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They\ntried 48 banks before they finally got their first business loan.</p>\n<p>Today, Midwest Aerials occupies a sprawling nine-acre\ncomplex on Papin near Jefferson and Chouteau in the City of St. Louis with over 33,000 thousand sq. ft. of offices and\nshops. The company\'s fleet totals over 2,600 pieces with an employee\nteam of 100. The company also has facilities in Kansas City and Springfield in Missouri and Bloomington in Illinois.</p>\n<p>A separate facility on the\nPapin site houses MAE Parts &amp; Service, which services customer owned\nequipment in the shop or on the jobsite. The concept, Tumminello, said, was\nthat Midwest did not want its customers competing with the Midwest rental fleet\nfor technician time.&nbsp;</p>\n<p>Joe Alonzo, director of sales for Midwest, who joined the\ncompany as a partner along with Dan Martino, director of operations in\nMidwest\'s third year, says that the principles that have allowed Midwest to\ncontinue to grow in this economy are very straightforward. First and foremost,\nthe company is focused on man- and material-lifts. \"Our mechanics aren\'t\nworking on a trencher in the morning and a lift that\'s going to put somebody\'s\ndad 100 feet in the air in the afternoon,\" Alonzo said.</p>\n<p>Midwest has an\nincredibly strong, collaborative, team-focused culture. You can tell that their\nemployees actually like one another. It\'s a money-making business that includes\nfocus on families, riding Harleys, and barbecue - straightforward and no\nfrills. Customers get to participate in that culture, with claybird shoots\ncatered by Pappy\'s and Midwest field people who are doing whatever they can to\nmake things right.</p>\n<p>Alonzo said\nMidwest\'s best ideas come from the field. To be a successful member of their\nteam, he said, you have to be ready to perform 24/7/365. He expects his sales\nforce of 15 to be proactive with both prospects and existing customers. Cell\nphones are on business cards and if a team member isn\'t in the office the\nreceptionist offers the cell number.&nbsp;\nAs a result customers, like the auto plant that needed 28 lifts on the\nFourth of July knew that their rep would pick up the phone, jack in from his\nlaptop and get the equipment on the road.</p>\n<p>In a down market,\nthe spirit at Midwest is positively uplifting. 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Pappy\'s,\nthe quirky little place owned by champion barbecue chef Mike Emerson, is\nlocated on a little cul de sac called Cardinal off of Olive near St. Louis\nUniversity. Pappy\'s has no street signage on Olive and doesn\'t need it. The\nribs are everything that Tumminello touts them to be&nbsp;&mdash; as close to Memphis as\nyou\'ll find in St. Louis</p>\n<p><img alt=\"Midwest Aerials\" class=\"image-left\" height=\"303\" src=\"/images/uploads/midwest-aerials_1.jpg\" style=\"float: left;\" width=\"266\" />Every day, cops, construction workers, nurses, and\nexecutives are queued 50-deep in the fast moving line to place their order. And\nsomewhere in the line you\'ll often find Tumminello and some of the crew from\nMidwest Aerials, the company that he and co-founder Kevin Morrell started in\nMorrell\'s basement 12 years ago.</p>\n<p>Tumminello had background in the construction industry. 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Or Be Ready to Cash Out\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:19:\"Cash Flow,  Collier\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:24968:\"<p><em>by Bill Collier</em></p>\n<p>Every business needs to ensure an adequate supply of cash. Run out of cash and it\'s over. Period.</p>\n<p>Running your business by your checking account balance won\'t cut it. And since profit and cash are two very different things, your income statement is not much help either.</p>\n<p>Many - if not most - expenses have to be paid before cash comes in from the sale. Cash may not be received from customers for 45 to 60 or more days after a sale has been made, but many cash outflows are immediate. For instance, try telling an employee that she\'ll get her paycheck in 60 days.</p>\n<p>This is why businesses need an accurate and reliable way to monitor and predict cash inflows and outflows. 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For instance, cash comes in from receivables collection and from such sources as drawing from a bank line of credit. Cash goes out to vendors, payroll, paying down your credit line, etc. Use enough detail to paint an accurate picture of cash in and cash out.<br />Don\'t forget to take into account what portion of sales are on net terms and how long on average customers take to pay, how long you take to pay payables, how long inventory sits on the shelves, fixed asset purchases, and so on. Non-cash transactions (like depreciation) also need to be handled appropriately. <br />This approach requires you to estimate both sales and expenses going forward. Be conservative in your estimates! If you think sales will be $50,000 and you\'ll get paid in 35 days on average, you might consider using $45,000 for your sales estimate and 40 days for your receivables collection period. I\'ll say it again: Be conservative in your estimates! <br />So, what to do if you have a cash shortage? One tip: Don\'t wait until you\'re out of cash to deal with this possibility. Secure a bank line of credit before you need it.</p>\n<p>Here are some general cash guidelines:<br />&bull;	Fund normal daily operations with operating cash flow<br />&bull;	Reinvest profits back into the business<br />&bull;	Fund growth with loans and/or equity</p>\n<p>Yes, it requires work to do this. Many entrepreneurs would prefer a simple formula, like Working Capital. But a formula can\'t adjust for business seasonality and all the other inflows and outflows that come into play. Take the time to set up a cash forecast and use it every month to help you protect your most vital business asset.</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"407\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:97:\"Every business needs to ensure an adequate supply of cash. 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Or Be Ready to Cash Out\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:19:\"Cash Flow,  Collier\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:24968:\"<p><em>by Bill Collier</em></p>\n<p>Every business needs to ensure an adequate supply of cash. Run out of cash and it\'s over. Period.</p>\n<p>Running your business by your checking account balance won\'t cut it. And since profit and cash are two very different things, your income statement is not much help either.</p>\n<p>Many - if not most - expenses have to be paid before cash comes in from the sale. Cash may not be received from customers for 45 to 60 or more days after a sale has been made, but many cash outflows are immediate. For instance, try telling an employee that she\'ll get her paycheck in 60 days.</p>\n<p>This is why businesses need an accurate and reliable way to monitor and predict cash inflows and outflows. One well-known approach is Working Capital:</p>\n<p>WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES</p>\n<p>Here are the main components of Current Assets:</p>\n<p>&bull;	Cash<br />&bull;	Accounts Receivable<br />&bull;	Inventory</p>\n<p>And these are the main components of Current Liabilities:</p>\n<p>&bull;	Accounts Payable<br />&bull;	Current portion of long-term debt</p>\n<p>While Working Capital is an important metric, there\'s no substitute for doing a cash flow forecast by projecting the next 12 months\' cash inflows and outlays.<br />The way to do this: Set up a simple spreadsheet that starts with beginning cash balance. Each month, add cash in and subtract cash out to come up with an ending cash balance. 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For instance, cash comes in from receivables collection and from such sources as drawing from a bank line of credit. Cash goes out to vendors, payroll, paying down your credit line, etc. Use enough detail to paint an accurate picture of cash in and cash out.<br />Don\'t forget to take into account what portion of sales are on net terms and how long on average customers take to pay, how long you take to pay payables, how long inventory sits on the shelves, fixed asset purchases, and so on. Non-cash transactions (like depreciation) also need to be handled appropriately. <br />This approach requires you to estimate both sales and expenses going forward. Be conservative in your estimates! If you think sales will be $50,000 and you\'ll get paid in 35 days on average, you might consider using $45,000 for your sales estimate and 40 days for your receivables collection period. I\'ll say it again: Be conservative in your estimates! <br />So, what to do if you have a cash shortage? 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Someone at your table asks for decaf coffee. Your server fills the order as requested. So far, so good.</p>\n<p><img alt=\"decaf\" height=\"250\" src=\"/images/uploads/decaf.jpg\" style=\"float: left;\" width=\"250\" />Pretty soon, your food arrives and you dig in. The drinks are getting low, so either your server or someone assigned the mission-critical task of keeping drinks topped off swoops in. The coffee gets refilled, but not with decaf. Luckily, the decaf drinker notices that the server isn\'t wielding the familiar orange color-coded pot and brings the mistake to the server\'s attention. A mumbled apology is offered, and the server takes the cup to the kitchen to swap it out for the right stuff.</p>\n<p>No harm done, right? Happens all the time.</p>\n<p>Let\'s take a look at the effects of this minor incident on the parties involved:</p>\n<p>&bull; It wastes the restaurant\'s time and money, literally pouring good product down the drain.<br />&bull; It wastes the server\'s time, eating into time available to take good care of his or her customers<br />&bull; To some small extent, it erodes the customers\' confidence in the restaurant.</p>\n<p>Multiply these effects by dozens of locations in a restaurant chain times thousands of decaf customers times a boatload of wrong-coffee pourings, and you get scads of lost time, product, money, efficiency, productivity, and customer confidence.</p>\n<p>All irretrievable. And all so easily avoidable.</p>\n<p>Virtually all restaurants use orange color-coding to designate decaf coffee. Astonishingly, though, most still rely on memory or ESP to determine whether a customer gets regular or decaf.</p>\n<p>A very few food service operators have eradicated this problem by placing a telltale coaster under each cup of decaf.</p>\n<p>No more doubt. No asking the customer about the contents of the cup. No more mistakes, or wasted time, or wasted product, or eroded customer relationships.</p>\n<p>What a simple, foolproof, and inexpensive solution to a widespread problem.</p>\n<p>Two quick questions:</p>\n<p>1) Why the heck doesn\'t every restaurant do this?<br />2) What\'s your version of this problem in your business?</p>\n<p>&nbsp;</p>\n<p>Now, I know that not all problems in business are this simple or this cut-and-dried. So, regardless of the severity or complexity of your oft-repeated errors, how about using an old saying to give this phenomenon a name?</p>\n<p>\"We never have time to do it right, but we always have time to do it over.\"</p>\n<p>Here are two important take-aways from this discussion:</p>\n<p>&bull; We\'re talking about a system for fixing a recurring problem.<br />&bull; Every mistake is an opportunity to improve your company.</p>\n<p>Let\'s look at both of these ideas.</p>\n<p>Use systems to avoid future mistakes.</p>\n<p>If your approach to errors is people-centered, I recommend that you raise your sights a bit. While mistakes do happen and they can often be attributed to human error, a lack of systems and procedures is more likely in most cases.</p>\n<p>Take the coffee example. If the manager happens to witness the decaf error, a brief conversation with the server might help avoid such mistakes for a while. The boss might even go so far as to convene a meeting of the wait staff, where they explore the importance of remembering which customer gets what coffee.</p>\n<p>All well and good, but why not put a system in place (like the coaster) to remove as much human error as possible?</p>\n<p>So I again ask, what\'s your version of this problem in your business? Can you fix your nagging, recurring mistakes with color-coding, forms, templates, systems or procedures?</p>\n<p>Every mistake is an opportunity to improve your company.</p>\n<p>Mistakes are costly. They waste time, money, productivity and resources. They aggravate employees. They lose customers. Even so, each and every one is a golden opportunity for improvement.</p>\n<p>Every time a mistake happens, ask: What can be done to prevent this same type of error from happening in the future?</p>\n<p>This is \"root cause\" thinking. You and all your people should get good at looking for the root causes of problems.</p>\n<p>It\'s not about blaming the individual employee. When errors occur, the person involved needs to admit it without fear of reprisal.</p>\n<p>Drive individual blame and cover-ups out of your company. Replace them with willingness to admit mistakes, so you can find the root cause of errors and prevent them in the future. Learn from mistakes.</p>\n<p>Make it the job of everyone in your company to identify and attack the root causes of errors.</p>\n<p>Stop pouring the wrong coffee. Stop doing it over. 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Decaffeinated Approach to Process Improvement\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:45:\"decaf, service, process, color-coded, Collier\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:4881:\"<p><strong><em>by Bill Collier</em></strong></p>\n<p>Ever been to a restaurant with someone who drinks decaf coffee?</p>\n<p>You sit down and order drinks. Someone at your table asks for decaf coffee. Your server fills the order as requested. So far, so good.</p>\n<p><img alt=\"decaf\" height=\"250\" src=\"/images/uploads/decaf.jpg\" style=\"float: left;\" width=\"250\" />Pretty soon, your food arrives and you dig in. The drinks are getting low, so either your server or someone assigned the mission-critical task of keeping drinks topped off swoops in. The coffee gets refilled, but not with decaf. Luckily, the decaf drinker notices that the server isn\'t wielding the familiar orange color-coded pot and brings the mistake to the server\'s attention. A mumbled apology is offered, and the server takes the cup to the kitchen to swap it out for the right stuff.</p>\n<p>No harm done, right? Happens all the time.</p>\n<p>Let\'s take a look at the effects of this minor incident on the parties involved:</p>\n<p>&bull; It wastes the restaurant\'s time and money, literally pouring good product down the drain.<br />&bull; It wastes the server\'s time, eating into time available to take good care of his or her customers<br />&bull; To some small extent, it erodes the customers\' confidence in the restaurant.</p>\n<p>Multiply these effects by dozens of locations in a restaurant chain times thousands of decaf customers times a boatload of wrong-coffee pourings, and you get scads of lost time, product, money, efficiency, productivity, and customer confidence.</p>\n<p>All irretrievable. And all so easily avoidable.</p>\n<p>Virtually all restaurants use orange color-coding to designate decaf coffee. Astonishingly, though, most still rely on memory or ESP to determine whether a customer gets regular or decaf.</p>\n<p>A very few food service operators have eradicated this problem by placing a telltale coaster under each cup of decaf.</p>\n<p>No more doubt. No asking the customer about the contents of the cup. No more mistakes, or wasted time, or wasted product, or eroded customer relationships.</p>\n<p>What a simple, foolproof, and inexpensive solution to a widespread problem.</p>\n<p>Two quick questions:</p>\n<p>1) Why the heck doesn\'t every restaurant do this?<br />2) What\'s your version of this problem in your business?</p>\n<p>&nbsp;</p>\n<p>Now, I know that not all problems in business are this simple or this cut-and-dried. So, regardless of the severity or complexity of your oft-repeated errors, how about using an old saying to give this phenomenon a name?</p>\n<p>\"We never have time to do it right, but we always have time to do it over.\"</p>\n<p>Here are two important take-aways from this discussion:</p>\n<p>&bull; We\'re talking about a system for fixing a recurring problem.<br />&bull; Every mistake is an opportunity to improve your company.</p>\n<p>Let\'s look at both of these ideas.</p>\n<p>Use systems to avoid future mistakes.</p>\n<p>If your approach to errors is people-centered, I recommend that you raise your sights a bit. While mistakes do happen and they can often be attributed to human error, a lack of systems and procedures is more likely in most cases.</p>\n<p>Take the coffee example. If the manager happens to witness the decaf error, a brief conversation with the server might help avoid such mistakes for a while. The boss might even go so far as to convene a meeting of the wait staff, where they explore the importance of remembering which customer gets what coffee.</p>\n<p>All well and good, but why not put a system in place (like the coaster) to remove as much human error as possible?</p>\n<p>So I again ask, what\'s your version of this problem in your business? Can you fix your nagging, recurring mistakes with color-coding, forms, templates, systems or procedures?</p>\n<p>Every mistake is an opportunity to improve your company.</p>\n<p>Mistakes are costly. They waste time, money, productivity and resources. They aggravate employees. They lose customers. Even so, each and every one is a golden opportunity for improvement.</p>\n<p>Every time a mistake happens, ask: What can be done to prevent this same type of error from happening in the future?</p>\n<p>This is \"root cause\" thinking. You and all your people should get good at looking for the root causes of problems.</p>\n<p>It\'s not about blaming the individual employee. When errors occur, the person involved needs to admit it without fear of reprisal.</p>\n<p>Drive individual blame and cover-ups out of your company. Replace them with willingness to admit mistakes, so you can find the root cause of errors and prevent them in the future. Learn from mistakes.</p>\n<p>Make it the job of everyone in your company to identify and attack the root causes of errors.</p>\n<p>Stop pouring the wrong coffee. Stop doing it over. 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Even some sales managers just don\'t get it and hurt themselves more than they help in getting business. Even being a sales consultant doesn\'t automatically make me embrace every piece of sales technology that comes on the scene. But c\'mon! Some things are just a must.</p>\n<p>As I go through the list below, get past the basic items that lead the list. You may have them but don\'t leave me till you go through the whole enchilada. You may be missing the very last item. Keep in mind, these are BASIC not luxury items. Whether you agree or not, these are the facts. If your manager or boss doesn\'t believe in some of these tools or techniques buy him or her a Fred Flintstone club! Also, this list isn\'t comprehensive and some of you may be using items not listed. Good for you! Now get some business!</p>\n<p>Here\'s the roster:<br />1. Logo and Brand: Okay, it\'s basic. You may not believe it, but some firms just don\'t have one. Nor do they care. If you have no personality in the market why would I expect you to be interested in my project? Blah image translates into blah performance in the mind of the customer.</p>\n<p>2. Poor or No Website: In this day and age are you serious? This is now mandatory! The first place people go after they meet you or get your card is your site. If it is garbage, too wordy, graphically lame or worse, nonexistent, you\'re gonna get smoked in the market. Get it done or fixed.</p>\n<p>3. No Cell Phone: No cell phone? No business! Your competitor just spoke to your customer before you and they got the job!</p>\n<p>4. No Email Address: I absolutely want to compete against you. How\'s that stamp collection? Ever wonder why the postal service is going broke?</p>\n<p>5. No Email Capability on Cell Phone:  This is the first item the more advanced of you may not agree with, but sorry, it is now standard procedure. The game is now the fastest to respond gets the inside track. How many timely communications offset the $20.00 a month investment?</p>\n<p>6. Cold Calling: How do you like being \"stopped in on\"? Not much? Neither do your clients. Learn how to network and be creative in your customer approach. Cold calling is virtually dead, if at best on life support.</p>\n<p>7. No Presentation Materials: A quick look print reference to your product and service. It defines what you can do for the customer. This is bulleted and photo led.</p>\n<p>8. Electronic Newsletter: The reason most don\'t have them is because they can\'t write well or are not diligent in making sure they get sent monthly. If so get a marketing firm to help you. (Psst, I know a good one with a guy named \"Tom\"). They work and are relatively inexpensive.</p>\n<p>9. CRM Program: You must manage your customer data. Whether it\'s ACT, Gold Mine, Sales Force, Eclipse, Business Contact Manager or the like, use something. Even Outlook can do the job to a small degree.</p>\n<p>10. 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It is also an industry that struggles with implementing\nnew technologies, particularly when they relate to communication or\nmarketing.</p>\n<p>A couple of months ago there were two excellent pieces on the transition in media on <em>CBS Sunday Morning</em>.</p>\n<p>One was a &ldquo;Fast Draw&rdquo; piece <a href=\"http://www.cbsnews.com/video/watch/?id=4901018n\">Blogging Through History</a>. The video traced the evolution of participatory journalism from America&rsquo;s first newspaper <em>Publick Occurrence</em><em>s</em> which had a blank last page for people to type comments and pass the\npaper along,&nbsp; through the growth in newspapers to today&rsquo;s blogs.</p>\n<p>The second was a commentary by Nancy Giles on Twitter entitled <a href=\"http://www.cbsnews.com/video/watch/?id=4901026n\">Tweets, Twits, and Twitter, Oh </a><a href=\"http://www.cbsnews.com/video/watch/?id=4901026n\">My!</a> . You should listen to the second piece just to get her punchline at the end.</p>\n<p>Part of the problem with &ldquo;Social Media,&rdquo;&nbsp; &ldquo;Web 2.0,&rdquo; or anything\nthat came before or after it is that the public discussion and the buzz\nfocus on the medium, rather than on the end result.</p>\n<p>Having spent a large part of my career in business media, I am\nfascinated as I read in e-newsletters, blogs, and magazine articles\nabout the ways in which business publishers are struggling to\n&ldquo;monetize&rdquo; social media.</p>\n<p>Somewhere in the midst of the focus on technology there&rsquo;s a total\nlack of understanding of the reason that people use any form of\ncommunication: to connect. They want to connect with an idea, with a\nfriend, with a business, with a solution to a problem, with a good\nlaugh. Anything else but human connection might be technology, or\nnoise, or commerce, but it&rsquo;s not communication.</p>\n<p>When I was beginning my career in the early &rsquo;70s, the phrase &ldquo;The medium is the message,&nbsp; coined by communication theorist <a href=\"http://en.wikipedia.org/wiki/Marshall_McLuhan\" title=\"Marshall McLuhan\">Marshall McLuhan</a> received great attention. McCluhan meant the form that we use to\ncommuicate embeds itself in the message, and directly effects the way\nin which the message is understood. He also noted that the actual words\nor images of a message may be less significant than the impact of those\nvisuals, sounds, or text &ndash; in other words what the overall package <em>communicates.</em></p>\n<p>In <em>Understanding Media</em>, the book that he wrote in 1964 to\nexplain his theories, he pointed out that we could reread any page of a\nbook but that a movie needed to be re-screened to study it. (Who knows\nwhat he would have made of the thousands of clips from vintage movies\nthat now reside on YouTube.) His point was that&nbsp; the medium through\nwhich a person encounters a particular piece of content would have an\neffect on the individual&rsquo;s understanding of it.</p>\n<p><a href=\"/features/article/banding_together_networking_through_tough_times/\">A piece I wrote last week</a> for the <em>St. Louis CNR Weekly Enews</em> pointed out, &ldquo;There&rsquo;s currently a lot of buzz about Web 2.0 and social\nnetworking. But St. Louis construction companies are also networking\nin&nbsp; tough times with proven technology: a cold beer and a good story.&rdquo;\nThe article talked about the high popularity of informal networking\nevents as a way to connect and gather information in tough times.</p>\n<p><a href=\"/departments/article/budrovich_big_on_you_tube/\">Another recent <em>Enews</em> article</a> covered<a href=\"http://www.youtube.com/watch?v=fi-mFgCeKfE\"> a YouTube post</a> by A. J. Ford, vice presi<a href=\"http://www.youtube.com/watch?v=fi-mFgCeKfE\"><img alt=\"Budrovich 550\" height=\"155\" src=\"/images/uploads/budrovich.jpg\" style=\"float: right;\" width=\"200\" /></a>dent\nfor sales and marketing for Budrovich Crane Rental. After I posted the\narticle with a link to A.J.&rsquo;s video, 196 people viewed it a total of\n248 times. The time-lapse <img src=\"http://users/tom/Library/Caches/TemporaryItems/moz-screenshot.png\" />video of the setup of a 550-ton crane tells a compelling story.</p>\n<p>As we explore the use of Social Media and Web 2.0 in the\nconstruction industry we need to remember: Whether the &ldquo;medium&rdquo; is a\ncold Bud and a story or a Tweet, the important thing is making the\nconnection.</p>\n</div>\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:119:\"What will be the role of “Web 2.0″ and “Social Mediaâ€ be in the construction industry, and why should you 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their\nresumes, balance sheets, and other supporting documentation online.\nOwners and GCs can decide who they want to &ldquo;friend,&rdquo; to borrow a term\nfrom Facebook, and allow to bid on a project.</p>\n<p>The construction industry is one of the strongest industries in\nterms of communication, connection, and the importance of\nrelationships. It is also an industry that struggles with implementing\nnew technologies, particularly when they relate to communication or\nmarketing.</p>\n<p>A couple of months ago there were two excellent pieces on the transition in media on <em>CBS Sunday Morning</em>.</p>\n<p>One was a &ldquo;Fast Draw&rdquo; piece <a href=\"http://www.cbsnews.com/video/watch/?id=4901018n\">Blogging Through History</a>. The video traced the evolution of participatory journalism from America&rsquo;s first newspaper <em>Publick Occurrence</em><em>s</em> which had a blank last page for people to type comments and pass the\npaper along,&nbsp; through the growth in newspapers to today&rsquo;s blogs.</p>\n<p>The second was a commentary by Nancy Giles on Twitter entitled <a href=\"http://www.cbsnews.com/video/watch/?id=4901026n\">Tweets, Twits, and Twitter, Oh </a><a href=\"http://www.cbsnews.com/video/watch/?id=4901026n\">My!</a> . You should listen to the second piece just to get her punchline at the end.</p>\n<p>Part of the problem with &ldquo;Social Media,&rdquo;&nbsp; &ldquo;Web 2.0,&rdquo; or anything\nthat came before or after it is that the public discussion and the buzz\nfocus on the medium, rather than on the end result.</p>\n<p>Having spent a large part of my career in business media, I am\nfascinated as I read in e-newsletters, blogs, and magazine articles\nabout the ways in which business publishers are struggling to\n&ldquo;monetize&rdquo; social media.</p>\n<p>Somewhere in the midst of the focus on technology there&rsquo;s a total\nlack of understanding of the reason that people use any form of\ncommunication: to connect. They want to connect with an idea, with a\nfriend, with a business, with a solution to a problem, with a good\nlaugh. Anything else but human connection might be technology, or\nnoise, or commerce, but it&rsquo;s not communication.</p>\n<p>When I was beginning my career in the early &rsquo;70s, the phrase &ldquo;The medium is the message,&nbsp; coined by communication theorist <a href=\"http://en.wikipedia.org/wiki/Marshall_McLuhan\" title=\"Marshall McLuhan\">Marshall McLuhan</a> received great attention. McCluhan meant the form that we use to\ncommuicate embeds itself in the message, and directly effects the way\nin which the message is understood. He also noted that the actual words\nor images of a message may be less significant than the impact of those\nvisuals, sounds, or text &ndash; in other words what the overall package <em>communicates.</em></p>\n<p>In <em>Understanding Media</em>, the book that he wrote in 1964 to\nexplain his theories, he pointed out that we could reread any page of a\nbook but that a movie needed to be re-screened to study it. (Who knows\nwhat he would have made of the thousands of clips from vintage movies\nthat now reside on YouTube.) His point was that&nbsp; the medium through\nwhich a person encounters a particular piece of content would have an\neffect on the individual&rsquo;s understanding of it.</p>\n<p><a href=\"/features/article/banding_together_networking_through_tough_times/\">A piece I wrote last week</a> for the <em>St. Louis CNR Weekly Enews</em> pointed out, &ldquo;There&rsquo;s currently a lot of buzz about Web 2.0 and social\nnetworking. But St. Louis construction companies are also networking\nin&nbsp; tough times with proven technology: a cold beer and a good story.&rdquo;\nThe article talked about the high popularity of informal networking\nevents as a way to connect and gather information in tough times.</p>\n<p><a href=\"/departments/article/budrovich_big_on_you_tube/\">Another recent <em>Enews</em> article</a> covered<a href=\"http://www.youtube.com/watch?v=fi-mFgCeKfE\"> a YouTube post</a> by A. J. Ford, vice presi<a href=\"http://www.youtube.com/watch?v=fi-mFgCeKfE\"><img alt=\"Budrovich 550\" height=\"155\" src=\"/images/uploads/budrovich.jpg\" style=\"float: right;\" width=\"200\" /></a>dent\nfor sales and marketing for Budrovich Crane Rental. After I posted the\narticle with a link to A.J.&rsquo;s video, 196 people viewed it a total of\n248 times. The time-lapse <img src=\"http://users/tom/Library/Caches/TemporaryItems/moz-screenshot.png\" />video of the setup of a 550-ton crane tells a compelling story.</p>\n<p>As we explore the use of Social Media and Web 2.0 in the\nconstruction industry we need to remember: Whether the &ldquo;medium&rdquo; is a\ncold Bud and a story or a Tweet, the important thing is making the\nconnection.</p>\n</div>\";s:10:\"field_ft_8\";s:4:\"none\";s:10:\"field_id_9\";s:119:\"What will be the role of “Web 2.0″ and “Social Mediaâ€ be in the construction industry, and why should you 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Finan Jr. His was a larger vision for the St. Louis construction industry and for the St. Louis region. He believed passionately in the ability<br />of management and labor to work together. He believed in diversity. He believed that St. Louis could be something greater, because of<br />the people here.</p>\n<h4><img alt=\"Len Toenjes and others at CNR 40th\" height=\"173\" src=\"/images/uploads/toenjes.jpg\" style=\"float: left;\" width=\"255\" />Len Toenjes, CEO of AGC of St. Louis; Tom Finan; Josh Foster, president of J.E. Foster; Courtney Pittman, director of resources, Habitat for Humanity St. Louis; and Matt Lampe, business agent, IBEW Local One.</h4>\n<p>\"There has long been a crying need for a strong voice that will speak for men and women in the construction industry of<br />St. Louis, \" he wrote in a page-one editorial in the first issue of <em>CNR</em>. He called his publication, \"The Voice for the St. Louis Construction<br />Industry.\"</p>\n<p>Dad died in 1976, so he never got to see the amazing changes that have since occurred in our city and in our industry.</p>\n<p>Oct. 29th was a celebration of all that my dad believed in. That\'s why CNR\'s 40th birthday party, held at the downtown Missouri Athletic Club was a benefit for Habitat for Humanity. We called the event \"Raise the Roof\". Sponsor, auction item, and ticket sales for the The Habitat for Humanity/CNR Anniversary celebration benefit raised approximately $10,000 to further the work of Habitat St. Louis.</p>\n<p>Event sponsors were:</p>\n<p><br /><strong>Master Constructor Sponsor ($3,000)</strong></p>\n<p>The St. Louis Electrical Connection (IBEW Local One/St. Louis Chapter NECA); and Pipefitters Local 562/Sheetmetal Workers Local 36.</p>\n<p><strong>Builder Sponsor ($1,000)</strong></p>\n<p>Associated General Contractors of St. Louis; Arteaga Photography; Arch Engraving; Masonry Institute of St. Louis; Site Improvement Association; Stone Carlie; and Washington University - Sever Institute.</p>\n<p><br /><strong>Superintendent Sponsor ($500): </strong></p>\n<p>&nbsp;</p>\n<p>Aschinger Electric; Fabick-CAT; and Kozeny-Wagner.</p>\n<p>Kimberly McKinney, CEO of Habitat St. Louis thanked the contractors, union members, and suppliers in the audience for the role they<br />have played in Habitat St. Louis\' programs here. The gratitude of Habitat St. Louis was expressed without words by the simple fact that<br />McKinney and her senior staff were all at our construction industry event instead of at the Missouri Botanical Garden, where the St. Louis<br />Business Journal was honoring Habitat as a \"Hero of the Planet\" that same evening. Habitat St. Louis was responsible for the construction<br />of 27 LEED Platinum-certified houses in 2008, and is completing 24 more this year.</p>\n<p>My youngest sister, Teri Finan, who has been actively involved with Habitat for over five years, told movingly about ways<br />in which Habitat exemplifies Dad\'s beliefs in cooperative effort, diversity, and the rebuilding of St. Louis. We recognized the team effort that Dad so much believed in with the presentation of our 2009 CNR Regional Excellence Awards. The awards recognize projects that represent<br />successful team collaborations which advance our region and exemplify excellence in design, construction, and management.</p>\n<p>&nbsp;</p>\n<h4><img alt=\"40th anniversary fundraiser\" height=\"154\" src=\"/images/uploads/room.jpg\" style=\"float: left;\" width=\"255\" />A lively and engaged crowd of friends of CNR caught up with one another while supporting Habitat for Humanity St. Louis.</h4>\n<h4></h4>\n<p><br />Honorees were:</p>\n<p><br /><strong>Neighborhood Redevelopment:</strong><br />14th Street Mall<br />Owner: Crown Village Partners, Old North St. Louis Restoration Group &amp; Regional Housing &amp; Community Development Alliance<br />Architect: Rosemann &amp; Associates<br />General Contractor: E.M. Harris Construction Company</p>\n<p><strong><br />Historic Renovation</strong><br />Cannon Design Headquarters &ndash; Powerhouse Building<br />Owner: Cannon Design<br />Architect: Cannon Design<br />General Contractor: R.G. Ross<br />Construction Company</p>\n<p><strong><br />Infrastructure</strong><br />Coldwater Creak Treatment Facility<br />Owner: Metropolitan St. Louis Sewer District<br />Engineer: Black &amp; Veatch<br />Construction Manager: KAI/Jacobs-Joint Venture<br />General Contractor: Goodwin Brothers Construction Co.<strong><br /></strong></p>\n<p><strong>Public Building</strong><br />Cottleville City Hall<br />Owner: City of Cottleville, MO<br />Architect: Kostecki Architects<br />Construction Manager: Paric Corporation<br />General Contractor: C. Rallo Contracting</p>\n<p><strong>Transportation</strong><br />Gateway Multi-Modal Transportation Center<br />Owner: City of St. Louis<br />Architect: KAI Design &amp; Build<br />General Contractor: K&amp;S Associate</p>\n<p><strong>High-Tech</strong><br />Pfizer Building MM<br />Owner: Pfizer<br />Architect: Flad Architects<br />General Contractor: McCarthy Building Companie</p>\n<p><strong>Creative Renovation</strong><br />Shock City Studios<br />Owner: Blueprint Concepts, LLC<br />Architect: The Lawrence Group<br />General Contractor: The Lawrence<br />Group Projects<strong><br /></strong></p>\n<p><strong>Editor\'s Choice:</strong><br />Corporate Headquarters<br />Solae<br />Owner: Clayco, Inc.<br />Architect: Cannon Design<br />General Contractor: Clayco, Inc.</p>\n<p>We also presented a first-ever special award, which we plan to make annual. The Thomas J. Finan Jr. Humanitarian Award was presented<br />to IBEW Local One and the St. Louis Chapter, NECA. Steve Schoemehl, business agent for Local One, and Doug Martin, executive<br />director of NECA, noted the commitment that their members have displayed to the people of the St. Louis community and to Habitat for<br />Humanity in particular.</p>\n<p>Since 2003, IBEW/NECA have completed more than 150 Habitat homes - representing about a $760,000 community gift - and have<br />attracted more than 500 electricians to work together with NECA contractors to build the Habitat homes. They\'ve also made significant<br />electrical repairs to about 260 homes owned by low-income, elderly people -- completed by nearly 700 IBEW and NECA volunteers - at<br />a value approaching $400,000. My Dad would have been tickled to see the folks that we decided to recognize with an award named<br />after him.</p>\n<p>Dad used to say, \"The \'News\' depends upon its friends.\" Corny? Sure. Sincere? You bet. The truth? 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Bet\";s:10:\"field_ft_5\";s:4:\"none\";s:10:\"field_id_7\";s:18:\"Habitat, CNR, 40th\";s:10:\"field_ft_7\";s:4:\"none\";s:10:\"field_id_8\";s:7606:\"<p>by Tom Finan, Publisher</p>\n<p>If you make your living in the construction industry, you must have a certain amount of risk tolerance.</p>\n<p>What odds would you have given in July of 1969 when the 46-year-old former owner of an automatic door company with a wife and<br />seven children &mdash; the eldest of whom was a junior in high school - decided to start a local construction newspaper ... in the middle of<br />an Ironworkers strike?</p>\n<p>Who would have thought then that we\'d recently be hosting a 40th birthday party for <em>St. Louis CNR</em>?</p>\n<p>On Thursday, Oct. 29, the team from <em>CNR</em> and about 150 of our closest friends celebrated the big dream of my Dad, Thomas J. Finan Jr. His was a larger vision for the St. Louis construction industry and for the St. Louis region. He believed passionately in the ability<br />of management and labor to work together. He believed in diversity. He believed that St. Louis could be something greater, because of<br />the people here.</p>\n<h4><img alt=\"Len Toenjes and others at CNR 40th\" height=\"173\" src=\"/images/uploads/toenjes.jpg\" style=\"float: left;\" width=\"255\" />Len Toenjes, CEO of AGC of St. Louis; Tom Finan; Josh Foster, president of J.E. Foster; Courtney Pittman, director of resources, Habitat for Humanity St. Louis; and Matt Lampe, business agent, IBEW Local One.</h4>\n<p>\"There has long been a crying need for a strong voice that will speak for men and women in the construction industry of<br />St. Louis, \" he wrote in a page-one editorial in the first issue of <em>CNR</em>. He called his publication, \"The Voice for the St. Louis Construction<br />Industry.\"</p>\n<p>Dad died in 1976, so he never got to see the amazing changes that have since occurred in our city and in our industry.</p>\n<p>Oct. 29th was a celebration of all that my dad believed in. That\'s why CNR\'s 40th birthday party, held at the downtown Missouri Athletic Club was a benefit for Habitat for Humanity. We called the event \"Raise the Roof\". Sponsor, auction item, and ticket sales for the The Habitat for Humanity/CNR Anniversary celebration benefit raised approximately $10,000 to further the work of Habitat St. Louis.</p>\n<p>Event sponsors were:</p>\n<p><br /><strong>Master Constructor Sponsor ($3,000)</strong></p>\n<p>The St. Louis Electrical Connection (IBEW Local One/St. Louis Chapter NECA); and Pipefitters Local 562/Sheetmetal Workers Local 36.</p>\n<p><strong>Builder Sponsor ($1,000)</strong></p>\n<p>Associated General Contractors of St. Louis; Arteaga Photography; Arch Engraving; Masonry Institute of St. Louis; Site Improvement Association; Stone Carlie; and Washington University - Sever Institute.</p>\n<p><br /><strong>Superintendent Sponsor ($500): </strong></p>\n<p>&nbsp;</p>\n<p>Aschinger Electric; Fabick-CAT; and Kozeny-Wagner.</p>\n<p>Kimberly McKinney, CEO of Habitat St. Louis thanked the contractors, union members, and suppliers in the audience for the role they<br />have played in Habitat St. Louis\' programs here. The gratitude of Habitat St. Louis was expressed without words by the simple fact that<br />McKinney and her senior staff were all at our construction industry event instead of at the Missouri Botanical Garden, where the St. Louis<br />Business Journal was honoring Habitat as a \"Hero of the Planet\" that same evening. Habitat St. Louis was responsible for the construction<br />of 27 LEED Platinum-certified houses in 2008, and is completing 24 more this year.</p>\n<p>My youngest sister, Teri Finan, who has been actively involved with Habitat for over five years, told movingly about ways<br />in which Habitat exemplifies Dad\'s beliefs in cooperative effort, diversity, and the rebuilding of St. Louis. We recognized the team effort that Dad so much believed in with the presentation of our 2009 CNR Regional Excellence Awards. The awards recognize projects that represent<br />successful team collaborations which advance our region and exemplify excellence in design, construction, and management.</p>\n<p>&nbsp;</p>\n<h4><img alt=\"40th anniversary fundraiser\" height=\"154\" src=\"/images/uploads/room.jpg\" style=\"float: left;\" width=\"255\" />A lively and engaged crowd of friends of CNR caught up with one another while supporting Habitat for Humanity St. Louis.</h4>\n<h4></h4>\n<p><br />Honorees were:</p>\n<p><br /><strong>Neighborhood Redevelopment:</strong><br />14th Street Mall<br />Owner: Crown Village Partners, Old North St. Louis Restoration Group &amp; Regional Housing &amp; Community Development Alliance<br />Architect: Rosemann &amp; Associates<br />General Contractor: E.M. Harris Construction Company</p>\n<p><strong><br />Historic Renovation</strong><br />Cannon Design Headquarters &ndash; Powerhouse Building<br />Owner: Cannon Design<br />Architect: Cannon Design<br />General Contractor: R.G. Ross<br />Construction Company</p>\n<p><strong><br />Infrastructure</strong><br />Coldwater Creak Treatment Facility<br />Owner: Metropolitan St. Louis Sewer District<br />Engineer: Black &amp; Veatch<br />Construction Manager: KAI/Jacobs-Joint Venture<br />General Contractor: Goodwin Brothers Construction Co.<strong><br /></strong></p>\n<p><strong>Public Building</strong><br />Cottleville City Hall<br />Owner: City of Cottleville, MO<br />Architect: Kostecki Architects<br />Construction Manager: Paric Corporation<br />General Contractor: C. 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Perils of Price First\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:0:\"\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:5088:\"<p>Grandma always said; \"Be careful Sonny, you get what you pay for!\" Ah, ol\' Granny was right on the money! (To use an obvious pun.) The pressure<br />of a tight economy, fewer projects, and poor buying methods has created a sales quagmire.</p>\n<p><img alt=\"Money Cut\" class=\"image-left\" height=\"205\" src=\"/images/uploads/moneycut.jpg\" style=\"float: left;\" width=\"200\" />The mentality driving the attitude that \"the cheapest price is the best way to serve the customer\" is crippling our industry. It is rampant across<br />the board. No architect, general contractor, subcontractor or vendor can state they haven\'t felt the squeeze. Fear not! What goes around comes<br />around. For everyone from a project owner to a contractor buying a drill bit, buying strictly on price is dangerous. Let me point out a little bit of<br />common sense and you be the judge.</p>\n<p>When you focus on price you drive the supplier, whether of a product or service, to take his focus off of performing for the customer<br />to managing his cost to make a profit. As a result, corners get cut, change orders or extras appear, shoddy workmanship occurs, and exceptional<br />ser<img src=\"file:///Users/tom/Library/Caches/TemporaryItems/moz-screenshot.png\" />vice erodes. As it trickles down on the customer, it causes long-term damage to both future business and the supplier\'s reputation. The<br />sweet taste of an order or project won at a bargain basement price soon turns into a profitless nightmare.</p>\n<p>I deal with frustrated contactors,both subs and generals, that hate being so price focused, yet practice it themselves. By compromising your principles in order to win work, your short-term gain may affect your future success as your customers feel the tension of poor performance or focus. By not building the case for the value you bring to the table and thereby gaining competitive separation, you agree to compete on the price-based playing field. Of course, that\'s the easiest way to play. Selling takes time, work, and creativity. It\'s much easier to cut yourprice to the bone and hope to make a little profit on<br />the backside.</p>\n<p>Most contractor owners I speak with express a desire to partner with their clients and establish a loyal, mutually beneficial relationship. Then they turn into snake oil salesmen at bid time. Many blame the customer for the position they\'re put in. Sorry, I don\'t buy it. How does the facility owner know the proverbial cost to build his or her facility? That\'s why he or she gets bids. Is there the potential for inferior bids? Yup! Then your job is to educate the customer on the pitfalls of poor construction and inferior performance. As well as the smoke and mirrors game being played in the pricing formulas.</p>\n<p>This pattern will not last. The window is closing and will eventually slam shut. The buying community is becoming more astute and the trustfactor in construction, which was a challenge to begin with, is collapsing. This is a perilous sales dynamic at work. As prices are driven lower and lower, good contractors will struggle, reduce performance thresholds, and some will simply go under. Get ready folks &ndash; the \"rub\" is coming.</p>\n<p>What\'s the solution? Put adequate time and resources into your sales effort. Not just your marketing effort, but your sales effort. As you\'re cutting costs and people, you cannot afford to cut your sales expense. Nope, it\'s not an extravagance; it\'s a necessity. The more you cut your customer entertainment or contact, the more you\'ll end up cutting staff.</p>\n<p>Projects, work, or orders do not come in without hard sales itineraries. Partner with your suppliers and lock arms to approach the marketplace. Use sources that have good strong sales efforts themselves and combine strengths. The savings of loyalty to your sources far outweigh the short-term gain of an additional five percent or a few thousand dollars. Oh, and that bid that is so much lower than all the others is WRONG! They either made a mistake, are having financial<br />trouble, or are going to hit you hard with changes on the backside. Don\'t believe the unbelievable.</p>\n<p>The fact that firms are practicing unrealistic selling and buying dynamics will skew the market. If you feel that you cannot gain business without playing this pricing game, you will completely fall prey to it. Those sticking to their guns AND working their sales effort diligently are doing well even in this tough market. It is imperative to truly analyze where you are as a sales organization.</p>\n<p>Are you hitting on all cylinders? Is everyone busting tail to get in front of as many potential clients as possible? Are you easy to do business with? Are you really client focused or cost focused? Do you even have any pure sales talent in your firm? These are important questions to ask. With the cold edge of winter approaching, we\'re entering the hottest sales season. 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Perils of Price First\";s:11:\"field_ft_20\";s:4:\"none\";s:11:\"field_id_22\";s:0:\"\";s:11:\"field_ft_22\";s:4:\"none\";s:11:\"field_id_23\";s:5088:\"<p>Grandma always said; \"Be careful Sonny, you get what you pay for!\" Ah, ol\' Granny was right on the money! (To use an obvious pun.) The pressure<br />of a tight economy, fewer projects, and poor buying methods has created a sales quagmire.</p>\n<p><img alt=\"Money Cut\" class=\"image-left\" height=\"205\" src=\"/images/uploads/moneycut.jpg\" style=\"float: left;\" width=\"200\" />The mentality driving the attitude that \"the cheapest price is the best way to serve the customer\" is crippling our industry. It is rampant across<br />the board. No architect, general contractor, subcontractor or vendor can state they haven\'t felt the squeeze. Fear not! What goes around comes<br />around. For everyone from a project owner to a contractor buying a drill bit, buying strictly on price is dangerous. Let me point out a little bit of<br />common sense and you be the judge.</p>\n<p>When you focus on price you drive the supplier, whether of a product or service, to take his focus off of performing for the customer<br />to managing his cost to make a profit. As a result, corners get cut, change orders or extras appear, shoddy workmanship occurs, and exceptional<br />ser<img src=\"file:///Users/tom/Library/Caches/TemporaryItems/moz-screenshot.png\" />vice erodes. As it trickles down on the customer, it causes long-term damage to both future business and the supplier\'s reputation. The<br />sweet taste of an order or project won at a bargain basement price soon turns into a profitless nightmare.</p>\n<p>I deal with frustrated contactors,both subs and generals, that hate being so price focused, yet practice it themselves. By compromising your principles in order to win work, your short-term gain may affect your future success as your customers feel the tension of poor performance or focus. By not building the case for the value you bring to the table and thereby gaining competitive separation, you agree to compete on the price-based playing field. Of course, that\'s the easiest way to play. Selling takes time, work, and creativity. It\'s much easier to cut yourprice to the bone and hope to make a little profit on<br />the backside.</p>\n<p>Most contractor owners I speak with express a desire to partner with their clients and establish a loyal, mutually beneficial relationship. Then they turn into snake oil salesmen at bid time. Many blame the customer for the position they\'re put in. Sorry, I don\'t buy it. How does the facility owner know the proverbial cost to build his or her facility? That\'s why he or she gets bids. Is there the potential for inferior bids? Yup! Then your job is to educate the customer on the pitfalls of poor construction and inferior performance. As well as the smoke and mirrors game being played in the pricing formulas.</p>\n<p>This pattern will not last. The window is closing and will eventually slam shut. The buying community is becoming more astute and the trustfactor in construction, which was a challenge to begin with, is collapsing. This is a perilous sales dynamic at work. As prices are driven lower and lower, good contractors will struggle, reduce performance thresholds, and some will simply go under. Get ready folks &ndash; the \"rub\" is coming.</p>\n<p>What\'s the solution? Put adequate time and resources into your sales effort. Not just your marketing effort, but your sales effort. As you\'re cutting costs and people, you cannot afford to cut your sales expense. Nope, it\'s not an extravagance; it\'s a necessity. The more you cut your customer entertainment or contact, the more you\'ll end up cutting staff.</p>\n<p>Projects, work, or orders do not come in without hard sales itineraries. Partner with your suppliers and lock arms to approach the marketplace. Use sources that have good strong sales efforts themselves and combine strengths. The savings of loyalty to your sources far outweigh the short-term gain of an additional five percent or a few thousand dollars. Oh, and that bid that is so much lower than all the others is WRONG! They either made a mistake, are having financial<br />trouble, or are going to hit you hard with changes on the backside. Don\'t believe the unbelievable.</p>\n<p>The fact that firms are practicing unrealistic selling and buying dynamics will skew the market. If you feel that you cannot gain business without playing this pricing game, you will completely fall prey to it. Those sticking to their guns AND working their sales effort diligently are doing well even in this tough market. It is imperative to truly analyze where you are as a sales organization.</p>\n<p>Are you hitting on all cylinders? Is everyone busting tail to get in front of as many potential clients as possible? Are you easy to do business with? Are you really client focused or cost focused? Do you even have any pure sales talent in your firm? These are important questions to ask. With the cold edge of winter approaching, we\'re entering the hottest sales season. What\'s your plan, building value and driving sales activity or waiting it out till spring and then jumping right back into the price-first<br />abyss? 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An enemy at the gates is less formidable, for he is known. But the traitor ... rots the soul of a nation, he works ... to undermine the pillars of the city ...\"<br />&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &mdash; Cicero, 42 B.C.</em></p>\n<p>The quote above is more than two millennia old and referred to the political leaders of the time. But the message is applicable to today\'s businesses. Here\'s an employee attitude that inflicts damage on businesses: People who exhibit many fine traits and who may be good employees in general, but who have acquired a dislike for one of more of their fellow workers.</p>\n<p>Ever experienced this? Most of us have. Maybe it\'s at work in your company. Poor relationships between employees can be a tough nut to crack.<br />Frequently, some of these folks are more concerned with winning the battle than winning the war. They may not be \"traitors\"- as referenced in Cicero\'s quote - in that their goal isn\'t to intentionally undermine the business, but they might as well be. The impact is the<br />same.</p>\n<p>In my own businesses, I\'ve had employees who didn\'t get along and it affected the operation. In each case, my solution was simple and straightforward: \"I can\'t force you to like each other. But I absolutely insist you treat each other cordially, respectfully and professionally. It\'s not optional. 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An enemy at the gates is less formidable, for he is known. But the traitor ... rots the soul of a nation, he works ... to undermine the pillars of the city ...\"<br />&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &mdash; Cicero, 42 B.C.</em></p>\n<p>The quote above is more than two millennia old and referred to the political leaders of the time. But the message is applicable to today\'s businesses. Here\'s an employee attitude that inflicts damage on businesses: People who exhibit many fine traits and who may be good employees in general, but who have acquired a dislike for one of more of their fellow workers.</p>\n<p>Ever experienced this? Most of us have. Maybe it\'s at work in your company. Poor relationships between employees can be a tough nut to crack.<br />Frequently, some of these folks are more concerned with winning the battle than winning the war. They may not be \"traitors\"- as referenced in Cicero\'s quote - in that their goal isn\'t to intentionally undermine the business, but they might as well be. The impact is the<br />same.</p>\n<p>In my own businesses, I\'ve had employees who didn\'t get along and it affected the operation. In each case, my solution was simple and straightforward: \"I can\'t force you to like each other. But I absolutely insist you treat each other cordially, respectfully and professionally. It\'s not optional. If you can\'t do that, then one or both of you must leave.\"</p>\n<p>This gets especially sticky in a family business, when family members are the ones who can\'t get along. Sometimes, the parties involved have an ownership stake. Hence the importance of a shareholder agreement, sort of a \"pre-nup\" for<br />businesses.</p>\n<p>If you\'ve got dueling employees, consider:</p>\n<ul>\n<li>The economy WILL come back</li>\n<li>As an owner, you WILL eventually want to retire, cash out, or transfer your company go to your heirs. At the very least, you want growth and success.</li>\n<li>\"A-Player\" employees WILL be available (but won\'t stay at a business that tolerates bad employees.) Here are the reality-check questions to ask yourself:</li>\n<li>Am I preparing to capitalize on these opportunities?</li>\n<li>Or, will I fritter away my opportunities while I watch my competitors thrive?</li>\n<li>Will I eliminate bad attitudes and drama so I can succeed?</li>\n</ul>\n<p><br />These are CHOICES you have to make. If some of the offending parties are owners, some growing up may be in order. Here\'s a message for them:</p>\n<ul>\n<li>You\'ve got a golden opportunity and are squandering it. <br /></li>\n<li>Get a grip. As business owners, your top priority is the business\' success and sustainability. <br /></li>\n<li>The war is OUT THERE, not in here. <br /></li>\n<li>You can beat the competition if you\'ll stop beating up on each other. <br /></li>\n<li>Dump the drama, put the egos aside and position your company to succeed.</li>\n</ul>\n<p>One of my favorite speakers, Jim Rohn, says: \"Discipline weighs ounces. Regret weighs tons.\" If you can\'t discipline yourself to reduce the turmoil, regret will surely follow.</p>\n<p><em>\"When there is no enemy within, the enemies outside cannot hurt you.\"</em></p>\n<p>&mdash;African proverb</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"393\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:166:\"\" ... 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Keller </em></p>\n<p>A bank cannot sue one of two title insurance companies over a construction escrow account, according to Missouri\'s Eastern District Court of Appeals in The Business Bank of Saint Louis v. Old Republic National Title Insurance Co., 2010 WL 1794396 (Mo. App. E.D.), decided May 4.  This decision left the bank with construction loans that allegedly were not covered by sufficient collateral.</p>\n<p>The project was the construction of houses.  In 2004 Hillsboro Title Company entered into a construction escrow agreement.  This agreement provided that Hillsboro agreed to act as the escrow agent and disburse money provided by the bank to fund the construction project.</p>\n<p>The other parties to the escrow agreement were Beaker LLC, the project\'s owner, Lawless Homes, Inc., the contractor and The Business Bank of Saint Louis, the lender.</p>\n<p>Most importantly, as it turns out, Old Republic was not a signatory to the escrow agreement.  This fact was pivotal to the appellate court\'s decision that Old Republic was not subject to the bank\'s lawsuit.</p>\n<p>The bank deposited $4.2 million with Hillsboro, of which about $2.4 million the parties had allocated for construction costs.  Hillsboro received $12,430 as its fee for disbursing the money.</p>\n<p>Hillsboro also issued a title insurance commitment for the project.  The commitment showed Hillsboro\'s name at the top and stated:  \"Agent for: Old Republic National Title Insurance Company.\"  Hillsboro never issued a title insurance policy on the project because the construction process never reached that point.</p>\n<p>In 2007, the bank filed a four-count lawsuit against Hillsboro and Old Republic based on the escrow agreement (not the title insurance that clearly would have involved Old Republic).  The allegations were negligence, breach of fiduciary duty, breach of contract and suit on a note.</p>\n<p>The bank alleged that Hillsboro had disbursed funds from the escrow account in violation of the escrow agreement.  Thus, the bank contended that the contractor, Lawless Homes, and others received money from the escrow account for work that was never done.  The bank further asserted that its collateral in the project was worth less than its construction loans.</p>\n<p>The bank based its case against Old Republic on the legal principle of agency.  The bank contended that Hillsboro was the agent of Old Republic.</p>\n<p>The bank alleged that Hillsboro had express authority to disburse the escrow funds and that Old Republic knowingly caused or permitted Hillsboro to hold itself out to the public as Old Republic\'s agent when disbursing money from the escrow account.</p>\n<p>Thus, if Hillsboro disbursed money that should not have been disbursed, this was as much the fault of Old Republic as it was of Hillsboro, for Hillsboro was working for Old Republic when doing this, according to the bank\'s way of thinking.</p>\n<p>The trial court saw things differently.  It dismissed Old Republic from the case before trial by granting Old Republic\'s motion for summary judgment.</p>\n<p>The bank challenged this decision on appeal.  The appellate court noted that disputes over whether there is an agency relationship generally involve factual issues that are best sorted out at trial rather than a preliminary motion for summary judgment.  Why did the bank not even advance that far with its theory?</p>\n<p>An agency relationship requires proof of three elements:  (1) the agent holds the power to alter legal relations between the principal and third parties, (2) the agent is a fiduciary with respect to matters within the scope of the agency and (3) the principal has the right to control the conduct of the agent with respect to matters entrusted to the agent.</p>\n<p>Old Republic and Hillsboro both acknowledged that Hillsboro was Old Republic\'s agent for the purpose of issuing title insurance commitments and policies.  They had entered into a written agency agreement between themselves to confirm this relationship.</p>\n<p>This agency agreement, however, was separate from and different from the escrow agreement that was the subject of the bank\'s lawsuit. While this agency agreement allowed Hillsboro to perform escrow duties in connection with issuing title insurance commitments, this function was separate from Hillsboro\'s role as the escrow agent for the bank on the construction project.</p>\n<p>The appellate court concluded that Hillsboro\'s duties under the escrow agreement were \"on the side\" from its agency agreement with Old Republic.  The agency agreement expressly stated that Hillsboro is Old Republic\'s agent for the limited purpose of issuing title commitments and policies.</p>\n<p>The appellate court also rejected that Old Republic\'s ability to periodically audit Hillsboro\'s escrow records, including the construction disbursement escrows, was sufficient control for an agency relationship.</p>\n<p>And the court rejected that Hillsboro showed \"apparent authority\" to act on Old Republic\'s behalf.  Apparent authority exists where a principal\'s actions to a third party create a reasonable belief in the third party that an agent is acting for the principal.  The court found:  \"Old Republic did nothing to convey the impression to the Bank that Hillsboro had authority to act on its behalf.\"</p>\n<p>James R. Keller is a partner at Herzog Crebs LLP where he concentrates his practice on construction law, complex business disputes, real estate and ADR.  He also is an arbitrator and a mediator.</p>\n<p>&nbsp;</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"426\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:278:\"A bank cannot sue one of two title insurance companies over a construction escrow account, according to Missouri\'s Eastern District Court of Appeals in The Business Bank of Saint Louis v. 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Keller </em></p>\n<p>A bank cannot sue one of two title insurance companies over a construction escrow account, according to Missouri\'s Eastern District Court of Appeals in The Business Bank of Saint Louis v. Old Republic National Title Insurance Co., 2010 WL 1794396 (Mo. App. E.D.), decided May 4.  This decision left the bank with construction loans that allegedly were not covered by sufficient collateral.</p>\n<p>The project was the construction of houses.  In 2004 Hillsboro Title Company entered into a construction escrow agreement.  This agreement provided that Hillsboro agreed to act as the escrow agent and disburse money provided by the bank to fund the construction project.</p>\n<p>The other parties to the escrow agreement were Beaker LLC, the project\'s owner, Lawless Homes, Inc., the contractor and The Business Bank of Saint Louis, the lender.</p>\n<p>Most importantly, as it turns out, Old Republic was not a signatory to the escrow agreement.  This fact was pivotal to the appellate court\'s decision that Old Republic was not subject to the bank\'s lawsuit.</p>\n<p>The bank deposited $4.2 million with Hillsboro, of which about $2.4 million the parties had allocated for construction costs.  Hillsboro received $12,430 as its fee for disbursing the money.</p>\n<p>Hillsboro also issued a title insurance commitment for the project.  The commitment showed Hillsboro\'s name at the top and stated:  \"Agent for: Old Republic National Title Insurance Company.\"  Hillsboro never issued a title insurance policy on the project because the construction process never reached that point.</p>\n<p>In 2007, the bank filed a four-count lawsuit against Hillsboro and Old Republic based on the escrow agreement (not the title insurance that clearly would have involved Old Republic).  The allegations were negligence, breach of fiduciary duty, breach of contract and suit on a note.</p>\n<p>The bank alleged that Hillsboro had disbursed funds from the escrow account in violation of the escrow agreement.  Thus, the bank contended that the contractor, Lawless Homes, and others received money from the escrow account for work that was never done.  The bank further asserted that its collateral in the project was worth less than its construction loans.</p>\n<p>The bank based its case against Old Republic on the legal principle of agency.  The bank contended that Hillsboro was the agent of Old Republic.</p>\n<p>The bank alleged that Hillsboro had express authority to disburse the escrow funds and that Old Republic knowingly caused or permitted Hillsboro to hold itself out to the public as Old Republic\'s agent when disbursing money from the escrow account.</p>\n<p>Thus, if Hillsboro disbursed money that should not have been disbursed, this was as much the fault of Old Republic as it was of Hillsboro, for Hillsboro was working for Old Republic when doing this, according to the bank\'s way of thinking.</p>\n<p>The trial court saw things differently.  It dismissed Old Republic from the case before trial by granting Old Republic\'s motion for summary judgment.</p>\n<p>The bank challenged this decision on appeal.  The appellate court noted that disputes over whether there is an agency relationship generally involve factual issues that are best sorted out at trial rather than a preliminary motion for summary judgment.  Why did the bank not even advance that far with its theory?</p>\n<p>An agency relationship requires proof of three elements:  (1) the agent holds the power to alter legal relations between the principal and third parties, (2) the agent is a fiduciary with respect to matters within the scope of the agency and (3) the principal has the right to control the conduct of the agent with respect to matters entrusted to the agent.</p>\n<p>Old Republic and Hillsboro both acknowledged that Hillsboro was Old Republic\'s agent for the purpose of issuing title insurance commitments and policies.  They had entered into a written agency agreement between themselves to confirm this relationship.</p>\n<p>This agency agreement, however, was separate from and different from the escrow agreement that was the subject of the bank\'s lawsuit. While this agency agreement allowed Hillsboro to perform escrow duties in connection with issuing title insurance commitments, this function was separate from Hillsboro\'s role as the escrow agent for the bank on the construction project.</p>\n<p>The appellate court concluded that Hillsboro\'s duties under the escrow agreement were \"on the side\" from its agency agreement with Old Republic.  The agency agreement expressly stated that Hillsboro is Old Republic\'s agent for the limited purpose of issuing title commitments and policies.</p>\n<p>The appellate court also rejected that Old Republic\'s ability to periodically audit Hillsboro\'s escrow records, including the construction disbursement escrows, was sufficient control for an agency relationship.</p>\n<p>And the court rejected that Hillsboro showed \"apparent authority\" to act on Old Republic\'s behalf.  Apparent authority exists where a principal\'s actions to a third party create a reasonable belief in the third party that an agent is acting for the principal.  The court found:  \"Old Republic did nothing to convey the impression to the Bank that Hillsboro had authority to act on its behalf.\"</p>\n<p>James R. Keller is a partner at Herzog Crebs LLP where he concentrates his practice on construction law, complex business disputes, real estate and ADR.  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As you analyze your or your personnel\'s sales performance, keep these selling types in mind. I constantly find expectations unrealistic for sales results when someone is trying to sell contrary to their sales type. Be honest enough to realize how you roll and adjust accordingly. Of course this assumes a few things, A. you want to sell, B. you have a good work ethic, and C. you believe in your product or service. Here are the two types and how they should be orchestrated:<br /></p>\n<p><strong>The Gunner:</strong> This person is a high energy, type \"A\" personality. Most people think that this is the ideal sales person. It may be but most will never get really deep into an account. They tend to nail the quicker opportunities and gather tons of them. They are almost always high producers but tend to be transient. A Gunner will look for the best situation to produce revenue. 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Earnest networking was taking place among players who might have ignored one another in a similar setting a few years <br /><br />One executive from the organization that issued the invitation expressed mild surprise at the large turnout. Really there was no surprise at all. The construction companies were working connections and looking for opportunities in ways that told a lot about the state of the industry here and elsewhere. <br /><br />The construction industry has historically not been as sophisticated about marketing business development as the industries it serves. That is changing as we claw our way out of the worst downturn in our business since the Great Depression. <br /><br />Local business and general media has made much of the new projects that are coming online in Downtown St. Louis and among various industrial companies such as Express Scripts and P&amp;G. Accentuating the positive is a good thing. In fact it&rsquo;s great that there IS something positive to accentuate. <br /><br />But the idea that construction has made a comeback is out of sync with the reality that most people in our industry deal with in their jobs every day. It&rsquo;s sort of the reverse of the scene in the movie Monty Python and the Holy Grail, the dark comedy about the Middle Ages. A fellow is trying to make some money during the Black Plague by selling a body&hellip; except the &ldquo;corpse&rdquo; isn&rsquo;t quite dead yet. &ldquo;I&rsquo;m not dead yet&hellip; I think I\'ll go for a walk,&rdquo; the corpse remarks. In our case, the industry &ndash; any popular reports to the contrary &ndash; isn&rsquo;t &ldquo;alive&rdquo;&hellip; just yet.<br /><br />The CEO of one of our area&rsquo;s most successful general contractors told me his company&rsquo;s volume is down $100 million from pre-recession levels. And he expects to take another $100 million hit on top of that. &ldquo;2011 will be the worst, &ldquo; he said. The CEO of another large general who has reported some big project wins in recent months points out that those &ldquo;wins&rdquo; were actually pre-recession contracts that have now been released. The same CEO said that the negotiated jobs the firm had been used to receiving are extraordinarily difficult to come by in this &ldquo;buyers&rsquo; market&rdquo;. <br /><br />Subcontractors, while desperate for work, are holding their cards close to their vest when bidding until literally the last minute &ndash; or turning in a late bid, hoping that someone will use it &ndash; in fear of being bludgeoned by bid shopping. Not too long ago representatives of some GC firms were quoted in the business press encouraging owners to take advantage of the sub&rsquo;s desperation. <br /><br />These are not the signs of a completely healthy industry. The long and short of our current situation is that we are beginning to come back, but we are a long, long way from being back. Our industry is trailing the rest of the economy. We&rsquo;re hearing reports that there are orders in for building materials associated with the retail industry. Industrial companies need to deal with deferred maintenance and are beginning to see increased demand that will lead to the need for increased manufacturing capacity. But our industry trails the rest of the economy. It&rsquo;s going to take some time for full recovery to happen. <br /><br />Healthcare, and to a lesser extent private higher education, have been bright spots in our local construction industry. St. Louis is a medical Mecca for the Midwest and as long as people continue to get sick hospitals continue to spend money. Educational institutions have been spending, but the endowments that they use for capital programs were hammered in the market. <br /><br />If there&rsquo;s a bright spot in this slow recovery it&rsquo;s that we&rsquo;re being forced to be better at what we do. It&rsquo;s sort of like training for an athletic event &ndash; no pain,&nbsp; no gain. Possibly a more apt metaphor would be recovering from an injury. <br /><br />As business practices are improving, we&rsquo;re being more sophisticated and more selective as an industry about the ways in which we market our services. <br /><br />The cover story in this issue on collection practices indicates an overall improvement over the previous environment in which contractors were reluctant to hold their customers to the same standards of payment to which they were held. <br /><br />Labor unions are working on maintaining market share recovery and putting their members back to work. The most obvious example of this is the settlement between the IBEW and NECA. The combined cut in wages and benefits and the change in work rule can represent as much as a 10 percent savings for owners on some kinds of work. This is the first such cut that IBEW has taken since the Great Depression. <br /><br />Overall, this tightening and refining process is a good thing for our industry, however painful parts of it may be. Our industry is coming back to life, better and healthier than it has been in many decades. 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Earnest networking was taking place among players who might have ignored one another in a similar setting a few years <br /><br />One executive from the organization that issued the invitation expressed mild surprise at the large turnout. Really there was no surprise at all. The construction companies were working connections and looking for opportunities in ways that told a lot about the state of the industry here and elsewhere. <br /><br />The construction industry has historically not been as sophisticated about marketing business development as the industries it serves. That is changing as we claw our way out of the worst downturn in our business since the Great Depression. <br /><br />Local business and general media has made much of the new projects that are coming online in Downtown St. Louis and among various industrial companies such as Express Scripts and P&amp;G. Accentuating the positive is a good thing. In fact it&rsquo;s great that there IS something positive to accentuate. <br /><br />But the idea that construction has made a comeback is out of sync with the reality that most people in our industry deal with in their jobs every day. It&rsquo;s sort of the reverse of the scene in the movie Monty Python and the Holy Grail, the dark comedy about the Middle Ages. A fellow is trying to make some money during the Black Plague by selling a body&hellip; except the &ldquo;corpse&rdquo; isn&rsquo;t quite dead yet. &ldquo;I&rsquo;m not dead yet&hellip; I think I\'ll go for a walk,&rdquo; the corpse remarks. In our case, the industry &ndash; any popular reports to the contrary &ndash; isn&rsquo;t &ldquo;alive&rdquo;&hellip; just yet.<br /><br />The CEO of one of our area&rsquo;s most successful general contractors told me his company&rsquo;s volume is down $100 million from pre-recession levels. And he expects to take another $100 million hit on top of that. &ldquo;2011 will be the worst, &ldquo; he said. The CEO of another large general who has reported some big project wins in recent months points out that those &ldquo;wins&rdquo; were actually pre-recession contracts that have now been released. The same CEO said that the negotiated jobs the firm had been used to receiving are extraordinarily difficult to come by in this &ldquo;buyers&rsquo; market&rdquo;. <br /><br />Subcontractors, while desperate for work, are holding their cards close to their vest when bidding until literally the last minute &ndash; or turning in a late bid, hoping that someone will use it &ndash; in fear of being bludgeoned by bid shopping. Not too long ago representatives of some GC firms were quoted in the business press encouraging owners to take advantage of the sub&rsquo;s desperation. <br /><br />These are not the signs of a completely healthy industry. The long and short of our current situation is that we are beginning to come back, but we are a long, long way from being back. Our industry is trailing the rest of the economy. We&rsquo;re hearing reports that there are orders in for building materials associated with the retail industry. Industrial companies need to deal with deferred maintenance and are beginning to see increased demand that will lead to the need for increased manufacturing capacity. But our industry trails the rest of the economy. It&rsquo;s going to take some time for full recovery to happen. <br /><br />Healthcare, and to a lesser extent private higher education, have been bright spots in our local construction industry. St. Louis is a medical Mecca for the Midwest and as long as people continue to get sick hospitals continue to spend money. Educational institutions have been spending, but the endowments that they use for capital programs were hammered in the market. <br /><br />If there&rsquo;s a bright spot in this slow recovery it&rsquo;s that we&rsquo;re being forced to be better at what we do. It&rsquo;s sort of like training for an athletic event &ndash; no pain,&nbsp; no gain. Possibly a more apt metaphor would be recovering from an injury. <br /><br />As business practices are improving, we&rsquo;re being more sophisticated and more selective as an industry about the ways in which we market our services. <br /><br />The cover story in this issue on collection practices indicates an overall improvement over the previous environment in which contractors were reluctant to hold their customers to the same standards of payment to which they were held. <br /><br />Labor unions are working on maintaining market share recovery and putting their members back to work. The most obvious example of this is the settlement between the IBEW and NECA. The combined cut in wages and benefits and the change in work rule can represent as much as a 10 percent savings for owners on some kinds of work. This is the first such cut that IBEW has taken since the Great Depression. <br /><br />Overall, this tightening and refining process is a good thing for our industry, however painful parts of it may be. Our industry is coming back to life, better and healthier than it has been in many decades. But we&rsquo;re not completely alive&hellip; just yet.</p>\";s:11:\"field_ft_23\";s:0:\"\";s:11:\"field_id_25\";s:3:\"428\";s:11:\"field_ft_25\";s:4:\"none\";s:11:\"field_id_26\";s:0:\"\";s:11:\"field_ft_26\";s:0:\"\";s:11:\"field_id_28\";s:0:\"\";s:11:\"field_ft_28\";s:0:\"\";s:11:\"field_id_29\";s:0:\"\";s:11:\"field_ft_29\";s:0:\"\";s:11:\"field_id_31\";s:0:\"\";s:11:\"field_ft_31\";s:0:\"\";s:11:\"field_id_32\";s:0:\"\";s:11:\"field_ft_32\";s:0:\"\";s:11:\"field_id_34\";s:0:\"\";s:11:\"field_ft_34\";s:0:\"\";s:11:\"field_id_35\";s:0:\"\";s:11:\"field_ft_35\";s:0:\"\";s:11:\"field_id_36\";s:0:\"\";s:11:\"field_ft_36\";s:4:\"none\";s:11:\"field_id_37\";s:0:\"\";s:11:\"field_ft_37\";s:0:\"\";s:11:\"field_id_41\";s:0:\"\";s:11:\"field_ft_41\";s:4:\"none\";s:11:\"field_id_42\";s:0:\"\";s:11:\"field_ft_42\";s:4:\"none\";s:11:\"field_id_43\";s:0:\"\";s:11:\"field_ft_43\";s:4:\"none\";s:11:\"field_id_44\";s:0:\"\";s:11:\"field_ft_44\";s:4:\"none\";s:11:\"field_id_45\";s:209:\"When one of our area’s major institutional buyers of construction recently held a meet and greet for their preferred consultants and contractors the event was vaguely reminiscent of speed dating over coffee.\";s:11:\"field_ft_45\";s:4:\"none\";s:11:\"field_id_46\";s:0:\"\";s:11:\"field_ft_46\";s:4:\"none\";s:11:\"field_id_55\";s:0:\"\";s:11:\"field_ft_55\";s:4:\"none\";s:11:\"field_id_56\";s:1:\"0\";s:11:\"field_ft_56\";s:4:\"none\";s:11:\"field_dt_56\";s:0:\"\";s:11:\"field_id_57\";s:1:\"0\";s:11:\"field_ft_57\";s:4:\"none\";s:11:\"field_dt_57\";s:0:\"\";s:11:\"field_id_58\";s:0:\"\";s:11:\"field_ft_58\";s:0:\"\";s:11:\"field_id_59\";s:0:\"\";s:11:\"field_ft_59\";s:0:\"\";s:11:\"field_id_60\";s:0:\"\";s:11:\"field_ft_60\";s:0:\"\";s:11:\"field_id_62\";s:0:\"\";s:11:\"field_ft_62\";s:0:\"\";s:11:\"field_id_63\";s:0:\"\";s:11:\"field_ft_63\";s:4:\"none\";s:11:\"field_id_64\";s:0:\"\";s:11:\"field_ft_64\";s:4:\"none\";s:11:\"field_id_66\";s:0:\"\";s:11:\"field_ft_66\";s:4:\"none\";s:11:\"field_id_67\";s:0:\"\";s:11:\"field_ft_67\";s:4:\"none\";}s:8:\"num_rows\";i:1;s:7:\"q_count\";i:24;s:6:\"fields\";a:0:{}}s:10:\"cats_fixed\";s:1:\"1\";s:10:\"categories\";a:1:{i:0;a:7:{i:0;s:2:\"11\";i:1;s:1:\"0\";i:2;s:11:\"Perspective\";i:3;s:0:\"\";i:4;s:0:\"\";i:5;s:1:\"3\";i:6;s:11:\"perspective\";}}}');
