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If you’ve recently been in an airport or watched either the Masters Tournament or the World Series, you’ve probably heard the terms cloud computing, artificial intelligence and Internet of Things. But what do these terms mean? And what do they imply for someone working in the construction industry?  

A new book, Precision Construction, provides some of these answers. Part 1 of the book will immediately give you a better understanding of cloud computing, artificial intelligence and IoT. It is organized around five technologies: those that power construction machines, connect the machines to the Internet, collect data from the machines, learn from them and allow businesses to digitally transform themselves. 

However, this book isn’t just about abstract ideas. There are also eight case stories of these digital technologies in action from contractors, rental companies, OEMs and suppliers, including JLG and United Rentals, two of ABC’s strategic partners. There are stories about the construction machines and technologies of the future, including a brick-laying robot and the use of augmented reality glasses on construction sites, as well as stories about how leading-edge contractors are using software to change the way they do business. These case stories are applicable to all stakeholders in the construction industry.

According to ABC President and CEO Mike Bellaman, who had the opportunity to review an advance copy of the book, it is a “must read” for construction leaders—especially for those looking for practical applications for technology. Bellaman invites ABC members to educate themselves about the digital builder of the future by checking out Precision Construction, available for Kindle today, with print and audiobook versions due out shortly. Sign up to receive the Kindle e-book for free through Oct. 26!
 
Furthermore, ABC has invited co-author Vince Vasquez to present highlights of the book at ABC Convention 2019 in Long Beach, California, March 24-28. You won’t want to miss this—register today!

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ABC was one of thirty members of the Construction Industry Alliance for Suicide Prevention that met recently in Princeton, New Jersey, to collaborate on how to equip companies to better address mental health issues and reduce the risk of suicide in the construction industry. Members of the Alliance, which was classified as a 501(c)(3) public charity this summer, formed governance, fundraising, education and marketing task forces during a strategic planning session centered around National Suicide Prevention Month.

“Our industry’s steadfast commitment to safety needs to extend beyond our jobsites to ensure that workers struggling with mental health issues get the help they need,” said Greg Sizemore, ABC vice president of health, safety, environment and workforce development, who attended the meeting.  “We are proud to be part of the Alliance to draw attention to the national issue of suicide risk and help increase access to mental health across the construction industry.”

The construction and extraction industry had the second-highest suicide rate at 53.3 out of 100,000 workers and the highest total number of suicides by industry, according to a 2016 report from the Centers for Disease Control. 

Since the report was released, the construction community has taken important steps to provide and disseminate information and resources for suicide prevention and promotion of mental health in construction. ABC also encourages member companies to include employee mental health in their safety programs.

Founded two years ago by the Construction Financial Management Association, the Alliance now counts 17 member organizations united in their dedication to reducing suicide risk across the construction industry. For more information or to join, visit the Alliance’s website.

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On Oct. 11, the Occupational Safety and Health Administration issued a memorandum clarifying its position on workplace safety incentive programs and post-incident drug testing included in the 2016 final rule, Improve Tracking of Workplace Injuries and Illnesses (also known as the Electronic Injury Reporting and Anti-Retaliation final rule), issued under the Obama administration.  

The preamble of the 2016 final rule, as well as OSHA’s subsequently issued guidance, deemed some forms of post-accident drug testing and accident-free incentive programs to be unlawfully retaliatory, which could force many employers to change their safety programs in ways that will make workplaces less safe by discouraging drug testing and safety incentive programs. Enforcement of the anti-retaliation provisions went into effect on Dec. 1, 2016.  

The recently-issued OSHA memo is a positive step. ABC has long argued that the anti-retaliation provisions impose significant burdens on ABC members and threaten workplace safety. In 2016, ABC and other stakeholders filed a lawsuit against the final rule, which is currently paused.

ABC National plans to offer a webinar on the memo—details will be announced in the near future.   

The OSHA memo states:

The purpose of this memorandum is to clarify the Department’s position that 29 C.F.R. § 1904.35(b)(1)(iv) does not prohibit workplace safety incentive programs or post-incident drug testing. The Department believes that many employers who implement safety incentive programs and/or conduct post-incident drug testing do so to promote workplace safety and health. In addition, evidence that the employer consistently enforces legitimate work rules (whether or not an injury or illness is reported) would demonstrate that the employer is serious about creating a culture of safety, not just the appearance of reducing rates. Action taken under a safety incentive program or post-incident drug testing policy would only violate 29 C.F.R. § 1904.35(b)(1)(iv) if the employer took the action to penalize an employee for reporting a work-related injury or illness rather than for the legitimate purpose of promoting workplace safety and health.

The memo also states the following about workplace drug testing:

In addition, most instances of workplace drug testing are permissible under § 1904.35(b)(1)(iv). Examples of permissible drug testing include:

• Random drug testing.
• Drug testing unrelated to the reporting of a work-related injury or illness.
• Drug testing under a state workers’ compensation law.
• Drug testing under other federal law, such as a U.S. Department of Transportation rule.
• Drug testing to evaluate the root cause of a workplace incident that harmed or could have harmed employees.  If the employer chooses to use drug testing to investigate the incident, the employer should test all employees whose conduct could have contributed to the incident, not just employees who reported injuries.

Further, the OSHA memo clarifies that many safety incentive programs, including rate-based incentive programs, are lawful as long as they are not implemented in a manner that discourages reporting.

Note: On Sept. 28, 2018, ABC submitted comments to OSHA on its recent proposal to remove certain provisions of the 2016 final rule. Specifically, the proposal would rescind the requirement for establishments with 250 or more employees to electronically submit information from OSHA Forms 300 and 301. Additionally, OSHA is proposing to require covered employers to submit their Employer Identification Number electronically along with their injury and illness submission. However, despite significant opposition from ABC, OSHA’s proposal failed to make any revisions to the anti-retaliation provisions included in the 2016 final rule. More information on electronic submission of illness and injury records to OSHA can be found on the Injury Tracking Application landing page. 

This article is intended for informational purposes only and does not constitute legal advice or opinion.

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On Oct. 9, The U.S. Department of Labor’s Wage and Hour Division announced a six-month extension to its overtime and minimum wage compliance initiative, the Payroll Audit Independent Determination program. 

According to a WHD news release, the PAID program helps workers receive more back wages due in an expedited manner, without having to wait for lengthy investigations to conclude or court cases to resolve.

WHD launched the PAID program as a six-month pilot program in April to allow employers to conduct audits, and if they discover overtime or minimum wage violations, self-report those violations. Employers may then work in good faith with WHD to correct their mistakes and to quickly provide 100 percent of the back wages due to their affected employees.

Visit the DOL’s website to learn more about the PAID program and who can participate.

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Prices for inputs to construction rose 0.3 percent in September and are 7.4 percent higher than a year ago, according to an ABC analysis of U.S. Bureau of Labor Statistics data. Overall prices for nonresidential construction inputs rose 0.4 percent, reversing last month’s downward trend. Among individual subcategories, softwood lumber prices are down 0.4 percent, yet are up 5.4 percent on a year-over-year basis. Crude petroleum and natural gas prices are both up on a monthly basis, 8.7 and 1.1 percent, respectively. 

“Last month, government data indicated that construction materials prices declined in August,” said ABC Chief Economist Anirban Basu. “At that time, we viewed the one-month decline as an aberration. With the U.S. construction industry remaining active, as demonstrated by recent patterns in hiring, demand for materials domestically remains strong. Moreover, a combination of global economic growth and geopolitical intrigue has helped to push certain commodity prices higher, including crude oil, which is up 47 percent year-over-year, and natural gas.

“There is also the matter of trade tensions,” said Basu, “including those involving key construction materials like steel and softwood lumber. While new trade agreements have been signed with the likes of Mexico, South Korea and Canada, certain trade issues linger, including U.S. tariffs imposed on foreign steel and aluminum for reasons ostensibly related to national security. All of this is consistent with both elevated and rising construction materials prices.

“Today’s data are consistent with the view that the prior month’s data were anomalous,” said Basu. “Nonresidential contractors should continue to expect both rising material and human capital costs going forward. Understanding these dynamics is, of course, particularly salient to the daily lives of estimators, who arguably have today’s most difficult construction job.”

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October is Careers in Construction Month, which creates the perfect opportunity to highlight the many career paths the construction industry provides for people with a variety of experience, education and expertise. And especially given the estimated 500,000 open construction positions in the United States right now, workforce development and filling the skills gap remains a key priority for ABC and its members.

In a recent op-ed in The Washington Times, Michael D. Bellaman, president and CEO of ABC, emphasized that while a college degree is not required to have a lifelong and successful construction career, the industry also offers many professional opportunities with competitive salaries for college-bound students. Construction management—an undergraduate field of study that comprises the planning, design, safety, quality control and execution of construction projects—boasts countless career prospects for students interested in math, physics, economics, business management, engineering and communication. The major provides excellent employment options for recent graduates, with colleges reporting sold-out job fairs and outstanding job-placement results. The median pay for construction managers—which comprise more than 400,000 of the nation’s 7.8 million industry workers—was $91,370 in 2017, according to the U.S. Bureau of Labor Statistics.

In another op-ed featured on Fox Business, Bellaman stressed that the need for talent in the field is immediate, especially as construction spending reaches record highs. ABC’s Construction Backlog Indicator, which reflects projects under contract but yet to be executed, was at an all-time high of 9.9 months in the second quarter of 2018. America needs the best and the brightest to build the places where we live, work and play, from airports and universities to skyscrapers and stadiums. By starting college with the end in mind, students can help secure their future by choosing a major with ample job opportunity in today’s market and have a rewarding and fulfilling career in construction. 

ABC National has developed outreach materials to help ABC chapters, members and volunteers promote Careers in Construction Month in local markets throughout the month of October. Explore the full range of construction career options at CareersBuildingCommunities.org or connect with career resources at workforce.abc.org.

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Start your journey to world-class safety today with ABC’s Safety Training Evaluation Process. STEP is a safety benchmarking and improvement tool that dramatically improves safety performance among construction industry participants, regardless of company size or type of work. Every ABC member wants to send its workers home safely every night. 

Start today, whether you are beginning your safety journey or continuing to strengthen your performance. Getting started with STEP is free, and it can help you lower your workers’ compensation insurance rates! Visit abc.org/step for more information.

Watch the video below to learn more from these safety professionals.

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On Oct. 3, a federal judge temporarily blocked the Trump administration’s plan to end Temporary Protected Status for more than 300,000 immigrants from El Salvador, Haiti, Nicaragua and Sudan. This preliminary injunction will allow the merits of the case in Ramos v. Nielsen to be considered—whether these immigrants face irreparable harm if the designation is eliminated. Some of these immigrants have spent decades in the U.S. under the TPS designation.

Last year, ABC and other construction industry leaders expressed concerns about the administration’s decisions on TPS designations in a letter to congressional leaders. ABC urged Congress to take legislative action to ensure that TPS holders can continue to work legally in this country. An estimated 50,000 TPS designees currently work in construction, which already faces a shortage of 500,000 workers to fill existing jobs.

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FindContractors.com is an excellent tool to help members find and do business with other members. Members can search for an ABC contractor, supplier or other construction professional by name, chapter, location, sales volume or type of construction. Plus, now members are recognized for earning an Excellence in Construction^® Award within the last three years. Learn more about EIC at abc.org/eic.

You can update your membership information on FindContractors.com and verify your company name, chapter, CSI and NAICS codes and designations. This site is password-protected for member and chapter use only. Visit FindContractors.com to request a login.

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The U.S. construction industry added 23,000 net new positions in September, according to an ABC analysis of data released by the U.S. Bureau of Labor Statistics.

During the last 12 months, the industry has added 315,000 net new jobs, an increase of 4.5 percent. Nonresidential construction employment expanded by 18,600 net jobs on a monthly basis, while the residential sector added just 4,400 net positions.

Though construction unemployment rose to 4.1 percent in September, it remains low by historical standards. National unemployment dropped to 3.7 percent across all industries, the lowest rate since December 1969.

“For several years, job growth has been just right—not too hot, not too cold,” said ABC Chief Economist Anirban Basu. “The term ‘Goldilocks economy’ is often tossed around, with the implication being that employment growth has been solid enough to keep consumers spending and businesses confident, but not so fast that inflation and interest rates spike, causing asset prices (e.g., stocks, bonds and real estate) to fall in value.

“Coming into the latest employment report, economists were collectively expecting around 180,000 jobs to be created in September and an official rate of unemployment of 3.8 percent. That’s effectively what occurred,” said Basu. “But these are not the important numbers. The most important number is average hourly earnings growth, which has been at the high point of the cycle recently. Conventional wisdom suggests that if average hourly earnings were to grow 3 percent or better on a year-over-year basis, that actually would be bad news from the perspective of financial markets. This suggests that the grinding search for talent is driving up compensation costs and that interest rates will continue to head higher.

“Contractors will have noticed that borrowing costs have risen more rapidly of late, resulting in yesterday’s sharp dip in stock prices,” said Basu. “Essentially, we may have reached the point in the cycle during which good news is bad news, at least from the perspective of financial market performance. What’s more, construction firms will find it increasingly difficult to recruit labor—that much is obvious. This week’s announcement by Amazon regarding its increase in minimum wages indicates that firms are having to pay more to attract and retain workers. It is perfectly conceivable that more junior members of the construction workforce also heard about Amazon’s new $15 minimum wage.”

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