“The bitterness of poor quality remains long after the sweetness of low price is forgotten.”

– Benjamin Franklin

In the ever-evolving landscape of "quality vs. price," significant transformations have taken place since the era of Ben Franklin.

Numerous crucial factors now come into play, including design, materials, contractor selection, and the intricacies within associated businesses. While most construction projects are awarded to the lowest bidder, the question arises: how can a company consistently secure this position and still thrive financially?

Some business owners may argue that they cannot afford to invest in top-tier workers and management, while others prioritize talent, firmly believing that it yields superior work at a reduced cost. However, it is important to acknowledge that highly skilled individuals often come with a higher price tag. Regrettably, it is not uncommon for businesses to witness the departure of their most talented employees to competitors who offer more lucrative salaries. In light of this, business owners and managers must reassess their perception of the cost associated with exceptional personnel. When a remarkably talented individual is enticed away by a significantly higher salary, it is typically because they were undervalued in their previous position. Rarely does a truly gifted individual depart for a mere incremental increase in pay.

If you fail to recognize the value of your employees and align their compensation with their true worth, rest assured that someone else will.

— Wayne Jensen

Presented by:

Wannemacher Jensen Architects, Inc.

Currently In The News

'Construction 101 for Teens' aims to recruit girls to the male-dominated industry

McCarthy Building Companies, Inc. held a women-led workshop for Sacramento-area high school girls

McCarthy Building Companies, Inc. in Woodland fearlessly revolutionized a warehouse into a cutting-edge classroom on Saturday, igniting a powerful movement to entice a surge of women into the construction industry. With unwavering determination, the company is paving the way for teenage girls in Northern California who possess a fervent interest in engineering, construction, and design. Their audacious objective is to provide an authentic glimpse into the life of a female in construction, while simultaneously attracting a formidable force of women to occupy pivotal roles in the field, labor, and management sectors. The resounding success of the third annual "Construction 101 for Teens" workshop is empowering approximately 40 high school girls from the Sacramento area, equipping them with invaluable skills in drywall and carpentry. These remarkable young women are profoundly inspired by the workshop's dynamic female leaders, propelling them to become catalysts of change within their communities.

Trade Group sues over Biden's prevailing wage rule for construction contracts

Construction trade group Associated Builders and Contractors filed a lawsuit on Tuesday seeking to strike down a Biden administration rule designed to boost wages for workers on federally funded infrastructure projects.

ABC and its southeast Texas chapter have boldly taken action by filing a complaint in Beaumont, Texas, federal court against the U.S. Department of Labor rule. This rule, which recently came into effect, poses a significant threat to small businesses, as it mandates them to pay more than local prevailing wages for federal contracts. It is worth noting that this rule reintroduces a wage calculation method that was discarded by the Reagan administration in the 1980s, a move that unions and worker advocates argued had suppressed workers' wages.

Ben Brubeck, the confident Vice President of ABC, has expressed his concerns about the rule, stating that it greatly increases the likelihood of the Department of Labor adopting "union wage scales" as prevailing wages. This is even though less than 12% of U.S. construction workers are unionized. Brubeck emphasizes that the onerous new requirements, reduced competition, and artificial inflation of construction costs imposed by this rule will only worsen economic challenges and undermine taxpayer investments in infrastructure.

Unsurprisingly, the Department of Labor has chosen to remain silent on the matter. However, it is important to note that the agency justified the adoption of this rule by claiming it was necessary to modernize prevailing wage regulations in response to changes in the law and the economy. This sentiment is echoed by unions and other supporters of the rule, who argue that it will ensure fair pay for workers and act as a deterrent against wage theft, particularly in the rapidly expanding clean energy construction sector.

Veteran-owned business in Canandaigua makes headlines for changing the face of construction

Tactical Construction Inc., a rapidly growing subcontracting and home renovation firm, is revolutionizing the construction industry in Farmington.

Founded in 2015 by the remarkable Matt Martin, a service-disabled veteran, our company emerged as a framing specialists and has since evolved into a powerhouse offering an extensive array of construction services. From awe-inspiring residential projects such as kitchen and bathroom renovations, additions, basements, and HVAC services, to our exceptional commercial division providing subcontracting for general contractors, we leave no stone unturned. Notably, our company boasts a state-of-the-art kitchen cabinetry showroom and a team of unparalleled building information modeling (BIM) specialists.

Driven by an unwavering determination to shatter the negative stigma surrounding the construction industry, Martin has infused our operations with the core values of honor, courage, and commitment. Our ultimate goal is to restore public trust in contractors by ensuring unwavering ethical practices, unparalleled quality work, and unwaveringly reliable service. Under Martin's visionary leadership, Tactical Construction has never faltered, and never left a job undone. We prioritize customer satisfaction and ethical business practices over mere profit, setting us apart from the competition.

Our remarkable growth is a testament to our unwavering dedication. With a team of 62 exceptional individuals, including 30 highly skilled carpenters, we are proud to say that approximately 20% of our workforce consists of military veterans. Together, we are forging a new path in the construction industry, one that is defined by excellence, integrity, and an unwavering commitment to our clients.

DIG INTO THIS ONE

Late last year, when the billionaire founder of Bridgewater Associates, the largest hedge fund on the planet, announced that he was stepping down from the company he started out of his apartment nearly 50 years ago, the news made headlines around the world. Dalio cultivated an aura of international admiration and fame thanks to his company’s eye-popping success, coupled with a mystique he encouraged with frequent media appearances, celebrity hobnobbing, and his bestselling book, Principles. In The Fund, award-winning New York Times journalist Rob Copeland punctures this carefully constructed narrative of the benevolent business titan, exposing his much-promoted “principles” as one of the great feats of hubris in modern memory―in practice, they encouraged a toxic culture of paranoia and backstabbing.

Marketplace

AI Techs Disrupting Construction Companies: A Candid Overview

If you're running a construction business or team you want to be up to speed on the software and hardware that's leveraging the latest Artificial Intelligence tools so that you can leverage these features to get work done faster, cheaper, and with greater accuracy.

Shortly, the construction industry will witness a groundbreaking disruption caused by the advent of AI.

Undoubtedly, there are currently high-priced tools available that can bring about this transformation. The implementation of project management applications, virtual reality headsets, surveying and inspection technologies, and robots demands a significant investment of time, resources, and money. Moreover, the development of building design software and estimators with AI capabilities is still in its nascent stages, making it challenging to justify the return on investment. It is worth noting that not all of these products and companies will withstand the test of time. However, the continuously declining costs of storage, processing power, and cloud computing have paved the way for AI-based technologies that will revolutionize construction firms. Construction companies must remain up-to-date with these cutting-edge technologies, as they have the potential to significantly enhance productivity, reduce overhead costs, and ultimately drive substantial profit growth.

Direction Of The Business

How construction equipment dealerships are evolving with a changing construction industry

The days when a construction machinery dealership would simply sell a piece of equipment and then perhaps sell parts or offer a repair service are disappearing.

The construction industry is changing, and so are the dealerships that supply equipment. Dealerships are now focusing on providing whole-life service and solutions to customers, rather than just selling equipment.

Mark Hogg, director of construction industries at Cat dealer Finning's UK business, has seen a shift in customer demands, driven by sustainability and cost considerations. Customers are also asking for high-spec machines and are becoming more price-conscious. The proliferation of technology in construction machinery presents an opportunity for customers to save money, but they need guidance on how to utilize it effectively. Training and expertise are becoming increasingly important. Customers in Finland are particularly advanced in their use of technology, while in the Netherlands, customers are eager for new technology due to client demands. Another area of focus for construction customers is alternative fuels and electrification. Customers are asking about electric machinery and carbon reduction targets. However, it will take time for dealerships to transition to selling and maintaining electric and hydrogen machines. In the meantime, dealerships are offering services such as machine rebuilding to extend the life of equipment. The future of dealerships will involve supporting customers through the energy transition and helping them understand the logistics of running electric machines. Dealerships will need to be flexible and align closely with manufacturers in a digital environment. Overall, the industry is changing rapidly, and dealerships must adapt to meet the evolving needs of their customers.

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