Status of Hispanic Workers in the DMV
I received this article by George Mason University from Rob Aird that is a few years old – during COVID. But it seems to tell the story about the construction workforce in our area. Here are some interesting facts about the DC and Maryland:

• Immigrants constitute 39 percent of the workforce (334,300 workers) in construction
• Most are laborers (29k), carpenters (21k), painters/paperhangers (13k) and then there are supervisors and construction managers.
• El Salvador is the top country of origin, followed by Guatemala, Honduras, and Mexico. 
• Eighty-eight percent identify as Hispanic. 
• More than half arrived in the US after 2000 and 27 percent are naturalized citizens. 

What can ASAMW do to help assimilate this integral part of our labor force into the industry?  Help provide insurance?  How about teaching basic business skills so they are profitable when they go into business?  Any other ideas? 

Report From AI Event

AI is here and it could have a great impact on how we as contractors do our work. At the AI Session on Sept. 10^th we delved into basics like: what is AI and what to ask our AI software provider when making a decision.  We also learned about actual challenges AI software solves and real use cases from Martin Press at Press Mechanical who is already utilizing some of these cutting-edge technologies.  For example:

• Their estimators and project managers are using Pelles.ai to get the information they need from the documents in seconds instead of hours and automatically create RFIs, emails, RFPs and more.
• Their financing department is using Siteline to streamline billing and track payments, and it can also help subs automate the collection of lower tier lien waivers..

• Their contract review team is using Document Crunch an AI-powered tool that helps contractors identify and manage contractual risks. It simplifies complex legal language, enabling teams to better understand and proactively manage their obligations.

If you would like an audio recording of this session, please reply to this email.


Economy

• Wolf Street provides a good glimpse of national construction as of July in this article. Census Bureau data showed “construction spending ticked up to a record of $199 billion in July, up by 7.5% from a year ago, driven by record spending in both residential and nonresidential construction. The eyepopping boom of [manufacturing plants, up] 230% since early 2021 was driven by the investments in semiconductor plants, EV plants, battery plants, and many other high-value products.”  This is evident in the DMV. 

• The Federal Reserve Beige Book reports “commercial real estate activity continued to increase slightly in recent weeks. Retail leasing picked up, but sales remained flat. New construction continued for pad sites, such as gas stations and fast food, and for repurposing of vacant retail buildings. Office space continued to see rightsizing with more investments going towards luxurious aesthetics to create a "country club feel," as one Virginia agent noted. Industrial remained strong with some projects being limited by power and site availability. Commercial investors were increasingly struggling with loans maturing and were declining replacement rates and potential new buyers were sitting on the sidelines.”
• Working Hours – How many hours do you think your people work per year?  The average in the US was 1757 in 2017.  What is it after COVID?  Also, we average 20 days off, which is less than other similar economies.  You and your HR people should check out this article from Our World in Data when assessing working conditions for your staff.

Where do you Stand on 1099s and Wage Theft?
We are bringing in the people who know what they are talking about, including Liam Coakley, with CJ Coakley and Kenny Mallick with Mallick Mechanical to get their suggestions on assessing the risk of using 1099 employees.  Other speakers are Bridget McCarthy (BMAC), Kate Dugan (Rockspring) and Cindy Athey (Precision Wall).  Julie Reddig with Lerch Early will monitor this open discussion about the risks involved and how to protect yourself and your company. Click here for more information about the event we are holding at Lerch, Early and Brewer in Bethesda on Sept. 25^th .

Remember October 1 - The Scheduling Summit
Scheduling challenges will be discussed at the upcoming ASAMW event on October 1, 2024, Building Success Together: A Summit for General Contractors & Subcontractors at the Bethesda North Marriott.  What are your thoughts?  We expect to see all the GC Partners as well as members who wish to discuss strategies to accomplish fairness. Click here for more information and to register. 

Set Asides
Does your company rely on SBA Set Asides for work?  If so, you will want to be aware of the latest rules that will affect recertification.  You and /or your attorney should read this Piliero Mazza article about current requirements to certify – especially if you have gone through a merger or acquisition.   

Fall Golf Tournament
Thank you to all who joined us for a fun day of golf at the Stonewall Golf Club for our Annual Fall Tournament. Photos from the day can be found on the website www.asamw.org, under the photos header.

Congratulations to the Winners:

First Place:  Benchmark Utility - Darren Shaw, Jeff Ziemer, Bobby Cady, Curtis Pecherek

Second Place: Alliant Insurance -  Dave Saul, Mike Hess, Reed Van Orsdel, Matt Baumgardner

Third Place:  Lanigan Ryan - Terry Hann, Kevin Leasure, Dan Falls, Brian Pollack

Longest Drive: Men - Reed Van Orsdel; Women - Tara Minner

Closest to the pin:  Men - Mike Verdi; Women - Hayley Hughes

Thanks to all sponsors for making this a wonderful day of golf.

Goals for 2024-2025 

The ASAMW Board of Directors welcomes your comments on the following goals it has established for this year, ending on June 30, 2025:

ADVOCACY – Initiate legislation to address prompt and proper payment of change orders in DC.

GC PARTNERS - Develop a scope check list package for each trade and share with GC Partners and meet with at least 50% of the GC Partners to discuss expectations.

MEMBERSHIP - Reach a membership number of 180 subcontractors with 95% retention by June 2025.

EDUCATION/EVENTS - Hold a series of educational events on subcontractor scope development, Critical Path Method (CPM) schedule, as well as change order documentation.