Executive Council Focuses on Expanding BAC Market Share
December 2002
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| Ted Kennedy, Chairman of BE&K, provides insight into the non-union competition. |
The outlook for employment, identifying new work opportunities for members, and organizing were the focus of the October meeting of the BAC Executive Council. Industry experts from F.W. Dodge reported on their just-released construction forecast for 2003. “We’re projecting little change in construction activity next year,” said Kim Kennedy, Manager of Forecasting for Dodge Analytics. On the negative side, the economy has just gone through its first recession in ten years, corporate profits are down, there is still a high level of uncertainty about the stock market, and both unemployment and consumer debt are on the rise. These negatives are offset somewhat by continued low interest rates, low inflation, and a fairly resilient consumer. Based on all of these factors, Dodge is forecasting a slight decline in the overall value of contracts for new construction by one percent in 2003.
Dodge also reported on the results of a market share study of the masonry industry. The study highlighted BAC’s strengths in several key markets, as well as opportunities for growth. “The study showed that in key markets, including the Northeast and the Midwest, we are the dominant force in the masonry industry,” says BAC President John J. Flynn. “Our opportunity in these markets is to expand masonry’s share of the overall construc-tion market. In other areas, such as the South, a primary market for masonry construction, our challenge is to increase our share of existing masonry work. One way to do that is by branching out into market segments where BAC does not have a strong presence, such as residential construction.”
Know Your Competition
Following up on recommendations from Local officers to obtain information from all players in the industry, Ted Kennedy, Chairman of BE&K and a former President of the Associated Builders and Contractors, brought the non-union perspective to the discussion. “Don’t underestimate your competition,” was the message from Kennedy. Pointing to the large share of work performed by nonunion contractors in the South, Kennedy said, “Don’t think all non-union contractors are bad. There must be some good non-union contractors [in the South] or they wouldn’t be doing the majority of the work.”
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Kennedy told the Council that non-union contractors are facing the same challenges as union contractors in terms of attracting and retaining qualified workers. Some non-union contractors, such as his company, are responding to this challenge by offering training to their workers, as well as teaching English as a second language to workers and their families. His firm is also teaching Spanish to foremen and identifying ways to recruit and retain more women in the trades. Kennedy emphasized that one of the biggest advantages BAC has over non-union contractors is its apprenticeship and training system.
Residential Organizing
John Martini, the Roofers’ Executive Vice President and Director of Organizing, spoke frankly about the challenges and rewards of organizing the residential market. “It’s a tough market to organize,” said Martini, “but the potential for the union is great.”
Martini’s message, along with the high dollar volume of masonry residential work reported by Dodge, create a strong argument for focusing greater attention on this segment of the masonry industry.
The Council also addressed other issues facing the Union and industry. David Christopherson, MPP of Hamilton West, Ontario, discussed the importance of political involvement by U.S. and Canadian members. “Do you think a banker wakes up on Election Day and says ‘maybe I don’t feel like voting today’? Of course not,” said Christopherson. “If voting is a priority for a banker, it should be a priority for a union member as well.”
In addition, Dr. Paul Terpeluk, Director of Safety, Health and Medical Claims Management for ULLICO, reported on the reasons for sharp increases in workers’ compensation costs, and offered alternatives for addressing this industry challenge.
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