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MCA CHICAGO’S SPRING 2015
April 2015 │ Edition 2
William P. Hite: Giving Back to
His Industry and His Community
Bill Hite has a family history of involvement in the UA. As the current
General President, he offers a glimpse into his career. p.1
Feature Article
TECHNOLOGY
TSUNAMI:
LAMB’S SPEECH
March RBM’s keynote presentation. p.5
Legislation
BRIDGET DOUGHERTY
DETAILS QUARTERLY
REPORT
A report from MCA’s new lobbyist. p.10
IN THIS ISSUE
Company Profile p.3
Hayes Mechanical operates like a family.
Find out how.
Marketing the Gold p.4
Nancy Nehlsen explains how brand identity
plays a key role in the success of your
business.
Economics p.11
Brian Helm opens up about the effect
that the economy had on his businesses,
Helm Group and Mechanical Inc.
MCAA Conference p.13
An overview and photos from Hawaii.
Member Spotlight
IN BRIEF
William P. Hite: Giving Back to
His Industry and His Community
By Nancy Nehlsen
William P. Hite: Giving Back to
His Industry and His Community
Bill Hite has a family history of involvement in the
UA. As the current General President, he offers a
glimpse into his career.
Don’t Miss!
Safety
Store
Available online at
MCA.org/Safety-Store
MCA’s Safety Store offers members a variety
of safety products to keep workers safe on
the job. From hard hat stickers to safety vests
to MCAA Record Keeping Manuals, it’s all
available for members.
Note: Members must log in at MCA.org
to access this EXCLUSIVE online store.
1
MEMBER SPOTLIGHT
“My grandfather started as a fitter in
1898, my dad started as a fitter in 1937,
my brother started as a fitter in 1964,
and I started as a fitter in 1967.” Bill Hite
didn’t feel that there was anything else he
wanted to do when he followed the family
tradition of starting a career in the UA. “It
had been a great career for everyone in my
family,” Hite said. “I knew it would give me
a lifelong job I would love.”
Beginning with an apprenticeship at
Local 597 before moving up through the
ranks to become General President of
the UA, Bill Hite is fueled by a devotion
to improving the success of his union
brothers and sisters in the UA.
“Francis McCartin was my
mentor and friend. He taught
me everything I know about
unionism and wanted
me to succeed him as
Business Manager for
Local 597. But I felt I
could have a greater
impact on the UA if I
worked my way up,” Hite
says. “When I chose to
become an International
Rep, I felt badly about
disappointing Francis. He
treated me like a son and
gave me every opportunity
to get the
foundation I needed. When I gave his eulogy
I said, ‘As I go through work and life and
have to make tough decisions, I always ask
myself, what would Francis do?’ I still ask
myself that when I’m faced with challenges. I
think how he would be proud to see what I’ve
accomplished.”
Hite cites Francis McCartin, Ed Teske,
Jim Buchanan and Steve Lamb as examples
of how labor and management can work
together without conflict. “They didn’t always
see eye to eye, but both sides have always
respected each other. There’s a lot to learn
from that group of leaders.”
Another lesson for Hite came when he
worked in management for Phillips
Getschow Company. After he
did his on-the-job training at
Getschow, he stayed on
for 14 years working
in management
positions. Seeing the
management side
up close taught Hite
the role unions play in
whether contractors
are profitable. “Our
unions need to realize
that it’s the role of the
contractor to be profitable,
not to keep workers
employed,” Hite says.
“You can be a
good union
William P. Hite
General President
United Association
Member Spotlight
member and still see that without profitable
contractors there would be no jobs for union
workers.”
During his more than 10 years in office,
Hite has poured energy into knocking down
the wall between owners, contractors and the
workforce. He holds that the only way for all
parties to succeed is for them to overcome
adversarial relationships and work together
toward advancing the profitability and
eminence of union contractors.
“It’s just a common sense approach,” said
Hite. “I think that’s my strong suit – common
sense. I try to use common sense when
making any decisions about the UA and its
members.”
It took common sense, and then some, to
save the UA when Hite took over from former
General President, Marty Maddeloni. When
Hite took over, the UA was on shaky ground
due to a number of bad investments involving
both their general funds and pension funds.
In some respects, the UA had become the
scourge of the building trades.
As General President, Hite had to borrow
$40 million to keep the organization afloat,
even though the union had a net worth of
$100 million. Today, under Hite’s leadership,
despite weathering a major recession, the UA
boasts a net worth of $270 million.
In addition to maintaining healthy
revenues, Hite has elevated the UA to a
position of political power unheard of under
other union leaders. The UA now stands at the
forefront of political action, with Hite serving
on various boards and advisory committees,
including his appointment in 2011 to the
President’s Export Council. “Everything is tied
to politics,” he says. “We must continue to
work toward strong politics to be a major force
in the construction industry.” With a chuckle,
Hite adds that he may be the only union
leader to garner appointments from both
President Bush and President Obama.
Gaining political clout is just one of Hite’s
goals for the future. He believes that the UA
will flourish only if the union works alongside
their contractors and owners to develop
market share. That will only happen, Hite
says, when contractors are competitive.
“The union and contractors have to work
together to grow market share by giving
owners what they need,” says Hite. “Walk-offs
and strikes are a thing of the past. Unions just
can’t exist without successful contractors.”
“WALK-OFFS AND
STRIKES ARE A
THING OF THE PAST.
UNIONS JUST CAN’T
EXIST WITHOUT
SUCCESSFUL
CONTRACTORS.”
Hite created the Tripartite Conference,
bringing together union members, contractors
and owners to share views, insights and
visions for the future of the construction
industry. The meeting grows every year,
broadening the conversation between labor
and management.
While Hite feels that saving the union
from its darkest days is his greatest
accomplishment, he also takes great pride in
how he has improved training. “Back when
I completed my apprenticeship, when you
finished the program your training was done.
Any additional training you got was on the
job. In the eighties, market share dropped.
Contractors no longer had the luxury of
spending time on training. So the UA stepped
up and added journeymen training. Since
I have been General President, we have
directed more and more revenue to our
training programs. Now we spend $250,000
a year on training for apprentices and
journeymen, and have 38,000 apprentices
currently enrolled. I want to see 55,000 by
the time I leave office.”
Not only are apprentices needed to
replace retiring workers, they provide a way to
keep contractors competitive. In a cutthroat
industry, the blended wage rate helps keep
costs down. “There’s a reason the collective
bargaining agreement requires a one-to-five
ratio between apprentices and journeymen,”
Hite stresses. “That ratio must be upheld for
the good of the industry.”
Hite has many things to be proud of. Not
only did he save the UA from destruction and
then reposition them as a political leader,
he created the Standard for Excellence and
the Standard for Safety. He also received
the Military Officers Association of America
Award for creating the UAVIP program to help
veterans transition into civilian life and obtain
lucrative careers as welders.
In addition to what he has done for the
UA, General President Hite has done his part
to give back to his community. Throughout
his long battle with cancer, he has raised
extensive funds for Mayo Clinic.
“Yes, I’m proud of my accomplishments,”
says Hite. “But I know that I am only as good
as the people I surround myself with. I have a
great team with Rick Terven, Mark McManus,
Pat Kellett and Mike Pleasant. I tell them
that we always have to put ourselves in the
members’ shoes to know the right thing to do.
I have the same union card in my pocket as
our members have in theirs.”
MEMBER SPOTLIGHT
2
Company Profile
MEMBER
IN BRIEF
Hayes Mechanical –
Operates Like a Family
Hayes Mechanical Operates Like a Family
Always family-owned. Always run like a family.
That’s Hayes Mechanical.
The Value of
Brand Identity
Marketing expert Nancy Nehlsen explores the value
of brand and identity and the important role that it
plays within your business.
Always family-owned. Always run like a family.
That’s Hayes Mechanical. The company was
started in 1918 and is still running strong under
the leadership of President & CEO
Terry AnCel.
“The company feels like family,” says George
Englebrecht, COO of Hayes Mechanical since
2011. “We have bi-annual meetings for our
employees and their spouses or guests. At
the weekend event, we have a Saturday night
dinner for everyone in attendance where we
celebrate our employees and all they do for the
company.”
Hayes takes the input of every single
employee seriously, maintaining an open
door policy at every level of management.
Englebrecht stresses that every employee
concern, from apprentices to supervisors, is
considered with the same level of importance.
The culture of inclusion has helped Hayes
continue to grow through difficult economic
periods. Hayes has two distinct divisions:
industrial and commercial. When one division
is slow, employees are moved into the other
division.
“We actually saw growth during the
recession,” says Englebrecht. “We think 20152016 will be even better. We’ve had more
requests for quotes than we’ve seen in a long
time. We are anticipating short-term growth
in refineries and power. Long-term, we think
industrial and commercial work will provide
growth opportunities. We will definitely see
more and more environmental work as well.”
A recent environmental project that has
challenged the Hayes team is a project
involving environmental upgrades at NRG’s
Waukegan Station. Working this past winter
in extremely cold temperatures, often
accompanied by high wind, made this outdoor
project extremely difficult. Hayes has a team of
200 workers on the job, which started in June,
with an expected completion date this May.
The work has been challenging, but it is an
important part of the ongoing change that has
kept Hayes so successful for nearly a century.
The Hayes “family” realizes how fortunate
they have been throughout the years, and
gives back to the community through their
golf fundraiser for Down’s syndrome research.
The company-wide dedication to this cause
has helped Hayes raise more than
$700,000.
George Englebrecht
COO, Hayes Mechanical
3
COMPANY PROFILE
Marketing the Gold
“Everyone turns out,” says Englebrecht.
“Every year, employees at all levels are there to
help cook, collect gifts and run the tournament.
It’s great for company morale. We all like to feel
that we are participating in something that will
ultimately help others have better lives.”
Englebrecht appreciates that he has had the
opportunity to grow and advance throughout
his career. He began his apprenticeship at
Phillips Getschow, when the Hite brothers—Bill,
Jack, Bobby and Paul —were all working there.
After 26 years at Phillips Getschow, Englebrecht
began a new career with Hayes Mechanical in
2001 as a project manager, working his way
up to become Executive Vice President of the
industrial division, before being named COO.
“I’ve had great opportunities with this company
and great training that helped me get here,”
says Englebrecht. “I had excellent training in
my apprenticeship and continuing education
with LU 597. I’ve had great mentors at both
Getschow and at Hayes. I’ve continued training
through MCA’s Construction Education Institute.
I really believe that mentoring and continuing
education is an important component to
staying relevant in the industry as it is today.”
The Value
of Brand
Identity
Nancy Nehlsen
President, Nehlsen
Communications
By Nancy Nehlsen
In an article for Entrepreneur magazine,
author John Williams said, “Branding is
one of the most important aspects of any
business, large or small, retail or B2B.”
Strong brand identities build incredible
value for companies. Kraft paid $19.5 billion
for Cadbury. But they didn’t need Cadbury’s
recipes. And they didn’t need Cadbury’s
factories. They bought a brand that had
differentiated itself through its promise to
the consumer that the Cadbury brand meant
good chocolate. And how do we know we’re
buying Cadbury? From the distinctive handdrawn font—gold set against a deep purple
background— that we see plastered all over
their chocolate Easter eggs. It’s a promise
we believe in, whether the chocolate is really
better or not.
An effective brand strategy gives you an
edge in a very competitive market. But don’t
take it from me. Take it from Apple. Do you
know what their logo looks like? Do you
understand the quality of the product they
sell when you see the apple-shaped logo?
Or take Verizon. What promise do you think
of when you see that red check mark? (Hint:
Can you hear me now?)
I wrote about the Good Housekeeping
stamp of approval in a previous edition of
Pipeline. Every time that stamp is added to
a product, sales go up. It’s a promise that
the product is good because it has been
endorsed by a trusted third-party source.
The purpose of the Gold Standard is
twofold. Firstly, it establishes MCA as
a trusted source. Secondly, and most
importantly, it helps every MCA
member company provide a strong brand
promise based on its membership in a
trusted source. Remember, “Membership
has its privileges.”
MCA and its marketing firm, Nehlsen
Communications, believe that this branding
effort will provide long-lasting value for MCA
and its members. But we all have to work
together to strengthen brand recognition.
If every MCA contractor displays the Gold
Standard logo on their vehicles, their website
and their presentation materials, recognition
will grow quickly. It won’t happen overnight.
But it will happen.
We have made vehicle magnets and
website files available to every member
online. We will soon add mailers for
your use, as well as giveaway items and
stickers for your presentations. Watch for
the Gold Standard store, forthcoming on
MCA’s website, to add more Gold Standard
opportunities to your own company’s brand.
In order to encourage every MCA
member to utilize the branding materials
we have provided them, MCA will recognize
members who really make an effort to
join this branding initiative by featuring
them in Pipeline, placing their photos on
Facebook, and providing them with mailers
and giveaways to promote their companies.
To participate and receive the recognition
they deserve (along with lots of free stuff),
members simply send in photos of the
different ways in which they are using the
Gold Standard.
In the meantime, the Nehlsen PR team
will continue to look for more opportunities
to promote our Gold Standard contractors
through both mainstream media and social
media channels. Join us in this effort to
make MCA and YOU even better than before!
MARKETING THE GOLD
4
Technology Tsunami
IN BRIEF
Technology Tsunami
Change can be intimidating for an industry as
steeped in history as ours. Steve Lamb offers
both reassurance and a compelling argument that
change is necessary.
FEATURE ARTICLE
TECHNOLOGY
TSUNAMI
Don’t Miss!
Safety
Store
Available online at
MCA.org/Safety-Store
MCA’s Safety Store offers members a variety
of safety products to keep workers safe on
the job. From hard hat stickers to safety vests
to MCAA Record Keeping Manuals, it’s all
available for members.
Note: Members must log in at MCA.org
to access this EXCLUSIVE online store.
5
TECHNOLOGY TSUNAMI
On March 24, 2015, MCA welcomed
Executive Vice President Steve Lamb as
the keynote speaker at the March regular
business meeting (RBM). Throughout
his decades as part of the mechanical
contracting industry, including 21 years as
MCA Chicago’s EVP, Lamb has experienced
the industry’s continuous changes
firsthand.
It was at the 2014 MCAA Industry
Improvement Funds Conference that
Lamb first introduced his insights into the
drastic changes wrought by the digital
technological revolution and the resulting
impacts on the construction industry. At
the March RBM, those gathered were lucky
enough to hear this analysis—playfully
dubbed “The Technology Tsunami”—as well.
However, Lamb’s message is anything but
lighthearted or frivolous. In his speech, he
provides a deep look into the First Industrial
Revolution, in which labor and technology
first became intertwined, and today’s labor
environment, in which current and upcoming
digital construction technologies are quickly
changing methods of fabrication, on-site
craftsmanship, labor relations, and ultimately,
the trajectory of the industry as a whole.
Change can be intimidating for an industry
that is as steeped in history as ours. Lamb
offers both reassurance and a compelling
argument that change, while difficult, is not
only necessary, but should be embraced
before it’s too late.
Technology Tsunami
TRANSCRIPT OF SPEECH:
“We are in the midst of a digital
technological revolution that will impact
our lives fully as much as the Industrial
Revolution impacted those who were alive in
the previous couple of centuries. There are
parallels between the two eras that can
help us predict the direction of our industry,
our businesses, and the unions with which
we work.
It is a pretty big step to claim that what
we are experiencing today is in any sense
comparable to the Industrial Revolution. The First Industrial Revolution is generally
considered by historians to be possibly the
greatest turning point in human history.
During that time, the Western world moved
from hand production methods to machines;
saw steam engines dramatically improved so
that they could be used for transportation and
manufacturing; and saw gas lighting become
practical, allowing factories and stores to stay
open far longer than when lighted by candle.
So, can we really compare the technology
that gave us the iPod and PlayStation 4 to the
steam engine and electricity? Only history can
judge, but according to the opinion of some
very smart people, the answer is yes.
The first Industrial Revolution was about
making physical things better: more food,
better transportation, better lighting, easier
and faster communications. This revolution
will be all about the mental.
Moore’s law and the
power of exponents
Computers have been around for 60
years or so. So why am I trying to convince
you that all of a sudden we have hit a tipping
point? To answer that, Andrew McAfee and
Eric Brynjolfsson, authors of The Second
Machine Age, tell two different, seemingly
unrelated stories.
First, in 1965, Gordon Moore, one of the
early pioneers of computing and a co-founder
of both Fairchild Semiconductor and Intel,
predicted that computing power would double
roughly every 18 months to two years. Dr.
Moore himself only expected this to hold true
for roughly 10 years. However, Moore’s Law
has proven to be remarkably durable almost
up to the present.
Now the other story. Sometime around the
year 950, a Persian peasant named Sessa
approached his warlord with a new game
which he called chess. The warlord was so
thrilled with the game that he offered Sessa
any reward he wanted. Sessa told the warlord
that he would like one grain of rice on the first
square of the chess board, two on the second
square, four on the third square and so on,
doubling each previous square through the
64th square.
“...Moore’s Law
has proven to
be remarkably
durable almost up
to the present.”
The warlord was incensed because he felt
Sessa was asking for such a small reward.
When it took the warlord’s accountants
almost a week to calculate the results, the
warlord sensed something was wrong. When
he saw their calculations, he called Sessa
in and had him beheaded! I’m sure all of
the engineers reading this have heard some
variation of this story regarding the power
of exponents, but for the social studies
majors like me, doubling a number in this
manner very quickly produces some crazy big
numbers. By the eighth square we are only at
128, and by the 16th square we are still only
at about 65,000, but by the 32nd square, we
are at 4.2 billion and some change. By the
64th square, we are in the quintillions! Which
is, incidentally, more rice than has been
grown in the history of the world.
So now let’s go back to Moore’s Law. If
we start doubling computer power around
1958, we reach the 32nd square of the
chessboard at about 2006. And what has
happened since? Self-driving cars, smart
phones, the iPad—and remember that
computing power has roughly doubled five
more times since 2006.
Implications for
construction and labor
Where is it headed? As you well know,
the biggest risk and expense on most jobs
is human labor. Manufacturers knew this
a hundred years ago. Their answer was to
break work down into fairly mindless, easily
done steps at first, and later, to replace
human beings all together. While this was
damned hard on the humans being replaced,
it definitely allowed costs to drop and profits
to go up.
For many years, construction was sort of
exempted from this trend. But those days are
gone. Because by using BIM and GPS, we
can now design and build materials far away
from the job site and still install them within
1/10th of an inch; it is cheaper and safer to
build materials in a fab shop than on a job
site; and by building everything at the same
fab shop, we can mechanize the process to a
much greater extent.
We are going to become manufacturers
of buildings rather than constructors. Yes,
materials will still have to be assembled
on the job site, but even that process will
become more and more mechanized to
the point where most installation will be a
commodity done by less expensive non-union
assemblers.
So what does all that mean? I think
it means that traditional construction
companies are going to have to be in
a position to buy serious amounts of
technology, hire rooms full of BIM guys who
have to be paid whether they are doing BIM
or not, construct fab shops to pre-fab the
majority of the work, and be able to afford the
overhead people to coordinate everything.
This probably means that they have to get
even bigger.
These economies of scale will allow the
really big guys to bid, buy and build almost
everything cheaper.
(continued on page 7)
TECHNOLOGY TSUNAMI
6
Technology Tsunami
IN BRIEF
Technology Tsunami
Change can be intimidating for an industry as
steeped in history as ours. Steve Lamb offers
both reassurance and a compelling argument that
change is necessary.
Construction
Education Institute®
Education is the best way to adapt to the everchanging landscape of our industry.
Technology
Tsunami
(continued from pg. 6)
And don’t forget, a company that does
$175 million a year essentially has to do
$500,000 a day to feed the beast. So they
will be voracious in going after the work. All
in all, I think it is going to be very hard to be
a $50 million a year mechanical contractor
going forward.
As for the smaller guys, they will need
a niche. Somebody still has to repair those
75-year-old boilers. And there will still be
jobs that are simply too small for the big
guys to do economically. But it will be
hard to do much volume in this part of the
market.
And you service guys, technology may
well make you very, very rich – if you
embrace it. If you can get in on the ground
floor of the SMART building movement so
that you control the flow of information that
the building produces, you can in effect
generate a perpetual stream of service
contracts.
Transforming business,
trade specialties
As we progress more and more
into the world of manufacturing, highly
skilled, on-site craftsmanship is going to
become less important, and business
and production skills are going to become
vastly more important. And here’s the trick:
you are going to have to begin transforming
your businesses at the same time that
you still have to keep the lights on and
the doors open in an industry that is just
beginning to see these sweeping changes.
One thing is for certain: we will go
through at least some period of time
where we have high unemployment and
even higher underemployment. My view
7
TECHNOLOGY TSUNAMI
is that the massive underemployment that
the United States has seen since 2008 was
not caused by the recession as much as it
concealed the fact that technology is really
beginning to eat away at formerly safe middle
class jobs.
I think the practical result of this on your
companies is twofold. First, your labor force
will increasingly be comprised of fab-shop
workers of various skill levels — but with few
making as much as a union journeyman.
Second, on the construction side, you will
have a handful of highly skilled supervisors
supervising a crew of much lower-paid
installers. Moreover, it will be more and more
common for big mechanical contractors to
fab the job to the extent that they want, and
to sub out the actual assembly to companies
that do that.
You are probably already thinking that
nothing about this scenario is encouraging in
regard to labor relations. With considerable
regret, I have to say that this second
revolution is all too likely to severely impact
the building trades — at least in the short
term. As to the longer term,
one should not forget that
to a large extent, unions
came into being to protect
the worker against the
managerial excesses of the
First Industrial Revolution.
Steve Lamb, CAE
Executive Vice
President, MCA
Construction Education Institute ®
Construction
Education Institute®
1997 was a different time. In 1997,
Steve Jobs returned to become the CEO of
Apple while Titanic was breaking box office
records. Tiger Woods won his first Masters
Tournament. Google wouldn’t be founded for
another year.
It’s been nearly 18 years since 1997,
the year that the Construction Education
Institute® (CEI) first officially opened its
doors. Education has been a priority for
MCA for much longer than that, but MCA
Chicago and the Piping Education Council
decided to take this commitment one step
further and founded the CEI in order to
provide quality educational offerings for
members of the mechanical contracting
industry. A lot has changed in the nearly
two decades since then. Instructors have
come and gone, the CEI has gained national
recognition for its educational efforts, and the
Institute continues to serve hundreds—if not
thousands—of students each year.
This year is no exception. Already during
the 2014-2015 academic year, almost 700
people have taken part in a CEI course.
Veteran instructors, who are also industry
experts, are teaching a wide range of courses,
covering everything from safety to people
management to the newest developments in
computer technology.
Our award-winning CEI instructors, in
partnership with the MCA’s Vice President of
Education Dan Day and Director of Program
Services Laurie Leonard, have carefully
designed courses that are entertaining,
important, and most of all, relevant. Courses
change from year to year to ensure that
students consistently receive instruction
on cutting-edge topics and industry
developments.
Hands On Contracting
Smart Building/Tridium
Hands On Contracting, or PMR 150,
has also received amazing feedback
from our students. Hands On Contracting
is a great opportunity for new hires,
or even those with years of industry
experience, to get a better idea of what’s
going on in the field by spending the day
at the LU597 Training School in Mokena,
IL. Multiple instructors come together
to lead attendees in sessions like math,
drafting, cut-off methods, welding and
hydronics.
The LU597 Training School is a stateof-the-art space specifically designed to
train pipefitters and service specialists
to be the best at what they do. Students
expressed their satisfaction with the
program’s unique hands-on approach,
such as the chance to try their hand at
welding after shadowing instructors.
The Hands On Contracting class was
specifically designed so that students
could work closely with instructors and
gain a better knowledge of mechanical
equipment and processes, no matter
what their skill level.
One student commented, “I was
very impressed with the facility and
the instructors. The things that we
witnessed the instructors teaching to
their classes were very personal to each
of the students, not just the whole class.
Personally being in the construction
industry for 35 years, I see no reason
that the program should not turn out
first-rate tradesmen.”
This year, the CEI introduced several
courses that we couldn’t have even
imagined in 1997. One new powerhouse
is SVC 370—better known as Smart
Building/Tridium. We introduced this
class in February 2015, and it took
place one night per week for three
weeks. Longtime CEI instructor Mike
Salemi walked students through the
basics of Tridium, as well as setting
up an IP address, connecting to a
JACE, creating a station, discovering a
controller, and setting up proxy points
and basic graphics pages. This course
provided students with a key step toward
assimilating into a new wave of smart
buildings.
“This course was great! The instructor
was very good and very knowledgeable.
It’s great to start at the beginning of
the programming to see how everything
works!” said one student.
Other student feedback was
universally positive. In fact, the course
proved so popular that Salemi and CEI
teamed up to offer another session in
April 2015.
Based on how much things have changed
since 1997, we know that our skills, and our
general approach to mechanical contracting
as a whole, must grow to acclimate to the
industry’s changing landscape.
Questions regarding the new courses at the CEI® ?
Contact Laurie Leonard at 312-384-1220 or email her at [email protected].
CONSTRUCTION EDUCATION INSTITUTE ®
8
Members Only Log In
IN BRIEF
Members Only,
Log In and Learn!
As an MCA Gold member, you have access to
the exclusive Members Only section of the MCA
Chicago website. Learn how to gain access.
Members Only,
Log In and Learn!
You and your company have worked
hard to become a member of MCA
Chicago, so why not take advantage of our
exclusive “Members Only” content?
The “Members Only” section of
www.mca.org is a great way to stay
up-to-date about industry developments,
catch up on new and exciting topics, and
learn from some of the best experts in
the business. The MCA staff has done all
of the hard work for you, but to gain the most
out of your membership, it’s important for you
to take the final step!
It’s as simple as logging in to the
“Members Only” section and occasionally
browsing for new content. The MCA site is
being constantly updated, so there’s an
excellent chance you’ll gain something every
time you visit!
HOW TO ACCESS MCA’S MEMBERS ONLY SECTION
MCA’s new lobbyist, Bridget Dougherty, explores
legislation and the potential issues it creates.
Don’t Miss!
Safety
Store
Available online at
MCA.org/Safety-Store
MCA’s Safety Store offers members a variety
of safety products to keep workers safe on
the job. From hard hat stickers to safety vests
to MCAA Record Keeping Manuals, it’s all
available for members.
Note: Members must log in at MCA.org
to access this EXCLUSIVE online store.
9
MEMBERS ONLY LOGIN
1
Go to www.mca.org. We recommend
bookmarking it so you can return quickly
and easily!
2
Click on the “Members” tab at the top right
corner, OR, scroll to the bottom and in the
left-hand corner you will find a spot for member
login.
3
Use your MCA username and password to
log on. The username and password are
case-sensitive. Consider having your browser
remember this password so you don’t have to
re-enter this every time you log on.
You’re now logged on!
You’re now logged on as a
member! The main Members
Only page is constantly updated
with our latest Members Only
content.
Having Trouble?
Browse through the sections
on the left-hand side.
Members have special access to
the brand-new safety store, MCA
Gold Standard logo downloads,
legislative updates, webcasts
and podcasts with industry
experts and more!
Check back regularly!
We’re constantly updating and
adding new videos, articles and
extras, so the Members Only
section is the ultimate place to
stay up-to-date!
Forgot your username or password? Call the MCA office
at 312.384.1220 for help. If you have any questions or
concerns regarding the login process, please contact
[email protected].
Quarterly Report
Quarterly Report
By Bridget Dougherty
The new 99th General Assembly was
sworn in in January, along with newly elected
Governor Bruce Rauner. The governor
presented his State of the State message
and budget address in February. The General
Assembly worked through February and
March to address serious problems with the
current fiscal year (FY) 2015 budget and, in
late March, passed a 2015 budget patch to
get the state through the remainder of this
fiscal year, which ends on May 31, 2015.
The agreement, put together by the
legislative leaders and the governor,
contained a series of “fund sweeps” and
a 2.25 percent cut affecting all state
government agencies. A fund sweep occurs
when monies are removed from specific
funds established for a specific purpose, for
example, the Road Fund, which is funded
by the gasoline tax, or funds that are
collected from a defined set of users, such
as professional licensing fees. Frequently,
these funds appear to have a large, unused
balance. In reality, those dollars are
generally committed to ongoing or future
projects, or are used specifically to pay for
the government services that the fund was
originally established for. Fund sweeps are
usually a one-time only budget fix.
The agreement did not include cuts to
the Local Government Distributive Fund as
originally proposed by the governor. While
education funding was reduced, schools
were also provided with a grant mechanism
to offset some of those reductions. Again,
most of the first half of the legislative session
was taken up by the current year’s budget
negotiations.
On March 11, 2015, the Illinois Supreme
Court heard oral arguments on the case
challenging last year’s pension law rewrite.
In that lawsuit, an Illinois appellate court
found the new law unconstitutional. If the
Supreme Court upholds the lower court’s
ruling, lawmakers will be back at the table
negotiating a new pension fix. The Court
has indicated that it is cognizant of timing
concerns as the General Assembly is
scheduled to adjourn on May 31, but it is
impossible to know when the Court will reach
a decision.
Governor Rauner has been very vocal in
his opposition to labor unions. He issued
an executive order directing state agencies
to withhold state employee’s “fair share”
union dues. The governor has filed suit in
federal court asking that his order be upheld;
however, the federal court has remanded it to
state court as it is a state law issue.
The governor has also been advocating for
“right-to-work” zones. Under this concept, a
county or municipality could vote itself a rightto-work zone and decide locally whether that
unit of government would be unionized and
whether it would adhere to prevailing wage
laws and project labor agreements.
The first half of the session saw movement
on a few bills of concern to MCA. House
Bill 2635 (Sandack) is very similar to the
“bonding over” bill we saw last session, but
with a different sponsor and with a cosponsorship by the chairperson of the House
Judiciary Committee. The bill amends the
Mechanics Lien Act to allow a bond to replace
a mechanic’s lien under the act. While MCA
worked successfully in conjunction with
IMSCA last year to defeat the prior measure,
this year it has more momentum and seems
likely to get out of the House and over to
the Senate for consideration. IMSCA has
proposed an amendment that requires a
bond amount of 175% (current law calls for
150%) and contains a provision requiring
attorney’s fees to be awarded to the prevailing
party in the case that the dispute ends up in
court. The sponsor indicated that he is willing
to consider the amendment.
Secondly, the Capital Development Board
(CDB) is behind a measure that provides for
the use of single prime contracts with CDB.
House Bill 3497 is sponsored by Rep. Barbara
Flynn Currie, who is the majority leader in the
Illinois House. It appears that HB 3497 has
strong bipartisan support and will pass the
House and move onto the Senate.
Finally, while many bills were filed to make
changes to the Worker’s Compensation Act,
none have moved beyond the committee
stage at this point. In the past, changes to the
act have been made by agreement with both
parties in a single bill, so it is possible that an
“agreed bill” will emerge later in the session,
possible as part of a budget agreement.
MCA is working with the Capital
Development Board to assist members in
meeting the Veteran’s Business Enterprise
Program requirements. CDB has provided
MCA with written guidance in selecting a VBE
or pursuing a waiver, and is in the process of
compiling a complete and accurate list of VBE
companies, which it will share with MCA and
other organizations.
The General Assembly will spend the
second half of the session crafting the
fiscal year (FY) 2016 budget, which will be
more difficult than the 2015 “fix” addressed
above. While they are scheduled to adjourn
on May 31st, many involved in the process
are expecting an overtime session due to the
difficulties in crafting the FY 2016 budget.
Chicago’s municipal primary election was
held on February 24, 2015 and Mayor Rahm
Emanuel failed to garner 50 percent plus one
vote. The run-off election was held on April 7,
and Mayor Emanuel was reelected with 55.7
percent of the vote, defeating challenger Cook
County Commissioner Jesus “Chuy” Garcia.
This was the first time a sitting Chicago mayor
has been forced into a run-off since elections
became non-partisan in 1995. MCA and other
contractor groups participated in a luncheon
event for the mayor’s reelection effort in early
February. Additionally, there were a record
number of aldermanic run-offs.
QUARTERLY REPORT
10
Economics
MEMBER
IN BRIEF
The Economy and Its
Effect on MCA Members
The first in a series of articles exploring the
effects that the economy has had on MCA
members and their businesses.
MCA Welcomes New
Members
We welcome two new members to MCA Chicago.
Join us in welcoming these great companies to
The Gold Standard.
The Economy and Its
Effect on MCA Members:
Helm Group/Mechanical Inc.
Industry experts agree that we are finally
in the midst of a sustained recovery. All of the
major construction markets made gains or
stayed positive in 2013. According to ENR’s
Construction Industry Confidence Survey, 52
percent of subcontractors surveyed reported
an improving market with confidence growing
throughout 2014.
“[2014] marks the first year where the
institutional sector is no longer pulling down
the other construction sectors,” said Robert
Murray, Chief Economist and Vice President,
Dodge Data & Analytics (DDA) [formerly
McGraw-Hill Construction (MHC)]. “In fact, the
recovery in non-residential is now established.
It’s clear we are in broad-based and recognized
recovery that is cyclical and
reminiscent of the
1990s.”
While it’s great news for the industry, we
wondered how our own contractors are doing.
Here is the first in a series of updates on the
economy as it affects MCA members. Our first
interview was with Brian Helm, Secretary and
Treasurer of MCA and CEO and President of
Helm Group.
Have you seen a major
rebound since the uptick
in the economy?
Brian Helm: “We’ve seen upward
movement in many of our market segments.
Health care and higher education haven’t really
increased, but light industrial, auto plants,
food manufacturing and chemical plants have
definitely improved. We saw revenue increase
35 percent between 2013 and 2014. But the
best statistic was that our awarded project
volume increased 250 percent between 2011
and 2014.That translated into increased
volume and hours. Our mechanical trade manhours were at 750,000 in 2013. In 2014, they
were well over a million.
During the recession, we took the
opportunity to train our employees in new
capabilities. It became apparent to us how
important good office employees are to
the business. We also discovered that it’s
becoming more and more important to be
high-tech instead of low-tech. We upgraded
our fabrication capabilities, upgraded our
coordination technology, and implemented
new accounting technology.”
Brian Helm
CEO, Helm Group
President, Mechanical Inc.
11
ECONOMICS
New MCA Members
CT Mechanical
CT Mechanical (CTM) has been in business
since February 2008. Their leadership
has over 20 years of experience in the
Commercial HVAC construction industry, and
they are a fully certified WBE, FBE & DBE.
They have in-house capabilities for design,
as well as their own sheet metal workers,
service technicians and pipe fitters. They work
on all types of systems, from constant volume
to underfloor, from small exhaust fan cooling
to large 100+ ton data centers. In addition,
they service HVAC equipment, AC units,
boilers, chillers, RTUs, etc.
Some of CT Mechanical’s recent projects
include Alexian Brothers Women’s Center
in Elk Grove Village, Norwegian American
Hospital, Rush Hospital, and Mt. Sinai
Hospital — all in Chicago.
CT Mechanical
1070 North Garfield
Lombard, IL 60184
Phone: (630) 227-1700
Fax: (847) 483-1370
www.ctmwbe.com
Representative
Catherine Tojaga
[email protected]
Wendy Conidi
[email protected]
Mike Stevenson
[email protected]
Service Mechanical
Industries, Inc.
Service Mechanical Industries, Inc. was
established in 1992. They are a licensed
Design/Build Mechanical Contracting firm in
the state of Illinois. They currently have three
mechanical engineers on staff, two of whom
are licensed Professional Engineers, and
they feel that their engineering capabilities
are one of the keys to their success. Service
Mechanical Industries, Inc. is able to provide
“Engineered Solutions” to a wide variety
of heating, ventilation and air conditioning
problems.
Service Mechanical Industries, Inc.
participates in new construction, retrofit and
repair of existing systems, complete re-design
of obsolete systems, and has a Service
Division that is available 4 hours a day, 365
days a year. They employ Local 597 Pipe
Fitters and Local 73 Sheet Metal Mechanics.
Some of their more notable projects include
the installation of district cooling at Holy
Name Cathedral, redundant extreme density
cooling systems for Alexian Brothers Hospital
Data Center, and the design and installation
of a modular steam boiler system for Wintrust
at Hyde Park Bank.
Service Mechanical
Industries
700 Cooper Court, Suite A
Schaumburg, IL 60173
Phone: (847) 342-9100
Fax: (847) 342-9104
www.servicemechanical.com
Representatives
Robert Cesario
[email protected]
Don Olsen
[email protected]
DON’T
MISS
out.
JUNE 8 - 9
OAK BROOK, IL
Hamburger University
at the McDonald’s Campus
MCA MEMBER
DISCOUNT!
There will be a special discount
for a select number of MCA
Chicago members. A maximum
of three people per member
company will receive a combined
discount from MCA Chicago and
MCAA, allowing them to attend
the conference for a net cost of
$100 per person.
In order to receive this discount,
you must first register for the event
through MCAA. Download, print and
send in your registration or sign up
online at mcaa.org. Then attend the
2015 Technology Conference. After
attending the conference, fill out the
subsidy form posted online at
mca.org, send it in to MCA Chicago
and receive your reimbursement.
REGISTER TODAY AT
tech-day.org
NEW MCA MEMBERS
12
2015 MCAA Convention
IN BRIEF
Revisiting The 2015 MCAA
Convention in Maui, Hawaii
Informative panels, events and whales, Dan Bulley
recounts the annual convention held in Maui,
Hawaii from March 8-12.
Don’t Miss!
Safety
Store
Available online at
MCA.org/Safety-Store
MCA’s Safety Store offers members a variety
of safety products to keep workers safe on
the job. From hard hat stickers to safety vests
to MCAA Record Keeping Manuals, it’s all
available for members.
Note: Members must log in at MCA.org
to access this EXCLUSIVE online store.
13
2015 MCAA CONVENTION
Revisiting The 2015 MCAA
Convention in Maui, Hawaii
From March 8-12, 2015, MCA Chicago
members gathered in Maui, Hawaii for
the annual MCAA Convention. The
convention’s schedule was filled with
informative panels, events, and sessions,
many that resonated with our members.
“It’s Not Who You Know, But Who Knows
You” by David Arvin was a favorite, along
with technology sessions by James
Benham and Paul Doherty, and Gregg
Schoppman of FMI’s “Turning your Project
Managers into Business Managers”.
Although the weather was less idyllic
than normal, members managed to fit
some recreation in when they weren’t
taking part in educational sessions. Many
found time for a game or two of golf. MCA
Chicago Board members Charlie Usher
and Brian Helm were especially busy
throughout the week, and spent many
hours in additional meetings as they also
serve on the MCAA Board of Directors.
The sunset boat cruise with Rockford and
Rock River MCA was excellent. Although the
cruise was not advertised as a whale watch,
we were lucky enough to see more whales
than all of the whale watch cruises from the
previous month combined!
Student chapter representatives from
Illinois State University and Bradley University
were in attendance, and it was wonderful to
meet them all.
On the final night of the conference, before
the farewell dinner and Jennifer Hudson
concert, President Pittas hosted a reception
in his suite.
Be sure to mark your calendar for next
year, March 20-24, 2016 in Orlando, Florida.
MCA Chicago hopes to see you all there!
2015 MCAA Convention
2015 MCAA CONVENTION
14
PIPELINE
news
Spring 2015
MCA Officers
Marc Pittas
MICHAEL McCOMBIE
President
Hill Mechanical Group
Vice President
F.E. Moran, Inc.
BRIAN HELM
Secretary/Treasurer
Helm Group & Mechanical, Inc.
KEVIN CONDON
Immediate Past President
Great Lakes Plumbing
& Heating
MCA Board of Directors
John Berzanskis
AMS Mechanical
Systems
George Englebrecht
Hayes Mechanical
Systems
Jim Jacobsen, Jr.
DePue Mechanical
Daniel Sharpe
Morrison Construction
Paul Szymczak
Climatemp
Service Group
MCA Staff
STEPHEN L. LAMB, CAE
Executive Vice President
KATELYN YOUNGBLOOD
Director of Communications
DANIEL R. BULLEY
Senior Vice President
SUSAN ROCQUE
Director of Finance
DANIEL C. DAY, CAE
Vice President of Education
LAURIE LEONARD
Director of Program Administration
MECHANICAL CONTRACTORS
ASSOCIATION OF CHICAGO
7065 Veterans Boulevard
Burr Ridge, IL 60527
Phone: 312-384-1220
Fax: 630-655-3287
Email: [email protected]
KAY GRAY
Staff Assistant
Charles Usher, Jr.
Ideal Heating Company