How Technology Is Changing the Construction Industry

Most construction industry professionals acknowledge that increased adoption of technology is in their future. Yet many still resist committing their time or money, and others invest sporadically, hoping to see results by using tech for tech's sake.

Tax Reform's Positive Impact on the Construction Industry

Congress recently passed the most significant tax reform legislation since 1986. The Tax Cuts and Jobs Act, approved in late 2017, should have a positive impact on design and construction companies, as key provisions of the legislation will converge to drive business investment, employment and wages.

Fundamental aspects of the law include:
•It cuts the corporate tax rate from 35 percent to 21 percent. The new 21 percent flat tax rate will benefit construction companies set up as C corporations.
•Construction companies that are pass-through entities (meaning they can include business profits on their personal tax returns, with examples including sole proprietorships, partnerships and S corporations) will get a 20 percent deduction on that income.
•Businesses with less than $25 million of gross receipts for the preceding three tax periods can now use the cash method of accounting. Many contractors also can now use the completed contract (instead of the percentage-of-completion) method for construction contracts.
•Private activity bond financing will retain its tax-free status, which will keep more funds flowing to the public construction sector.

After Congress passed the legislation, Associated Builders and Contractors (ABC) President and

CEO Michael D. Bellaman released the statement, “The vast majority of construction companies will benefit from the new 20 percent deduction for qualified pass-through income, bringing the top effective rate to 29.6 percent, down a full 10 points. The rest will feel a boost from the largest corporate rate cut in U.S. history. Changes to various accounting methods will ease burdens for many small contractors and the doubling of the estate tax exemption to $11 million is a big win for our industry’s family businesses.”

The construction industry has been paying a higher effective tax than any other sector of the nation’s economy, according to ABC reporting on a U.S. Department of Treasury analysis.

Changes brought about by the tax overhaul, in conjunction with President Trump's proposal for a $1.5 trillion infrastructure plan as outlined in “Legislative Outline for Rebuilding Infrastructure in America,” should stimulate significant growth and activity in the construction sector. Construction firms will enjoy more capital to invest, greater flexibility and less regulation.

Driving consumer demand
By the end of 2017, economic momentum was solid and business and consumer confidence were on the rise. The Brookings Institute reported that 81 percent of taxpayers will see a tax cut from the tax reform legislation, averaging more than $2,000 per year, and that only 4.8 percent of taxpayers (primarily very high earners) will see a modest increase. Having better availability of funds should correlate to increased demand on the part of consumers, both for goods and services, as well as for design and construction services.

Freeing up company cash
Keeping more capital in a business allows that business to reinvest. Near-term investment on the part of construction companies will likely take several forms. Some public companies will use the extra cash to buy back stock. Others will invest in their businesses via capital expenditures (CAPEX), new hires, and increased salaries and benefits for their employees. Capital-intensive businesses such as manufacturing companies can utilize the additional capital to fund the cost of facilities and equipment.

The construction industry overall is a “capital-intensive, cash-flow challenged, domestically oriented industry comprised mostly of small, family-owned and closely held merit shop construction companies employing hardworking Americans,” Bellaman said. “[ABC] members have waited for Washington to let them keep more money in their paychecks, which would enable them to invest back in their businesses, create new jobs in their communities and grow the economy. The wait is finally over.”

The new legislation will have a significant positive impact for small to mid-size businesses. These companies, which traditionally relied on bank loans for additional capital, will be able to take an immediate tax deduction to use as equity for their investment, thus encouraging further growth and expansion.

Another potential plus for design and construction firms is the tax advantages for smaller firms. “Gaining tax relief for architects who organize as pass-through companies—which includes the majority of U.S. architecture firms—is a significant improvement over earlier drafts," said Carl Elefante, National AIA 2018 President, in a December 2017 statement. “So is preserving at least in part the Historic Tax Credit, which was totally abolished by the original House tax reform bill.”

Investment in people
According to the Tax Foundation, the tax legislation will lead to the creation of nearly 339,000 full-time equivalent jobs. In addition to more new jobs and capital investment, legislation is expected to result in higher salaries and better benefits. In the recent National Association of Manufacturer’s survey, almost 54 percent of CEOs in the survey said they would hire more workers, and nearly half (48.8 percent) said they would increase employee wages and benefits.

Survey results from ABC's December 2017 Construction Confidence Index showed that 55 percent of contractors expect their profit margins to expand in the first half of 2018. In a news release announcing the survey results, ABC Chief Economist Anirban Basu said, “There are many reasons for confidence among the nation’s construction firm leaders. American wealth has never been greater in absolute terms as the economy experiences faster wage growth, surging equity markets and rising home values. Consumer confidence is at a 17-year high, while unemployment is at a 17-year low.”

Competitive Advantage
A recent Goldman Sachs study reported that U.S. firms have more than $3.1 trillion invested overseas. The Tax Cuts and Jobs Act will serve as a strong incentive for these firms to bring their investment back home. The investment will be in the form of property, plants and equipment for facilities.

Prior to the legislation, the United States had one of the highest corporate tax rates in the world. According to the Tax Foundation, the average tax rate amongst developed countries was 22 percent. As already noted, the Tax Cuts and Jobs Act will reduce the U.S. corporate tax rate from 35 percent to 21 percent. By aligning U.S. corporate tax policy with other industrialized countries, Americans stand to gain as companies bring cash back. Design and construction firms will see an uptick in work as companies re-shore.

Construction firms will keep a close eye on the industry’s response to tax and infrastructure changes in 2018…and they’ll be working closely with their tax accountants to reap the benefits now allotted to small and midsize companies. With optimism levels reported to be high, a new outlook for the building professions may be on the horizon.

This article originally appeared in Construction Executive.

The New Silica Standard: What Owners Need to Know

Silica may not sound like an issue that needs to be addressed by facility owners. But this ubiquitous mineral compound is a major component of the actual bricks and mortar that companies build with, and it has made news lately as a substance being targeted by the Occupational Safety and Health Administration (OSHA).

Construction companies will soon incur large costs as they strive to comply with OSHA’s new silica standard and mitigate risks for employees working in the presence of silica-containing materials. A ripple effect is predicted to be felt across many industries, as well as upstream for facility owners that are planning new construction, expansion or retrofit projects. Of particular concern for facility owners will be the modifications or expansions of existing facilities. Simple activities like concrete saw cutting of slabs can have an impact on both the construction and maintenance groups performing the work, as well as on surrounding employees, if not addressed through the proper training, equipment and planning.

Moreover, like the disclosure of asbestos and lead, disclosure of known silica-containing materials must be part of any facility purchase, upfit or renovation. Additionally, the presence of silica can pose a hazard to occupants of the facility and adjacent properties.

Silicon dioxide (aka silica) can be crystalline or noncrystalline, with quartz, cristobalite and tridymite being examples of crystalline silica. Asphalt, concrete products, drywall, plaster, roofing pavers, fill dirt and top soil, various stones and stucco are some, but not all, of the silica-containing construction materials that may be on a manufacturing facility jobsite.

Workers across many trades are potentially exposed to silica. When silica-containing materials are cut, blasted, crushed or ground, particulates—respirable crystalline silica—become airborne and represent a serious hazard to workers.

OSHA updated its silica standards in 2016 for the first time in over 40 years. The construction industry was required to comply with the new rule (29 CFDR 1926.1153) and OSHA began enforcement on September 23, 2017. Old OSHA rules set a permissible exposure limit (PEL) for respirable crystalline silica for construction activity at 250 µg/m3 (micrograms per cubic meter of air). The new limit is a PEL of 50 µg/m3 with an action level of 25 µg/m3 for an eight-hour average exposure.

These values represent a significant reduction in allowable exposure limits; a variety of construction processes will have to change in order to comply. This means owners and other stakeholders can expect to see quite a few adjustments and line-item additions to their construction projects in the future.

Contractors will have the option of developing their own methods of dust control, but this would involve placing monitors on the employees and then testing the samples collected. Alternatively, contractors can comply with Table 1 found in the standard 29 CFR 1926.1153(c)(1).

As outlined in this prescriptive path, contractors must:

Provide devices that spray or otherwise deliver water to the point where a silica-containing substance is being cut. According to OSHA, “Wet cutting is the best way to reduce the amount of silica dust that becomes airborne during sawing because it controls exposure at its source.” There must be a continuous feed of water to the point of impact on the equipment. Alternatively, dust collection systems such as a HEPA-vacuum can be used to collect dust into a container.

Provide respirators when engineering controls such as water and dust controls are inadequate and during other activities as required per Table 1.

Develop a written exposure control plan, then review it annually, making changes if necessary. Written plans must describe all tasks involving exposure to silica as well as outline the specific strategies used to limit exposure for each task (i.e., equipment used or work practices implemented). The plan must also include the housekeeping measures used to limit silica exposure. Finally, OSHA requires “a description of the procedures used to restrict access to work areas, when necessary, to minimize the number of employees exposed to respirable crystalline silica and their level of exposure, including exposures generated by other employers or sole proprietors.” Contractors will be required to designate a competent person to implement the plan.

Provide medical evaluations and exams, per the new standard, for individuals wearing a respirator for 30 days or more each year.

Keep records of workers’ silica exposure and related medical treatment.

Train workers and supervisors on silica risks and how to limit exposures. The training must cover proper use and maintenance of equipment and controls as well as outline the medical surveillance procedures that are required by the rule.

To accomplish the above, contractors will be purchasing new machinery, tools and equipment; incurring costs associated with ongoing training and education, medical surveillance and recordkeeping; and making other investments. These costs will be factored into their bids. An early report commissioned by OSHA pointed out that the “initial impact is to force affected industries to purchase equipment, supplies, and services to implement the new regulations. They also might need to divert workers towards compliance activities, thereby reducing overall labor productivity for the industry.”

Contractors are also subject to fines. OSHA will assess fines of $12,675 per violation. If companies demonstrate a failure to abate, they will be assessed a fine of $12,675 per day beyond the abatement date. (Companies that have willful or repeated violations face fines of $126,749 per violation.)

Several industry groups have undertaken analyses to determine the annual cost of compliance; most are in the ball park of $4 billion to $5 billion. OSHA itself has estimated $1 billion per year and estimated that economic benefits would offset those costs.

Some experts on the new ruling have suggested that it qualifies as “disruptive,” just as certain technologies have come to be seen as disruptive. This is because it will drive changes across a broad range of goods-and-services providers. For example, tool companies have rolled out many new product lines that offer improved dust collection and disposal. OSHA’s requirement for increased employee monitoring is expected to incentivize companies to improve their adoption of technology, since digital filing and record-keeping is typically more efficient than paper-based filing.

Facility owners will feel the impact of the new OSHA regulations and must shoulder some of the responsibility for compliance. They will need to address the presence of silica in all stages of project planning, take appropriate precautions, and engage qualified contractors that have taken a proactive approach to dealing with the silica mandates.

Brian Gallagher is Vice President, Marketing, for O’Neal, Inc. O’Neal is an integrated design and construction firm based in Greenville, SC. Brian can be reached at bgallagher@onealinc.com or 864-551-0362  .

Economic Growth Stronger than GDP Figures Suggests

Positive news for the economy as both real gross domestic product (GDP) and nonresidential fixed investment expanded during the third quarter, according to an analysis by Associated Builders and Contractors (ABC) of today’s  release from the Bureau of Economic Analysis. GDP expanded 1.5 percent (seasonally adjusted annual rate) during the third quarter while nonresidential fixed investment expanded by 2.1 percent during that period, both building on positive results from the previous quarter.

The bureau estimated that GDP expanded 3.9 percent during the year’s second quarter, while nonresidential fixed investment was revised upward to a 4.1 percent increase from an initial estimate of a 0.6 percent decrease. This marks the second consecutive release in which the previous quarter’s nonresidential fixed investment figure was amended from negative to positive. Investment in nonresidential structures fell by 4 percent after growing by 6.2 percent in the second quarter.

“The U.S. economy is not quite as bad as the headline GDP number suggests,” said ABC Chief Economist Anirban Basu. “Private final demand, an indicator that represents sales to nongovernmental domestic purchasers, expanded by 3.2 percent in the third quarter. Many economists consider this the most telling and persistent aspect of GDP, suggesting that the economy is healthier than some might suspect.

“The current quarter was heavily impacted by a foreseeable inventory adjustment, a stronger dollar and a weakening global economy,” said Basu. “The fact that the recovery remains in place is reflected in fixed investment data, including the categories that relate most directly to nonresidential construction. While it is true that investment in structures slipped 4 percent, this largely appears to be a statistical give-back from the second quarter’s better than 6 percent performance. Other data indicates ongoing momentum in nonresidential construction, which should be more apparent during ensuing GDP releases.

“The recovery will continue to be led by consumers,” said Basu. “Interest rates will also feature prominently in terms of determining the extent to which the recovery will be sustained in 2016 and beyond. For now, ultra-low interest rates are inducing people to invest in order to generate financial yields. This has been a bonus for nonresidential construction, but potentially may be triggering over investment in certain construction segments.”

The following segments highlight the third quarter’s GDP release.

• Personal consumption expenditures added 2.19 percent to GDP after contributing 2.42 percent in the second quarter.
• Spending on goods grew 4.5 percent from the second quarter.
• Real final sales of domestically produced output increased 2.9 percent for the third quarter after a 3.7 percent increase in the second quarter.
• Federal government spending increased 0.2 percent in the third quarter after remaining unchanged in the second quarter
• Nondefense spending increased 2.8 percent after decreasing by 0.5 percent in the previous quarter.
• National defense spending fell 1.4 percent after inching 0.3 percent higher in the second quarter.
• State and local government spending expanded 2.6 percent during the third quarter after an increase of 4.3 percent in the second.

Private Companies Continue Capital Investment and Hiring

Private companies have voiced optimism about the U.S. economy for nine  consecutive quarters, with 70 percent currently expressing a positive outlook, according to the latest PwC US’s Trendsetter Barometer®.  This represents an increase of 59 percent in 2Q 2014. This sustained level of confidence is resulting in more companies planning major investments, including new capital projects and hiring, reports.

“This report coincides with the increase in capital investment in manufacturing projects,” said Brian Gallagher, Director of Marketing for O’Neal, Inc., an integrated design and construction firm specializing in industrial and chemical projects. “Most of our clients are privately-held firms and we’ve certainly experienced an increase in capital investment activity.”

The PwC quarterly report, which tracks the economic sentiments and business outlook of America’s leading privately held companies, shows this optimism being mirrored by private-company performance, with 34 percent reporting improved gross margins, the highest number in more than a decade. Roughly five out of six (87 percent) private companies expect their revenue to grow in the next 12 months, nosing back toward pre-recession levels.

Increased spending and cautious expansion into new markets prevails

In the second quarter of 2015, 36 percent of companies said they planned to spend on new capital projects in the next 12 months (up from 29% the prior quarter). Information technology is the top area where private companies plan to increase investment (31 percent), followed by marketing and sales promotion (22 percent). However, there is some growing concern among private-company leaders about higher interest rates (18 percent, up from 8 percent a year ago) and about a stronger dollar (19 percent, up from 8 percent a year ago). And with their current operating capacity at the highest level since 2007 (92 percent say they have reached at least three-quarters operating capacity), private companies’ appetite to spend may be curbed somewhat until greater capacity opens up.

“While we’ve seen high post-recession optimism levels among private companies before, only in the past couple of years have those levels been sustainable. This is an encouraging indicator for a long-term U.S. economic revival, with the private sector and the American consumer firmly at its core,” says Ken Esch, a partner in PwC’s Private Company Services practice. “Despite increased optimism, it’s encouraging to see private companies making prudent business decisions about their capital plans. They’re investing more, but they are doing it carefully. While we saw a slowdown into new markets this past quarter, international expansion will remain a firm part of any long-term strategy.”

Hiring remains a top priority, but high-quality talent is scarce

“While the hiring picture is certainly brighter, companies are still struggling to find the right talent to move their businesses forward. Companies need new employees with specific skills in engineering and technology, and they’re having difficulty finding them here in the States,” says Margaret Young, a partner in PwC’s Private Company Services practice. “There are longer-term solutions to be had in education or immigration reform, but that won’t help companies that are wrestling with this issue right now.”

Automotive and Aerospace Industry Growth

A recent article in Area Development magazine focuses on how strong sales in the automotive and aerospace industries are spurring new facility and expansion projects in existing and new locations. In the article, Auto/Aero Firms Redrawing the Map,  Dale Buss describes how ongoing expansion and redrawing of the map of automotive manufacturing in North America is taking place. Both domestic and foreign-owned automotive and aerospace manufacturers continue to overhaul and expand their plants in order to keep up demand.

This investment is not only in the United States, but also in Mexico.  Automotive manufacturing in the United States is being pressured by the rise of automotive production in Mexico. Mexico’s low labor costs, high labor quality, free trade agreements and proximity to Atlantic and Pacific ports are contributing factors to the increase in investment. Automakers and parts suppliers have announced more than $20 billion of new investments in automotive manufacturing for Mexico, and industry analysts see Mexico’s current annual production of cars to increase. Since 2009, here have been seven new assembly plants announced in Mexico and only one in the United States. The automakers making capital investments in Mexican include General Motors, Ford, Nissan, Fiat Chrysler, Mercedes-Benz, and Volkswagen. In addition, parts suppliers such as Magna International are also making capital investments in Mexico.

The aerospace industry in the United States is also enjoying its biggest expansion in several years. The aerospace manufacturing sector has had more than $25 billion in investments since 2012. Jobs and manufacturing work that had previously been moving to China and other sites have begun moving back to the United States over the last few years. Capital investments by Boeing and Airbus in the Southeast United States has also attracted several aerospace suppliers.

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O'Neal Expanding Operations

O'Neal is expanding its existing Greenville County headquarters.  The company's $5 million investment is expected to generate 60 new jobs in Greenville, SC.

Founded in 1975 in the Upstate of South Carolina, O'Neal has been successfully delivering industrial capital projects in the automotive, pharmaceutical and biotech, process chemical, manufacturing, energy and pulp and paper markets for four decades.  With operations in South Carolina, Georgia, and North Carolina, O'Neal serves Fortune 100 companies from its Greenville, SC headquarters.

Located at 10 Falcon Crest Drive, O'Neal will be remaining in its existing facility situated off of Interstate 385 in Greenville, SC.  Hiring for the new positions has already started.  Those interested in joining the O'Neal team should visit O'Neal's Career page.

"O'Neal has experienced significant growth by leveraging our long term client relationships and remaining focused on our industrial markets.  In 2015, we celebrate our 40th anniversary and this milestone continues to reaffirm our team members' commitment to project delivery.  These are definitely exciting times for O'Neal and its employee owners."- Kevin Bean, President and CEO, O'Neal.  

 "Today, we celebrate the success of one of our homegrown businesses.  Founded nearly four decades ago in the Upstate, O'Neal, Inc.'s decision to invest $5 million and create 60 new jobs in Greenville County is a testament to the strength of our workforce and our business climate and Team South Carolina's progress." - Gov. Nikki Haley 

"We're always excited to see an existing, South Carolina-based company succeed in our state.  Congratulations to O'Neal, Inc. on their latest expansion and the creation of these excellent job opportunities for the Upstate community." - Secretary of Commerce Bobby Hitt

"Engineering is an important driver of Greenville's vibrant economy, and we appreciate O'Neal, Inc. for its continued commitment to grow its headquarters and engineering services." - Dr. Bob Taylor, board member of the Greenville Area Development Corporation and chairman of Greenville City Council 

"O'Neal, Inc. has been a member of the City of Greenville business community since the 1970's and we are excited to hear of their new investment and expansion.  We appreciate their long-term corporate presence in the city and their continued commitment to Greenville through the creation of these new jobs and wish them many more years of continued success." - City of Greenville Mayor Knox White

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Construction Industry Shows Optimism for 2015

Overall, the U.S.  construction market has experienced steady growth for the last few years as it recovers from the recession of 2008. Leading industry indicators point to a strong market in 2015.

“We are certainly seeing an increase in interest in construction projects from manufacturing companies, ” said Brian Gallagher, Director of Marketing for O’Neal, Inc., an integrated design and construction firm based in Greenville, SC. “Several of our clients are moving forward with capital investment in expansions and greenfield projects.

According to a recent study  by ENR, construction executives believe that growth will continue. ENR’s Construction Industry Confidence Index (CICI) survey for the fourth quarter of 2014  indicates that, of the 328 executives of large construction and design firms responding to the survey, most see the market as stable or growing. The CICI index remained steady at a record 77—on a scale of 100, an indicator of a growth market—in the fourth-quarter survey.

Key Industry Associations Forecast Growth in 2015

“The Associated Builders and Contractors (ABC) forecasts nonresidential construction spending will expand by roughly 7.5 percent next year,” said ABC Chief Economist Anirban Basu. “The segments that will experience the largest growth in construction spending in 2015 include power (e.g. natural gas-related construction), lodging (leisure and business spending), office space (professional services employment creation) and manufacturing (rebounding industrial production).

Construction job growth is another indicator of a solid construction market growth. “Construction job growth remains positive overall but volatile,” said Ken Simonson, the the Associated General Contractor’s (AGC) chief economist. AGC officials said the best way to ensure more stability in the construction market was for Congress and the Obama administration to work together to fund needed repairs to aging roads, transit, clean water and other infrastructure systems.

The latest Confindex survey from the Construction Financial Management Association (CFMA also reports growing optimism about 2015. CFMA polls 200 chief financial officers in general contractors, subcontractors and civil contractors. “Our Confindex rose by five points, to 132 [on a scale of 200], for the third quarter,” said Stuart Binstock, CEO of the CFMA.

Delivering Effective Technical Presentations

Delivering a presentation, let alone a technical presentation, can be an arduous and often scary feat. Making sure you get your point across without boring or under-stimulating the audience is something that takes a great deal of practice and understanding. Keys to success are understanding your audience, developing the right presentation strategy, assessing and accommodating your audience, using graphics properly, and effectively delivering a concise message. Further, a key element of presentation success is the ability to combine verbal and visual content in a clear, concise and compelling manner.


Introduction and Objectives

To deliver an effective presentation, you must first understand that the subject matter presents a unique challenge in itself. Your goal is to transfer ideas and information to the audience. Technical information and data is something that can be very easily lost on a person if not “gift-wrapped” properly. People being presented large amounts of data and facts have a tendency to disengage and lose interest. It is up to the presenter to strategize and create interesting ways to communicate that information. Pictures, graphics and even sounds help keep senses and minds from wondering to other thoughts, while also effectively communicating your message.

One of the most common mistakes when preparing for a speech or large presentation is not thinking about the audience. For example, you want to steer away from using jargon if you are speaking to a group of people who are not familiar with your topic. A person would become very frustrated and lost with the “special” terms and eventually stop paying attention. Therefore, researching and understanding your audience and presenting on their level are very important to your success. What does the audience have in common with each other? Why has this particular audience been brought together? Why did they ask me to make a presentation? Do they want me to talk about a specific subject? Understanding why you have been brought to speak will help when it comes to outlining the content of your presentation.


In addition to keeping your audience’s attention span and characteristics in mind, you must also establish a process in which your presentation will flow. Outlining and knowing how one subject matter will flow to the next will not only help with how comfortable you will be, but also help keep the audience on target. Begin by understanding the audience -- what language will you use when addressing them? Outline the content, the aesthetics and the material flow. Also, what other things can contribute to the success besides the content of your message? For example, are there visuals or something other than words that will help relay or reinforce your message?

Further, be sure to review the necessary preparation needed. How much time should you spend practicing and how does that fit into your schedule? Finally, it is important to anticipate what kinds of questions the audience might ask. Having a good understanding and game plan about your presentation will help eliminate the nervousness that comes with being unprepared.


Developing Your Presentation Message

Developing the content can sometimes get a little daunting and at times overwhelming. That is why breaking it down into sections and how you want to come across to your audience is very important. Not only will it give you a starting point, but it will also make you more comfortable with the material.

First, identify the topic about which you feel most comfortable speaking. A successful topic is one for which you have unique expertise or experience and is timely. Also, pick a topic that can be supported with relevant case study examples, research, testing and practical applicable tips. The more comfortable you are with your topic, the easier it will be to make the presentation, which will in turn enable a rapport to be developed with the audience. Also, be sure that your message is perceived as high-level in terms of expertise, otherwise it may appear to be a gimmicky commercial and you will lose credibility.

Building the Presentation

Now it’s time to outline your presentation: Knowing how one point will lead to the next in a logical and coherent flow is key. Start by writing down the main points you wish to discuss. If you are describing a process, write down the steps to the process in order. From there, you will flesh out the subject matter with details, keeping in mind that this is a presentation and not a manual. Be sure to use transferable concepts as they engage the audience. Remember, your goal is to communicate ideas and information. Further, ensure that every minute counts and that there are no wasted opportunities. For example, the first 60 seconds with the audience are critical. It is in those moments that the audience ascertains whether or not this is worth their interest.

While writing, keep in mind the visuals you think of, and see if you can incorporate any of those images into your presentation. Your slides must be engaging, not distracting. The use of pictures, graphics, color and graphs all help in terms of audience comprehension. In certain cases, videos and animated graphics are effective means of communicating with the audience. Use formulas, graphs and charts prudently. Further, since everyone learns differently, having different means of delivering the message through a balance of graphics and words will help convey your message. Graphics should be used to reinforce a verbal point, not the other way around. Graphics and slides can divert attention, but if used effectively, they can give you credibility and authenticity. Do not, however, leave the delivery of information solely to graphics; it is to be used in combination with your narrative.


Building the Presentation

Once the content is outlined, the next step is actually drafting the presentation. Start by thinking of the presentation as a performance. One tip is to think of the technical presentation as a three-act play: beginning (introduction), middle (body) and end (conclusion). Each part of the presentation must be clear and distinct, but the three parts must work as one with the theme or topic holding all three parts together. It is said that the best presentations can be summarized in a single sentence. Keeping this in mind, think of what you want the audience to carry away from your presentation.


Slides should contain bullet points and not a narrative description. People do not want to read a novel on a projection screen. Make clear and concise points and move on to the next. The audience will be too busy trying to figure out what is on the screen and won’t be paying any attention to what you are saying. Bullet points need to be the highlights of what you are going to say because it is your job to flesh that out when talking. To avoid confusion, a brief synopsis of what will take place will help clarify the audience’s expectations.

Ensuring Presentation Success

Thinking beyond the content and structure requires you to prepare for the big day. In order to make sure that you are as comfortable as possible with the content, it is absolutely necessary to practice with passion. It is a good idea to practice with a “rehearsal audience.” This can be made up of family, friends or peers and will aid in alleviating nerves. The will also help you establish the pace of your delivery and get a better feel for timing, transition and balance of your presentation. It is also important to rehearse with props and all equipment that will be used. Ideally, a dry-run in the venue that you will be presenting will help work out any kinks or possible malfunctions.

Being prepared is one of the most important things you can do to ensure success. Studies have shown that practice actually results in spontaneity because you are more comfortable with the information. Practicing with a wide variety of audiences that will constructively critique you afterwards will help you with that comfort level. The more prepared you are, the less nervous you will be.

It’s also a good idea to think about the presentation room logistics. For example, consider the location of the audience, where you will be situated and your equipment will reside, room temperature, and what opportunities you will have to interact with the audience. A connection is possibly one of the most important elements to the success of a presentation. Obviously, if you are in a large auditorium or theater, you are not going to be able to have one-on-one time or dialogue with all audience members. If you are unable to have that close interactive time with participants, it is prudent to make yourself available during breaks or after the session. Handouts can be effective tools for communicating information and reinforcing your messages, but they can also be a distraction. Consider distributing handouts at the end of the presentation.

Follow-up also is very important. It is smart to make your contact information easily accessible and clear to participants. The same goes for contacting the participants yourself. If the presentation host supplies audience contact information, it is best to contact participants within a week to offer additional information as appropriate.


The Presentation: Always be Prepared

Often times, some of the keys to success are overlooked. For example, it is important to know when the host wants you to arrive. Further, it is crucial to ensure you are dressed appropriately. You will not bestow very much confidence on your peers if you are late to your own presentation or show up in jeans and a t-shirt. But, if your audience is dressed casually, a suit may be overkill. Check with the host to find out what is appropriate, but it is always best to be overdressed than underdressed.

The delivery of the presentation is as important as the content itself. The first step is to build rapport with the audience so they can relate to you. You also want to build confidence, trust and credibility. If the audience is unable to understand what you are saying because of an accent or you are speaking too fast or have poor diction, everything you have worked for is a complete loss. Make sure that you speak slowly and concisely. Try to eliminate crutch words and vocalized pauses (uh, um, ah, etc.) or any other nervous habit (fidgiting, fumbling, gestures, etc.) that distracts the audience. And, while ice-breakers or jokes are good ways to alleviate nervousness, keep them clean and light. When used properly, humor can help you build a rapport and engage the audience. Do not target anyone specifically, including yourself. Self-deprecating humor can be funny, but don't make yourself look stupid. Body language and non-verbal communication also has a tremendous impact on the audience. Be sure to stand up straight, lean forward and make direct contact with the audience by making eye contact with different people in the audience.

And, always try to avoid the unexpected. While it is impossible to account for everything that can go wrong, making sure that all computer programs are running correctly during a dry-run will help avoid kinks and malfunctions that might pop up. For example, making sure any instant messengers are closed, Outlook is closed (email notifications), sound checks (microphones and speaker system is working correctly), the projector is working properly and that you have a back-up cd or flash-drive in case something breaks or malfunctions.

Next Steps

By following the aforementioned steps, you’ll alleviate many of the stresses related to making a technical presentation. But, even more important, by making a successful technical presentation, you’ll benefit from the third-party credibility earned through such professional opportunities.

FMI Releases 2nd Quarter Construction Outlook Report

FMI recently released its Second Quarter 2012 Construction Outlook Report. FMI’s forecast calls for 3% growth for construction put in place (CPIP) by the end of 2012 and another 7% in 2013 for a total of $882.4 billion. This is $92.6 billion more than the lows of 2011.

Despite the constant confusion of news from Europe and uncertainty and inaction in the U.S. Congress, there are some positive signs in the economy. As one might expect, improving housing construction is helping to lead the way, especially multifamily housing. However, power construction is another strong point, and even commercial construction will show signs of rising from its slumber. Nonetheless, slow growth may be even more challenging than large market drops or boom times, because it requires improved management, precision market research and creative business development.

Residential construction is coming back lead by 32% growth in multifamily housing. Innonresidential construction,the forecast is mixed with health care and manufacturing showing the most positive signs of growth. Predictions for other markets are as follows:

• Lodging CPIP is expected to grow 4% and rebound somewhat to 7% and 8% in 2013 and 2014.
• Office construction should be 4% by the end of 2012 and improve to around 6% for 2013 through 2014.
• Commercial construction is beginning to grow again. FMI expects 5% growth in CPIP this year, followed by 8% growth in 2013 to around $49 billion.
• Health care construction is expected to only rise 3% in 2012, that will strengthen to double digits by 2015, achieving record highs around $52.6 billion.
• Education construction will have only a 1% increase in CPIP in 2012 and a slight rise of 2% in 2013.
• Religious construction will be flat in 2012, with some revival in 2013 to 6% growth at $4.3 billion.
• Public safety construction will be flat in 2012, but will the grow 6% in 2013 to $4.3 billion.
• Amusement and recreation construction will climb 8% to $17.4 billion in 2013.
• Transportation construction will grow 3% in 2012 and to 5% through 2015.
• Communications construction will experience steady growth of 4% to 6% through 2015 with 2012 ending up around $18.5 billion.
• Manufacturing construction is expected to rise 3% in 2012 and show steady increases to 2015.
• Power-related construction is forecasted to have a 10% rise for 2012 and another 10% in 2013 to $108 billion.
• Highway CPIP will drop 2% in 2012 and grow just 1% in 2013 to reach $77.7 billion or back near 2007 levels.
• Sewage and waste disposal CPIP is expected to be around $23.9 billion.
• Water supply is beginning to grow, but will gain only 2% in 2012 and 3% in 2013 to reach $14.7 billion.
• Conservation and development growth is expected at 2% in 2012 and demonstrate slow, steady progress through 2015.

Impact of Union Activity in South Carolina

Despite a miniscule union footprint in South Carolina, the construction industry is lobbying state lawmakers to take stronger steps to suppress union activism.

“We’ve seen what is happening with Boeing and the NLRB (National Labor Relations Board). I think we all realize South Carolina is on the radar of the unions,” said Leslie Hope, S.C. government relations director of the Carolinas Associated General Contractors.

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At issue now are so-called project labor agreements strongly supported by an executive order President Obama issued in 2009. PLAs are similar to collective bargaining agreements that establish upfront the rules and wages for all employees on a project.

Critics argue the agreements can drive up construction costs and scare away nonunion contractors from bidding on projects. Proponents say PLAs ensure reliable labor and deliver projects on time and on budget.

Obama’s executive order did not mandate PLAs, but it suggested they be used on all federally funded construction projects exceeding $25 million.

The Army Corps of Engineers is taking testimony from construction companies about potentially using PLAs on the barracks project at Fort Jackson, said Bill Caldwell, president of Waldrop Mechanical Services in Spartanburg.

Another S.C. project that could be subject to a PLA is the eventual construction of a new federal courthouse in Greenville, said Brian Gallagher, Upstate chairman for the Associated Builders and Contractors Carolinas Chapter and director of marketing for O’Neal Inc. in Greenville.

“What we see and we fear is today its $25 million, by executive order by President Obama, but it only takes a strike of a pen to lower that amount to $20 million, $10 million,” Gallagher said. “It’s going to shut out most of the construction companies in South Carolina from even bidding on the work.”

Other states have fought PLAs without success. Michigan enacted a ban on PLAs that was ruled unconstitutional by a federal judge in February. An appeal is expected.

South Carolina lawmakers are pursuing a similar measure that would prohibit project labor agreements on any publicly funded projects. It’s a provision of the “Right to Work Act of 2012," or House Bill 4652, that has already garnered Gov. Nikki Haley’s support. The House passed the legislation 70-19.

“I thought it was much to do about nothing,” said Rep. Chandra Dillard, a Greenville democrat who voted against the bill. “South Carolina already has a really low union environment. I see this as a very divisive conversation that often occurs in Columbia around election time to divert our attention from the real issues in South Carolina – funding education and transportation infrastructure.

“At the very end of the day, is it so bad that people are making a living wage if they’re working for a union?” Dillard added.

Caldwell called PLAs a threat to his livelihood and career, saying they prevent his company from competing for projects.

The union membership rate in South Carolina is 4.6%, one of the lowest in the nation, according to data from the U.S. Bureau of Labor Statistics. But unions are attempting to organize here, Caldwell said. Waldrop employees have found union fliers on their vehicle windshields when leaving job sites, he said. That organization quickly died though.

Still, Caldwell, Gallagher and Hope all agreed that South Carolina is likely to be a union target following NLRB’s unsuccessful challenge to Boeing’s decision to build a plant in North Charleston. The NLRB’s complaint argued that Boeing’s decision was retaliation against the Machinists union for past strikes. NLRB dropped the case shortly after Boeing and the Seattle-area union ratified a new contract.

“The threat of union organization coming south and infiltrating South Carolina is growing because of that,” Caldwell said.

This article was writer by Scott Miller and originally appeared in the GSA Business on March 12, 2012.

http://www.gsabusiness.com/news/43077-construction-industry-fears-union-action

FMI Releases Nonresidential Construction Index for the First Quarter, 2012

FMI (www.fminet.com), the largest provider of management consulting and investment banking to the engineering and construction industry, announces the release of its Nonresidential Construction Index report for the first quarter of 2012.
The NRCI gained 7.8 points over last quarter to 58.1 this quarter. This positive move to start the new year is not exactly the sign of a bull market for construction, but continuing confirmation that panelists believe that the construction activity is following the lead of the slowly improving economy. There are good signs in hiring plans for 2012, as well as construction-put-in-place predictions. However, panelists indicate that low project pricing and high competition are still driving the market place.

• Hiring: A five percentage points increase over this time last year, 42 percent of panelists indicated a zero to five percent increase in full-time direct employees. Additionally, fewer panelists indicated a reduction in salaried employees.

• Construction Put In Place: Expectations for CPIP are positive but cautious, as 41.3 percent of panelists expect growth of 0.5 to 2.5 percent for 2012.

• Overall Economy: The component for the overall economy showed the strongest improvement of all index components with a jump from 43.6 last quarter to 68.7 in the first quarter, a 25 point gain. This score reflects the improvement in many economic indicators including the unemployment rate.

• Nonresidential Building Construction Market Where Panelists Do Business: At just 54.9, the local markets for nonresidential construction are inching ahead. However, panelist responses reflect a perception that their own business is performing a bit better than the overall nonresidential construction market. This indicates that local markets are still very competitive.

• Cost of Materials: Despite a slow economy, material costs continue to rise, with no panelists indicating material costs were lower than last quarter. The cost of materials component moved down nearly 5 points to 26.2. This factor is continuing drag on the overall index and is likely to raise the cost of projects while lowering profit margins for contractors.

• Cost of Labor: The cost of labor improved just slightly to 41.5, indicating little change over the score of 40.0 last quarter. However, no panelists indicated they were experiencing lower labor costs.

• Productivity: Contractors are continuing to make moderate gains in productivity. However, at 52.9, this component is still too weak to offset rising costs for labor and materials.

To download a copy of the full report, click here. For reprint permission or to schedule an interview with the author, please contact Sarah Avallone at 919.785.9221 or savallone@fminet.com.

Surge in Manufacturing and Construction Activity Positive News

U.S. manufacturing construction surged more than 44 percent in 2011, according to federal data, a good sign for the manufacturing-heavy Upstate. 

Among the Greenville companies benefiting from the trend is O’Neal Inc., an engineering and construction firm whose clients are mostly manufacturers.

Brian Gallagher, O’Neal’s marketing director, said its work force has nearly doubled in the past year to 260.
Gallagher said he wasn’t surprised to see the Census Bureau report a 44.2 percent surge in the value of U.S. manufacturing construction — from $30.8 billion in December of 2010 to $44.5 billion in December of 2011.

“We’re seeing quite a bit of activity throughout the entire Southeast,” he said.

Automotive, process chemical and general manufacturing are among the industries putting money into new plant and equipment, said Gallagher, who is also Upstate chairman for the Associated Builders and Contractors trade association.

The federal data also show hikes of 14 percent for commercial construction and 18.8 percent for multi-family construction, a category that includes apartments.

Lodging construction, however, fell more than 15 percent.

Total U.S. construction rose 4.3 percent. Residential construction was up 3.8 percent. 

Read More

From the Greenville News

AEC Marketing Veterans to Speak at SMPS

Brian Gallagher and Kimberly Kayler, CPSM, both long-time architecture/engineering/construction (AEC) industry veterans, will discuss the importance of leadership in the marketing function at the Society for Marketing Professional Services (SMPS) annual conference.

Their session, entitled “Leading with Marketing,” will be held from 1:30-2:45 on Thursday, Aug. 25 at the Sheraton Chicago Hotel & Towers at part of SMPS’ Build Business: The Bottom Line.

The presentation will highlight many of the themes in the book Gallagher and Kayler co-authored, Leading with Marketing. Published by AuthorHouse and available from amazon.com, the American Concrete Institute as well as through Hanley Wood at the World of Concrete, the book is a comprehensive resource for creating, building and managing successful AEC marketing programs.

According to Gallagher, investing in marketing initiatives can be a key driver for profitable growth for AEC firms. These marketing initiatives ultimately lead to a constant flow of new business opportunities.

“We have seen first-hand the impact marketing can have on growing AEC firms,” said Gallagher. “Our presentation is designed to provide an overview and a roadmap for all involved in marketing and sales in the AEC industry.”

According to Kayler, Leading with Marketing embodies how a company approaches their business, their marketplace, and their customers.

“Whether it is handled by a department or an individual, marketing is a leadership function in every AEC firm,” said Kayler. “When companies lead with marketing, they choose which markets to target, what services to offer, how to differentiate, how to communicate, and how to win.”

Based on years of actual experience with a diverse variety of companies and associations in the AEC industry, the authors wrote this book with the intent of bridging the gap between traditional marketing concepts and emerging marketing trends, while providing a contextual link to the construction business. The authors note that this is not another book about how to write a marketing plan. Rather, the mission of this book is to help change the way those in the industry think about marketing, so firms can select the right target audiences, communicate with them effectively, and create profitable opportunities. It is designed specifically as a tool for professionals in the AEC fields that are providing leadership to the marketing efforts, with a complete overview of marketing process, tools, systems and best practices. Companies that market services such as architecture, engineering and construction services; as well as companies that sell products, such as materials, systems, and other products used in construction, will find the marketing principles outlined in this book to be beneficial.

Gallagher has served in executive level marketing positions with industry leading engineering, construction and manufacturing organizations. In his roles with O’Neal, Inc, Structural Group and Williams Scotsman, he has provided strategic leadership to the sales and marketing teams. His extensive background and knowledge of the construction industry enables innovative and effective marketing programs. He frequently writes and speaks on marketing topics. In addition, he has co-founded a marketing and sales consultancy, GBM Marketing, and launched several industry-specific web portals.

Gallagher holds a bachelor’s degree in Marketing from Towson University and an M.B.A. from Loyola College. He also has served as an Adjunct Assistant Professor of Marketing at Loyola College. He has served in leadership roles for various committees with the American Concrete Institute, the Associated Builders and Contractors, the Post-Tensioning Institute, the Concrete Industry Management Program, the SC Solar Business Alliance, and other organizations. He also is a member of the Society of Marketing Professional Services.

With a journalism degree and a decade of high-level experience serving engineering, architecture and construction firms as a corporate marketing executive, as well as experience working for a full-service advertising/marketing communications agency, Kayler started Constructive Communication, Inc. in 2001 to serve the needs of technical and professional service firms. Clients include five international concrete associations; a variety of general contractors, engineers and architects from around the country; as well as firms in the aerospace, chemical and industrial sectors. Services provided by the growing Constructive Communication, Inc. team include technical writing, proposal development, public and media relations, social media and marketing/communications.

The author of more than 1,250 published articles on a variety of concrete, construction, design, marketing and other technical subjects, Kayler was the first to earn the Certified Professional Services Marketer designation in the state of Ohio from the Society of Marketing Professional Services. She is a frequent speaker on technical marketing and public relations and is a registered provider through the American Institute of Architects. Although she is a graduate of the University of Arizona, she now calls Columbus, Ohio home. She has a M.S. in Organizational Management with an emphasis in Leadership from Capella University and she is a member of SMPS and the Construction Specifications Institute. She is a volunteer with the Junior Achievement program and she serves on the Board of Directors for the Dublin Foundation, the Dublin Convention & Visitors Bureau. Further, she is co-founder of the Women in Concrete Alliance (WomenInConcrete.org).

To find out more about the conference, visit BuildBusiness.org. Those interested in learning more about the book, its contents and how to order it should visit LeadingWithMarketing.com.

O'Neal Builds Future

By Dick Hughes, Greenville Journal

If engineers are on the leading edge of upward and downward economic trends, the experience of O’Neal Inc., the Upstate design and construction firm, indicates construction is on the upswing, fueled in part by practical green initiatives.

President and Chief Executive Officer Kevin Bean said O’Neal “is starting to see activity pick up, we are starting to see it in the more traditional markets but also in this whole green initiative, energy conservation and alternative materials.”

Bean and Director of Marketing Brian Gallagher talked about “painful” staff cutbacks in 2008, an awakening from a sleepy sense of being immune to economic downturns and the nascent recovery they see happening.

“Because we do both the engineering and the construction, I think we get a good idea when the trends are starting up and then we also get to ride them down,” said Bean.

Bean said O’Neal first felt the recession in 2008 when engineering, which is early in the process of construction planning, went cold and “new opportunities and even current opportunities were being shelved. Luckily, our construction was still very strong for the next 12 months.”

When revenue dried up, Bean said, O’Neal put 50-60 “good people,” about a fourth of its work force of professionals, on furloughs without pay.

As traditionally used, furloughs last for short periods and employees expect to be called back when business improves. When the recession dragged on, so did the furloughs, and some engineers left for other jobs.

“I think it had great intentions, but at the end of the day it was distasteful for everybody,” said Bean.

“We didn’t have any deadwood,” he said. “When the furloughs happened, there were good people we wanted back. Fortunately, we brought back a majority of those people.”

The recession, Bean said, was a rude awakening for O’Neal, a company that took pride in managing growth prudently, generating $100 million annually in revenue consistently, keeping employment “right sized” and not doing layoffs or furloughs “at all costs.”

“We had been very steady,” he said. “That’s what made this downturn so hard.”

But now O’Neal is “seeing an improvement, and it seems to be steady,” said Bean.

In addition to reinstating a majority of furloughed employees, he said, the company has made several new hires, building the staff back to 200, though still below the 250 “where my expectation is.” In addition to headquarters in Greenville, O’Neal has offices in Atlanta and Raleigh, N.C.

What encourages Bean is that increased interest is coming from O’Neal’s historical base – “Fortune 100 and 500 industrial manufacturing clients that have strong balance sheets and don’t rely on financing.”

He said O’Neal has several projects in the planning phase, “a lot going toward getting funded, and about another third ready to execution. That’s promising when it is across all those phases, and that means it is going to be sustaining.”

In addition, Bean and Gallagher said the company is seeing “homespun” manufacturers get into “this whole green initiative, energy conservation and alternative materials,” less out of motivation for LEED certification than self-interest to reduce energy costs and gain other benefits that make sense. He cited and 150-year-old New York manufacturer that is revamping its entire operation focused on energy conservation.

The company recently completed five or six “green” jobs and is finishing a packaging plant in Indiana with LEED certification in mind. O’Neal built a pilot plant in Georgia to turn plant materials into ethanol, and it is working on a plant in Montgomery, N.Y., to produce gas from municipal garbage.

Gallagher said the green movement has spread beyond “its roots in the commercial and educational environment … and has become more main stream for industrial facilities, as well.”

O’Neal is celebrating its 35th anniversary this year. The company was founded by Paul O’Neal, who remains chairman of the board. Founded as a structural engineering firm, O’Neal added construction in 1996-97 to be able to offer clients a total package – from planning to design to construction.

O’Neal is employee-owned as an Employee Stock Ownership Program or ESOP. Bean said the board sets profit goals above what it takes to run the company and invest in the future with “the balance over this threshold distributed among employees as profit sharing in the form of stock they can get at retirement.”

During 2008 and 2009, Bean said, “there were very few profits to share.” What helped create understanding was the fact that O’Neal shares financial information with employees, and they know “if there’s no money coming in, there’s a limit on what can come out,” he added.