SPECIALTY CONTRACTORS MARKET FOCUS


ents a challenge. “Contractors remain cautiously opti-


mistic about whether or not the growth in each sector will last,” she said. “This makes us hesitant to invest in equipment or new personnel. At the same time, we know if the growth does continue, we face an instant shortfall of skilled labor. That balance between needing to recruit, hire and train, but not knowing if there will be enough work to sustain the investment is really tricky.” John Boncher, CEO of Cupertino Elec-


tric, Inc., San Jose, pointed to a variety of factors that have upped the ante on proj- ects, from experienced worker shortage particularly in certain areas like the San Francisco Bay Area, to owners’ expecta- tions for ever faster project delivery, which can impact safety and budget. “The ex- ploding use of technology in construction has definitely taken the complexity and speed of projects to a new level,” he added.


Regulatory Morass In lockstep with other segments of the construction industry


and California’s


business community in general, specialty contractors say the current regulatory en- vironment and the proliferation of new laws pose an ongoing challenge to doing business in the state. “The biggest problem is the uncertainty


created by legislators who do not under- stand the unintended consequences driven by their new laws,” Kimble said. “Many of us today employ several people just to en- sure that our teams follow the myriad em- ployment, environmental, safety and other regulations. Instead of hiring estimators to get more work, we are hiring administra- tive people to maintain compliance.” Polich said the permitting process is es-


pecially problematic. “The target is always moving,” he said. “Certain large bureau- cracies often change the rules without no- tice, and we are left starting projects behind schedule with no recourse. Industry and the public agencies need to work on an on- line expedited permitting process that is ef- ficient and where the fees are transparent.” For Marina Landscape, an increase in


requirements for local hiring by owners in recent years has proven challenging. “Increased regulation on many jobs just makes it very difficult to provide the work- force,” he said. “Instead of who’s the best


www.AGC-CA.org


AGC Specialty Contractors Council Elevating Specialties’ Voice, Issues


Through its Specialty Contrac-


tors Council and other forums, AGC of California is working to elevate the voice and concerns of its specialty con- tractor members in 2015, recognizing the unique challenges and integral roles specialty contractors play in the industry and the association. Leading the charge is Cory Bykoski,


Vice President of Engineering & Con- struction


for Dynalectric/KDC Sys-


tems, an EMCOR company, who serves as Chair of the Council for 2015. He is working closely with AGC manager Gar- rett Francis to increase participation and to ensure the strongest voice and greatest value possible for the time and resources put in by AGC specialty contractor mem- bers.


“Our emphasis this year with the


Council is to be inclusive and to make sure specialty contractors are more in- volved and educated about current laws, regulations, and other issues that impact them,” Bykoski said. “The end goal is


guy to staff this job, it’s ‘where does this guy live?’ You may have someone working for you for 20 years, but if they live in the wrong zip code, you can’t use them.”


Confronting the Workforce Challenge Perhaps no industrywide challenge is


more often cited for its impact on today’s construction climate than the available skilled labor pool. ENR reported in its October 2014 issue


that 47.8 percent of firms who took part in its most recent survey of Top 600 Specialty Contractors said they had experienced craft labor shortages. That was up from 37.6 percent just the year before and a mere 14.1 percent who reported those shortages in 2010. Nataline Lomedico, who took over as


CEO of Los Angeles-based Giroux Glass this January, said the available labor pool has been a major hurdle for her company. “There is definitely a shortage of highly- skilled glaziers, so recruiting and hiring enough qualified workers for our field force is a consistent issue.”


that if you’re an AGC specialty contrac- tor member, we want the general con- tractors (GCs) to have full faith that you will always give them a quality project.” AGC recently launched a “Specialty


Insider” newsletter designed to increase participation and communication among specialties. The Council is also holding regular meetings throughout the year and is promoting specialty contrac- tor participation at all levels of AGC. A well-attended Specialty Contractors


Council Meeting in Half Moon Bay this January featured speakers Jessica Schel- lentrager of Mahan Insurance Brokers, who discussed the ins and outs of general liability insurance, and Mike Bruskin of Turner Construction, who outlined Turner’s launch of


its accelerated pay-


ment program for subs. For questions about AGC’s Specialty


Contractors Council, their agenda for 2015, or how to get involved, contact Garrett Francis at (626) 608-5800 or francisg@agc-ca.org.


Whether companies have personally


experienced the workforce gap trying to staff projects, or simply anticipate it will be a major issue in the future, California’s specialty contractors are clearly aware of the need to develop the next generation workforce. “Just like the rest of the country, we’re


experiencing a Baby Boomer retirement wave, which is taking a lot of experienced people out of the workforce,” commented Boncher of Cupertino Electric. “To com- bat this issue, we train field employees to continually expand their skills and knowl- edge. We also believe in fostering an en- vironment where respect and meaningful work are important.” Such an emphasis on internal training


and creating a desirable, sought-after work environment


is a strategy followed by


others we talked with. Giroux Glass has implemented employee referral programs rewarding current employees for new hires and maintains a strong internal mentorship program. Rosendin reported it invests heavily in an in-house training (continued on page 8)


Associated General Contractors of California 7


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