2013 PCCA Convention Fun-Filled, Information-Packed The Official Publication of the Power & Communication Contractors Association 2nd Quarter 2013 Also Inside • A Case for Optimism in the U.S. Construction Industry • Beyond a Text and a Tweet: Putting the Conversation Back into Communication Former U.S. Attorney General John Ashcroft Delivers the Convention’s Keynote Address
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2nd Quarter 2013 Officer Directors Official Publication of the Power & Communication Contractors Association Board of Directors Publication Staff 1908 Mt. Vernon Avenue, 2nd Floor Alexandria, Virginia 22301 (800) 542-PCCA • www.pccaweb.org ©2013 Power & Communication Contractors Association Craig Amerine Amerine Utilities Construction, Inc. David Aubrey Okay Construction Robert Breeden ElectriCom, Inc. Tony Briggs Vermeer Manufacturing Ed Campbell Henkels & McCoy, Inc. Marty Ferguson FS3, Inc. John Fluharty Mears Group, Inc. Mark Frosaker MasTec North America, Inc. Matthew Gabrielse Gabe’s Construction Co., Inc. John Hale John Deere Jerrod Henschel Michels Corporation Chase Lapcinski Push, Inc. Kevin Mason ElectriCom, Inc. Tommy Muse Aubrey Silvey Enterprises, Inc. Rob Pribyl MP Nexlevel, LLC Jameson Ringger NESCO, LLC Heath Sellenriek Sellenriek Construction Don Stephens Tjader & Highstrom Lindsley Thulin Michels Corporation Publisher Timothy Wagner Editor Michael Ancell Membership/Advertsing Stacy Bowdring Photography Steven Purcell Information Technology Greg Smela Intern Lauren Matthesen President Glen Amerine Amerine Utilities Construction, Inc. President-Elect Steve Sellenriek Sellenriek Construction 1st Vice President Timothy D. Killoren CCI Systems, Inc. 2nd Vice President Todd Myers Kenneth G. Myers Construction Treasurer James Dillahunty Henkels & McCoy, Inc. Secretary Larry Pribyl MP Nexlevel, LLC A Case for Optimism in the U.S. Construction Industry 7 By W. Chris Daum The previous recession was severe, and the recovery for the engineering and construction industry has been slow. However, the potential for a sustained recovery led by private-sector investment in energy infrastructure is becoming more of a reality each month. Beyond a Text and a Tweet: Putting the Conversation Back into Communication 15 By Dr. Shirley Garrett This article is a synopsis of the program presented at the 2013 PCCA Convention and is designed to help leaders reclaim and improve the basic human skill of communication. Communication is not about technology, but about humanology—our ability to connect at a deeper level, be understood, and to understand. 2013 PCCA Convention: Fun-Filled, Information-Packed 19 The Power & Communication Contractors Association recently held its 68th annual convention in Naples, Fla., where PCCA members and their families soaked up industry education and training, handled association business, and enjoyed the company of friends and colleagues from all around the country. RDUP News 33 Industry Calendar 34 HR Update | By Brandon Phillips 37 Labor News 41 News Briefs 45 PCCA Member News 52 Advertiser Index 57 Final Word | By Heath Sellenriek 58
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PCCA Journal|2nd Quarter 2013 7 The construction industry downturn that followed the Great Recession proved to be the most severe and prolonged decline in most of our lifetimes. For the last 24 months, most of our industry has bumped along the bottom of the cycle and has shown few signs, if any, of a pending, robust recovery. Meanwhile, the adversarial political climate in Washington, D.C., and ineffectual federal policies have failed to stimulate strong Gross Domestic Product (GDP) growth and rising employment but have managed to increase the national debt to more than $16 trillion—equivalent to the total U.S. annual GDP. Loss of Middle-Skill Jobs The broader economy is not performing much better. The federal government’s official unemployment rate as of March 13 was 7.7 percent, and the real unemployment rate is likely closer to 10 percent (see Exhibit 1). Moreover, manufacturing employment in the U.S. has declined by 19.6 percent, or 2.9 million jobs, over the past decade. Since the end of the Great Recession in June 2009, the manufacturing sector has added only 230,000 jobs. The loss of manufacturing and other middle-skill jobs in the U.S. workforce is a primary factor behind our nation’s shrinking middle class, which has been the mainstay of our economy for a century. Is America in Decline? Instead of optimism, editorial pages and cable news talk shows continuously debate the decline of America’s political and economic leadership, while touting the rise of China and other developing economies. A December 9, 2012, Washington Post editorial made the case that the economy has created a “lost generation,” and a 2012 Gallup poll reported that 53 percent of Americans consider China the world’s dominant economy. Can this be true? Is the U.S. a declining economic power? The answer to such questions in the past usually came in the form of robust recovery that time after time propelled the U.S. forward as the world’s largest economy. Since World War II, the main drivers of each recovery have been federal spending, technical innovation, residential housing, and/or consumer spending. Unfortunately, none of these forces will be the catalyst to get America and its construction economy growing faster in 2013. No More Federal Stimulus In order to have sustained economic growth with full employment (less than 6.5 percent unemployment), U.S. GDP growth must rise to more than 3 percent. It is clear that federal stimulus spending and a decade-long funding of two wars have had limited, if any, sustained impact on the private-sector economy. Looking ahead, as the political drama of sequester plays out in Washington, D.C., it is fairly safe to assume that further government A Case for Optimism in the U.S. Construction Industry The idea that North American energy independence is achievable has major geopolitical implications for our country. By W. Chris Daum Percent 0 2 4 Exhibit 1 U.S. Unemployment 12 6 8 10 Unemployment Approximate full employment 12/02 6/03 12/03 6/04 12/04 6/05 12/05 6/06 12/06 6/07 12/07 6/08 12/08 6/09 12/09 6/10 12/10 6/11 12/11 6/12 12/12 Continued on page 8
PCCA Journal|2nd Quarter 2013 8 stimulus, let alone a robust multiyear transportation bill, are highly unlikely. In the near term, federal spending is unlikely to be the next driver of engineering and construction activity. No Replay of the Tech Bubble or Real Estate Boom In the first half of the 1990s, rapid growth of information technology, together with a strong stock market, resulted in a sustained business investment in technology and capital equipment, which drove U.S. economic expansion. Growth during the second half of the decade was fueled largely by a sharp rise in consumer spending and productivity gains from information technology. Following the brief “tech recession” of 2001, the residential housing sector, fueled by federal policies that kept interest rates low and cheap credit available, drove economic growth. It has been seven years since residential construction took a nosedive into an empty swimming pool. In spite of unprecedented devaluations of residential real estate and years of historically low mortgage rates, annual housing starts remain less than 50 percent of their historical norms and only recently have been trending higher. Furthermore, even though housing affordability remains near its all-time high, 50 million homeowners remain behind in their mortgages. That the housing market is beginning to recover is a positive sign, but any substantial upturn will be a byproduct of falling unemployment and rising wages. Record High Consumer Debt American consumers have shed $1.3 trillion, or 10 percent, of housing (mortgage) debt since 2008. The federal government, mortgage bondholders, and U.S. banking industry absorbed these losses. Unfortunately, U.S. households still owe more than $11.3 trillion in total debt, an amount that is 50 percent more than a decade ago. Non-mortgage consumer debt has recently reached an all-time record level of $2.8 trillion, due mainly to increases in student and auto loans. At the macro level, the American consumer is tapped out, if not under water financially. Unless wages rise and unemployment falls dramatically, consumer spending will not be a catalyst that drives the construction industry. In Defense of the U.S. Economy While it may be a safe conclusion that none of the above factors will drive strong growth in the near term, it is too soon to wave the white flag and surrender U.S. economic dominance to the world’s other economies. For instance, Goldman Sachs pointed out the following statistics in its recent “2013 Outlook.” • U.S. economic output is more than 2.0 times that of China, 2.5 times of Japan, and 4.5 times of Germany. • The U.S. has 5.0 times the arable land of China and 2.0 times that of Brazil. Only Russia has more arable land and water resources than the U.S. • American stocks outperformed European, Japanese, and emerging economy stocks by a wide margin from 2009 through 2012. • The U.S. leads the world in innovation and performs the largest amount of research and development (31 percent). • The U.S. still has a young and growing population of skilled workers compared to China, Japan, and Russia. By 2035, China will have more people older than 65 than the United States population—and China has almost no social welfare structure. • A Gallup poll of 151 countries reported that among those people seeking to move, the U.S. is the top destination of choice. How will the U.S. economy remain preeminent in the years ahead, and what will drive economic growth and construction spending? The answer is both unconventional and promising. The Case for an Unconventional Recovery The U.S. possesses some of world’s largest reserves of oil and natural gas. This fact has been known for decades. The challenge always has been how to extract the resources economically. Fortunately, recent technical advances in horizontal drilling and recovery methods involving hydraulic fracturing have made these resources accessible, transforming the global energy landscape and, more importantly, the U.S. economy. U.S. oil and gas production is booming and will have a major effect on nearly all sectors of the economy, particularly engineering and construction. While there is vocal opposition to hydraulic fracturing due to concern over potential groundwater contamination as well as air quality issues associated with drilling near population centers, these environmental challenges have had little or no effect in slowing the rate of domestic exploration and production. Traditional Energy Paradigms The U.S. is both a producer and the world’s largest consumer of crude oil products. U.S. oil consumption has exceeded A Case for Optimism Continued from page 7
PCCA Journal|2nd Quarter 2013 9 production for decades, resulting in the country being a net importer of oil. Similarly, although the U.S. has one of the largest proven reserves of natural gas, it is a net importer of liquefied natural gas (LNG). Natural gas liquids (NGLs) from crude oil (associated gases) and natural gas production are valuable due to their use in petrochemical-based manufacturing. The U.S. is a large producer and supplier of NGLs to both domestic and international petrochemical manufacturers. For decades, the established paradigm has been that the U.S. is dependent on imported foreign oil and increasingly less competitive against foreign suppliers and manufacturers of petrochemical and petroleum-based manufactured goods. As a result, the country’s petroleum and downstream petrochemical infrastructure has been in steady decline, due to underinvestment caused by competitive inequities and other factors, such as cost-prohibitive environmental regulations. Until recently, politicians, economists, and corporate strateGISts assumed these trends were irreversible. Fortunately, the established paradigm no longer holds true. The World’s Largest Producer of Liquid Petroleum Products Much of the U.S. oil and gas reserves are trapped in tight formations called shale plays. Recent innovations in horizontal drilling technologies and hydraulic fracturing methods allow EECI10208-S01-01 BRON logo is a registered trademark of RWF Industries • Static or Vibratory • 84” (213 cm) Plow Depth • Left/Right Offset ADD-ONUTILITY PLOWS GET UNDERWAY Exhibit 2 Six Prominent U.S. Shale Plays Eagle Ford Mississippian Lime Barnett Haynesford Utica Marcellus Bakken 10.0 6.5 4.0 3.5 15.0 13.0 9.4 100,000 30,000 30,000 50,000 175,000 50,000 45,000 2,500 600 1,000 1,000 1,650 600 1,000 40 50 30 30 100 80 45 + Shale Play Acres Millions Remaining Locations Wells/Year Years Remaining Source: Enterprise Products Partners, LP and FMI estimates Continued on page 10
PCCA Journal|2nd Quarter 2013 10 U.S. exploration and production companies to cost effectively extract crude oil, liquid petroleum gases (LPG), and natural gas from these shale plays. The ability to extract these resources economically has profound global implications. Development activity in these oil and gas or gas-only shale plays is well under way, which is driving up domestic production. Exhibit 2 shows the relative size and approximate number of remaining locations to be developed within six of the most prominent U.S. shale plays. U.S. crude oil imports have declined by more than 2 million barrels per day since 2005. During this period, the U.S. has gone from being a net importer to a net exporter of refined petroleum products (see Exhibit 3). More significantly, the U.S. is now second only to Saudi Arabia as the world’s low-cost producer of ethane, a natural gas liquid that is the primary “building block” for the many intermediate chemicals, plastics, and resins used to manufacturer thousands of consumer products. Natural gas prices in the U.S. are one-fifth of the cost in Western Europe and one-eighth of the cost in China. The economic implications for U.S.-based energy producers, the petrochemical industry, utilities, and industrial manufacturers are enormous. Energy Is the New Driver of U.S. Engineering and Construction The benefits of increased domestic energy production extend well beyond the U.S. oil and gas industry and are having an immediate positive impact on U.S. heavy industry, power generation, transportation, and consumer product manufacturing. These activities are being funded by private-sector investment and are having significant economic impact on a growing number of regions throughout the U.S. This privatesector-funded activity will be the lead driver of growth in U.S. engineering and construction activity for the next several years. The following are a few relevant facts to consider: • The U.S. has more than 100 years of proven natural gas reserves. The amount of reserves continues to grow each year. Much of these reserves are in unconventional shale plays in parts of the country that lack exploration and production infrastructure. • There is a massive build-out of oil and gas infrastructure under way, including production wells, gathering pipelines, gas process facilities, takeaway pipelines, compressor stations, transmission pipelines, fractionation plants, and downstream processing and refinery facilities. • U.S. consumption of liquid petroleum products is projected to remain fairly constant over the next decade, according to the U.S. Energy Information Agency and PIRA Energy Group. • The U.S. is on pace to achieve near energy independence as early as 2020. By then, any shortfall in crude oil consumption will be sourced from Canada or Mexico. • Over the past seven years, the U.S. has gone from being a high-cost producer to the world’s low-cost producer of natural gas liquids (NGLs). The U.S. is both a consumer and exporter of NGLs and refined petroleum products. • NGLs are the primary feedstock in petrochemical manufacturing. NGLs and electricity account for as much as 80 percent of the total input cost. • There are approximately 4,700 major industrial capital and maintenance projects under way in 2013, totaling $285 billion. Some $55 billion of these projects are located in Texas and Louisiana. • Natural gas (methane) is a low-cost fuel source for power A Case for Optimism Continued from page 9 Adhesives Carpeting Cosmetics Fertilizers Methane Refined Products: • Gasoline • Kerosine • Diesel • Heating Oil Propane Butane Naptha Propane Butane Pentane Paints Fabrics Plastics Exhibit 3 Petrochemical Value Chain Plastics and Resins Intermediates Crude Oil Natural Gas Building Blocks Rising Production Declining Imports Low-cost Producer Net Exporter
PCCA Journal|2nd Quarter 2013 11 generation and has fewer emissions than coal. Natural gas is forecast to account for 80 percent of all added generating capacity through 2035. • The majority of the 12 U.S.-based LNG import terminals are idle due to abundant domestic supply. Operators of these terminals are seeking to convert these facilities to handle export of LNG and refined products. • There is currently no global market for natural gas, and U.S. exports of LNG are restricted to re-export of imported LNG—only at three facilities in Texas and Louisiana. New export terminal permits have been filed in the Northeast and Pacific Northwest. • Global demand for energy outside the U.S. will grow by 33 percent through 2035. • Worldwide demand for electricity will increase by 70 percent by 2035. • U.S. coal exports have grown by more than 100 percent in the previous three years as European and Asian demand continues to rise. There are currently nine new export facilities planned in the continental U.S. The implications of these energy-related trends for the U.S. engineering and construction industry are significant. Design firms, pipeline contractors, and multitrade industrial firms are experiencing tremendous demand for their services. Many U.S. and Canadian pipeline and industrial firms are growing as much as 50 percent per year. Already there is a growing level of concern regarding how to address shortages of skilled labor in both Western Canada and the U.S. Gulf region. Opportunities for North American Design and Construction Firms Growth opportunities for North American engineering and construction firms extend well beyond the oil and gas and downstream refinery markets. Consider the strategic and business development implications of the following trends and scenarios: Trend 1: Unprecedented capital investment in industrial infrastructure Five ethane plants totaling $35 billion of construction are slated for the Texas Gulf Coast. These plants alone will consume an extraordinary amount of open-shop industrial trade labor, raising the following questions: • What are the implications to owners with additional projects in development, in respect to securing available labor and controlling costs? Continued on page 12
PCCA Journal|2nd Quarter 2013 12 • Will wage inflation due to skilled labor shortages along the Gulf Coast pull open-shop labor away from Western Canada and other parts of the U.S.? • Are there opportunities for self-performing union firms to offer compelling value propositions in open-shop markets due to having negotiated wage rates and the ability to scale? • What do Canadian owners do to source qualified skilled labor to projects in the oil sands if U.S. labor supply is tight? Trend 2: Current and potential revitalization of stagnant or declining regional economies In addition to Texas and Oklahoma, much of the new unconventional oil and gas production is taking place in regions of the country where there is limited infrastructure. The regions include the Bakken Shale play in North Dakota and Montana, Utica Shale in Ohio, and Marcellus Shale in Pennsylvania. Questions to consider include: • In addition to upstream and midstream energy construction (pipelines, stations, and processing plants), what are the civil, residential, and commercial construction opportunities for housing, retail, education, and civil infrastructure in these markets? • North Dakota’s population is growing for the first time in decades. What about population centers in North Central Pennsylvania and Western New York, such as Elmira, Corning, Binghamton, Scranton, and Wilkes-Barre? These declining industrial towns are being revitalized based on a new energy-based economy. Trend 3: The transition of North America toward energy independence North America is moving rapidly toward energy independence, and the U.S. may soon become the largest producer of liquid petroleum in the world and a net exporter of LNG and NGLs. The advantages of lowcost electricity and petrochemical feedstocks are drawing petrochemical, chemical, and industrial manufacturing back to the U.S. Consider the following: • How likely are these predictions of a major U.S. manufacturing renaissance to come true, and what is the implication for U.S. industrial construction for the next decade? • Much of the oil and gas production is taking place in the Upper Plains and Midwestern regions that are traditional strongholds of middle-skill union labor. Is this an opportunity for these industrial communities and labor organizations to reverse years of decline through proactive measures to capitalize on these trends? • Other than the Gulf Coast, where will industrial manufacturers, such as BASF, Dow, Dupont, General Electric, and Air Products, invest? • How will the transition by the U.S. market from a net importer of energy to a net exporter of energy affect global trade and national defense priorities? Trend 4: A sustainable competitive advantage for U.S. manufacturing China, India, and other large population countries with expanding economies and rising middle-class populations have tremendous demand for electricity and energy (see Exhibit 4). North America has an abundance of coal, cheap and cleaner-burning natural gas, and major cost advantages over China and India, which have neither asset. • How will the balance of trade manufacturing output be affected by this new reality? • Will U.S. coal-fired power plants be decommissioned or converted to natural gas faster than current predictions? What are the implications for design and construction of simple and combined cycle power generation and associated transmission and substation construction? • What is the impact overall for the growth of renewal generation from wind, solar, and biomass, with U.S. carbon emissions declining due to energy conservation initiatives A Case for Optimism Continued from page 11 Exhibit 4 Global Energy and Electricity Demand Growth Through 2035 Source: International Energy Agency, December 2012 +70% +30% Electricity Demand Energy Demand Relative electricity growth
PCCA Journal|2nd Quarter 2013 13 FS3, Inc. would like to say thank you to PCCA members who have supported us and to the associates shown below who have worked with us these past 10 years! We couldn’t have done it without you!!! Celebrating Years CORPORATE OFFICE: 9030 64th Street NW - ANNANDALE, MN 55302 | 320-274-7223 | WWW.FS3INC.BIZ Now serving you from three locations: Minnesota, Missouri and Texas!!! and the growth of natural gas as a primary fuel source? Trend 5: Private investment in U.S. transportation and port infrastructure Oil transportation via truck and rail is scaling rapidly. Oil and petroleum transported by rail grew 46 percent in 2012. Nine new coal export facilities are planned in the U.S., and five existing plants are undergoing expansion. There are at least five new export terminals in the permitting process, two newly approved LNG storage terminals in Mississippi, and several more on the horizon. The total investment in intermodal transportation and port infrastructure totals in the tens of billions of dollars. • How can design and construction firms that lack intermodal transportation, marine, and port infrastructure experience participate in these markets? Conclusion The previous recession was severe, and the recovery for the engineering and construction industry has been slow. However, the potential for a sustained recovery led by privatesector investment in energy infrastructure is becoming more of a reality each month. The idea that North American energy independence is achievable has major geopolitical implications for our country. The fact that the U.S. is on the verge of being a net exporter of oil and gas to energy-dependent and fast-growing developing countries makes U.S. industry globally competitive and could very well be the solution to our national debt, trade deficit, and employment challenges. Knowing that the U.S. engineering and construction firms are primary beneficiaries of these emerging trends is reason to be optimistic that a strong recovery for our industry is under way. W. Chris Daum is a senior managing director at FMI Capital Advisors, Inc. He can be reached at (919) 785-9264 or cdaum@fminet.com. Reprinted with permission from FMI Corporation, (919) 7878400. For more information, visit www.fminet.com or call Sarah Avallone at (919) 785-9221.
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PCCA Journal|2nd Quarter 2013 15 Whether you are an X-gen or a Baby Boomer, chances are the way you communicate has changed over the last few years. From party-lines to “pih” (party is here), our ability to keep in touch has evolved by leaps and bounds. And yet, our ability to communicate effectively has been compromised. This article is a synopsis of the program presented at the 2013 PCCA Convention and is designed to help leaders reclaim and improve the basic human skill of communication. Communication is not about technology, but about humanology—our ability to connect at a deeper level, be understood, and to understand. There is a great time and place for text messages, e-mails, and tweets: confirming appointments, getting a quick answer to a specific question, sharing an announcement, and keeping in contact with your kids. But when used to replace meaningful conversations, technology falls short of producing the results you want. When these tools are misused, relationships break down, intent is misunderstood, and worst of all, the emotional connection is lost. I was speaking to one of your industry leaders last week, and he commented, “For an organization comprised of members who specialize in communication, we probably do the worst job of any in our own communications.” Perhaps that statement is a bit too generalized, but I do know that in companies where there is a large gap between the educational level of employees, ages of employees, and lifestyles of employees, communication can be even more difficult. As you continue to read this article, think about how ineffective communication has impacted your company—schedules not met, confusion, apathy, anger, and most importantly, a decrease in morale and productivity. And think about how effective communication has improved the quality of work and relationships. Consider these tips and techniques to grow your business (and bring more meaning to your relationships). The place to begin is to identify the purpose of a conversation. Is it to focus on you and your needs, or is it to focus on others? In the first case, our intention is to give our opinion, correct someone, or prove ourselves right. When we focus on the other person, we have a greater likelihood of helping them feel good about themselves and letting them know we care about them and their performance. Before you worry that I’m going to suggest that you and your team circle up every morning for a rendition of Kumbaya, let me put your mind at ease. As a leader, you have a responsibility to make sure that your teams know what is expected, perform at a high level, make safety a number-one priority, and do the job you have hired them to do. To do this most effectively, you are better served being candid, specific about expectations, and clear about consequences. And to get the most productive efforts from your employees, you must treat them with respect and kindness. As you review these tips, you might consider making a note of one or two to focus on during the next few days. If you don’t think any apply to you, then you are an excellent communicator or you suffer from the Ostrich effect (your head is buried in the sand!). Another suggestion is to share this article with your colleagues and ask them to convey your strengths and challenges. Often we are simply not aware of our communication shortcomings. Because you are the leader and chances are your next generation of leaders is in your troops now, you have the opportunity to demonstrate and Beyond a Text and a Tweet Putting the Conversation Back into Communication By Dr. Shirley Garrett Continued on page 16 Dr. Shirl at the 2013 PCCA Convention
PCCA Journal|2nd Quarter 2013 16 teach effective communication. After all, your team leaders, project managers, and even your frontline folks engage with your customers, vendors, and potential clients. The following tactics can help you and the people you lead move from being poor or average communicators to excellent communicators. And when that happens, you will see an increase in your bottom line—regardless of the economy! Avoid Conversation Killers We’ll begin with these five very common conversation (and trust) killers: 1. Poor eye contact. In a “heads-down” world, maintaining good eye contact is more important than ever. As a leader, it is an effective way to teach through example. Let’s face it, a lot of younger workers have not been taught to make and hold attention through eye contact. Be the role model. On a side note, it doesn’t hurt to teach others how to shake hands in a confident way, either. 2. Focusing on the negative. Research tells us that work performance is negatively impacted when we focus on negative behavior. In fact, to build the self-esteem and self-efficacy of your workforce, it is proven that the ratio, 2:1 applies. That means making two positive comments for each negative comment. More about this later. 3. Hijacking conversations with your opinion, your experiences, and your “wisdom.” When we interrupt someone to interject our thoughts, the message they hear is, “Your thoughts and opinions don’t really matter. Listen to how smart (experienced, wise, clever, etc.) I am.” 4. Telling tasteless jokes. Okay, guys, I was a physical education major in college, and my classmates tended to be jocks. Once I got over the blushing stage, I learned to accept it as belonging to the gang. As I matured, I began to recognize the insensitivity, prejudice, and ignorance that tasteless jokes reflect. At the PCCA convention, I asked the audience if they were ever offended or felt awkward about this issue. The younger women in the audience hesitantly responded that they often felt ill-at-ease about some of the jokes and stories they were told. Just remember, what was funny around your dinner table at home will not always translate as funny to the general public. And, most importantly, tasteless humor and stories leave a long trail when shared through email. 5. Throwing people under the bus. We live in a world of “it’s not my fault,” and we easily can find a target to “throw under the bus” about why something expected or promised did not happen. Great leaders know that they make mistakes, either directly or indirectly. Most mistakes are not intentional and provide great learning opportunities. By owning up to your own shortcomings, making amends when necessary, doing what you said you were going to do, and delivering what you promised, you demonstrate integrity to your people, your customers, your vendors, and your family. And most importantly, you model behaviors that allow your employees to raise their hand when they have a problem or make a mistake. Desirable Communication Habits Now, let’s focus on some positive behaviors that can result in stronger communication. Following the 2:1 ratio, we’ll look at ten of the most desirable communication habits. 1. Get off your point of view and look at the world from a new viewing point! We all have points of view (POV). They come from a variety of sources including our upbringing, religion, education, friends, and what we choose to watch on television or read. Our POV can be about anything in the world—even how others should raise their children. Think of your point of view like this. Out of all the information there is to know in the world about the subject you are highly opinionated about, how much do you really know? More than likely, not much. The suggestion is that the next time you find yourself bowing up and defending your point of view, take a breath and a moment to look at the situation from a new viewing point. It will open your awareness and increase your knowledge. 2. Judge less, help more. Check in with yourself on a regular basis to see how often you are judging others—from the kid covered with tattoos, to the homeless on the side of the street, to the competitor who secured the project. When appropriate, extend a helping hand. This is a great way to learn about humanity. 3. Try making a point without making an enemy. 4. Get in touch with your wise mind. The most primitive part of our brain is the amygdale. It is the part that kicks into action when we feel endangered (either real or perceived). It immediately activates hormones that produce higher levels of energy. This served our ancestors well as they ran from or fought the saber-toothed tiger. For our modern day life, this phenomenon creates a highly emotional response to life events. The interesting thing about the amygdale is that it overrides the larger frontal cortex (the logical, strategic thinking part of the brain). We all have cringing memories when we acted and spoke from Beyond a Text and a Tweet Continued from page 15
PCCA Journal|2nd Quarter 2013 17 our emotional brain. When you feel yourself becoming emotionally charged, take a moment and take a break. Breathe. And then breathe some more. Access your wise mind—the conjunction of the emotional and the logical brain. 5. Know that you can be right without being righteous, that you can disagree without being disagreeable, and that you can debate without being debilitating. 6. Practice the Tetris Effect. The computer game, Tetris, can be highly addictive. After many hours at the computer, players report that when they walk away from the keyboard, they see the world in shapes and patterns and mentally rearrange a room to “stack up” as in a Tetris game. In other words, they see what they have been focusing on. If you begin to focus more on positive behaviors, you will see positive behaviors. Give it a shot; it’s well worth the try. 7. Take action and have the difficult conversations. And more importantly, take time to prepare. We often avoid these much-needed conversations, and the results are a continuation of behaviors that do not serve our company well. By having a candid (and kind) conversation, you can save an employee, save a job, save your relationships, and especially in your industry, save a life. 8. Turn stress I into stress II for your employees. Stress I is the initial, often paralyzing response. Stress II does not alleviate the issue, but at this level, adapting and coping skills kick in. Life happens, and when things go awry, especially if the consequences are crucial, immediately take the helm and infuse the moment with a sense of calm. You may not be able to solve the problem or undo what has been done, but you can help your people avoid panic, conjecture, and anxiety. 9. Prepare for critical times. Your industry is a tough one. To further elaborate on tip 8, prepare for times when every part of your team is impacted. Be the voice of reason— and the voice of hope. This is a skill that great leaders prepare for in advance. Add this tip from Dr. Vincent Covello, of the Center for Risk Communication, to your communication. The formula is CCO: • C for compassion. The first thing people need to know is that you care. • C for confidence. Use words like, “I’m confident that....” • O for optimism. Let the listeners know that in spite of this situation, you are optimistic about the future and they can be, too. 10. Be the relationship champion. Let’s face it. We find ourselves dealing with strife and conflict at work, at home, and even in our places of worship. Sometimes relationships take a nosedive—other times they simply fizzle out. Look around. Is there a faltering relationship in your life? Is stubbornness or the need to be right overriding your need to be happy? Can you find the conversation “olive branch” and reach out with “other focus” to clear the slate? If not you, then who? So, there you have it in a nutshell—or should I say in 15 nutshells? I encourage you to take an honest look at your communication habits. To ask yourself some hard questions. To check in with your trusted advisors. To step away from the computer, put away your smart phone, leave your office, walk down the hall or drive to the jobsite, and put the conversation back into communication. You will be glad you did, and so will the people you work and live with. To receive a “Guideline for Tough Conversations,” contact Shirley at DrShirl@shirleygarrett.com. Or engage in a conversation by phoning (770) 823-8668. 1 2 3 FT-C70 Anchor Points 50 TRADITION + INNOVATION 1963 - 2013 years FT-C70 AC-34RX This patented tower can be installed using several different base plates or clamps including our new AC-R series manway clamps Uni-Lite™ Carbon Fiber Tower lightweight, elevated three person tie off that’s ideal for substation work. It is rated for a 900 lbs MAF www.pelsue.com • 800-525-8460 or 303-936-7432 • sales@pelsue.com
PCCA Journal|2nd Quarter 2013 19 The Power & Communication Contractors Association recently held its 68th annual convention in Naples, Fla., where 332 PCCA members and their families soaked up industry education and training, handled association business, and enjoyed the company of friends and colleagues from all around the country. Held at the casually spectacular Naples Beach Hotel & Golf Club, the convention featured a keynote address by former U.S. Attorney General John Ashcroft, the always-popular Construction Industry Roundtable, a detailed and upbeat utility construction industry overview, an uplifting Prayer Breakfast, and a bustling Associates Exhibit. Education is always the centerpiece of PCCA meetings, and outgoing President Tommy Muse was keen to uphold that tradition. He enlisted fellow Carrollton, Ga., native Dr. Shirley Garrett to hold a session on effective communication, and her common-sense approach and heartfelt wisdom were big hits in the crowded session room. (See her article on page 15 to learn more.) Muse also tapped FMI’s Chris Daum to share his wealth of industry knowledge and quirky sense of humor with PCCA members who are always eager to hear his short- and long-term views on the markets in which they work. Daum, Sr. Managing Director of FMI Capital Advisors Inc., delighted the PCCA crowd with favorable outlooks for the power and telecom markets as well as for the overall U.S. economy. (Turn to page 7 for more of Daum’s insights.) PCCA members filled two tiers of seats for the biannual PCCA Construction Industry Roundtable. Tom Harter, Engineering Associates, Inc., provided a report from the American Communications Engineers. His outlook was largely positive, though he noted that there is a lot of uncertainty in the industry. He is very optimistic about the rural fiber-to-the-home market, saying that there should be “tons of work out there when everything lines up.” Jerrod Henschel of Michels and John Fluharty of Mears updated attendees on PCCA’s efforts to ensure that wage classifications on prevailing wage projects match up with the work actually being performed on those projects, as well as an outreach to the Department of Transportation about hours-of-service rules during non-official emergencies. The roundtable concluded with an information-packed report from economist Mark Bridgers of the Continuum Advisory Group, who added to the positive tone but also noted several factors to be wary of, including poorly performing politicians, volatility caused by implementation of the new health care law, and a regulatory environment that makes it difficult for utilities to implement long-term strategies. Former Attorney General Ashcroft devoted much of his keynote address to the tragic events of September 11, 2001, his actions on that day, and his role as the nation’s top law enforcement official following the attacks. He was on a plane to Milwaukee, Wis., when the first World Trade Center tower 2013 PCCA Convention: Fun-Filled, Information-Packed Continued on page 20 5President Tommy Muse welcomes PCCA members to Naples and the 68th Annual PCCA Convention. 3Enjoying a light moment during the Board of Directors meeting are (from left) Tim Killoren, Todd Myers, Mike Ancell, and Ed Campbell.
PCCA Journal|2nd Quarter 2013 20 was hit, and they immediately landed, refueled, and headed back to Washington, D.C. Ashcroft told the people on his plane, “The world will never be the same.” He said that the terrorists sought to “take the heart out of America,” but the exact opposite happened because, while Americans may seem hopelessly divided, “we are united at the core.” And that was never more evident than in our unified response following 9/11. PCCA Past President Herb Fluharty hosted the association’s 41st Annual Prayer Breakfast and, along with Executive Vice President Tim Wagner, honored Winston Weaver, Jr., of Rockingham Construction, Harrisonburg, Va., for decades of dedication to PCCA and the Prayer Breakfast. The breakfast also featured Grammy Award-winning record producer Ken Mansfield, who shared the story of his long and winding road through the music industry and his salvation through religion. During the convention, PCCA thanked outgoing President Muse for overseeing one of the most successful years in association history, as well as two outstanding meetings. Association members also welcomed new President Glen Amerine, of Amerine Utilities Construction, Great Bend, Kans., and three new Board members: Don Stephens, Tjader & Highstrom, New Richmond, Wis.; Chase Lapcinski, Push, Inc., Rice Lake, Wis.; and Marty Ferguson, FS3, Inc., Annandale, Minn. PCCA’s Leadership Development Committee (formerly the Young Construction Professionals), chaired by Heath Sellenriek, Sellenriek Construction, Jonesburg, Mo., met prior to the convention to map the next steps for developing the next tier of industry leaders. (See “Final Word” on page 58 for more information.) During the convention, FMI’s Andy Patron led a YCP session on negotiating skills and conflict resolution. Participants discussed why conflict in the construction industry is predictable and that negotiating is a process, not an event. They explored the differences between competitive and cooperative negotiations and the challenges inherent in both types. For the 13th Annual PCCA Associates Exhibit & Breakfast, members met in the hotel’s fabulous Everglades Room, overlooking the Gulf of Mexico. Contractors spent their morning perusing the exhibits, asking questions of their manufacturer and supplier colleagues, and discussing jobsite challenges. As always, the PCCA Auction was a raucous event managed brilliantly by Michael Whitebread and Charles Cook of J.J. Kane Auctioneers. The auction raises funds for PCCA programs and services, and the association thanks all those who donated items, bid on items, and otherwise contributed to the good times had by all. PCCA members also enjoyed many fun times in Naples, knocking golf balls around, exploring the Everglades and the Gulf coast, and enjoying the company of colleagues who share many of the same challenges and concerns in their businesses. PCCA’s next event is the 2013 Mid-Year Meeting, July 10-13 at The Broadmoor in Colorado Springs, Colo. 2013 PCCA Convention Continued from page 19 6PCCA’s new first couple: President Glen Amerine and his wife, Pat 6Past President Kevin Mason and Board member Heath Sellenriek get a kick out of the interactive exercise during the negotiating session.
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PCCA Journal|2nd Quarter 2013 22 Images of PCCA 2013 6Former U.S. Attorney General and convention keynoter John Ashcroft shares a photo op with outgoing PCCA President Tommy Muse and his family. From left, Tommy Jr., Cindy, Ashcroft, Tommy Sr., Brenda, Logan, and Tyler.
PCCA Journal|2nd Quarter 2013 23 4New PCCA President Glen Amerine explains his goals for the association in the coming year at the convention’s closing night party. 6PCCA recognized Tommy and Brenda Muse for presiding over one of the most successful years in association history and for planning two outstanding meetings that were filled with fun and education.
PCCA Journal|2nd Quarter 2013 24 5During the Annual Prayer Breakfast, record producer Ken Mansfield explains how his life spiraled downward after he had achieved remarkable success working with the Beatles and how his relationship with God enabled his recovery. 4Always forthright, funny, and very well informed, FMI’s Chris Daum delivers a hefty dose of optimism during his Utility Construction Industry Overview session.
PCCA Journal|2nd Quarter 2013 25 5 While Dr. Shirley Garrett’s educational session was a whole lot of fun, her message on communicating effectively is crucial to the success of businesses large and small. 4This year’s Prayer Breakfast host Herb Fluharty helps honor Winston Weaver, Jr., who along with his father, Winston Sr., championed the breakfast and made it an integral part of all PCCA conventions. All of PCCA’s photos from the 2013 convention are available on the members-only section of www.pccaweb.org. If you need help accessing this section, contact Mike Ancell at (703) 2127734 or mancell@pccaweb.org.
PCCA Journal|2nd Quarter 2013 26 4PCCA contractors appreciate the efforts of the associate members, both on the job and in the association. 4Every year, the exhibit provides a relaxing venue for PCCA members to discuss jobsite challenges and learn more about each other’s businesses. 3New PCCA Board member Chase Lapcinski, Push Inc., listens intently to Vermeer’s Jerry Beyer. 5Ed Campbell of Henkels & McCoy gets hands-on under the supervision on FS3’s Marty and Laurie Ferguson. 3ElectriCom’s Mike Charles imparts some industry wisdom on Troy Gipson of Vermeer Midwest. 3Barrett Mills (left), Sumitomo Electric Lightwave, and Bob Dorfman, American Wire Group, talk fiber during the exhibit. 5Tommy Muse, Aubrey Silvey Enterprises, gets the lowdown from Tom Fredericks of American Polywater. Annual Associates Exhibit & Breakfast 4 You’d be hard-pressed to find anyone who enjoyed the exhibit more than (from left) Cameron, Carder, and Addy Kelly.
PCCA Journal|2nd Quarter 2013 27 5From left, Ollie and Linda Klinger, Underground Construction magazine, and Ron Tagliapietra, Michels, are amazed by the bidding on the Bacon of the Month Club membership in the Silent Auction. 5“I paid how much for what?” New PCCA President-Elect Steve Sellenriek, Sellenriek Construction, checks out the results of the Silent Auction. 4Kiana Tom celebrates surviving another round of heads or tails. 6Always dressed for the occasion, auctioneer Michael Whitebread keeps the hectic Live Auction humming along smoothly. 3Lyn Thulin, Michels, (left) mixes it up with David Kolanek and James Martin of Creek Enterprise. 6Jeremy Smith, Amerine Utilities Construction, accepts the headsor-tails bounty from PCCA Executive Vice President Tim Wagner. Annual Auction & Reception 5DeeDee Mix maps her bidding strategy before the Live Auction: golf trip for Todd, no; jewelry for DeeDee, yes!
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