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ACTION ALERT: ABC Members Needed to Complete U.S. Dol Davis-Bacon

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ACTION ALERT: ABC MEMBERS NEEDED TO COMPLETE U.S. DOL DAVIS-BACON

WAGE SURVEY FOR HIGHWAY CONSTRUCTION PROJECTS

WHAT: The U.S. Department of Labor is conducting a Davis-Bacon wage survey for highway con-struction projects performed in Kentucky.

WHO: The survey is for contractors and subcontractors performing work on federal, state, local, and privately owned highway projects active or ongoing between 11/4/2023 and 2/4/2025.

WHEN: The survey will open on 11/4/2024, and surveys must be submitted by 2/4/2025 for data to be included in the wage determination.

WHERE: Complete the survey here – http://www.dol.gov/whd/programs/dbra/wd-10.htm

As you are likely aware, the Davis-Bacon Act requires payment of locally “prevailing” wage rates and fringe benefits to employees of contractors and subcontractors performing work on federally financed or assisted construction projects. DOL’s Wage & Hour Division is responsible for conducting surveys to establish the wage rates applicable to such projects.

Contractor participation in these surveys is crucial. Low contractor turnout in DOL’s surveys can often

result in wage rates that are not representative of the true “prevailing” rates in a given area.

Once a survey has been conducted, collected, and calculated, it is extremely difficult and expensive to

appeal and change the rates until the area is surveyed again, which has been as long as five to ten years in some cases.

The best way to fight for accurate prevailing wages is for ABC members to complete the surveys.

Members should utilize form WD-10 to respond to the survey before February 4, 2025.

The DOL is holding two two-hour briefings on the survey on Wednesday, November 6 at 9:30am EST and Thursday, November 7 at 2:30pm EST. Registration is available here.

For more information from the DOL on the survey, contact the DOL’s Davis-Bacon Survey Center at 866-236-2773 or Davisbaconinfo@dol.gov or visit https://www.dol.gov/agencies/whd/government-contracts/construction/surveys.

For additional resources from ABC, please visit ABC’s Prevailing Wage webpage at https://www.abc.org/DavisBacon.

VIDEO: How can construction be an advocate for addiction recovery?

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By Construction Briefing | Originally posted on constructionbriefing.com

The construction industry has one of the highest suicide rates among any profession in the world, and a leading cause of depression and self harm stems from substance addiction.

Greg Sizemore of US-based Associated Builders and Contractors (ABC), a trade organisation representing more than 22,000 contracting and building companies, discussed how the industry can change its ways and become a more stable and welcoming environment for all people.

 

Success Stories: Culture Attracts Talent in Construction

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By ConnectedWorld.com | Originally posted on connectedworld.com

We know the labor shortage is a challenge. In fact, the U.S. BLS (Bureau of Labor Statistics) numbers and the U.S. Chamber of Commerce show there are a defined number of jobs and not enough workers or skilled workers to fill them—to the tune of roughly 2.2 million open jobs. In construction specifically, ABC (Associated Builders and Contractors) estimates the industry needs to attract an estimated 501,000 additional workers on top of the normal hiring pace in 2024 to meet labor requirements.

If you were to ask Chicago’s Richard Group what the solution to this challenge is, it could be summed up in one word: culture.

Established in 2014, Richard Group is a veteran-owned, national general contracting company, building efficient and dynamic spaces that advance community and sustainability. CEO and founder Jed Richard says the company prioritizes people and fosters an environment of grit, gratitude, and greatness. As it has done this, it has seen growth in a number of different areas.

Here is how this approach can help in construction:

  • Attracted key hires in operations, finance, and marketing.
  • The company has more than doubled in size since 2022.
  • The company has seen a staggering 390% revenue growth in the past five years.

The company’s success extends beyond Chicago, with Richard now operating across 16 states and ranking as a large builder of Dept. of Veterans Affairs hospitals in the country. This expansion has brought more than 100 high-quality jobs, with more growth on the horizon.

Looking to the future, we are going to have to be very creative if we want to solve the labor shortage in the construction industry. Workplace culture will be one of the keys to driving success in the construction industry for years to come.

What’s behind the widening gender wage gap?

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By LEXANDRA OLSON and CLAIRE SAVAGE Associated Press | Originally posted on madison.com

NEW YORK — Just how much of a setback was the COVID-19 pandemic for U.S. working women?

Although women who lost or left their jobs at the height of the crisis have largely returned to the workforce, a recent finding points to the price many paid for stepping back: In 2023, the gender wage gap between men and women working full-time widened year-over-year for the first time in 20 years, according to an annual report from the U.S. Census Bureau.

Women working full time earned 83 cents on the dollar compared to men in 2023, down from a historic high of 84 cents in 2022. The Census Bureau called it the first statistically significant widening of the ratio since 2003.

Economists trying to make sense of the data say it captures a complicated moment during the disjointed post-pandemic labor market recovery when many women finally returned to work full time, especially in hard-hit low-wage industries in which they are overrepresented, such as hospitality, social work and caretaking.

The news is not all bad: Wages increased for all workers last year, but faster for men. And while the gender wage gap widened, it’s on par with what it was in 2019 before the pandemic hit.

S.J. Glynn, the U.S. Labor Department’s chief economist, said it’s too soon to tell whether 2023 was a blip or the start of a worrisome new trend for the gender wage gap. She said that even a reversion to the pre-pandemic status quo is a reminder of how far behind women were in the first place, and shows how the pandemic slowed the march toward gender equity.

And while the wage gap reached a historic low in 2022, that may have been a “false narrowing” because so many low-wage women had been pushed out of full-time jobs by the pandemic that it drove up the average female median earnings, said Noreen Farrell, executive director of Equal Rights Advocates and chair of Equal Pay Today, a coalition of groups advocating for workplace gender equity.

Surge of Latinas into the workforce had an impact

Hispanic women in particular illustrate the complexities of this moment. They were the only demographic group of women overall whose wage gap narrowed marginally between 2022 and 2023 in comparison to white men working full time, according to Census Bureau data analyzed by both the National Women’s Law Center and the National Partnership for Women and Families, which are research and advocacy groups. For Black women and Asian women, the wage gap widened, and for white women, it stayed the same.

Despite their wages increasing slightly faster than those for other women, however, Latinas remain among the lowest-paid workers — with median full-time earnings of $43,880, compared with $50,470 for Black women, $60,450 for white women and $75,950 for white men. Consequently, their rapid entry into the full-time workforce in 2023 helped slow down median wage gains for women overall, likely contributing to the widening of the gender wage that year, according to Liana Fox, assistant division chief in the Social, Economic and Housing Statistics Division at the Census Bureau.

Latinas have increasingly become a driving force of the U.S. economy as they enter the workforce at a faster pace than non-Hispanic people. Between 2022 and 2023, the number of Latinas working full time surged 5% while the overall number of full-time female workers stayed the same.

Ariane Hegewisch, program director of employment and earnings at the Institute for Women’s Policy Research, said the slight narrowing of the wage gap for Latinas may be because their presence in top-earning occupations grew from 13.5% to 14.2% last year, according to an IWPR analysis of federal labor data.

However, the portion of Latinas in full-time, low-wage jobs also grew in 2023, she said.

The recovery is leaving part-time Latina workers behind

Latina workers were among the hardest hit by the pandemic, suffering the highest unemployment rate of any major demographic group at 20.1% in April 2020, according to a Labor Department report that examined the pandemic’s disproportionate toll on women.

Domestic workers, who are disproportionately immigrant women, especially felt the effects. Many lost their jobs, including Ingrid Vaca, a Hispanic home care worker for older adults in Falls Church, Virginia.

Vaca, who is from La Paz, Bolivia, contracted COVID-19 several times and was hospitalized for a week in 2020 because she was having trouble breathing. She continued to test positive even when she recovered, so was unable to enter families’ homes or work for most of that year or the next.

She had no money for food or rent. “It was very hard,” she said, describing how she lost clients during her time away and is still struggling to find full-time, stable work.

Skilled Trades Advisory Council Earns Nonprofit Status to Address Labor Crisis

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By Walls & Ceilings | Originally posted on wconline.com

The Skilled Trades Advisory Council announced on Sept. 17 that it has officially earned 501(c)(3) nonprofit status, a significant milestone in its mission to combat the ongoing skilled labor crisis in the United States and Canada. Founded in August 2023, STAC brings together industry leaders who are leveraging their resources, expertise and networks to promote skilled trades as high-paying, honorable and essential career paths. These trades include electrical, plumbing, HVAC, janitorial, construction and other critical sectors in need of a rejuvenated workforce.

“As the demand for skilled trades continues to outpace supply, the work of STAC has never been more critical,” said Rob Almond, CEO of NEST and founding advisor of STAC. “Achieving nonprofit status empowers us to further our mission, create meaningful partnerships, and drive initiatives that will elevate these careers and ensure the future of our workforce.”

In its first year, STAC has made significant strides in elevating the conversation around skilled trades. The organization has successfully advocated for the importance of these careers and united industry leaders to drive change. Key achievements include collaborations with high-profile advocates like Mike Rowe, skilled trades programming with the Philadelphia Phillies and alliances with leading organizations, such as Explore the Trades, Women in HVACR, NAWIC Philadelphia Foundation, SPECS and CONNEX FM.

The urgency for skilled trades careers is underscored by a report from Associated Builders and Contractors, which indicates that the construction industry alone will need to hire an additional 500,000 workers in 2024 to meet labor demands.

Founding STAC advisors include:

  • Almond
  • Andrew Brown, founder and CEO of Toolfetch
  • Kate Cinnamo, executive director of Explore the Trades
  • Mary Gaffney, president of NAWIC Philadelphia Foundation and GEM Mechanical Services
  • Sarah Hammond, owner and president of Atlas and treasurer of Women in HVACR
  • Mónica Muñoz, senior director of capital programs at DaVita Kidney Care
  • Julie Starzynski, design and development manager at BP
  • Sara Angus, director of construction at Starbucks
  • Kam Washington, owner of PMA Construction

Election Outlook: How Will Construction Fare?

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By For Construction Pros | Originally posted on forconstructionpros.com

Exploring the industry’s top concerns and priorities tied to the outcome in November

As the United States approaches the 2024 presidential election on Nov. 5, citizens with ties to the construction industry have a considerable decision to make. This year’s presidential race pits current Vice President Kamala Harris (Democrat) against former President Donald J. Trump (Republican). Currently, presidential polling across the country showed the two to be in a nearly neck-and-neck race, teetering on decisions from key battleground states.

With much to consider with regard to the laws, regulations and industry-specific concerns in construction, such as contracting laws, infrastructure investments, labor requirements, climate reporting requirements, workforce development and more, key construction industry players on the contractor end are speaking up.

In July 2024, Associated Builders and Contractors (ABC) announced it endorsement of Trump, citing concerns about the rise in materials prices and exclusionary project labor agreements under the current administration. ABC’s most recent data shows a decline in both its Construction Backlog Indicator and Construction Confidence Index; however, it also indicates expected growth over the next six months. ABC Chief Economist Anirban Basu, said, “While ABC contractor members are still anticipating expanding sales and employment, profits margins are increasingly under pressure as project owners face high borrowing and construction delivery costs in the context of a slowing economy. Many projects have been postponed, resulting in recent backlog declines, most notably in the South.”

With interest rates at their highest in 23 years, last month, the Federal Reserve offered a 0.5% reduction in percentage points. Within the construction industry, Dodge Construction Network data indicates construction project starts will move forward at a modest pace. According to Richard Branch, chief economist at Dodge Construction Network, “Now that the Federal Reserve has begun to lower rates, the construction sector should begin to feel relief.” Branch suggests owners and developers show growing confidence that both market and financial conditions will improve, but also notes that the successive rate will be the impetus for moving projects forward to start. “Starts should show stronger and more consistent growth in the first quarter of 2025,” said Branch.

Broadly on both sides of the political line, taxes and tariffs remain a topic of debate, with Harris proposing small business tax deductions, and Trump proposing corporate tax rate cuts for companies producing products within in U.S. According to Rob Haworth, senior investment strategy director at U.S. Bank Wealth Management, “Either candidate as president is likely to pursue fiscal stimulus policies to boost the economy, although likely with different combinations of tax incentives and higher spending.”

Of critical importance on the manufacturer end are environmental initiatives and regulations, the impact of which will be seen more at the sector level. As equipment manufacturers pursue pathways toward electrification, automation and decarbonization, policies affect the outcome for both their operations and their product offerings. “For example,” says Haworth, “if Republicans win, there is likely to be more of a push for development of fossil fuels, while a Democratic win might further promote renewable energy development.”

In the lead-up to any presidential election, uncertainty begins to echo. Regardless of the outcome, one thing is certain: the construction industry will continue to move forward.

 

 

Construction and AI: What Contractors Need to Know from ABC’s New Report

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By Aarni Heiskanen | Originally posted on aec-business.com

The Associated Builders and Contractors (ABC) has just released its fourth annual construction technology report, which dives deep into AI’s evolving role in the construction industry.

“ABC contractor members and the overall contracting community want more information on AI and how it can help them improve safety, quality and profitability—and win more work,” said Matt Abeles, ABC vice president of construction technology and innovation. The newly released ABC AI Tech Report delivers on this need, highlighting AI-driven case studies, resources, and thought leadership from ABC’s Tech Alliance.

Understanding AI’s Role in Construction

The report provides a comprehensive AI Resource Guide, breaking down the basics of artificial intelligence and how it applies to construction. Understanding AI is key for contractors to stay competitive in the rapidly changing industry.

Patrick Irwin, chair of ABC’s Construction Technology and Innovation Committee and COO at Leonard S. Fiore Inc., expressed how valuable this report can be: “For contractors and the construction industry in general, there is so much for us to learn relative to AI and ML so that we understand how to prepare, the possible uses and the overall implications.”

Irwin points out that AI and machine learning (ML) hold immense potential for contractors to move their businesses forward. The report is a valuable resource for those beginning their AI journey or looking to deepen their understanding of these technologies.

Real-World AI Applications in Construction

One of the report’s standout elements is a case study from Hensel Phelps, an ABC contractor member, showcasing real-life applications of AI in construction projects. This case study, combined with insights from Tech Alliance members and Dodge Construction Network, provides practical examples of how AI can enhance efficiency, productivity, and safety in the field.

The construction industry has often been slow to adopt cutting-edge technologies, but AI is quickly changing that dynamic. By automating routine tasks, optimizing project management, and improving data analytics, AI can transform how contractors approach every aspect of their work, from bidding to completion.

Industry Leaders Contribute to the Report

The ABC AI Tech Report was a collaborative effort led by ABC’s National Construction Technology and Innovation Committee. Industry leaders, contractors, and technology partners shared their knowledge and experience. ABC’s Tech Alliance members—including companies like Autodesk, Procore, and Trimble—played a pivotal role in making this report possible. These companies provide critical tools that enable contractors to innovate and stay ahead of the curve.

Through the efforts of these industry leaders, ABC aims to create the conditions for construction companies to differentiate themselves and attract top talent. By leveraging AI and other advanced technologies, construction firms can work more safely, ethically, and profitably, contributing to the betterment of the communities in which they operate.

Accessing the Report

The ABC AI Tech Report is available digitally on the ABC website. ABC members also received a print edition alongside the September-October issue of Construction Executive, a leading magazine for the construction business.

ABC continues its commitment to helping members navigate the rapidly evolving construction technology landscape through its Tech Alliance, Tech Marketplace, and Safety Tech Guide. The full report can be accessed online at abc.org/techreport.

As AI becomes increasingly integral to the construction industry, reports like this will serve as vital tools for contractors eager to adopt and implement cutting-edge technology solutions.

ABC Joins White House Roundtable on Addiction Recovery-Ready Workplaces

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By Walls & Ceilings | Originally posted on wconline.com

Associated Builders and Contractors participated on Sept. 18 in a White House-sponsored roundtable discussion, “Recovery in the Workplace: Investing to Build the Workforce of Tomorrow,” which convened more than a dozen leading corporations, business groups and government leaders at the White House in Washington, D.C., to highlight the importance of recovery-ready and recovery-friendly workplaces and share best practices.

Greg Sizemore, ABC vice president of health, safety, environment and workforce development, discussed ABC’s Total Human Health Initiative at the White House Office of National Drug Control Policy’s National Recovery Month Roundtable.

At the roundtable, ABC committed to a Recovery-Friendly Workplace Certification, and also explored incorporating it into its industry-leading STEP Safety Management System and encouraging its 67 chapters and more than 23,000 member-companies to also become certified as recovery-friendly workplaces.

“The construction industry has long been influenced by the outdated mentality that workers should simply ‘suck it up,’ creating a barrier for employees to discuss personal challenges while on the job,” Sizemore said. “Additionally, many older construction workers turn to both legal and illegal substances as a means of coping with pain or musculoskeletal injuries accumulated over their careers.

“To overcome this, we must shift our mindset and foster a caring culture that promotes not only a safe, but also a healthy workplace,” Sizemore added. “It requires a deliberate effort to break down the barriers that have been built up over the years. This involves encouraging peer-to-peer accountability and sharing success stories — whether they involve addiction recovery or simply improving quality of life. Contractors must stop ignoring these issues. Addressing substance use and well-being must be integrated into an employer’s value proposition to every employee — and, in many cases, their families.”

ABC members’ most valuable asset is hardworking, dedicated and skilled workers. Construction workers use tools every day, and they need the right tools to address mental health, addiction and suicide prevention, especially since construction is estimated to have one of the highest suicide rates among all industries. ABC developed its Total Human Health Initiative to help contractors keep workers safe with tools to identify, acknowledge and address preoccupying concerns that everyone experiences in daily life — and save lives.

Message conveyed: ‘Construction is a viable career’

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By Chuck Slothower | Originally posted on djcoregon.com

It was anything but a typical day at school for 1,000 Portland-area high school students who descended on Camp Withycombe in Clackamas County on Thursday for the Associated Builders and Contractors’ Craft Championships.

Some students lined up to go more than 200 feet aloft in a crane. Others drilled long screws into lumber using a professional-grade drill, or carved pumpkins with saw-like knives.

ABC’s Pacific Northwest chapter started hosting the event locally in 2015.

“What it was meant to do is give exposure to the public, to high schools, that construction is a viable career,” said Laurie Kendall, president and CEO of the local ABC chapter.

The core of the event is a skills competition for craft workers. Sam Follett of Hunter-Davisson Inc. won the HVAC category and Josh Spencer of Sun Glow Inc. won the sheet metal category. They will receive an all-expenses-paid trip to the national Craft Championships competition in Las Vegas in February 2025.

Kendall told groups of high school students that they can enter the workforce without the thousands of dollars in debt that hang over college graduates.

“You go two to four years depending on the program (and) you come out debt-free,” Kendall said. “You’re making a career, and it’s essential.”

Students, all wearing neon green T-shirts, milled about the vintage tanks at Camp Withycombe’s Oregon Military Museum.

Some of the students said they were considering careers in construction. Kelly Jean, a junior at Roosevelt High School, said he’s interested in welding, plumbing and other skills.

“I would like to learn how to do a little bit of everything,” he said.

A long line of students formed for a ride aboard a crane. They were hoisted approximately 210 feet in the air in the crane operated by Garrett Smith of Sherwood-based Jacked Co.

“It was pretty fun, even though I have a fear of heights,” said Hayven Stacy, a West Linn senior.

Sponsors from local companies fielded questions and handed out freebies. Alex Korver, a project manager and estimator with Local Plumbing Co., said one student asked her a question about union versus nonunion career tracks.

“You have to weigh the pros and cons to both, because there are pros and cons to both,” Korver said.

Brent Bennett, general manager of McBride Construction Resources Inc.’s Portland office, said he wanted to keep the craft tradition alive in the industry. His son, a high school freshman, is interested in construction, Bennett said.

“This (event) is kind of unique in that we’re not here necessarily trying to get work,” he said. “It seems like there’s a lot of interested kids.”

Craftspeople competed in two separate divisions, in HVAC and sheet metal, respectively. At the sheet metal station, competitors took careful measurements before hammering sheet metal into place.

“We definitely need more people in the trades, so if they’re inspired to join the trades, that’s cool,” said Christian Collingwood, an installer for Hunter-Davisson Inc. who competed in the sheet metal division.

“I’d say get into the trades as soon as you can,” he added. “The trades are a rewarding and profitable thing to do.”

 

ABC’s Construction Backlog Indicator Rebounds in September—Contractor Confidence Improves

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By ContractorMag.com | Originally posted on contractormag.com

WASHINGTON, DC — Associated Builders and Contractors reported that its Construction Backlog Indicator increased to 8.6 months in September, according to an ABC member survey conducted Sept. 20 to Oct. 4. The reading is down 0.4 months from September 2023.

Backlog increased in every region except for the Northeast in September. On a year-over-year basis, however, only the Middle States have longer backlog than one year ago.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels improved in September. The readings for all three components are above the threshold of 50, indicating expectations for growth over the next six months.

“Contractor confidence rebounded in September,” said ABC Chief Economist Anirban Basu. “While the reading for profit margins briefly dipped below the threshold of 50 in August, indicating net expectations of contraction, contractors are back to expecting modest expansion in their margins as of September. This optimism likely reflects falling interest rates, which will eventually serve as a tailwind for the industry, and the fact that materials prices have actually declined over the past year. Despite the improved outlook in September, contractor confidence is worse and backlog shorter than one year ago, suggesting that the effects of high interest rates continue to weigh on the industry.”