2022 NECA Financial Benchmarker Report

Trades are the linchpin between the design-phase vision of the facility and its actual assembly through the many systems, equipment components and finishes. Trades, the specialty contractors, add value to a project through the assembly or installation of these systems, components and fixtures that allow the occupants and owners to use and enjoy their completed facility.

This handbook was developed as a resource. The content is intended as a user guide with practical resources, lessons learned by others, examples, and guidance to allow trade contractors and specialty construction firms operating to adopt lean principles and reap the workforce and business benefits that follow more readily. To enable their adoption, the emphasis in this handbook is on identifying and using methods to enable your craft workforce and colleagues across the firm to support the key tasks with which your firm adds value to your projects.

The handbook focuses on identifying and linking methods and techniques from the lean community with the common tasks and waste that trade contractors regularly encounter on projects. Click here to access the report.

Registration Opens for 2023 MEP Innovation Conference

NECA, MCA and SMACNA have partnered to host the 2023 MEP Innovation Conference. This three-day event, held in Austin, Texas, joins innovative thought leaders across the electrical, mechanical and sheet metal trades to improve MEP contractors’ profitability and productivity.

  • Dates: January 11 – 13, 2023
  • Location: Austin, Texas
  • Registration Fees: $995

Attendees will engage in innovative presentations, collective roundtable discussions, and hands-on exhibitor demonstrations highlighting emerging technologies. The MEP Innovation Conference offers sessions for all levels of experience, open to all members of NECA, MCAA, SMACNA and their union counterparts.

Contractors from all three trade associations will lead the sessions geared towards operations, VDC, project management, estimating, training for BIM and more. These case studies will inform participants how new and innovative software, tools and technology are changing the industry and positively impacting contractors of all sizes. Innovation has become a key component across all trades. The MEP Innovation Conference encourages collaboration among the different trades to recognize the common problems and develop solutions where contractors reach the common goal together. Click here to learn more or to register for the conference.

California Expands State-Run Retirement Program

California Governor Gavin Newsom recently signed legislation that will expand CalSavers, the state’s IRA-based retirement program, to cover virtually all California employers that do not sponsor their own qualified retirement plan. The new law, signed on August 26, 2022, and taking effect at the beginning of the new y ear, expands the definition of “eligible employer” to capture any employer in California with at least one non-owner employee. Click here to learn about SB 1126.

September is Suicide Prevention Month

Did you know that September is Suicide Prevention Month? Further, did you know that male-dominated industries tend to have more suicides? The macho, tough-guy, and stoic nature of construction workers can even discourage those who are most at risk for suicide from seeking help. Men, especially white men in their early 20’s through their 50’s, account for the bulk of suicides. According to the Bureau of Labor Statistics, 97 percent of the U.S. construction workforce is male and according to the American Foundation for Suicide Prevention, 38 percent of construction workers in the U.S. in 2018 were between the ages of 45 and 64.

Moving from jobsite to jobsite can create an environment in which workers are not as connected to their families, each other, or a workplace community. Couples with working long or irregular hours, sleep patterns can be impacted, causing sleep deprivation and mental and physical exhaustion.

The Construction Industry Alliance for Suicide Prevention (CIASP) has created tools and resources which can be used to help integrate suicide prevention into your company’s culture as a safety and health priority! Items available include a social media toolkit, toolbox talks, posters, OSHA suicide prevention resources, QR codes for CIASP’s website, and logos. You can view and download all their Suicide Prevention Resources by clicking here.

NECA Memo: Inflation Reduction Act of 2022

NECA has put together a Memo on the Inflation Reduction Act of 2022. On July 27, Senator Manchin and Senator Schumer announced a new agreement on Budget Reconciliation package that includes addressing inflation, healthcare, climate/energy policy, and tax issues. This new agreement came as a surprise because of Senator Manchin’s previous statements less than a month ago that he could not support a package outside of the healthcare provisions. Click here to read the full summary.

5% Public Works Retention Cap Become Permanent

Governor Gavin Newsom signed NECA’s “5% Retention Cap Bill,” AB-2173 by Assemblymember Cottie Petrie-Norris (D-Laguna Beach).

The current public works 5% retention cap statute was set to expire at the end of this year. Now that AB-1273 has been signed by the Governor, the 5% public works retention cap policy is placed into California law for perpetuity.

NECA would like to thank all the contractors and other industry leaders who took the time to use grassroots advocacy to send an email to Governor Newsom asking that he sign the bill. Your voice makes a difference. We would also like to thank Assemblymember Cottie Petrie-Norris and her staff for all their hard work in getting AB-1273 passed into law. Assemblymember Petrie-Norris is a long-time industry supporter, and we truly appreciate her continue efforts in making prompt and fair payment in the construction industry a priority.

Finally, we would like to thank Eddie Bernacchi and the entire Politico Team in Sacramento for all their efforts throughout the year!

Cal/OSHA Proposes Permanent COVID-19 Standard

Many California employers were hopeful there was an end in sight for COVID-19 requirements – but recent activity from state workplace safety officials means that you will most likely need to comply with pandemic rules for at least the next two years. While Cal/OSHA’s Emergency Temporary Standard (ETS) is scheduled to expire in December 2022, the agency released a proposed “permanent” rule on June 18, 2022, that proposes to impose COVID-19 requirements on workplaces through 2024. While most of the proposed new rules align with the existing requirements of the current ETS, there are some key changes employers need to know about – including the possible elimination of the controversial (and costly) exclusion pay requirement.
Read more from Fisher Phillips here regarding the five changes we will see with the proposed permanent rule.

Registration Opens for NECA Convention – Austin

The #1 Trade Show of its kind in the electrical industry is back! The 2022 NECA Convention will be held in Austin, Texas, from October 14 – 18, 2022. This year’s event not only allows you to attend in-person, but also provides you with the opportunity to experience the event virtually!
As an industry solution center, the NECA Show has evolved into the event for Power, Light, Energy and Communication Technology. Electrical professionals will find solutions for the shop, the office and the job site through networking, visiting the showstopper showcase highlighting the newest products, attending educational workshops and so much more!
To register for the Convention, follow the below instructions:
  • Log into the NECA Registration & Hotel Booking Website with your individual ID and Last Name. Note – please contact the Chapter office if you do not know your Individual ID.
    • Once logged in, follow the prompts and register for the sessions you would like; including any pre-convention workshops, the full convention, just the weekend package, or the virtual convention (if you aren’t able to physically join us in Austin).
  • After completing your registration, you will have the opportunity to add a guest or book your hotel room. As a member of the NorCal NECA Chapter, you will automatically be placed into our room bock at the JW Marriott. If you are a member of multiple Chapters, you will be able to select the Chapter with which to proceed.
Click here to find out more about the 2022 NECA Convention, including the full schedule of events. Please contact Jenny Fothergill at the Chapter office for more information.

NorCal NECA Holds 20th Annual Golf Classic

NorCal NECA’s 20th annual Golf Classic took place at Ruby Hill Golf Course on Monday, May 16, 2022, with a full field of players. We would like to thank each of our valued industry partners and contractor members who sponsored the event, and those who participated in our raffle. Each year, we donate proceeds from the tournament to five charities that have been hand-picked for our Chapter. These charities are: Make-A-Wish Foundation Greater Bay Area, Aldea Children and Family Services in Napa, Attitudinal Healing Connection in Oakland, Modesto Gospel Mission in Modesto, and Hospice of San Joaquin in Stockton. The Golf Committee decided to add two charities to the list in 2022 – Doctors without Borders and Society for Disabilities.

Congratulations to all our winners and especially to the Santa Clara Valley Chapter NECA foursome of Doug Lung, Jared Gamble, Andrew Bowdish and Matt Leslie who have now won the NorCal NECA Golf Classic three-years running. Click here to see photos from this year’s Golf Classic and we hope that you will consider joining us on May 15, 2023, for our 21st Annual Golf Classic.

Key Performance Indicators: Increasing Margin and Reducing Risk

A Key Performance Indicator (KPI) is “a quantifiable measure used to evaluate the success of an organization, employee, etc. in meeting objectives for performance.” A KPI considers the business’ context, strategies and values and is a metric that incorporates performance targets so companies can track their progress toward goals.
There is increased interest in KPIs, with many contractors either currently using them, trying to implement them, or expressing a strong desire to do so. Despite growing knowledge of metrics and the benefits of KPIs, many contractors have not implemented them because they are unclear how and where to begin.
KPIs are critical both for determining a contractor’s success and making necessary adjustments for optimal success and profitability. The objective of this study was to research and provide a practical guide for contractors to use KPIs in their companies. Click here to read the report.
Further, ELECTRI International created a KPI Evaluation Tool. Take a deep dive into pertinent KPIs and see how your company measures compared to your peers within the electrical construction industry. Functional areas such as business development, estimating, finance, operations, prefabrication, purchasing, field installation and more are built within this benchmarking tool. Properly established KPIs are more critical today and with an understanding of how to use metrics to monitor performance, increase profit margin, and reduce risk will support optimal success and profitability.