The Good, the Bad and the Ugly in the Construction Industry
The Rocky Mountain Construction Summit examined many issues that are present in the construction industry today.
The Rocky Mountain Construction Summit, held on May 3 at the Omni Interlocken Resort, examined many issues that are present in the construction industry today. Topics included development, contracts, project management, risk avoidance, claims and disputes.
The attendees of the Summit were a cross-section of construction industry experts such as lenders, architects, contractors, CPAs and accountants. These attendees engaged in dialogue and conversation during a series of sessions which focused on current challenges, construction claims, residential development, project management, leadership transition and succession planning.
Len Koch, SVP of Commercial Banking at Vectra Bank, led a session with a panel of industry leaders that discussed the Good, the Bad and the Ugly in the construction industry.
- Booming private sectors
- Mergers and acquisitions
- Technology that makes collaboration, communication, and productivity tracking easier
- Value adds such as R&D Tax Credits
- Flat public sectors
- Tariff Tax
- Delayed leadership transitions within construction companies
- Lack of available skilled workers
- Construction cost escalation
- Rise in legal activity surrounding construction projects
Koch's panel touched on succession planning, ownership transition strategies, leveraged buyouts and company culture. One consistent theme is that prior to leadership transition, companies must establish a goal and begin to identify a transition team and structure. Strong management is important to a financial buyer to maximize company value. With a collaborative leadership team at the helm, management should focus on developing talent at all levels of employment with coaching and mentoring. In addition, given the shrinking labor pool, companies should dedicate resources to hiring and grooming new talent for top roles while creating a defined work culture.
"We have seen a direct correlation between cultural changes and employee performance," said Koch. "Companies should find time for team building and social activities, and focus on employee wellness and workspace conditions."
Koch's team of relationship managers focus on working with Colorado construction and contractor businesses to create a financial roadmap for both short- and long-term business goals. He has developed a group of specialists who offer a full scope of services to clients, which includes funding for growth and ownership transitions, cash management solutions, and working capital and funding asset acquisition strategies. The team consists of Len Koch himself, Courtney Harless and Katie Genova.