ABC-SEMI Southeast Michigan Contractors Issue 3, 2021

2 Associated Builders and Contractors, Inc. Dear ABC Friends, We’ve survived the pandemic, and we are now facing some pretty severe inflationary pressures on materials and labor. Most economists are predicting that these spikes are only temporary, caused by a rapid emergence after a year of nearly total shutdown. We now face a year’s worth of pent-up demand for construction services, thereby driving up costs of consumer goods and services to record levels. We can hope that the cost escalations will not lead to cancelled construction projects due to consumers holding out for a return to more normal pricing. As we look ahead for the next six months and beyond, our focus returns to another daunting problem we faced before the pandemic began—a shortage of a skilled labor force. As a trade association executive, I’ve seen first-hand the effects of the old-school approach to hiring and retaining employees. Let’s face it, construction companies by and large aren’t particularly cutting edge or innovative in personnel and HR practices. I’ve seen companies hiring new employees at wages not even on par with ‘Help Wanted’ signs at fast food restau- rants. As a result, these companies aren’t competing for top talent. They are marketing to the lowest common denominators in the available workforce and then are disappointed in the poor work ethic and work product of their new hires. They chalk up their bad experiences to an unmotivated generation, when it’s really their own hiring strategies that are at fault. At the Southeast Michigan Construction Academy, some of our new students can make more money at their current job waiting tables or working at the car wash than some construction employers are offering to pay them as an entry-level apprentice. It’s a disincentive for these young students to make the career switch, even though the long-term prospects for a high-paying career is much better in the skilled trades. Some young people need a longer-term perspective. But, construction companies need a long-term perspective, too. Companies have to make the initial investment in an entry-level employee, understanding that if they give workers a path to grow in their professional careers, the company can develop some top-notch skilled talent. Some companies argue that they fear turnover of newly-hired staff if they invest in training, so it’s not worth the investment. At the same time, such a fear-based leadership approach leads to poor training and lack of incentives for good employees to stay within their organi- zation. Poor staff leads to frustration for owners and management, being forced to oversee sub-par performance on your jobsites. We encourage all ABC employers to offer strong, competitive wages. We also encourage each of you to consider training your employees at the Southeast Michigan Construction Academy. Sincerely, Keith Ledbetter | President and CEO ABC Southeastern Michigan Chapter KEITH LEDBETTER ABC SEMI President President’s Letter