Category: Featured

Slider Image Category

Best Practices to Succeed in 2021

It’s a new year. The calendar has been turned and everything is fresh and new, right? We all know that after 2020, as much as we want it to be true, the world is still exactly as it was “last year” and many of you are scratching your heads wondering how you are going to get through another possible chaotic year or, at the very least, the start of one.

I thought it would be interesting to look up the definition of chaos. Chaos is defined as, “complete disorder and confusion.” That definition is pretty accurate. Now, does this mean that you are doomed? No! You are only doomed if you think you are doomed. That fear can and will paralyze or blind you, or both.

I remember a time, a while back when the country was in chaos and we thought the sky was falling. We were literally paralyzed, not knowing what to do. Our business had almost completely dropped off. For a while, we felt hopeless. Through hard work and determination, we built our business back up even stronger than before. I can speak for both Marc and me when I say that we never want to be in that position again. That truly is the inspiration for this article.

Many of you may be feeling the same way as we once did. Maybe there has been a dip in your business, or perhaps some of your clients are cutting back on spending. However, now is surely not the time to be a wallflower.

The truth is, despite what is happening nationally or globally with politics and the pandemic, life still goes on and there will always be construction and the need for tradespeople. Almost every business has adjusted because, as we have all been forced to accept, we are not operating “business as usual.” There is hope and there are also many tools that will help us find the way through these unprecedented times.

VISIBILITY.

So, what are some strategies that you can utilize to move forward? Focus on your client base. Call! Check-in! Make sure they know that you are still around and ready to help. Personally, I am a big fan of face-to-face meetings, even if it is an impromptu visit to a client’s office to drop-off coffee and donuts. (Who turns down coffee and donuts? Right?) Perhaps some constructive, enlightening conversation will emerge over that glazed donut. That moment is your chance to learn how to accomplish my next tip.

VALUE.

Always create more value with your products and services. In addition to the chance to increase revenue for your business with things you are potentially already doing, more importantly, it shows your clients that you can help them achieve their goals with you as their partner. Now is the time to identify and educate your clients that you are an asset – not an added expense. It may sound complicated, but it is quite simple once you break it down. Think outside the box. Introduce new ideas, opportunities, and, even, ways of doing things that your clients may not have considered in the past. If you are having a hard time with this, or anything for that matter, Google is your new best friend. Ask questions, do research. You will be amazed at some of the fantastic ideas that you may have never considered.

TEAMWORK.

On the topic of ideas, I have found that our team members often come up with some great ideas. Ask them questions! This involves your team in moving forward and being a part of the solution. This is such an opportunity for you to be the leader that leads their team to help their clients navigate the diverse challenges faced every single day in our industry. You may just get lucky and discover a shining star that has been in front of you this whole time. Be sure you are willing and ready to nurture that star.

PATIENCE.

Another great piece of advice? Keep calm. Practice patience. Although this isn’t really related to estimating or construction, years ago when I was teaching our girls to cook, I always told them that if something goes wrong in the kitchen, the first rule is to NEVER PANIC! The same holds true for business. We are all looking for our recipe for success with the secret ingredients to make it all come together.

MARKETING.

As we move into this new year, perhaps some of you are reviewing the books and making necessary adjustments because of your reality – and that makes sense. During this process, I caution you to not cut much of your marketing and advertising budget. You and your message must remain top-of-mind to remain relevant. We are fortunate in that so many social media platforms are virtually free, so make sure to use them consistently while remaining on-brand. Most people are hungry for information, especially if it relates to a dilemma that your reader needs answers to. This is where relevant content comes in. Be the source of information as it relates to your expertise. Is there something special that you have learned in your business? Is it something that would be of interest to your clients or help them find a solution? Let that marinate and you will surprise yourself with what you come up with.

Now let me bring it all together for you. You will survive and thrive in a chaotic world if you work for it. Always strive to create new value for your clients. If something goes wrong, don’t panic! Pick yourself up, learn from the setback, and keep going. Your messaging should be on-brand and mindful of market conditions. Finally, remember that people are looking for information and answers. Be their conduit! (No pun intended.)

As we move into 2021, I am looking forward to sharing my thoughts with you about many things focused on estimating and the electrical industry. Stay tuned for Marc Candels’ new podcast series too! More information will be released on our many social platforms so be sure to follow us on your preferred one.

Happy New Year! Cheers to a bright year ahead!

Specification Review Checklist

 

Specs explain the entire project.

Reviewing the specs is important to the estimating process.

When completing a construction specification review, an estimator should follow a systematic approach. The specifications, include information for each CSI division, however, none should be reviewed in isolation. Even though our focus is electrical, also known as CSI Division 26 (and previously Division 16), information related to the electrical specs will be shown in other sections and must be reviewed.

Why do we look at other specs sections other than electrical?

An untrained estimator may think that reviewing the electrical specs is enough. It’s not. A thorough construction specification review must include the “front end” of the specs (CSI Division 0 and CSI Division 1). This information includes the drawing list, Invitation to Bid, bid scopes, and summary of work. It may also include the project schedule, (Can you get it done it time with your team and tools?), walk through information (Often this in mandatory!), existing conditions, alternates, and allowances. This section also includes bonding information.

Never bid a job you cannot bond! Knowing your bonding capacity is important. Believe it or not, some contractors don’t know that there is an individual project amount bonding capacity, and an aggregate amount. The aggregate amount is the total dollar amount of all projects. If you have never bid a job with a bonding requirement, know that it takes time to get a bond. If you would like to work on projects requiring a bond, find a local agent and work on your bonding before you bid your project!

Before we move to reviewing the electrical specs, let’s talk about some other spec sections that are worthy of review.

In a previous blog post, I mentioned construction specification Divisions 10, 11, and 12 which detail specialty equipment and furnishings. The reason to review these specs is to determine if there is an electrical component with any of the equipment, and the requirements for the electrical contractor. You don’t need to spend hours reviewing these specs; it’s more like a quick review so you can watch out for these systems in the electrical specs and on the drawings.

Existing Conditions

It goes without saying that you want to know existing conditions. Will there be demo involved? Will the demo involve the removal of hazardous materials, such as ballasts containing PCB’s? If so, as an estimator, you want to be sure to cover the removal cost if it is part of your scope. Sometimes salvaged materials will be required to be returned to the owner so it is best to have this information before you bid the job.

Concrete

Concrete is a related spec section to electrical because some electrical equipment will require the use of a concrete foundation, such as a transformer or generator pad. Pole lighting may require bases made of concrete. Know your scope. Sometimes another contractor is responsible for concrete work, all or in part.

Fire and Smoke Protection

Fire stopping is required on projects. Generally this is a boilerplate spec section, however, be aware of specialty devices that cost more than the norm. Some pathways cost hundreds of dollars, so it is best to give this area of the specs a quick review to be sure to cover the cost of potentially expensive items.

Building Modules

We have seen more modular building. As a matter of fact, yesterday I reviewed a job for a KFC. I did not realize that the building was going to be built in four sections at an offsite warehouse. The customer wanted a price for a “stick built” electrical estimate as well as an idea of what it might cost for the electrical including modular construction. We have also seen projects where a portion of the building is built offside. One such project was a hotel where only the bathrooms in certain areas of the building were modular. It’s good to know this up front because you may unknowingly cover the costs for lighting fixtures, receptacles and other devices that are part of the modular construction and therefore not in your scope! With the rising cost of labor, I would suspect that modular building will become more prevalent.

Heat Tracing

Heat tracing is one of those gray areas where it’s not always clear “who owns what.” It’s good to review the specs in this area to see if the electrical contractor will be providing the circuit for the heat trace only, or the cable as well. The same would apply to electric heating mats, snow melt, and the like. If you have a question about your scope of work and cannot find it in the project documentation or specs, always consult with the general contactor and/or issue a Request for Information (RFI).

Next time, we’ll discuss all the hidden gems in the electrical specifications!

 

 

Construction Addenda and Scope of Work

Candels uses the acronym “B.A.D.A.S.S” to remember the steps in construction estimating. The “A” represents addenda and the “S” represents scope of work.

As you may recall from previous blog posts, we discussed B, bid forms and invitation to bid; A, alternates and allowances; and D, drawings. Having this acronym to refer to will ensure that you don’t miss anything when reviewing the project documentation.

The “A” (Addenda) and the “S” (Scope of Work) of B.A.D.A.S.S.

Sometimes an addendum will be a simple narrative, while other times and addendum will include new drawings. These new drawings may have changes “ballooned out” so they are easily identifiable, however there are times when there are changes that are not identified! Always try to overlay the drawings to ensure that you cover any changes!

You learn something new every day!

Every time we teach the electrical estimating apprenticeship, I make the statement “You learn something new every day.” While Marc and I have had this business for 15 years, during this class, Carrie noted that she has seen in the specs that if the addenda received are not listed on your proposal, your bid can be automatically rejected. Honestly, I never knew that! That is why I love class participation. You never know who will come up with a great idea or comment about the estimating process!

Pay attention to the scope of work!

A statement about the scope of work is important to review before you start your take-off. You may assume that a certain system is part of the work, but the scope of work may prove otherwise! Pay close attention to “materials supplied by others” and “work under separate contract.” Sometimes the owner may supply lighting fixtures while the electrical contractor will install them. Other times, a complete system will be under a separate contract, such as fire alarm or tel/data wiring, devices, terminations, patch panels and racks for example. Note: even if a system is under a separate contract, you, as the electrical contractor may be responsible for raceways! Be sure to review all the documentation so you cover the costs appropriately.

Other Things to Look For: Mock-ups, extra materials, and warranties!

At the risk of running long on this blog, I do want to mention three things that can potentially impact the cost of your project.

Mock-ups

Mock-ups are common, especially in hotels. A mock-up is usually set up in a warehouse and an entire room, such as a hotel room, will be built so that the designer can see if the room will work as intended. What this means for you as an estimator is that you have to carry the material and labor costs of lighting fixtures, devices, and wiring for the mock-up. These devices are usually retained by the owner. Make sure to carry enough labor for your electrician to “adjust” anything that the designer deems necessary.

Warranty

A one-year warranty is pretty standard on most projects, however, some projects require two or even a five year warranty on some parts. If that is the case, you want to be sure to carry the cost of the extended warranty. The cost will depend on the item(s) you are covering. A good tip, if the warranty is not specified, is to put a statement in your proposal to the effect of “warranty limited to the extent of the manufacturer’s warranty.”

Spare Parts

Extra materials and spare parts should be covered in your estimate. If your project requires supplemental fixtures as noted in the specs, make sure that your vendor quotes these items! We like to include notes to this effect on our count sheets to ensure that the vendor is aware of the extra materials. Spare parts are also known as “attic stock.” Again, make sure that your vendor quotes these items.

Next up is a discussion about the specifications. We always say that the “devil is in the details” and the specs prove that most of the time! Stay tuned!

Design-Build Projects: Clear Communication Is Key

What is a design-build project?

A design-build project is one that is not necessarily drawn or engineered, but one that has some sort of written scope and building footprint to use.

Design. (di zīn’)(verb). To prepare plans for work to be executed

Build. (bild) (verb). To cause to be constructed.

Design-build. (di zīn bild) (verb) To prepare plans resulting in construction.

Design-build estimates are often confused with budgets. They are not the same. (That is not to say that a budget cannot turn into a design-build.) Because most owners have fiscal restraints that affect their capital investment, they depend heavily on the estimator to develop accurate cost forecasts at every stage of the project. Therefore, an estimator must have a comprehensive understanding of the costs of labor, materials and equipment, and the means and methods of both design and construction in order to accomplish the “design-build” task.

How do design-build projects come about?

Often design-build projects will result from a municipal or state Request for Proposal (RFP) based on a written scope. Relationships between general contractors, building owners, and an electrical contractor may also result in the parties developing a design-build project. Relationships are not only key to developing a solid business, but can lend a comfort level to owners or GCs to the point where that comfort level influences project development. An electrical contractor might “be in the right place at the right time.” Or, an electrical contractor submitted a budget price for a project based on conceptual scope which later turns into a design-build project. The design-build process may be faster and more efficient than a conventional design-bid-build project.

What/who is involved in a design-build project?

The complexity and scope of design-build projects will vary based on the needs of the owner or ultimate user of the building. There is a huge scope/cost difference between a project requiring simple “lights and plugs” versus one that involves the entire infrastructure of a building, including the electrical service, HVAC requirements, circuiting, lighting, branch power, and any customer needs for wiring of specialty machinery. Depending on building use (e.g., an office building versus an industrial or manufacturing plant), the complexity of scope will change as well. Building use should always be taken into account when completing a design-build project.Construction design build

Better results will ensue when everyone involved in the project is involved early on and communicates their goals clearly. This team might include the owner/developer, general contractor, electrical contractor, mechanical contractor, plumbing contractor, fire protection contractor, the site contractor, architect, and engineer. All of these players may not necessarily be involved in every project. Involvement simply depends on the scope of work and the expectations of the client.

Understanding your client expectations and needs (and also code issues!)

Client expectations for design-build projects should be determined as early as possible, saving time and money for everyone involved. Communication cannot be underestimated! Ask questions! Ask questions! Ask questions!

Example: a line from an RFP that states “lights and receptacles to code” and the project is a proposed office building. To some, this may mean 2’ x 4’ lay-ins to equitably light each room and at least one receptacle on each wall, and telephone/data outlets.

Local and national codes dictate a certain foot candle output based on occupancy, but not necessarily the style of the light fixture itself. Esthetics cost money!! Again, client expectations come into play. They may expect direct/indirect aircraft cable hung fixture versus an industrial shade or simple 2’ x 4’ lay-in. Parabolic lenses are more expensive that prismatic. Does the customer have the expectation of a parabolic lens because the office is for the president of the company? Exit and emergency lighting must also be considered because by code, exits must be marked and emergency lights help mark the path of egress from a building in case of an emergency. However, there is a huge cost difference between providing light fixtures with emergency ballasts versus wall mounted emergency battery units.

There are no placement requirements for receptacles in office buildings. However, the expectations of the client might be at least one on each wall, probably more. Also, will there be a need for special receptacles, such as GFIs or IG receptacles? Will the proposed building have a dedicated computer room that might potentially need a special grounding system underneath the floor?

What is the ultimate goal of a design-build project?

The goal of a design-build project/estimate is to identify the true costs of items to determine along the way if the cost of that item is feasible to the owner or developer. Identifying the proper scope will always be a crucial element of this process. A minimum/spec job will cost less than a building designed to purpose/function. Code issues and utility company requirements must be considered.

  • What kind of building is it?
  • What is the building construction?
  • What are the needs of the potential tenant(s)?
  • Did the customer give you a list of equipment that will need wiring?

Cost efficiencies and energy rebates of certain types of fixtures may be important. If the design-build project were to be based strictly on “cost to install,” the developer may be satisfied but the owner or tenant may not be. In the long run, the total life cost of the fixture will be more important, especially as energy costs rise. The installed cost of a T5 fixture will be higher, but the life cost will be lower due to lower energy consumption and utility company rebates.

CAD drawings and engineer’s stamp

In the process of a design-build project, you will be relying on a CAD operator to draw the building and its systems for you. CAD drawings are efficient since any changes or modifications can be easily made and replotted for further review. You can expect to pay, depending on your area, about $50-$75 an hour for CAD services.

Once the customer is satisfied with the design and the drawings are done, an engineer will need to review them and provide an engineering stamp. Please ensure that the engineer you use is licensed in the state where the project is taking place. If not, see if the local jurisdiction will accept an engineer’s stamp from another state. Engineers typically charge by the page, with fees ranging from $200 to $400 a sheet, or a percentage of the total electrical cost. Check around. Ask your local businesses who they are using for this task.

What are the risks and potential pitfalls?

The largest risk an electrical contractor takes in design-build projects is doing all the work, only to have the developer take the design and proposal and put it out to bid. The lighting and switchgear vendors who have helped the electrical contractor may lose out too. Word to the wise, be careful! No one likes to work for free but if developers can get a building designed for free, they will!

Sometimes an architect will be involved in the early design phases of a project. If so, the architect should be involved in all stages of the process as well. Many times accent lighting, illuminated handrails or landscape lighting will not be defined early in the process; this can become an issue after all the building loads have been calculated and subsequent switchgear has been designed. If you have given the client a Guaranteed Maximum Price (GMP), you should be aware that these architectural design changes will impact your bottom line!

Finally, electrical contractors should always consider whether they can actually meet the needs or requirements of the RFP. Please consider all parts of the scope of the project. If the project requires high/medium voltage work, do you have the experience level or have you established partnerships with other electrical contractors in your area with that expertise? This is especially critical for a smaller EC who takes on a larger project. Other systems to consider are tel/data, low voltage systems, and specialty communication..

Can I make any money working on design-build projects?

You most certainly can! The key to design-build projects is to foster communication about expectations, code requirements and design requirements throughout the project. If you have detailed your proposal/scope (as a lawyer would), you should have no problem being comfortable with your price and margin. If you have done a detailed take-off from your plans, you will have identified your true cost, which is the starting and ending point of any electrical project.

The design-build process can be a rewarding one, especially if you have made a profit! The key to success is to fully understand your client’s needs, the building use and construction, and the team that will be involved in the process. Clear, continuous communication with all parties will ensure that the project is completed on time to the team’s satisfaction. There is a huge difference between designing to a minimum/spec versus designing to a purpose/function. As long as you understand what type of project you are involved with, you will then understand how to proceed and ultimately make a profit.

Electrical Estimating and Take-offs: Feeders

Heavy material cost and labor dollars in the feeders!

As we continue to discuss the electrical estimating and take-offs, the most material-cost-intensive part is the electrical feeders. Pay special attention to wiring methods. Most of the time, you will be providing copper conductors, either in PVC, EMT, or GRC depending on the application. If the GC asks for an alternate for aluminum wire, you will have to upsize the wire and conduit sizes since aluminum wire does not carry the same ampacity ratings as copper. Make sure that the panel will accept the upsized wire. Although the National Electrical Code may state that you can use aluminum wire under certain conditions, the local code or the building’s standard may not. Confer with the AHJ if there is any doubt. Look at the riser. Often engineers upsize the conduit. If the project is a public bid opening, you should price exactly what you see on the drawings. However, for private jobs, you can size the conduit to code, but make sure that you qualify this in your proposal.

Switchgear and Panelboards

When applying labor to switchgear and panelboards, many estimators spend time “building” a panel, making sure they have all the labor for breaker fill. In my professional opinion, this is a waste of valuable estimating time. As an estimator, determine the average time to install a 200-amp panelboard, and use that in your estimate.Electrical Estimating and Take-off

Make sure that you give your switchgear vendors enough time to quote the switchgear. Review your quote for completion. Beware of incomplete quotes! For generators, ensure that your quote includes the ATS’s, expensive load banks and testing.

Think about your electrical estimating and take-offs: How will you get your switchgear, etc. into the building? For existing buildings, is there room to bring these items in? For a new building, will you need rigging or a crane to set these items in place? If you are hiring a crane, check with your local jurisdiction about road closures and permits. Will they have to be set on a weekend, incurring extra costs? All should be factored into your take-off.

If mechanical disconnects are shown on the riser but will be provided on the equipment, make sure that your switchgear quote does not include them; and likewise, if you have to provide them, make sure your quote reflects that. We generally exclude generator fuel, start-up and testing. If you don’t exclude what you don’t “own,” you might end up owning it anyway.

Utilities

Another good chunk of your material costs with electrical estimating and take-offs will be the incoming utilities. Know your local code and what your local utility company provides. Often, the electrical contractor will own the incoming conduits, and the utility company owns the primary wire and transformer. Read the specs carefully to ensure that you are estimating the appropriate site conduit, noting the difference in price between GRC, Schedule 80 or 40 PVC. Do you own trenching and backfilling? That usually depends on the area of the country you are in. Do you own the transformer pad?

Reviewing the above items will help ensure you’ve done your homework with this part of electrical estimating and take-off.

 

Why Generation Y

Generation Y and Baby Boomers–why we need them: If you are one of the myriad of contractors who looks for skilled tradesmen or estimators, you will certainly know that there is a shortage of both!  This acute shortage holds back many companies from expanding. It is estimated that at least 70% of construction companies have difficulty finding and recruiting qualified workers. With the unemployment rate at 4.4% (down from 10% in October 2009), the shortage will undoubtedly get worse.

Why is there a shortage?

How exactly did this shortage happen? There are a number of contributing factors. Baby Boomers, those born between the years of 1943-1964, are aging, and many are retired or close to retiring. Millennials, those born in the 1980s to late 1990s, have been raised with a college versus “trades” focus.  In fact, there has been limited social acceptance, and in some cases, a stigma, of having a job in the trades versus one that requires a 4-year college degree. Statistics point to the fact that this shortage will be further exacerbated by the following: The number of adults, aged 18 to 26, is expected to decline over the next 5 years, and the number of those younger is expected to stay flat for the next 10 years. However, there are 80 million people between the ages of 10 and 30, so despite the decline, the available number of employable adults is still rather large.

The solution seems simple but it’s not.

It is clear that the construction industry as a whole, with the help of state and/or federal funding, needs to make technical education a priority in high schools and community colleges. However, many states, not to mention the federal government, appear to be cutting expenses rather than investing in the future of the technical education system. That doesn’t help with the public’s somewhat negative perception of careers in construction. With so much emphasis on college education, a career in the trades often has been looked down upon. As a result, there hasn’t really been definite career paths available to those that are interested so they can use their ambition to train and ultimately land a job in the construction field.

A career in the trades can be lucrative though… especially for Generation Y

A job in the trades can be financially compelling, especially for Generation Y. Consider this. A four-year college education can run somewhere between $100,000 to $160,000 plus interest on student loans. Trade school can run somewhere between $6,000 and $30,000 depending on the trade and the duration of the schooling. At the high end, then, a student would save $130,000 (plus interest) on schooling and they would be able to work at their trade during schooling, immediately making money.

There are also other advantages of a career in a trade. Most of the trades are experiencing growth ahead of other professions. Jobs for electricians, for example, are experiencing a 14% growth rate and this rate is projected to last until at least 2024, well ahead of other jobs. Jobs for estimators are on the rise as well! Industry professionals say that the estimator shortage across all trades is approximately 150,000 and from what we see, that number is probably much higher. As demand increases for seasoned estimators, so do salaries. In effect, a person could start off in the trade as an apprentice and work his or her way into an office position in estimating or project management, catapulting their earning capacity to that rivaling a college graduate! An attractive consideration for Generation Y, for sure.

A job in the trades also offers job security that is unrivaled in any other industry. Skilled trade labor cannot be outsourced to another country, like so many jobs have been of late. Another advantage? Unlike many professional careers, a skilled tradesman’s work is done at the end of the day and there is no reason to check emails or stay “plugged in” to the job. And, unlike a desk job when at times it feels like you are getting little accomplished, there is a sense of satisfaction from manual work done skillfully.

Untapped potentials?

So we still haven’t solved the problem of getting people into the construction field. I think that there are more people available than what the Bureau of Labor and Statistics estimates. Consider those that are unemployed. There are “discouraged workers” who have stopped looking for work because they don’t think there are any available jobs. What if training was available? Would they move toward the trades?

There are also two groups of individuals that the construction industry could tap—returning veterans and women. Some tradesmen are returning veterans and due to illness or injury they cannot work in the field anymore, but they can still be a valuable sources to the trades. How about training them for positions in estimating or project management? Positions for women are also available in construction trades, although women have not been “traditional” construction workers. However, with groups reaching out to women to join the trades, they can be viable construction workers. The National Association of Women in Construction estimates that in 2014, women accounted for 8.9% of all people working in the construction industry, and in construction, women earn on average 93.4% of what men make. In terms of the construction estimating field, opportunities for women are vast and women traditionally make better estimators than men!

How will the trades catch the interest of Generation Y aka the Millennials?

The Millennials (Generation Y) are an interesting group. They grew up with the Internet, cable television, video games (the sophisticated ones!) and so much more. They literally have the world at their fingertips. This group has been labeled “self-absorbed,” “special” (think about ‘everyone gets a medal’ and participation trophies), and “coddled.” On the flip side, this group is team oriented, interested in learning (especially where it involves technology), and in finding their place in a corporate culture that promotes from within.

Communication is the key with this group of young people, but it’s not the “old-fashioned” methods that work. It’s a collaborative approach to work; it’s using social media; it’s using training to keep them interested and moving forward. Mentoring works well here, especially when paired with a mentor that can effectively communicate with a person that may not be the best communicator. (Let’s face it. Texting is not the best form of communication yet it is the preferred method over talking on the phone or emailing.) Keep in mind that in general, the construction industry isn’t one to coddle; it’s all about production and at times “trial by fire.” However, if a company uses a proactive approach to effective developing and managing this unique group, it would help to bridge the gap in the workforce deficit.

Technology also offers huge appeal to Generation Y. When advertising a position within your company, use the words that they want to hear—software, advanced methods, tablets, efficient new methods to completing a task. It all helps. When recruiting, also consider the use of social media. This generation is the most plugged in to social media than any other. Believe it or not, “having a life” is also extremely important to this group. They expect flexibility. Yet the construction industry is not usually flexible. Flexibility comes when the work is getting done despite taking Facebook or phone breaks, versus the old-fashioned coffee or smoke break. Are they really that different from each other? Perhaps it is just a matter of perspective.

Moving Forward

Construction is moving at a fast pace with a growth rate of 22% per year. The shortage of qualified workers must be addressed sooner rather than later. The reality is that the younger generations are different and as such, a different approach must be used to attract and retain these workers. Corporate culture must shift a bit from what used to work with the Baby Boomers towards what will work with Generation X and Generation Y, also known as Millennials. For Generation Y, work is a means to an end yet they are looking for a “quality of work” environment that respects their opinions, offers a career path, promotes teamwork, and has a dynamic, changing environment that is not boring.

Industry trade associations must band together to collectively appeal to this group. Social media must be at the forefront of this campaign—Twitter, Facebook, Instagram, YouTube and LinkedIn are all vehicles to deliver the message. The companies that do the best job of recruiting, managing, training and retaining newer members of the trade will be the most successful; it certainly is a long-term project. It’s going to take construction companies of all trades to think differently, unlike any time in the past. As the industry ages, we will not have a choice but to employ new methods to attract and retain new workers. It’s not going to be easy but it is going to be absolutely imperative as the economy rebounds and even more construction takes place. What will you do to ensure that this happens?