MCAA leadership

MCAA national president’s term comes to a close

Robert T. (Bob) Armistead, president of Armistead Mechanical Inc., a fourth-generation mechanical contracting and engineering firm with offices in Waldwick, N.J. and Newburgh, N.Y., will complete his term as the national president of the Mechanical Contractors Association of America (MCAA) at the association’s annual convention, which takes place March 6 – 10 in Wailea, Maui, Hawaii.

Serving as president since April 2010, Bob has led the industry in navigating the turbulence of an uncertain economy and tight marketplace. Of his term as president, Bob observed that the 2010 economy and construction markets began to show signs of life and an eventual rebound. As his term comes to an end and he looks ahead to the future, Bob notes that the most successful contractors going forward are those that will continually look at the changes in the industry and stay ahead of the curve.
“As we look at the changes taking place in the construction marketplace, we see what our companies must do differently to be more productive and competitive,” said Armistead. During his year as president, the organization developed programs to help contractors integrate building information modeling technologies into their operations.

As contractors become even more competitive and value-oriented, MCAA notes the importance of having our labor partners do the same thing. For that reason, Bob and his associates at the MCAA leadership team formed a joint strategic planning committee, made up of the executive committees of the United Association and the MCAA. The group meets on a regular basis and has established several subcommittees, including the education subcommittee, whose members are currently developing a presentation on the contractors business model and the competition subcommittee, which addresses the issues that prohibit the competitiveness of union mechanical contractors.

In addition, under Bob’s leadership the MCAA has promoted tax incentives and sound energy policies in Washington to encourage the growth of green building and has also provided LEED training, workshops and resources to continue to educate its members on the importance of energy efficiency, water efficiency and other aspects of green building.

Phc News recently conducted exclusive interviews with Robert Armistead and incoming MCAA national president, Mark Rogers.

phc: Among the prestigious history of past MCAA presidents, can you describe the significance of being chosen to lead the MCAA?

Armistead: Leading the MCAA has been a tremendous honor, and it’s the highlight of my career in the mechanical contracting industry. I was privileged to serve on the executive committee for three years prior to my term as president, and I was able to see how hard my predecessors worked and what a great job they did. I am fortunate that the association was in great shape when I got the job, and I believe that I am passing along an equally successful association to my successor, Mark Rogers.
phc: I’m sure that as president of MCAA you met a lot of mechanical contractors. Can you describe how that experience was?

Armistead: One of the best parts of being MCAA president is the opportunity to visit with many of our local affiliated associations around the country. Without fail, the contractors I met were gracious and hospitable. They were also very thoughtful, and we had many good, frank discussions about the economy, legislation in Congress and how to make our industry even stronger as the market starts to recover.

phc: How did you get involved with the mechanical industry?

Armistead: I was raised in a family-run mechanical contracting business started by my grandfather and, at a young age, worked summers and school breaks in the family business, learning the trade in the field and later working with the estimators and project managers in the office. I received my Bachelor of Mechanical Engineering from Villanova University. After college, I served as a naval engineering officer aboard the guided missile destroyer USS Richard E. Byrd, stationed with the 6th Fleet. Upon completion of my tour in the Navy, I returned to New Jersey and went back to work in the family business. The Armistead family has been in the mechanical construction and engineering business for four generations.

phc: What were/are your initiatives for the MCAA as president?

Armistead: When I took over as president in the spring of 2010 from then-president Lonnie Coleman, the association was in excellent condition despite the economy. As president, I wanted to be sure that we continued the year in great shape.

This year we offered a full range of educational programs to help MCAA contractors stay ahead of the change curve. In fact, we were able to expand our offerings, adding a number of webinars and workshops on topics like BIM to provide cutting-edge information to our members. Our programs continued to be filled to capacity, even in a very tough business climate. MCAA members clearly know that the only way to succeed is to keep moving forward and to prepare for the rebound.

Following the 2010 convention, the MCAA executive committee began a series of strategic planning meetings with our labor partners at the United Association. I believe this will continue to be a very successful initiative going forward.

Our legislative agenda continues to be action-packed. We are working on a range of proposals across the breadth of our members’ interests. They include procurement issues, labor issues, pension and benefit issues — including healthcare reform, tax issues and market expansion. We are delighted that President Obama has launched his Better Buildings Initiative and are hopeful that America will choose to incentivize more private jobs retrofitting buildings to increase energy efficiency. Tea Party, ?mainstream Republican or Democrat, this plan is a win-win for all of us.

Throughout my MCAA career, I have been active in helping shape our career development program, and I feel very strongly about supporting MCAA’s student chapters. Our industry needs to continue educating young people about the opportunities in order to attract the best talent to our firms to replace retiring baby boomers. This year, we held a very successful student chapter summit in Chicago in October and, through my position on the national board of the ACE mentoring program, continue extending that reach into the high schools.

phc: Do you feel that you met your goals? Explain.

Armistead: Absolutely. MCAA has continued to advance our members’ interests on a wide variety of fronts. We’ve been providing educational programs to help them prepare for the industry’s future. We have a strong relationship with our labor partners at the United Association, and we have a highly successful legislative affairs program that is both protecting our interests and working to create new markets for our contractors.

phc: Did the economy affect your vision as president?

Armistead: Not too much. MCAA as an association is all about providing great value to our membership. We have a very lean but highly professional staff that continued to provide the best programs and services to our members throughout the recession. We trimmed our budget but did not have to implement any staff reductions or furloughs. That’s great, because the association business is just like our business; it’s about people, and we pride ourselves on having an extremely talented and experienced staff with virtually no turnover.

phc: What advice do you have for struggling contractors?

Armistead: I would encourage them to take advantage of what MCAA has to offer. MCAA has certainly helped my company get through these tough times. Beyond that, we have continued to do what we do best — estimate well, perform well on the job and just keep marketing. I try to support my people and help them make the best decisions for our future.

phc: Other than the economy, what was a major obstacle or issue you had to face in 2010?

Armistead: MCAA was dismayed last summer when the Financial Accounting Standards Board (FASB) proposed expanded disclosure and reporting requirements for construction companies that are signatory to multi-employer pension and benefit plans. We had very serious problems with the proposals in terms of both administrative burden and concerns that the information being asked for would be more misleading than useful for the users of financial statements.

MCAA formed a “swat team” of experts to address these concerns and has taken the lead for the construction industry to work with FASB. We are making significant progress and I am confident that, under the leadership of incoming president Mark Rogers, we will continue to work with FASB until this issue is resolved.

phc: How do you see the future of mechanical contracting?

Armistead: Mechanical contracting has a bright future. In the new economy, energy efficiency and water efficiency are going to be more and more important. And our contractors have the skills and abilities to help owners maximize their savings in these areas.

phc: Briefly describe the benefits of an MCAA membership.

Armistead: MCAA’s core mission as the “education association” is to deliver the finest educational programs and services to our membership. Furthermore, our programs are evolving to keep ahead of the industry’s change curve.

One of this year’s highlights is the MCAA convention in Maui. Keynote speakers include former ABC News anchor Charlie Gibson, NBA legend Bill Walton, United Association general president Bill Hite and retired General Stanley McChrystal. In addition, we have a full range of workshops, roundtables and informative programs that will provide our members with great ideas and insights.

Personally, I always look forward to the finals of the student chapter competition. This year, teams from 29 colleges and universities throughout the United States and Canada entered the competition. In Maui, the best four teams will make oral presentations, competing for the coveted championship trophy. It’s a session not to be missed.

And, of course, we have endless networking opportunities and a well-deserved chance for winter- and economy-weary contractors to recharge and rethink. It will be a busy but productive week, and I know that, as I leave the presidency, MCAA is in excellent condition and that my successor, Mark Rogers, will do a great job as the next president.

New MCAA president to assume duties in March

       

Mark Rogers is Chief Operating Officer for West Chester Mechanical Contractors based in Chester, Pennsylvania, and will take the reins as MCAA president March 10.

phc: How did you get involved with the mechanical contracting industry?

Rogers: I had given up my baseball scholarship in college due to an injury to my pitching arm and was directed to the Steamfitters Local # 420 apprenticeship by my then girlfriend’s (now my wife’s) father who was a member of local 420. I took the test, got accepted, and the rest is history, as they say.

phc: How does your experience help you best lead the MCAA?

Rogers: As a person who started in the trenches (literally) and worked my way up from apprentice to journeyman to foreman to owning my own business, I have been fortunate to see all aspects of our business and both the labor and managements views.

phc: What are your initiatives for the MCAA for 2011?

Rogers: Get people involved in MCAA by encouraging them to volunteer their time. Through involvement with MCAA, they can make a big difference in their own personal well-being, for their people and for the industry itself.

phc: You now stand among the shadows of prestigious past MCAA presidents; can you describe the significance of being chosen to lead the MCAA?

Rogers: Our past presidents have a wealth of knowledge. They have all played some part in my personal and professional success. I will always be grateful to them. They are a tremendous resource to have, and I am honored to be able to continue that tradition of leadership in hopes of one day joining them and passing along the tradition.

phc: What do you see as the top three or so obstacles facing contractors in 2011?

Rogers:First, getting money released to owners so they can pursue their projects and so we in turn have work. The turmoil in the financial system and tight credit continue to be issues for the construction industry, including mechanicals.

Another issue is the fast pace of our rising benefit packages and the associated costs to our businesses. As contractors, it is important for us to do what we can to control our costs and stay competitive. We’re also adopting new technologies and streamlining our processes and creatively adding value to our projects. MCAA’s educational offerings are a great assistance to contractors as they adopt best practices and evolve their companies.

Certainly, like many businesses, we struggle with rules and regulations that affect our industry. This year, one of our greatest challenges is from the Financial Accounting Standards Board, an independent accounting standards body. They have proposed new disclosure rules for contractors who are signatory to multi-employer pension and benefit plans that would be extremely burdensome for our industry, while providing information that is more misleading than helpful to users of financial statements. MCAA took the lead in putting together a coalition of construction industry experts who have been working with FASB toward a resolution of this issue.

phc: What are some market segments that could be on the rise for 2011?

Rogers: As I travel around the country, I hear that power, petroleum, healthcare, education and water infrastructure are expected to grow. Architects’ billings have gone up, so they’re being rehired for conceptual work. I read a survey of construction executives who see growth coming, and confidence is increasing.

My company is doing a great deal of healthcare work in Philadelphia. We’re in an area densely populated with healthcare institutions, research facilities and higher education. A lot of renovation is going on, and we land our share of the upgrades. A couple of the hospitals where we work have more energy-efficient equipment going in, and they’re getting federal grants for some of the work. We hope to see more federal support for energy efficiency work coming out of Washington, particularly if some of the Better Buildings Initiative incentives advocated by President Obama are enacted by Congress this year.

phc: I’ve heard a lot about stimulus money driving jobs in the construction market, and that is starting to dry up. What can contractors do to stem the current economic tide?

Rogers: This year we have a great opportunity to support the energy efficiency market by urging Congress to expand federal tax incentives for private investment. We are working hard lobbying for an expansion of the federal commercial building tax incentives for building efficiency. In President Obama’s budget released this February he proposed turning the current deduction into a more generous credit. We will also urge elected officials to encourage the banks to loosen credit terms, continue to finance projects and continue to make money available to businesses to expand and grow.

phc: For contractors that can’t make the Maui convention, explain the significance of attending a regional educational seminar, etc.

Rogers: Change is a given these days. The most successful contractors are the ones that get out ahead of the changing business environment. One of the best ways to do that is to attend any MCAA event you see that catches your eye and is related to your business. You will either learn something new that you can use, or it will validate what you’re already doing. MCAA prides itself on being the “education association,” and we make a wide range of opportunities available each year on cutting edge topics.