understanding that their future success will be in developing their current talent pool. Volatility, uncertainty, complex, and ambiguity (VUCA)—a term coined by the United States Army War College—is as relevant today as it was a decade ago. VUCA is in large supply right now. But consider this for one moment: even if the country wasn’t in a global pandemic, coming out of an election year, etc., there will always be something. The best leaders understand that they are not defined by those externalities but, rather, a construction organization that is grounded with a solid vision, agile operations, nimble market focus, and deep cultural buy-in. Business Development, Estimating & Operations Construction organizations have had to learn creative business and client development. COVID-19 created a unique environment where traditional client relations cannot always be conducted. Reaching customers and recruits—new and old—on a platform that both takes into consideration the
client’s needs while also being efficient enough on already taxed schedules requires real strategy. Everyone would love to reengage with traditional client dinners or sporting events to develop rapport, but in the absence of any sports, organizations are having to engage with a flair that is both creative and innovative. For instance, construction firms and training centers are realizing that marketing messages must be direct and customized. Simply blasting social media with messages of “We’re the best!” will not suffice. Rather, organizations should target potentials with specific messaging that speaks directly to their needs, including the following: • Focus on schedule—Firms are communicating their ability to control the supply chain better than their competition, as well as appealing to the connective tissue • Focus on COVID-19 controls—Everyone is concerned about virus ramifications, as well as the appearance of control. Contractors and Locals are reinforcing a “We’ve got this” message in their best practices. • Focus on the endgame—In the end, clients want to work with firms that really listen to their needs and an expert, skilled workforce. With so many distractions occurring simultaneously, it is imperative to talk less and listen more. Best-in-class firms understand that there should not be a race to the bottom, and are focusing on controlling the right variables: • Methods and means—Firms are developing real project strategies that are examining all of the variables that could affect a project. • Options and outs—With constrained supply chains and the ever-present risk of partner default, firms are crafting scenario plans that provide safety nets. • Productivity and efficiency—The focus is on crew blend and real productivity rates—more importantly firms are more frequently linking the estimating function back to operations to provide real-time feedback on performance. Market Shifts & Competitive Discovery There continues to be a tectonic shift in all of the markets. Will the American mall survive? What will happen in medical world? How many more millions of square feet will distribution channels need? Will the residential market remain a darling in the new year? No one has the magic eight ball, but the encouraging sign can be summed in one word: activity. There are opportunities in the recovery, but it’s also requiring organizations to discover, investigate, and research new sectors. Put another way, organizations are proactively sending “exploratory missions” in the new sectors as well as new geographies. Once again, compared to previous economic downturns where organizations appeared reluctant to leave their traditional body of work, today’s organizations are quick to pivot to potential new markets.
“Simply blasting social media with messages of ‘We’re the best!’ will not suffice. Rather, organizations should target potentials with specific messaging that speaks directly to their needs.”
However, this migration to new markets, niches, and geographies has an alternate consequence—increased competition. With all of the pageantry of a Discovery Channel documentary, locals are seeing new predators prowling the landscape, which creates an interesting dichotomy in style— playing an aggressive offensive while also defending the home market. Contractors are not taking this for granted and they are investigating new players with the diligence of a football team scrutinizing the next week’s opponent and making sure to study the following: • Experience—What does this new competitor bring to the market? Are they following a client and using that as their entry point? • Talent—How will a competitor staff their new operation/ project? Will this competitor make a push for our people? How secure are we in our employee loyalty? • Vendor loyalty—What will our trade partners think of an outsider? How do we stack up in our vendors’ minds? • Customer loyalty—How secure are we with our customers? Are we ripe for a takeover? Will our customers view this as an opportunity to keep us honest? The keys to success will be a multifaceted strategy that balances a strong offensive push to find the next big thing while also playing an aggressive defense to protect profitable market share. The most encouraging aspect of these tenets for 2021 is that they are both realistic, with a disciplined focus and happening in real time. VUCA may be unsettling for some, but the construction community is resilient, and the best-in-class organizations are developing real, proactive strategies. 2021 may provide a renaissance, giving way to a “Year of Hope”— just no jinxes. ▪ Gregg M. Schoppman is a consultant with FMI Corporation, management consultants and investment bankers for the construction industry. Schoppman specializes in the areas of productivity and project management. He also leads FMI’s project management consulting practice. Schoppman has expertise in numerous contract delivery methods, as well as knowledge of many geographical markets. Visit fminet.com or contact Schoppman by email at gschoppman@fminet.com. Reprinted with permission from Construction Business Owner constructionbusinessowner.com/strategy/what-will-2021-lookyour-construction-firm Partners in Progress » March 2021 » 13
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Survey Reveals Interest in Energy Efficiency Is a Critical HVAC Trend Annual EEI survey finds 3 in 4 facility managers planning to invest in IAQ
By / Gordon White
Has a long, unpredicted year taken a toll on people’s interest in energy efficiency, renewables, and smart buildings? In December 2020, Johnson Controls released the findings of its annual Energy Efficiency Indicator (EEI) survey. The research found that more than half of organizations plan to increase investment in energy efficiency, renewable energy, and smart building technology next year, comparable with investment trends after the 2010 recession. The Industry Response “The COVID-19 pandemic has highlighted the need to improve the health and safety of buildings, particularly by increasing their ability to operate under different conditions, both planned and unforeseen,” said Clay Nesler, vice president of global energy and sustainability at Johnson Controls. “Though the pandemic has altered how people are investing in their buildings, occupant health and energy efficiency continue to be top of mind, and we anticipate these investments will be a priority in 2021 as more people return to shared spaces.” Michael Ellis, executive vice president and chief customer and chief digital officer at Johnson Controls, added that digital offerings that integrate into existing systems are increasing in importance for organizations planning 2021 spending. The majority of facility managers—85% of them—said 14 » Partners in Progress » www.pinp.org
that the desire to reduce energy costs for their facility was a very important driver of their willingness to invest in new technologies. In fact, a quarter of organizations said that they planned to replace HVAC systems before end-of-life. And manufacturers are poised to meet the growing interest. Francis Dietz, vice president of public affairs for AirConditioning, Heating, and Refrigeration Institute (AHRI), said that HVAC manufacturers have continually innovated to develop new technologies that can make HVAC equipment and products as energy efficient and environmentally friendly as possible. He added that this has not taken away from the products’ abilities to enhance customers’ health, safety, comfort, and productivity. “As new technologies are developed in the area of renewable energy, our member companies are using them to create equipment that uses them, whether it be solar, biofuels, or advanced energy storage,” he said. Energy efficiency and emission reductions have taken center stage in the United States’ energy policies, he said, and numerous innovations will help meet the challenges of increasing sustainability, including “geothermal and thermal heat pumps, solar water heaters, advanced zone control technologies, energy storage technologies, advances in commercial refrigeration technologies, variable frequency
drives, advanced fans and motors, multi-stage compressors, and many more.” Dietz does not see the trending interest in greener technology going away anytime soon, either, as homeowners and building owners are continually seeing a need to reduce the environmental impact while ensuring continued comfort, safety, and productivity. Effects Of COVID-19 The EEI study offered a look at how the pandemic might have influenced energy usage and people’s planned 2021 investments in energy efficiency, renewables, and smart building tech. For example, the study found that facility energy use dropped surprisingly little during the pandemic, with less than 10% of facilities reducing energy use more than 20%. The report also found that 79% of facility managers have already or are planning to increase air filtration, three-quarters have already or are planning to install an air treatment system, and 72% have already or are planning to increase outdoor air ventilation rates.
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Eighty-one percent of survey respondents explained that part of their desire to invest in energy efficiency, renewables, or smart building tech was due to their desire to increase the flexibility of their facilities to quickly respond to a variety of emergency conditions.
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“In September, 63% said that protecting health and safety of building occupants was extremely or very important during the coronavirus pandemic,” Nesler said. “More than 60% plan to install air treatment solutions, increase ventilation rates, improve air filtration, and recommission building systems and equipment. The priority being given to improving indoor air quality, and reducing energy costs, represents a significant opportunity for contractors and the workforce.” Smart Building Technology Eighty-one percent of survey respondents explained that part of their desire to invest in energy efficiency, renewables, or smart building tech was due to their desire to increase the flexibility of their facilities to quickly respond to a variety of emergency conditions. “Smart buildings are an increasing priority, with over half integrating multiple building systems in the past year,” Nesler said. “Especially relevant is that 25% of organizations plan to integrate smart building equipment with other building technology systems in the coming year.” Just under 80% of
respondents said they believe data analytics and machine learning will have an extremely or very significant impact on buildings. The 2020 survey found that funding for facility improvements increasingly came from internal capital budgets (71%), energy services agreements (24%), and economic stimulus and recovery funds (20%). Net-Zero Buildings Interest in net-zero buildings is also growing, as 70% of organizations said they are very or extremely likely to have one or more facilities that are nearly zero, net zero, or positive energy or carbon status in the next 10 years. This is 7% higher than results from the 2019 survey. “One of the trends we see is electrification, with 29% of organizations planning to replace fossil fuel space/water heating equipment with heat pump technology over the next 12 months,” Nesler says. In 2020, 63% of organizations invested in on-site renewable energy, which was 22% more than the organizations that had plan to invest in the technology, according to the 2019 survey. Further, two-thirds of organizations are very or extremely likely to have one or more facilities able to operate off the grid in the next 10 years—an increase of 3% from 2019. Additionally, 63% of organizations invested in onsite renewable energy in 2020, a 22% increase from the organizations that said they were planning to in the 2019 study. ▪ Gordon White is the web editor for The NEWS, overseeing the magazine’s website content and several of its email campaigns. He is always looking for quality content written by HVAC industry professionals willing to share their knowledge with The NEWS readership. He can be reached at gordonwhite@achrnews. com or 248-244-6475. This article was reprinted with permission from ACHRNews. Visit www.achrnews.com to read more. Partners in Progress » March 2021 » 15
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Put the SMACNA/SMART Resource Center to Work for You The SMACNA/SMART Best Practices Market Expansion Task Force has developed recruiting resources for contractors, chapters, locals, and JATCs that can be used to supplement and support local recruiting efforts. The resources include posters, handouts, and flyers for guidance counselors, parents, and students. The materials are designed in multiple versions and languages (English and Spanish) and are customizable so that local groups can get their message out and appeal to the largest talent pool possible. The Partners in Progress Online Ordering System allows you to customize materials for your area and order recruiting and brand ambassador resources.
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