The Dig Daily Dose - Edition 116

Elevate Your Industry Insights

"The single biggest way to impact an organization is to focus on leadership development. There is almost no limit to the potential of an organization that recruits good people, raises them up as leaders and continually develops them."

—John Maxwell

There are numerous advantages for construction companies to prioritize leadership development. We must recognize that our people should be viewed through a different lens based on their roles, whether they are in management or labor. However, the problem lies in the fact that all our employees perceive themselves in the same way - either as management or labor. Unfortunately, many individuals believe that anything beyond labor falls solely under the purview of management, which is a significant issue in every aspect. When it comes to productivity, labor providers possess invaluable insights after spending more than an hour on any task. Regrettably, these insights often go unnoticed because "productivity is the responsibility of management," and not their job. Similarly, the way individuals address safety concerns is heavily influenced by their position within the company. It is widely known that company management bears the responsibility for safety. But does this mean that labor providers are exempt from safety responsibilities? Just as labor providers possess knowledge of the most efficient approaches to work activities, they also possess a deep understanding of how to work safely. Let me emphasize this: management teams often deliver safety training to highly experienced labor providers in the same manner as they would to a novice. It is disheartening to witness management teams conducting training sessions that resemble those of preschool teachers addressing young children. "Okay, kids, put on your hard hats, safety glasses, and gloves. Don't get hurt and cost the company a fortune to fix you up." I have heard this countless times. Frankly, it is disrespectful to our labor providers. How can we expect individuals to prioritize increasing productivity or improving safety if they feel disrespected? The only way I have found to rectify this weakness in management, where it exists, is to alter how management perceives labor providers. Simply challenging management teams to view each labor provider as a "management trainee" from day one can revolutionize everything. As we have mentioned before, many construction companies have foremen and superintendents who started as inexperienced employees on their first day. If field management assumes the responsibility of training individuals from day one with the goal of molding them into managers, providing clear guidelines on what each step entails, it transforms the dynamics for both managers and labor providers. So, as a manager, what are your expectations for a labor provider's work performance on their first day? Allow me to share an anecdote from a conversation I had with a field foreman in the powerline construction industry. He exclaimed, "I know exactly what you mean!" He recounted an incident a few months ago when a new apprentice, on their very first day of work, "saved the life of a journeyman lineman." Even I, as progressive as I strive to be, couldn't fathom how that would be possible. I inquired, "What did they do to save the lineman's life on their first day?" The foreman explained that he stood beside the apprentice and pointed up to the lineman working on the powerlines. He educated the apprentice about the "energized conductors," emphasizing their unforgiving nature when mistakes occur. If the lineman in the bucket inadvertently contacts two different wires or a wire and the pole with unprotected body parts, he will be electrocuted and die. So, the foreman instructed the apprentice to shout a warning if they witnessed such a situation. The apprentice observed attentively, and then it happened. They spotted the exact scenario the foreman had described and immediately yelled out, preventing a fatality - did I mention it was their first day of work? The foreman added immense value and purpose to the apprentice's first day. Does this story inspire any ideas on how to shift the perspectives of both management and labor providers regarding their roles and significance within our organization?

—Wayne Jensen

Currently In The News

Biden-Harris Administration announces $2 billion for cleaner construction projects to tackle the climate crisis, spur American innovation, and create good-paying jobs as part of Investing in America agenda

The Biden administration on Monday said it will invest $2 billion in 150 federal building projects across 39 states that use materials that minimize carbon emissions, its latest effort to tackle climate change through government purchasing power.

The funding will support projects in 39 states, the District of Columbia, and Puerto Rico to promote American-made low carbon asphalt, concrete, glass, and steel. This investment from the Inflation Reduction Act will expand America's industrial capacity, address the climate crisis, and create jobs for American workers. The announcement aligns with the Biden-Harris Administration's Buy Clean Initiative, which prioritizes the purchase of construction materials with lower greenhouse gas emissions. GSA plans to invest $25 million in construction materials for the Frank Carlson Federal Building and Courthouse to reduce emissions and improve efficiency. The project includes replacing windows and doors, upgrading concrete pavement, and improving accessibility. The Biden-Harris Administration aims to strengthen American leadership in clean manufacturing and jobs by incorporating clean construction materials in over 150 projects nationwide. The Inflation Reduction Act provided $3.375 billion for GSA to invest in federal buildings and promote innovation through the acquisition and installation of low carbon materials. Asphalt, concrete, glass, and steel are carbon-intensive materials, accounting for a significant portion of U.S. manufacturing emissions. By increasing demand for low carbon materials, these investments will stimulate job growth and support next-generation materials. GSA has identified over 150 federal government building projects that will prioritize the use of low carbon materials, including asphalt, concrete, glass, and steel. These investments will reduce greenhouse gas emissions and support thousands of jobs annually. The projects align with President Biden's sustainability goals and will contribute to a net zero emissions federal building portfolio by 2045 and net zero emissions procurement by 2050. The projects will be informed by lessons learned from GSA's pilot program, which implemented the EPA's Interim Determination to establish the definition of "substantially lower" greenhouse gas emissions. The EPA is partnering with GSA and other federal agencies to support construction projects that reduce climate pollution and promote economic growth. They are also working with the construction materials manufacturing industry and NGOs to develop a labeling program for lower carbon construction materials.

Compact Track Loaders Dominate the North America Compact Construction Equipment Market, Paving the Way for Versatile Machines

The North America compact construction equipment market is on the path to significant growth, with a projected Compound Annual Growth Rate (CAGR) of 4.62% from 2022 to 2029.


Factors contributing to the expansion in North America's compact construction equipment market include government investments in infrastructure, the growth of electric equipment in green warehouses, and increased funding for public infrastructure maintenance and development. In 2022, the US government allocated $1.2 billion to nine major infrastructure projects, aiming to create jobs, strengthen supply chains, and improve transportation systems. Companies like Tesla, Amazon, and Walmart are investing in warehouse expansion due to the rise in e-commerce. Compact track loaders, especially the versatile and accurate compact track loaders, dominated the market in 2022. Original Equipment Manufacturers in North America are focusing on compact electric equipment, aligning with the region's green initiatives. The government is also investing in affordable housing projects and electricity generation through waste management. However, rising mortgage rates and a labor shortage in the construction industry pose restraints. Key players in the market include Kubota, Caterpillar, Hitachi Construction Machinery, John Deere, SANY, and Volvo CE.

Thousands of engineering construction workers ready to strike after rejecting pay offer

Strike ballot of over 3,000 oil refinery and power station engineers enlarged as dispute grows

Thousands of engineering construction workers are ready to strike after rejecting an 'inadequate' pay offer. The workers, operating under the National Agreement for the Engineering Construction Industry (NAECI), voted by 86% to reject a two-year pay offer of 10% for 2024 and 5% for 2025. The offer does not address years of falling wages for these workers, who have seen a 20% decrease in pay since the pandemic. Despite providing essential services during Covid, the workers faced a pay freeze. Unite, the UK's leading union, is preparing to ballot more workers at other sites to join the strike action. Unite's general secretary, Sharon Graham, called for NAECI contractors and clients to offer a better deal.

Marketplace

Precasting Construction Market Emerging Growth Analysis, Future Demand and Business Opportunities 2030

The United States has experienced a striking surge in construction spending for manufacturing facilities.

The global Precasting Construction market is categorized by player, type, application, marketing channel, and region. The market report tracks market dynamics, such as driving factors, restraining factors, and industry news. It provides market size, market share, and growth rate by types and applications. The report analyzes global market trends and provides key statistics on the industry. Key players mentioned in the report include Kiewit Corporation, Grupo ACS, Red Sea Housing Services, Bouygues Construction, and more. The market is segmented by type and application. The report also covers market areas and sub-regions, including North America, Europe, Asia Pacific, Latin America, Middle East and Africa, and Oceania. It analyzes constraints, demands, trends, and product developments in the market. The report concludes with findings, estimation, drivers, opportunities, and regional analysis. It provides a basic overview of the industry, development trends, and competitive landscape analysis. The report focuses on major industry players and provides information on company profiles, product specifications, and contact information. It also analyzes market size, segmentation, competitive landscape, and technological innovations.

DIG INTO THIS ONE

The Daily Stoic: 366 Meditations on Wisdom, Perseverance, and the Art of Living

Why have history's greatest minds—from George Washington to Frederick the Great to Ralph Waldo Emerson, along with today's top performers from Super Bowl-winning football coaches to CEOs and celebrities—embraced the wisdom of the ancient Stoics? Because they realize that the most valuable wisdom is timeless and that philosophy is for living a better life, not a classroom exercise.

Direction Of The Business

Artificial intelligence is the new construction industry disruptor

Artificial intelligence (AI) offers the opportunity to fundamentally change the way the built environment is created.

AI solutions are crucial for the construction industry to address challenges like decarbonisation and net-zero demand. Generative design, powered by AI, offers a range of solutions based on engineering challenges. It can optimize energy efficiency, enhance structural integrity, and streamline the design process. Using generative design can reduce material costs by 30% and construction time by 40%. AI-assisted structural analysis can reduce design time by 50% while maintaining or improving performance. AI-driven sustainable design practices can lower energy consumption in buildings by up to 30% and carbon emissions. Enhancing BIM with AI capabilities can improve accuracy and efficiency in quantity take-offs. However, there are challenges in attracting and incentivizing talent and ensuring the accuracy of the BIM model. The lack of explainability in AI systems and high investment costs hinder adoption in the construction industry. Governments and policy makers can play a role in addressing these issues. The industry may become divided into winners and losers, with information asymmetry and consolidation in the supply chain.

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