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Planning the Future for AGC Texas Building Branch

AGC TBB Chairman Paul Waldrop paid tribute to Mike Chatron, President, who will be retiring at the end of 2018. Waldrop thanked him for his contributions to the construction industry during his 25 years of service to AGC TBB. Prior to briefing the attendees on the upcoming AGC TBB Strategic Planning Session, Pat Kiley, FMI Corporation, also recognized Chatron’s service and thanked him for his dedication.

Kiley elaborated on TBB leading a strategic planning committee in order to focus on the future of the organization and finding the next leader. “Every organization looks back at its foundation and the good leaders to see how it will move forward. We need to focus on our history, what we have done, what we have accomplished, and what we have learned in order to develop a good strategy for the future.” This session served as an open forum to discuss strengths and weaknesses of the organization and how it promotes, protects and defends AGC TBB’s core values.

The attendees recognized AGC TBB’s core values to be trust, a responsibility to uphold AGC’s reputation, and developing collectivism and collaboration between groups. As Chuck Greco, Linbeck Group LLC, stated, “We are effective in being the leader of key issues in the construction industry when it comes time to form a coalition during the legislative sessions.” Other leaders from AGC Chapters echoed the sentiments of forming coalitions between their members and corresponding representatives as well as upholding the initiatives of AGC TBB.

Kiley focused on what the industry and the organization will look like in the next five years, touching upon demographics, diversity, labor, the economy, the business climate, company profits, and the continued growth of chapters as they capture their markets and their revenue. Representative Paul Workman added that “the reason I am here as a legislator is because of TBB. When I became involved at TBB and legislative meetings, I realized that we were underrepresented or not represented at all. There were things going on in the legislature that we needed to be involved in. Because of the support from AGC and the members around the state, we were able to get elected. When you go back to your businesses and talk to your colleagues and other members, I hope that you can convince them that the association with others is an important factor in your business and an important factor in your life. Some of you someday need to be in this leadership position and do your part to make this industry better. I encourage the young people to be involved and active in your AGC chapters and TBB.”

Kiley mentioned that a survey will be distributed to AGC chapters and members to gather data in preparation of the strategic planning session. “This will help us create a vivid picture of what we want AGC TBB to look like in the future and develop and strategy for our strategic plan.” Any contributions members would like to make to the strategy plan should be sent to your chapter executive or to Pat Kiley directly.

Notes from Pat Kiley’s Presentation

Management is about optimizing what you’ve got on your plate today. Leadership is about finding the future, acquiring the resources to help you get to the vision of the future of the company.

Every organization that moves forward, looks backward first. What have we done? What have we accomplished? What have we learned?

Lessons we’ve learned:

  • We’ve gotten further with collaboration versus trying to win alone. Getting better at bringing in the industry

  • We accomplished things as a group that people didn’t think we could accomplish

Core Values of TBB:

  • We’re straight shooters and not going to play games

  • Trust

  • Responsibility to hold up the reputation of AGC locally, statewide and nationally.

  • Collectivism and collaboration between groups

What will happen to the economy in the next 5 years?

  • General consensus: upswing due to millennial spending increasing eventually in the economy. In Texas, it will be good because of good business climate and people still moving here.

  • Revenues for contractors will likely grow in 5 years. However cost of labor is going up and will affect margins.

  • Will the legislature be redder or bluer? Or more shades of red?

  • Polarization is going to grow.

  • Feelings on 3d printing – it’s real. Artificial intelligence is expanding.

  • Delivery systems emerging that are concerning: job order contractor,

  • Large amounts of data but no platform to share on.

  • Expansion of consequential damages, exposures to more risk in contracts.

What will be the impact on a change in leadership in companies: Huge- need to get the younger people up to speed. Baby boomer retirements are going to have to be filled by millennials. Over 50% of leadership in the construction company will transition in the next 5 years. This is applicable to associations as well- need to diversify.

Other issues that need to be addressed by the industry: growing membership and letting people know what we do. We need to show everyone outside of our industry how great it is and build the pride.

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