Regional Union Construction Center to build diversity
By Terry Nelson
Carpenter’s District Council
After six months of structured meetings with clear goals in mind, PRIDE of St. Louis, along with local union leaders, business owners and local contractors have created the first-ever Regional Union Construction Center Incubator that will try to meet the need of emerging and minority contractors.
The vision for this venture is to help assist start-up construction businesses not only meet the needs of starting a new business, but to help overcome the many obstacles that new businesses must deal with from day one. This incubator program is still very new; however, this concept is being very well received by the local construction industry, and their support is very important to our ultimate success.
The concept of the program came about over a handful of specific issues. The following are just a few examples:
Capital is a major problem for minority-based and emerging businesses. They start a business, but banks will not willingly approve sizeable loans. Without a sizeable loan and a line of credit, businesses cannot compete within the construction community.
An even bigger problem is that St. Louis is the third most segregated city in the United States. The St. Louis region is very diverse and, yet, minority companies and emerging companies start up and fold far more frequently in the construction business than other businesses in the metropolitan area.
Major construction projects have clauses which require a certain percentage of the project must be done by minority- or female-owned contractors. The problem is that once the big job with minority participation is complete, the minority contractor has to scramble for a new job; in many cases, the minority-based contractor has to close its doors.
I believe that in the last 20 years, we’ve had easily more than 100 minority contractors on construction projects in the St. Louis area. I can name on one hand those who are still around. We have failed miserably in our attempts for minority- and woman-owned companies to participate in the construction industry. The one thing the committee unanimously agreed on was there was enough blame to go around for every player in the game, so we spent zero time pointing fingers.
I believe that this new Construction Incubator will solve some of our existing problems. I also hope that our partnership with PRIDE, other Union Trades and area businesses and local contractors will make it possible to generate more man hours for all union members in the construction industry, as well as make opportunities available for minority-owned and emerging companies.
The estimated cost to launch this ground-breaking venture is about $500,000, and this will also be the annual cost to run this program. The costs for the Construction Incubator program are very minute when you factor in what we will gain in the region.
Our goal was to launch the Construction Incubator Program in six months. I am proud to say we have accomplished that goal. We have also attained the following important needs: a central location, at the MET Center in Wellston; storage for trucks and other construction equipment; and legal and accounting services to help keep records and monitor workers’ compensation coverage, taxes and other organizational issues.
Our goal is to make the construction industry in the St. Louis region the best and most diverse in the United States. Our aim is to become the destination not only for companies to locate in St. Louis, but for national headquarters to establish a presence in our region because of our very diverse community.
None of this dream and vision could have been achieved unless we had support from the construction community. I believe this has happened just by the commitment of time and energy we have received from our current board of directors: Kim Cook – Clayco Construction, Sandra Marks – Washington University, John Steffen – Pyramid Development, Mike O’Connel – Plumbers’ and Pipefitters’ Local 513, Rick Sullivan – McBride Homes, Mike Hurst – McCarthy Construction, Marion Hayes – BRK Electric, Ron Wiese – Alberici Construction, Jim LaMantia – PRIDE, and yours truly.
Terry Nelson is executive secretary, treasurer of the Carpenter’s District Council of Greater St. Louis and Vicinity.
