With more than $340 million in proposed construction projects for Providence County alone the economic outlook appears good for members of the Rhode Island Chapter of Associated General Contractors of America (RIAGC).
Tack on another $160 million for proposed projects in Kent County, $143 million for Washington County, and $14 million each for Bristol and Newport Counties and you have the makings of a potential boom for the organization and its more than 60 members.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
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“Business is definitely good for all of our members,” said Eric F. Anderson, executive director of RIAGC. “The last three years have been very strong for us.”
The Associated General Contractors is the nation’s oldest construction trade association, established in 1918, after a request by President Woodrow Wilson. According to AGC history, Wilson recognized the construction industry’s national importance and desired a partner with which the government could discuss the plan for the advancement of the nation.
Founded in 1923, the RIAGC is one of 101 chapters nationwide. It represents 15 local General Contractor members, as well as 45 associate members, including specialty subcontractors, material suppliers, road builders, insurance and bond producers, as well as representatives from the banking, computer software, accounting and legal professions.
“Our job is to continuously improve the safety and integrity of the industry while at the same time fostering the good will of the construction industry,” Anderson said.
And for its members, many of whom are commercial and industrial builders that primarily work with concrete and steel, the organization is a haven away from the bitter battle of Requests For Proposals (RFPs), and project bidding wars.
“The group presents us with the opportunity to network with out peer companies, be friendly and talk about issues,” said John McCoy, vice president of operations for the New England office of Gilbane Building Company. “It’s a United Nations of companies.”
McCoy said one of the organization’s greatest attributes is its training programs.
“Today the highest purpose of the Associated General Contractors is to educate; it provides a forum from bringing different voices together,” he said. “It’s a sounding board that brings different companies together as an industry.”
From programs aimed at grade school children, to a supervisory training program, and even an Online Institute that allows members to take construction management courses from anywhere, education has become a top priority for the group, on both the local and national levels.
“What we do is a number of education programs aimed at helping people in the trade move up into leadership roles,” Anderson said. “The courses are basically about the administrative aspects of the construction business – exposing people with hands-on experience to the way that the bidding and estimating are carried out.”
And while the education opportunities may be vast, Anderson said the in-dustry’s greatest problem, locally, regionally, and nationally today is finding a workforce.
“Right now the biggest problem we have is the shortage of qualified help at all levels,” Anderson said. “It can’t be solved overnight, it takes time to educate people in the field, and those outside of the field that there are career opportunities here. There are many career opportunities available in the construction industry for people with talent who want to apply themselves.”
In the past few years Anderson said the construction field has been bit by the technology bug, making things move faster, and giving clients a more interactive role.
“E-business is bringing about a lot of changes in the way that organizations are structured in this industry,” Anderson said. “Everything is happening faster. Electronic Commerce allows contractors to make good presentations to customers. You can even take pictures with a digital camera, put them in the computer and show them to the client the same day – giving the client a better handle for what they are buying.”
As with other industries, Anderson said, his members are worrying about a potential slowdown in the economy, but think they have enough work to keep them busy through the end of the year.
“People are concerned because this building boom has gone on and they figure it’s bound to take downturn,” he said. “When it slows, people get laid off and nobody likes that.”
Anderson said there is hope that the large number of public works projects may protect some of the state’s building companies, but he stressed it would only be some.
“The possibility of these projects starting before the economy turns would definitely take a few bumps out,” he said. “But it’s definitely not something the whole industry can depend on.”
