Reshaping the Construction Industry

Successful construction CEO’s and senior leadership teams are constantly striving to take their companies to “the next level.”  The best teams have a clear vision of what that next level is, often expressed in terms of specific measureable, time-dated goals.  Some even set “Big Hairy Audacious Goals”, BHAGs, as articulated by Jim Collins in his seminal work, Built to Last.  Typically these BHAGs are set for a longer horizon, perhaps three to five years out, and require bold strategies that involve significant organizational development and change to achieve.  The achievement of these certainly takes the organization to “the next level”, perhaps even transforming the company.In a cyclical industry like commercial construction, a critical requirement for setting growth goals is favorable market direction and dynamics.  It is difficult to grow a construction company serving a single geographic market that has negative direction.  However, with the market direction and dynamics we face in Houston for the foreseeable three to five years,  

The Texas Payday Law, Chapter 61 of the Texas Labor Code, governs how workers are paid in Texas.  The law applies to all private employers, and is enforced by the Texas Workforce Commission.  Payment of Wages: Wages must be paid at least twice per month to employees who are non-exempt under the Fair Labor Standards Act (i.e. those employees who are eligible for overtime pay).  Exempt-level employees must be paid at least once per month.  Deductions from Pay: An employer can deduct money from an employee’s paycheck under very limited circumstances.

The Construction Citizen team has long held the position that any good faith effort to try to close the skills gap in America should be welcomed with open arms. The players on this landscape are as politically diverse as Glenn Beck on the right and now President Obama and some of his supporters on the left. Naturally, any initiative proposed by any politician is going to be met with some skepticism. But if there’s a chance the federal government can aid employers in finding the kind of skilled workers they need – and therefore place those workers in jobs that better their families and communities – then we are encouraged to see it.A push by the Obama Administration to reform the way the government engages in job training is underway, led by Vice President Joe Biden. His responsibility for overseeing this was announced during the State of the Union address, and since then has been met with a mix of skepticism as well as hope. The order signed by the president has been billed as an “across-the-board” reform review designed to make those programs more “job-driven”. Imagine that.  

Construction employment, spending hit highest levels since 2009; Beige Book is upbeatEditor’s note:  Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Nonfarm payroll employment increased by 175,000, seasonally adjusted, in February and 2,158,000 (1.6%) over 12 months, the Bureau of Labor Statistics (BLS) reported on Friday. Construction employment rose by 15,000 for the month and 152,000 (2.6%) over the year to 5,941,000, the highest total since June 2009. Despite the gain in jobs, aggregate weekly hours fell year-over-year for the first time since April 2011 (-0.5%), indicating severe weather idled many workers. Residential construction employment (residential building and specialty trade contractors) climbed by 1,700 for the month and 101,200 (4.8%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) rose by 12,700 from January and 50,600 (1.4%) year-over-year. All five residential and nonresidential segments added workers for the year. The unemployment rate for jobseekers who last worked in construction fell to the lowest February level in six years ...