The secrets to construction success

Are you managing your construction fleet properly? Our exclusive interview with a certified automotive fleet manager should shed some light on your company fleet practices and whether you need to tighten them up. But first: Find out which states had the lowest unemployment rates in construction at the end of 2024.  

Here's a peek at what's in today's issue:

// How to level up your approach to fleet management
// Why you should invest in continuing construction education
// What successful contractors have in common

Fleet Management: 'Invest in training... It pays for itself'

Proper management of your construction fleet boosts safety and ROI for your vehicles. But is your company dedicating enough resources and strategy to making the most of your fleet? Dale Collins, a certified automotive fleet manager and a NAFA Fleet Management Association member, spoke with The Level about the value of tighter fleet management in construction. —Margot Lester

 What are some common fleet management mistakes you've noticed?

Over-buying or under-buying. I’ve seen equipment asked to perform tasks well beyond the design capabilities resulting in failures and unsafe situations, and larger-than-necessary equipment being just overkill for a particular job and not utilized enough to justify owning it.

Also, be sure folks using your fleet assets understand how they work and are competent using it. invest in training for your staff. It pays for itself in fewer damaged assets and injured people.

How can construction companies avoid making mistakes in fleet management?

Fleet management is a full-time job, not something you can simply take care of on Tuesday mornings. Managing your fleet operations will save money and resources in the long run. Be sure to:

• Match the vehicle to the task saves time, money and risks
• Identify operators that may benefit from coaching or training
• Find potential issues prior to them becoming breakdowns
• Prioritize proper preventive maintenance
• Know the proper time to replace assets to avoid obsolescence and maximize ROI

Do you recommend any type of technology to help with fleet management?

A first-class fleet system (FMIS) in concert with telematics gives any fleet actionable intelligence. It keeps the right information at your fingertips, not chasing paper or management by spreadsheet.

>> Who we're following:  Desmond Tse (@thesidingguy) on Instagram. Tse shares advice on tools and techniques that make siding projects faster, better and safer. 

>> What we're listening to: "Sustainability Strategies and Carbon Management with Mark Chen". In the latest installment of the Green Building Matters podcast, Skanska's national carbon manager joins host Charlie Cichetti to talk about sustainability strategies he deployed for a campus redevelopment and several data center projects. 

>> What we're watching: "Reinvent, Adapt & Thrive—Navigating Tough Economic Times." Episode 702 of the The Construction Life finds Nick Bartella and Agostino Mastroianni exploring ways to get past the survival mindset to instead focus business maintenance. 

>> What's happening soon: Elevating a Solution to the Built Environment Workforce Shortage That Threatens Our Nation (Mar. 4) Washington, D.C.

>> Just for fun: Decoding emojis! Emojis are a fun shorthand—CNET makes sure you know what they really mean.

Elite Eight: Successful contractors do these things

Successful construction companies have eight traits in common, according to George Hedley, a certified professional construction business coach. Based on his observation of the top 5% of best-in-class contractors, he identified "common results, achievements, strategies, structure, systems and characteristics of how they operate”. He found that top contractors do these things:

1. Update business strategies, formal plans and organization charts.
2. Establish best-in-class benchmarks and results.
3. Cultivate and maintain high-margin projects and loyal customers.
   
4. Track and know financials like revenue, overhead, backlog, margins, etc.
5. Maintain and enforce procedures and policies.
6. Form a strong leadership team and succession plan.
   
7. Recruit and retain top talent with coaching, training and mentoring.
   
8. Embrace innovation, including new technology, equipment and materials.

Why it matters: “If you’re happy, continue doing what you’ve always done,” he says. “If you want to improve and achieve better results, you’ll have to do business differently. Improving your performance on any of these tactics can help you create a sustainable enterprise." (ForConstructionPros.com)

>>  Multifamily Matters: Interest rates & supply create concern

>>  Industrial Investment: Sector drives sales in Cleveland

>>  Rebuilding Reality: Immigration crackdown hampers fire recovery

>>  Regulator Returns: Turner confirmed as HUD secretary

Talent Tip: Invest in continuing construction education

 It may seem counterintuitive to put money into learning when costs are on the rise and policy changes threaten multiple aspects of your business. But education isn’t an expense, it’s an investment. Here are four ways to choose the right continuing education opportunities for you and your crew:

• Identify skills gaps. Determine the skills required to meet operational goals, client demand and future opportunities.
• Attend conferences and webinars. Explore new technologies and techniques before you invest in more formal and costlier options.
• Be active in professional associations. Take advantage of industry- and sector-specific educational events to ensure you have the relevant skills.
• Get formal instruction. Enroll in classes, workshops and certifications that bridge gaps, meet goals and deliver good ROI.

Why it matters: Staying up on the latest learning isn’t a luxury in a rapidly changing field like construction. With new technologies hitting the site and new standards and regulations going into effect, you can’t afford to be out of date. (Highways Today)

Tax Time: S-corp and partnership returns due March 17

 If your S-Corp or partnership runs on a calendar-year basis, your tax return or extension is due March 17. There are exceptions, however, for construction companies impacted by natural disasters like Hurricane Helene and the Los Angeles fires. The IRS has a complete list of communities qualifying for tax relief.

Why it matters: Penalties for not filing or requesting an extension on time can be hefty and are easy to avoid. Talk to your CPA about your returns if you haven’t already. (Kiplinger)

• Study up on the new NFPA 660: Standard for Combustible Dusts (Feb. 25) Get the details on this new guidance that consolidates six previously independent standards. The webinar features Kyle Slade, process safety specialist for DEKRA North America.
• Build more, waste less (Feb. 27) Learn about the eight wastes and how to reduce them in this Lean Construction Institute session.
• Get certified in digital technologies and construction automation Enroll in this online course from Clemson University's Glenn Department of Civil Engineering to advance your knowledge of the latest building technologies.

Thanks for reading today's edition! You can reach the newsletter team at thelevel@mynewsletter.co. We enjoy hearing from you.

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The Level is written by Margot Lester and edited by Katie Parsons.