 
In 2011 I stumbled across a pebble the size of a car. It was a lesson in apprentice knowledge and behavior that still has me reeling. It is amazing sometimes that the things most obvious don't make themselves visible, until you ask the right questions.
About mid-year, I added a simple question to a number of my apprentice speaking/training presentations across the U.S. and Canada. The question was, "How much money do you think a contractor makes on a one million dollar job?"
The answers I have received are both disturbing and revealing. I heard the following called out from the audiences:
- $500,000
- $200,000
- 40%
- 20%
- 5%
- $1,000,000
If this were a multiple choice question there would at least be a one in six chance of getting close. The problem is that most guesses were not even in the ballpark. Profits that are mostly from jobsites were consistently estimated extremely high. The story of those answers, our future workforce, has no idea of what the rough profit margins are in construction; and that is even pre-tax. While we teach them skills and encourage strong work ethic, this gap of bidding and financial knowledge has a profound impact.
How do you think that an apprentice (or journeyman) that spends his or her career with the belief that the contractor is making 20 or 30 or 50% profit margins behaves as a result of that misinformation? Do you think it impacts work ethic? Do you think it impacts attitude? Do you think it impacts material handling, waste generation, length of breaks, early quits and multiple other small things that all add up to big money? I do.
As a more realistic benchmark, let's assume (hope) a contractor can get a five percent profit in this marketplace. How much of a union craft person's day represents a five percent profit?
- Five percent of an eight hour day works out to about 24 minutes.
- Five percent of one hour is only three minutes.
How easy it is to waste three minutes in an hour? Or 24 minutes over the course of a day? How do razor thin margins affect a union contractor's success or survival? Well, you have the answer right there. An apprentice or journeyman operating on a 40% profit mindset will neither know, nor care, that the level of production, quality or efficiency that he is providing is not in that bid; and it is our fault if we don't educate them as to what is really happening in the industry.
In summary, apprentices must understand the business they are in, and contractors need to be active in this effort on behalf of the training programs. This can be, in some ways, more important than developing the skills they need. It is about influencing and educating head and heart before hands. Jobsite behavior is the result of a belief system, not a skill set. A highly skilled worker with the wrong belief systems is no better than an unskilled craftsperson. We need to give apprentices the balanced and accurate context and reality check that comes with an examination and explanation of money, time, profit and competition.
Have you booked your program with us this year? Please contact jdixon@breslin.biz or 925-705-7662
Legacy - NEW Program!
This program is for all levels of field foreman, journeymen and apprentices, and is built around the idea of having a legacy career. The central concept of the program is that an individual work in a manner that is transformational, not transactional. Transformational thinking and behavior accounts for rapid change and development in the individual, the teams and the organization where one works. Transformational thinking is when serious thought is invested in the ripple effect that one has on fellow workers, work procedures, productivity and profit. A legacy is built on the long term accounting that comes with the awareness and attention placed upon it, and the transformational nature that it generates when goals are aligned with it. For an industry that is mostly transactional – where compensation and opportunity are traded for time and talent – this is a more powerful motivating force that brings purpose into the sphere of influence for workers who may never have even thought of it.
Key components and deliverables for Legacy include:
- Understanding the difference between transactional and transformational leadership.
- Understanding, and acting, on the impact points related to time, money and profit that each jobsite decision generates.
- Promoting mentorship and generational informational exchange; especially in different phases of one's career.
- Understanding self-directed behavior and how to create your own direction, even when challenged by a culture that does not always support it.
- Utilizing positive communication in the enhancement of teamwork and improvement of processes and productivity.
- Creating an acute awareness that personal and professional decision making will define opportunity, earnings, growth and one's career legacy.
1.5 hours- foreman, journeymen and apprentices
More info on Legacy can be found at www.breslin.biz.
Million Dollar Blue Collar
Has there ever been a time that tradespeople have had to manage their money any closer? Before the economic downturn spending was a habit fueled by opportunity and impulse. Now, spending is a set of strategic decisions that dictate the health of many families and their futures. Money management is a rare skill set among trade professionals. Why not give those in your company or union the tools to prosper even in challenging times. Million Dollar Blue Collar was written for union trades men and women to help them manage their lives. It probably says something that many union leaders and contractors share it with their kids – also helping them too to understand that lack of financial sophistication is no longer possible for anyone who wants to get ahead and try to stay there.
Million Dollar Blue Collar is about finances in Construction. Watch the video.
More info on Million Dollar Blue Collar can be found at www.breslin.biz.
Breslin Reviews
"Thanks so much for visiting our Chapter. Great presentations! Informative, compelling, relevant, and entertaining. Very positive feedback from Houston employers today. Very positive, and much more in depth feedback from Beaumont Employers, Union and JATC this morning."
Allen Grainey
Executive Director
Southeast Texas Chapter NECA
Bites from the Breslin Twittersphere:
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If you had to pick one work-related New Year's resolution, what would it be? Take our poll! http://conta.cc/whvrzX
@BreslinBiz Dec 31 via HootSuite
Happy New Year! Here's to a new year of increased employment, wages and market share. See you in 2012!
@BreslinBiz Dec 7 via Constant Contact
Latest Newsletter out in honor of Nat'l Buy American Month: American Made Holiday Gift Ideas - The Training Advisor. http://conta.cc/uMjS7N
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The Training Advisor - Thankful for Their Opportunity. http://conta.cc/t07I8L
@BreslinBiz Nov 14 via HootSuite
New blog articles are up! "Apprenticeship: Real Life on the Job" and "The Best Kept Secrets." http://ow.ly/7rnif
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Breslin Strategies Inc.
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Alamo, CA 94507
925-705-7662
925-705-7426
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