AGC of Utah 2014 Convention Recap
The 92nd annual meeting of the Utah Chapter of the Associated General Contractors of America opened in Salt Lake City Jan. 23 with the theme of “Building Knowledge.”
But “building optimism” could have been just as appropriate, with a positive buzz among attendees about work backlogs and a forecast by state economists for continued slow but steady growth in 2014.
During the opening luncheon on Jan. 23, attendees heard from a panel of economic experts. Repeating the format from last year’s convention, speakers included Natali Gochnour, chief economist and senior adviser to the Salt Lake City Chamber of Commerce; Jeff Edwards, president and CEO for the Economic Development Corp. of Utah; and Spencer Eccles, executive director for the Governor’s Office of Economic Development.
Gochnour noted that after previous years of growth in single and multifamily housing, the numbers of new permits has leveled off but the value of permits issued statewide has remained high.
“There is opportunity out there, and things are feeling better, but maybe not quite where it ought to be yet,” Gochnour told AGC members and guests. “I love our state’s fiscal discipline, and you can be assured the state and local governments are being smart with your money.”
Gochnour expressed less confidence in the federal government saying it is “paralysis and partisan fighting” in Washington D.C. that have kept the economy from being better than it is.
“I think 2014 will be better than 2013, and things are lined up for this economy to take some big steps, but I’m worried about the Feds continuing to argue about the debt ceiling and more dumb cuts like the sequestration instead of smart cuts,” she said.
Edwards reviewed the success of several recent large construction projects and current projects that will increase jobs in the state, including new manufacturing plants for Petzl mountaineering equipment and Ottobock, a maker of artificial and robotic limbs.
He noted issues related to quality of life are important to companies considering moving their operations to Utah, and the continuing poor air quality along the Wasatch Front (often among the worst in the nation during the winter months according to monitors at the Environmental Protection Agency), is having an impact.
“It is time to stop making excuses for this. Our geography is what it is, but we need to see what we can do to clean our air,” he said.
He encouraged AGC members to give input to policymakers regarding what the industry can reasonably do to cut vehicle emissions, make buildings more energy efficient as well as purchase newer, more-efficient fleet vehicles or convert vehicles to run on natural gas when possible.
Eccles issued a call to AGC members to become involved in the current efforts of Envision Utah, a group of leaders from business, government and communities crafting recommendations for long-term development around the state.
“Just over 20 years ago, Envision Utah got together with government leaders to help plan for the future,” Eccles said. “Much of the work many of you have had the benefit of doing for the past 10 years is the result of that planning. We are now embarking on a new plan. There is never a convenient time for public service. We need you involved in this process.”
Like other speakers, Eccles praised the state’s diverse economy and was cautiously optimistic about the coming year.
“We have the fourth most diverse economy in the nation, and we are the second-fastest growing behind North Dakota, which is only being driven by energy production,” he said. “In the past three and four years, there has not been the same positive feeling and outlook about the opportunities we see out there today.”
A Focus on State Budgets
AGC of Utah President Rich Thorn says the organization’s members and lobbyists will be focusing their efforts on budget appropriations during the 2014 legislative session, which began Jan. 27, just after the convention. This year’s Utah state budget is expected to total around $13 billion, according to the State Auditor’s office.
“There is no talk of deficits this year like there has been in the past, so we are going to be working on appropriations at the UDOT and DFCM level,” Thorn says.
He also says AGC of Utah has been collaborating with the Utah Home Builders Association, Utah Bankers Association and title companies on legislation to simplify state lien laws. “This is something that affects everyone involved in building projects, and we want to make it simpler and make sure the responsibilities are shared equally,” Thorn says.
Thorn notes that, related to Eccles’ call for AGC members to be involved in long-range planning efforts, the organization is participating in the creation of a unified transportation plan for the Wasatch Front.
“This is a major undertaking with a consortium of groups, including the Wasatch Front Regional Council, Mountainland Association of Governments and local DOTs, [working] to come up with an all-encompassing plan. We are hoping to get some support from the legislature to fund that plan,” Thorn says.
Thorn says a solid transportation plan is key to efforts to improve air quality along the Wasatch Front. At the time of the convention, there were already 15 proposed bills in the legislature targeting issues of air quality.
“We’ve been working for some time with the Division of Air Quality in the state, and we want to be supportive of what we can do to clean up our air,” says Thorn. “But our industry is just a small part of the impact on the environment, and we’ve already done so much.”
He says the AGC will be involved in any discussions about raising the gas tax, which has been proposed during past legislative sessions.
“It has been 17 years since that tax was last increased, and in those years our buying power has decreased almost 40%,” says Thorn about the tax, which is currently set at $.06 per gal. “There are more hybrid and electric cars, and cars get higher mileage now, so it impacts that gas tax. I think there will also be some discussion of changes to vehicle licensing fees. These are some of the other options being talked about,” he adds.
New AGC Leadership
For only the second time in the history of AGC of Utah, a member from the southern half of the state will take the helm as chairman of the organization’s nearly 425 members. Doug Watts, owner of Watts Construction, a vertical construction firm based in St. George, took over the presidency from outgoing chairman Mark Green of M.C. Green and Sons Inc.
“I think I can bring a new perspective and appreciation for what the AGC does for the industry,” says Watts. “I think some in the industry take for granted the work this organization does so I’m looking forward to serving and growing the AGC. I’ve been helping to grow the AGC in southern Utah, and I want to keep up our work with outreach to other parts of the state.”
Thorn notes that in past year, the AGC of Utah purchased an office in St. George where it had previously only leased space.
“We felt like we could provide better service to our members and establish ourselves more firmly in Southern Utah if we became owners of that building,” he says of the new offices near the Red Cliffs Mall in St. George.
Outgoing chairman Green lists the purchase of the St. George office among the accomplishments during his service but was particularly proud of the organization’s efforts to reach out to the community in the past year.
Green was behind several charitable projects led by the AGC, including the construction of a new playground for a community daycare center and contributions to the Hope Lodge, which houses families and patients receiving cancer treatment, as well as a donation to the St. Jude Children’s Research Hospital foundation.
“A lot of what we do is paid for by taxpayers and private investors here in our state, and I think it is only right that we try and give something back,” Green says. “It is a program I hope will continue, and I think it will. The looks on the faces of those kids we built the playground for were priceless, and I think everyone who worked on that project will tell you money can’t buy a feeling like that. We want it to keep going.”
This year’s convention activities also included educational sessions on using technology, managing the Affordable Care Act and improving presentation skills, as well as a Western Night party and the annual awards presentation.
