Message from Doug ...

A New Strategy for the Labor Shortage

Finding laborers for our company has been an increasingly difficult situation. With Georgia’s unemployment rate the lowest it’s been in nearly a decade, it’s not hard to see why.

In June, Georgia’s seasonally adjusted unemployment rate fell to 4.8%. The last time unemployment was 4.8 percent in Georgia was September 2007.

I’ve previously mentioned in this column that when we need five laborers for our jobsites, we will have to hire 17 people. Then, over the course of a few weeks, that group of 17 will be whittled down to five.

Many of these new hires will simply stop showing up for work. I will fire some for tardiness, unexcused absences and for being unproductive on the jobsites. We will end up with about five people that manage to stick it out.

The cost of the 12 people that only last for a few weeks is staggering. Some of these costs are the hiring, orientation, training, and administrative costs. Since the new laborer doesn’t know how to do the work effectively for the first few weeks, there is almost no return on the money we pay them for their time on the jobsites. These are massive costs that we have to cover.

Over the past six months the hiring situation has gotten even worse. It has become very difficult just to get people to apply at our company. Where we once would hire 12 laborers at one time, it has been tough to assemble a group of five to show up for their first day of (paid) orientation.

We have been wrestling with this problem. We’ve increased the number of ways that people see our help wanted ads. We’ve tried many things. Finally, after much discussion, we recently increased our starting pay for unskilled laborers by 40%.

This is a huge jump in our starting pay. And, the increase has had a ripple effect on some of our employees that have been with us for a year or two. Some of their pay had to be increased to stay in proportion with the starting wage.

Our strategy is that—while it will have a significant short-term negative effect on our profitability—the increased wage will attract more (and better) employees to our company. We also believe it will allow us to retain the best of the new laborers.

We hope that this improvement in our laborers will allow us to be more productive on each jobsite, add new clients, and complete more projects in any given week with our current amount of trucks, forms and equipment.

If all of this happens, then it will eventually have a positive impact on our profitability.

Of course, this strategy is currently just our hypothesis. If the increased pay does not produce the results we expect, then we’ll have a bigger set of problems.

However, the definition of insanity is doing the same thing over and over, and expecting different results.

We needed to do something significantly different in order to change our situation. Let’s hope this will do it.

To Your Success,

 

In July, we attended the Concrete Foundations Association Convention in Nashville, where we learned tactics to improve our business.  I was also one of the speakers at the event. I gave a presentation about how to hire a salesperson and the importance of follow up.  At the event, both of the projects we submitted to the Project of the Year competition won an Honorable Mention. See more about that in this post.

Recent Referrals -- Thank you!

Although summer will last far into September, the lazy days by the pool, vacations and playing video games all day has come to a close for the kiddos. It’s time again for backpacks, homework and early bedtimes. Sad to see it go so quickly but there are still some fun summer days to be had before it gets cold. As usual we would like to take a moment to thank those of you that continue to refer our company to others. Your confidence in our services is always something to smile about. THANK YOU!

Mitch Morris, Morris Drywall Inc. – Drywall Contractor  770-974-9910

Scott Auer, FrontDoor Communities – Homebuilder  www.FrontDoorCommunities.com

Richard Greene, Richard W. Greene Inc. – Homebuilder  678-414-7507

Herbert Construction Welcomes More New Clients

By: Ashley Hollifield

Bradley Hall

Hall Design Build

Bradley Hall

Bradley Hall of Hall Design Build has had a love of building for as long as he can remember. Starting in middle school, and later in high school, he worked on construction sites during the summers and on weekends.

After graduating from The Citadel with a degree in Business Administration, he immediately began his professional career as a Project Manager for Elegant Properties in Atlanta. With this company, he gained experience while building in many Atlanta Metro neighborhoods. These included Hamilton Mill, Wild Timber, St. Ives, Govenor’s Towne Club and Brookmont.

Hall Design Build was established in 2008 and has primarily been building impressive custom homes, along with major renovations and large scale additions. The majority of these projects have been located in Buckhead, Sandy Springs, East Cobb and Smyrna. The projects that Hall Design Build completes are typically in the $million+ range.

Bradley Hall has had a good working relationship with our Sales Account Manager, Carey Bullard, for many years. After speaking to Carey he asked us to pour the foundation for a project he was working on in Cobb County.

This particular site required poured garage walls, a rear walk-out basement and a free-standing retaining wall behind the home. This is a pretty standard task for our company and we were able to get it done for him right on schedule with very little trouble.

When the work was complete we asked him, in normal Herbert fashion, what he thought about his basement. He replied, “I’m extremely satisfied with the work you guys did here. Your company is right on target with your sales estimate, execution, your follow-up and particularly the equipment you use to ensure accuracy every time. I will definitely be using you guys again for my foundations.”

This is exactly the type of response that we always shoot for! Thank you Brad for your confidence in our company. We hope to help you with more of your foundations very soon.

Dave Durham and Doug Tolleson

Chattahoochee Enterprises

Doug Tolleson

Chattahoochee Enterprises is the homebuilding company John Wieland established after he sold the assets of John Wieland Homes & Neighborhoods. John Wieland has been a homebuilder in the Southeast for over 45 years and has focused more recently on a “Boutique Collection of Unique Atlanta Neighborhoods.” This iconic brand has produced a legacy of innovation and quality and this tradition continues in Chattahoochee Enterprises.

Dave Durham is the president of Chattahoochee Enterprises and has been with John Wieland since 1991. Doug Tolleson is the Vice President of Special Projects and our point of contact while working on a recent home.

Chattahoochee Enterprises is in a specialty slot when it comes to homebuilding. They choose to focus on ideas that others have not thought of yet. They like to create unique concepts that are conducive to the needs of the surrounding area.

These homes are usually highly detailed, smaller in-town locations. The idea is luxury in-town living that is walkable, urban, and defined. Most of their projects are located inside the perimeter or near unique infill locations such as Roswell or Woodstock.

The types of customers they attract are those who want the lifestyle that they offer. People who like the lock and go type of lifestyle, who like to travel and not have to maintain their living spaces. Half of these people already live in Atlanta and just want to downsize. For many of them, their children are already grown, but they want to live in the same area they have always lived. Chattahoochee Enterprises offers a high quality home without the hassle of maintenance.

They had a house in the planning stages that would be located in Vinings. The house would have a large, complicated foundation. They were referred to our company by a long time mutual friend who told them of our ability to handle technical projects and difficult jobsite conditions. Doug Tolleson sent the plans over and we got to work.

In order to build this foundation we needed to construct exterior and interior columns that would raise the back of the house 8’ out of a flood plain and level with the basement floor. There were numerous wall heights, thicknesses and structural details that made this project more technical than most. Access to this jobsite was also a challenge, we poured 9 cubic yards of concrete just for an access drive.

This was a unique project and we definitely wanted to know what their thoughts were once the work was completed. Doug Tolleson, the project manager, told us that, “A big part of my decision to go with you guys was your ability to fabricate your own rebar in-house. This project was a heavy rebar project with highly technical structures and we really felt comfortable with your knowledge. We never had to wait on the material. It was impressive.” 

Dave Durham, the company president, added that, “From a professional standpoint, you guys were definitely above average. Your trucks are clean and organized, the jobsite was kept clean, the surrounding areas were protected and your crew was extremely knowledgeable and consistent. I’ve always thought that a good transaction is a boring one, and that’s exactly what it was.” 

We are glad you guys chose us for this project. We specialize in the technical ones and we were happy to help. We hope to help you with many more in the future.

2017 Total Solar Eclipse

By:  Ashley Hollifield

We have all heard about, if not watched, the Great American Solar Eclipse that happened recently. This eclipse traveled from Oregon through South Carolina in a 70 mile wide band spread exclusively across the United States for the first time in 99 years. This is a super cool thing to watch now because we know what is happening. However, historically people have been really superstitious about this natural phenomenon, and have come up with some very interesting ways to describe what they thought was happening.

In Vietnam, people believed that a solar eclipse was caused by a giant frog devouring the sun, while Norse cultures blamed wolves for eating the sun.

In ancient China, a celestial dragon was thought to lunch on the sun, causing a solar eclipse. In fact the Chinese word for eclipse, chih or shih, means to eat.

According to Hindu mythology, the deity Rahu is beheaded by the gods for capturing and drinking Amrita, the gods’ nectar. Rahu’s head flies off into the sky and swallows the sun causing an eclipse.

Traditionally, people in many cultures get together and bang pots and pans together to scare away the demons that are causing the eclipse.

Many people believe that solar eclipses are unsafe for pregnant women and their unborn children and are asked to stay indoors during the event. (There is no scientific evidence behind this theory!!)

In many parts of India it is believed that people must fast during an eclipse because any food cooked or prepared during one, will be unclean or impure.

On a more positive note…

The Batammaliba, who live in Benin and Togo, used a solar eclipse as a teaching moment. According to their legends, an eclipse of the sun meant that the sun and moon were fighting and the only way to stop them from hurting each other was for people on earth to resolve all conflict with each other.

And Finally, People in India believe that flowers planted during a solar eclipse are brighter and more colorful than flowers planted at any other time of the year.

If you had no knowledge of what was happening, what would be your best description to someone else of what was actually going on?

Whatever you believe, I hope that everyone enjoyed The Great American Solar Eclipse.. I know I sure did!

Herbert Construction Wins an Honorable Mention in National Contest for Two Atlanta Area Projects.

For the last six years running we have submitted some of our most challenging projects to the Concrete Foundations Association (CFA) and we have won an award for “Project of the Year” for each of those years. This year we submitted two projects and were awarded an Honorable Mention for both projects.

The first project was in the competition category of single family “Greater than 5,000 square feet.”  This was an impressive entry because it was a really large basement with equally large retaining walls. We completed this project in seven phases for Rick Fierer at Bildon Construction and Development.

The second project was highly technical and was completed for Brian and Randy Shiltz at t-Olive Properties. It was submitted to the competition category of “Non- wall structural element” because one of the main focuses of this job was the elevated structural concrete slab that we constructed. There were 6 phases of construction for this job, including poured walls for the pool house, an addition to the garage,

and a stairway wall ascending to the elevated slab.

While these were both fantastic projects that were certainly worthy of a “Project of the Year” Award, the competition this year was really tough to beat. We are very proud of these jobs and will continue to battle the competition in future years.

This elevated structural concrete slab was built for Brian And Randy Schiltz.

We Constructed the massive basement and retaining walls for Rick Fierer.

America's Dumbest Criminals

RIDGECREST, CA — An alleged burglar in California whose luck ran out when he got stuck inside a home’s chimney has been arrested.

Officers from the Ridgecrest Police Department were initially dispatched to a home Sunday after reports of a triggered burglary alarm.

A few minutes later, police got another call — this time from a woman who claimed that her friend was trapped in a chimney at the same address.

When officers arrived, they discovered Keith Schultz, 28, wedged in the chimney. 

Schultz, who was covered in soot in his mug shot, was eventually rescued from the chimney by firefighters. He was taken to Bakersfield jail and charged with burglary.

MESA, AZ — In Mesa, Arizona, a home break-in was foiled when the burglar jumped through the bedroom window—and got trapped in a clothes hamper. Cops took it from there. (That definitely wasn't the kind of clean getaway he had planned.)

ANCHORAGE, AK — Police in Anchorage, Alaska, spent at least some of August searching for a man in a “fairly realistic” bear costume who was caught harassing several actual bears in the Chilkoot River. “This is not the first time we’ve encountered a man in a bear suit,” Fish and Game spokeswoman Megan Peters told the Associated Press, though the experience apparently did not help them make an arrest.

FRESNO, CA — Recently, a woman in Fresno, California, was stopped at a DUI checkpoint for being soused. Ever helpful, she offered up this info: “My husband’s right behind me, and he’s even drunker than I am.”

VERO BEACH, FL — Rempe, 24, drove his 2002 Toyota through the front door of Indian River County Jail’s Building C. That didn’t work, so he backed out and then tried to go through the fence. That also didn’t work, so he tried to climb the fence, where he got stuck on the razor wire. What was Rempe trying to accomplish? He told police he wanted to visit friends who were currently incarcerated, a decision he’d reached after getting high on “flakka,” a synthetic stimulant.

KISSIMMEE, FL — A man suspected of stealing a car was arrested Monday after he pulled over to view the solar eclipse, investigators said.  Orange County deputy sheriffs from the auto-theft unit were following Rosado, 22, when he parked the car at Harbor Freight Tools on Osceola Parkway near Kissimmee, they said.  After buying a welder’s mask to view the eclipse, Rosado walked back to the car, put the mask on and started looking up at the sky, sheriff’s spokeswoman Jane Watrel said.  While Rosado was wearing the mask, deputies moved in and arrested him, Watrel said.