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morning happy Friday to everyone thanks for joining I will jump right here looks like we've got we're up to about 250 people on line so we're gonna start thank you for joining us it's Friday morning 10 o'clock central our e-journals breaking through the disruption webinar series today's topic is construction and Kovan and what's going on there I would like to thank our sponsors first off premier design and build group and I can't even read these logos so I'm going to come back to that and make myself a list but thank you sponsors if you have connection issues which has been a problem with everybody learning to work from home we have a button that's reconnect that's the best way to if somebody freezes up on your screen or you can't hear anybody talking click that connect reconnect button the second thing to try is make sure you're using Google Chrome that's been the best browser to go to if that doesn't work close your browser out find the link and log in again if we have connection issues I've got a panic button panic button should reconnect everything and then we have another panic button that can send you a new link so if our server we have a dedicated server to this but if it goes down you'll get a new link hopefully it doesn't happen it hasn't happened yet we had almost 4,000 people on our system last earlier this week so we should be fine good to go on your right you'll see polls and a chat function I've got a poll live there right now feel free to go in and and answer that question and also in the chat function if you want to network with your peers put your name I see some people have already started name company state that you're in if you want to put your contact info on there it's not it works too we're not going to delete it there's also where you're going to ask questions of our panelists and we have five panels today a big group so feel free to pop in there ask questions I will keep track of them and mark them as questions and try to ask them at the end or if they happen to fit into a topic we're currently talking about I'll try to squeeze them in our panelists can also see your questions so feel free to ask inline questions with what they're talking about they'll try to answer them as they go I'm gonna let these gentlemen introduce themselves okay because we have a big group tell us where what your firm you're with what's maybe just a brief segment on what you do and what how this kovat is just briefly talk about how it's affected your business so we'll start with Brian I'll go around there I'm Brian Paolo I'm one of the managing principles of premier design though Griffin co-founder where you are primarily an industrial contractor of offices in Jersey California southeast Florida and Chicagoland and based in Chicago in terms of kovin and how it's affected our business all these different states the rules are very fluid most of our day right now is keeping ahead and understanding what the newest reads are on kovaydin own affects our business and it's changing hourly rate may be as educated as we can at the end of the day it's been non-stop seems and at home that's been in my office in three weeks now four weeks something like that so it's a awhile and it's been a struggle but work even front of it yes good morning my name is Vince tikka I'm the director of training for the Chicago Regional Council of carpenters training center we have eight training centers in the Illinois area the training centers are closed at the present time we've been closed for about two weeks we do have our staff working and our members are still working out in the field hi my name is Terrence Roche I'm the president with tank and roads builders we are a full-service union carpenter contractor based in the Chicago area do all the carpentry trades framing drywall interiors and exteriors and with a major focus on design build for low-rise and mid-rise structures and over the past several weeks we're about 90 percent of what we were two weeks ago I've only seen three of our projects shut down still or excess about 225,000 carpenters and tapers out in the field and mmm taking it day-by-day and make the best decision for all of our employees good morning I'm Alan soccer I'm one of the founding partners of premiere design-build group with Brian Paul and Alec my brother we are in a transition as it relates to everything that we've gone through in terms of our office is entirely remote at this time very limited access to our primary office I'd say as it relates to field construction we're probably at 90 to 95% capacity right now small transitions happening but overall the overall general projects are headed in the right direction and maintaining our schedules I'm Mark Malone premier design-build group I'm the executive vice president and director of construction as Alan and Brian touched on you know definitely a lot of changes in our world but the arc continue to operate it's a you know a very fortunate position we're all in right now so you know not only are we focusing on doing all those normal things that would be doing but you know covin is brought a whole new plate of items for us to focus on it's keeping us you know civilly is busy right now well I'm gonna open with a question I know none of us are scientists but we've all had to learn a lot about science and try to understand what the timing of all this is I've just bounced around give me a real quick your thoughts I'm finding a lot of people think we're gonna be in this for 18 months six months two months we'll be out of our homes next week where do you fall on that scale and and Brian let's just start with you what do you think we're gonna be in this for a while or will we clean it up soon that matters what industry you're in what part of the but segment of the industry or anyone who's guests right now you have no idea that's such a unique in that brass and the industrial construction all the signs were there that there wasn't enough capacity out there and there was a lot of need before this happened and afterwards and when you start the economists talk it sounds like that there's gonna be a big movement to start just not doing the the concept of just-in-time inventory so if there's going to be more manufacturing coming here I would expect people are warehousing coming here and hopefully that will be a catalyst to get moving forward on on industrial buildings but doesn't happen overnight so if there is a big big moving on the industrial side and in continuation of the movement here I would say that hopefully it ramps up in terms of the duration I no idea I think we'd all be guessing so open for the bath and that's a very hard question to answer we are fortunate in the Chicagoland area to have about 86 percent of our jobs working and working with our contractors as well as our members to keep them safe hopefully we can little by little you know get back to a normal work schedule but we don't know what that's going to be yeah Brian do you want to or Terrence are you and jump in well I'm not here in Terrence a sound no sound yeah sorry there we go so this feels like a crash course in news meeting literacy it's can you hear me now yes okay great you know there's a lot of content out there and you know we try and look to places that are you know a few weeks ahead of us and what they're going through right now I know that well what do I really know I know what I'm told but as far as what I believe it looks like you know the Chicago area the worst if is imminent and I think we're gonna know a lot more next week the week after our three folder you know it's hard to say we see a lot of projects everything our backlog is very strong we haven't heard anything otherwise we saw a project just get financed yesterday so industry wise as much as we can fell on a Friday at 10:00 in the morning I think we're gonna be dueling with a new norm now what what are people going to be doing how's the office going to transition I kind of think that hopefully here within the next four weeks things start opening up and it's going to be a slow transition back to people visiting restaurants and stores and then hopefully as things start to progress and social distancing is maintained hopefully we go back the end of summer to being a normal condition which is not necessarily the norm that we were used to I'm hearing that a lot - hey that's mark yeah yeah I think you know obviously everyone said the same thing we're all experiencing no one really knows what the you know the short term even a little own long-term future is from our perspective what we're doing on our job sites how we're operating we're approaching it with the belief that this is not going to be something that resolves and gets back to the old ways in the next few weeks or even few months you know the plans that we're putting in place right now to deal with the the immediate needs we're expecting those continue on at least through the end of the summer so you know we're not looking at short-term stopgap measures unless that's what's contained by the situation or our approach it's really try and incorporate a lot of what we're doing here and to just the future wait Construction operates yeah good comments all right quickly I get this question from about ten times a webinar are you gonna replay this for sure so we started our own YouTube channel I'm a youtuber now and this is the address that will get you there yari journals comm video replay and we'll have this up by the end of the day we should have a replay of this available alright so the first topic we want to get into is what impact will the stay-at-home measures of the pandemic response have on an industry already facing labor shortages will contractors make use of larger automation or what are the other changes you may see or what is the also what is the labor shortages what's that affect right now go ahead and jump in if you want answer areas probably best all right well you know we haven't seen a labor shortage you know we work very closely with the Carpenters Union and you know over the past several years we've gone up as high as 380 carpenter the fields and this could be advantageous to the construction industry if you're out of a job right now and you see your neighbor who's a carpenter has been working throughout this entire we're here for the last several weeks nor has all constructs as an essential business you know won't we in this market kind of the Cuyler County we don't see any problems with labor shortage as far as movement towards you know offering fabrication you know that's been a normal across the country we're a company now that has another action division we own two role formers and we start making all of our parts and pieces sometimes months prior the job starting just so that once we're on site we have the most efficient erection of our structures past worked with companies get like skander and their modular in our medical pods and um that friend will probably be bolstered by what's going on with cope in nineteen crisis because our schedules are always shrinking and as much product as you can build off-site can be advantageous for a lot of these things when you have that inventory built up and ready to go I kind of see as a relates to labor we have not really seen any issues as it relates to labor shortages it has been in 2008 through 2010 as it relates to construction there was a lull definitely in construction at that time and a lot of people went into other industries at that time hopefully now with construction in a standpoint of still being an essential business other people can come into construction and we hopefully see right now they're there from multiple levels from plumbers to HVAC guys to 10 doctors to fire sprinkler geyser has been somewhat of a shortage as it relates to people going into the trades so hopefully this is a good turning point and relates to getting people who are more in tune and involved in getting involved in construction I can jump in here building on Alan's comment there the 2008 through 2013 he everybody left our industry people in college weren't getting jobs so they had to go to the gift industry so whether it's engineering construction management we don't sell perform so on our side is more of the the engineering project manager side the lack of having any anybody coming to the market that's during that time period has really affected us now in finding seasoned people who are 8 9 10 years into the industry people are my mother career ready to descend into their career to the next level we've been affected by this for a few years now so tons of covert affecting that I'm not sure what it looks like on the back side there's any more effect on that for for 10 years down the road but we've been affected from the recession right now for the last three four years finding they senior people they're just not there right now its entire absent population interesting well let's get into the current what's going on on the ground right now so if you have a construction project in process if any of them stopped why did they stop and when do they restart well I know I can take that one we have around eighty six percent of our jobs in the Chicagoland area are still going on some of the jobs have gone on to shifts in order to keep safe distance between workers we have had some jobs closed down from hospitals because they just overwhelmed with with patients and don't want any work going on but it's it's still been pretty good so far as far as that labor shortage as far as skilled laborers though there isn't a shortage of carpenters and in our area there there might be a shortage of superintendents but I think that sometimes is due to the you know not thinking ahead and starting to train some of your better people to step into that role until it's a little bit too late but all in well I think we're doing quite well so back to those fourteen percent jobs that aren't going has anybody done anything like walk off the job site and say I owe or do you know I'm not going to expose myself to this any kind of fear-based reaction that's happening amongst your team and you know not that I've heard if anything we're getting calls from jobs that have shut down and asking us if we know a job that's you know that they can go to but I think it's some of the jobs that have shut down or due to the owners and the other is the hospitals that that just they're overwhelmed with taking care of patients and they don't want to have that with with tradespeople there anybody else thoughts on shutdowns we've had cut Israeli sector construction project this we haven't seen any current construction project shut down what we have seen is projects in the development or in the designing phase be put in neutral and more put neutral to find out exactly how what's the the net effect gonna be I firmly believe that in the next two to three months that those projects that were put in neutral or put on hold are gonna start to get traction again and start to move forward but any new construction or active construction we have not necessarily in in Illinois necessarily been put on hold but in you know the development stages and the planning stages we've seen certain ones be put neutral yeah that's rough so anybody else I want to talk current projects because that's the next Alan bright up the next step is what does the pipeline look like I know the industry relies on having a healthy pipeline to be able to plan for employees and projects and and materials the dodge dodge reports are saying that you know construction is is still going on and it looks like in Chicago we've got a pretty good backlog there's about 88 large jobs going on in Chicago right now and there is some coming up both in healthcare black believe it's 37 is a huge huge project that has not started yet and it all depends on you know the future the future with Ovid 19 our jobs we are keeping down said earlier we are keeping on track right now with our schedules our Midwest market here and it's a lot more cumbersome now the onus is on us to keep the websites eight to provide all these extra measures that are being recommended by the CDC and other jurisdictions out there and there's a huge shortage of these just like at home shortage of supplies our theme is how to
et really creative on how to how to keep these jobsite safe when we're making inventing across the country all of our markets up wash things now whether they're a materials we're coming up with ingenuitive ways to make those finding ways to have social distancing on a jobsite our industry naturally is a teamwork industry in the field people are next to each other picking up drywall there's two people three people four people activities all over jobsite so we have to work extra hard right now in order to keep on schedule there's there's early after hurdle on a daily moment-by-moment basis for us right now to get through this and it's in terms of shutdown though in terms of do we have to work at a higher level right now so to talk about Brian you brought up a great point with regards to the job site what does social distancing look like is it you guys got to stay six feet apart the whole time how do you share tools how do you share workspaces um it's got to be challenging marking bit much better speak that he's our director of construction we do a lot of program as soon as it started breaking we educated ourselves as fast as possible try to understand what the best practices were we implemented a program trained all of our staff from coast to coast and in terms of the specifics of a market you wouldn't mind jumping in on that side and I saw Terry raise his hand I know he points on that too but please stay it away there and so absolutely um you know it's going to be very much a function of what type of project we're talking about a lot of our work is the industrial side so the site development side of it the initial structure going up that's that's almost socially distance before there was such thing is social distancing it's when we get more towards the interiors or some of the more labor-intensive aspects of what we're doing or particularly you know for doing an office construction something where you know Terrance is familiar with that's where it gets to be more of a challenge but you know I I think we attack this very early on we've been pushing it from from the beginning you know kind of recognize where this was going and I actually a large part you know it hasn't been like like a lot of things that has it hasn't been a dictate coming down from us as the general contractor the trades we see out there the you know the guys that are out there they're professionals it's you know one of the advantages of being in the Chicago market that we have a lot of professionals on our job sites and they want break safely to it you know a lot of these guys they they understand what's going out there they understand that there are some risks of operating in this environment and they want to do everything they can so it's very much a collaborative approach and that's helped us to be successful in everything from you know the social distancing hand-washing the San the sanitizing the site's making sure that when people share tools share equipment they're sanitizing it before and after use and you know in large part I think that's why relatively speaking you know we've seen very low incidences of co19 on our job sites very optimistic that it continues like that so I'll don't you know when we talk about social distancing the first thing we have to discuss is what is being performed and performing a task analysis you need to know who else looking in your area if you're doing a test that robot that requires two sets of hands how are you gonna do that and still social distance so they have to do with basically just breaking up in small chunks like that and analyzing those tests individually um for our part we have daily Huddle's every morning where we focus on those tasks and we have out in the field are very well trained they received extraordinary training from the Carpenters Union and they're always ongoing safety training and poker is based around safety so people show up every day thinking about how to be safe so you know something at them which I think not you're always throwing new obstacles at our field whether it be the schedules or just the the way top sites evolved and how they erect and rise up in the air the new safety concerns as probably change so that another challenge to why our folks are very well equipped to adapt to these things and just you know baby when you got to look at every task you do and if it involves another person you got to figure out how you're going to do that safety whether that's with math or maybe having two people that live together and drive to work together performing those tasks or finding a new way of doing those tasks we've got a great question the audience here just real quick parents us who says who pays for the extra precautions in the job site does that pass search of the owner developer if there been any pushback on that well that's that's a multi-faceted answer there's a lot of hair on that one so we've been looking very closely at you know how much productivity might we lose we're not really sure if folks have to stop regularly during the day to wash their hands if their tasks that can't be performed efficiently because of the social distancing and you know not gathering crowds so if you have to leave the building and go to their car for a coffee break or lunch so if we lose one minutes 40 minutes of productivity in a day it's very impactful to our bottom line I mean we could essentially be looking at pool where our profits could window to nothing but still working and a cash flow and you know just for us as a Duncan Roach is that we've been building our balance sheet coming out of the recession so we're in a very good position there but we're not we're not going out of our way to ascend requests for lost productivity to our customers but we have gone about the business of sending out notices as far as you know there could be an impact and if something that we realize and justify and start a conversation with them with we've been we've been getting very you know having very fair honest conversations with our customers about things like that and of course the supply chain and those concerns and again we have no history about this I mean it's never we've never been in this situation before so you know the the safety part of it you know we're learning from day to day we're fortunate here in Chicago we have a dedicated partners have a dedicated safety team that goes to the jobs makes suggestions reviews the jobs and tells the contractor some of the things that he can do but some of the stuff is new but they're doing they're doing a great job I think and the members are are understanding what's going on they're trying to protect themselves they're trying to protect their families when they go home but it's everything is new it's it's not something you could look up in a book or what did we do last time this happened there was no last time I gotta take a quick second to thank our sponsors on some of these small logos and the lower-left threw me for a loop premier design-build Chicago Regional Council of carpenters power in Chicago power forward to Page Chicago and associated general contractor's Sullivan roofing International Union of bricklayers and allied craft workers and international masonry Institute without sponsors it's really hard for us at our e-journals to stay in business so we really appreciate that people have stepped up and said I see the value in webinars and I understand it's a pivot for you and we support that so thank you to those sponsors another question from the audience was now these all these job site changes which ones are here to stay and will that affect timing of projects going forward terms of which ones are here to stay I think that anything to do with cleanliness these extra precaution we've been doing them anyway but I think will be much more vigilant now in terms of having extra hand wash stations extra sterilization tools out there for shared tools I just think in general job sites have always had they're a mess out there so we've had a lot of help out there and thinking ourselves up and keeping clean but the end of the day I think that the tools will be wiped down more often social distancing someone's coughing out there now I think forever Werner for a long time we're all going to be out there someone's coughing at a grocery store next to us we're gonna turn our head down hopeful distance whether they do or not when this Berkeley mirrors think our actions in general are going to be the more permanent thing than the actions on the job site I think the actions on the job sites will just become them they thought how how we think about yes off-color joke I used to Koff to cover up passing gas now I pass gas to cover up a coffee anybody else have thoughts on that what's here to stay and is it going to prong jobs its timing gonna change because we have like you said that extra 20% or 40 to 40 minutes a day one more calm and I thought I'd a question on the side here before that how are we estimating job for the future based on a solar production Allen if you want to comment on this one I now we only know what we know and we're learning right now so to who provide a number out there based on something that you don't know what it looks like it's really difficult jobs need to go we can't give numbers to the street or they're going to kill deals or don't don't make lease rates calc out on the back side so we're all learning together and we all need to communicate whether it's developers the brokers to subcontractors we all need to be worked everyone on this on this phone call or on this videoconference there's a lot more communication that's going to need to be had so everyone can understand what the numbers mean what's been thought about and factored into it and there's going to be a lot of candid conversations because it's hard to pry something when you're guessing and no dollars on the back end that people are locking themselves in debt from a consistency standpoint also we're actually out there all the time whether it's in New Jersey or Illinois or California to bleep sounds like Alan's having bandwidth issues I've got four bars on our house jumping yeah go ahead well let's talk about that so I don't know exactly what the old saying is but you know crisis being the birth of innovation you know you know our asset is our employees you know they're going to find ways that they're going to do more detailed analysis on their own of their individual tasks that they're doing during the day of how they how they erect the buildings and as they do that that's where that innovation will come from it comes from the ground up it comes from our field forces and then it works its way into our office and then into our estimates so we've seen challenges before like this and I'll most of our best ideas happen at the times when we're when we're going to our greatest struggles and a lot of that is going to happen organically coming up from the field ranks I like that that's a great point Terrence we find out who what our teams are made of when we have adversity let me get here to the next questions give me a second Oh a Chicago spider hole as a scar so are we gonna see some things not fit get finished because of this are there those kind of stoppages going on yeah I feel somebody being that deep into something and pulling the plug right now what your paw committed that the spire is a completely different animal why that went sideways that's outside of our space but what you're reading the papers has nothing to do with outside forces that was an internal issue over there in however that's no wet but in terms of jobs getting shuttered right now I can see if you haven't broken ground maybe putting on a hole for a little bit read the tea leaves but in order to stop a project in the middle from our space I would be very very surprised now I made in large part go ahead my turrets I'm a large part from what we've seen on a lot of our clients a lot of our involvement is you know there are a few people or backing off but for the most part people are going forward I think the best analogy I have heard is you know we looked at the the conditions that led up to things like the spire going back 10 years now you know that was an economy that the engine just stopped performing right you know they ran out of gas whatever analogy you want to draw we're not in that boat right now what we've done is we've kept the pedal down but we've also started to push on the brake we're reining everything in but the fundamentals aren't changing and so you know obviously all that can change you know as we've seen throughout this whole process here things change daily hourly but there's no indication right now of some wholesale change of things so we expect to see those projects continue on maybe with a brief pause maybe with kind of an understanding you know maybe even with some redesign to accommodate whatever the the new lessons learned coming out of Cove in nineteen are but still going forward know what I'll say to that point is that you know a lot of us I'm 43 years old so I grew up in this industry in the middle of and coming out of the Great Recession and essentially what that's done to us over the last several years is it's it's really strengthened us it forced us to strengthen our balance sheets its force the banks to take a different look at the way they land it's forced our government to get more involved with taking the temperature of the banks and making sure that they're they're healthy so our health going into this crisis is something that we really have going for us right now and all those different factors of the the way the lending has been done the the strong balance sheets of the general contractors the specialty contractors the owners owed things really bode well for us coming out of this I see that there could be a lot of pent up demand and nobody really knows because it's just been so severe but in the coming weeks you know a time will tell that that's right see we still have a backlog and you know those economic factors that we had coming into this over at night sanitation are really gonna bolster us coming out of it on the other side yeah and I hate to ask you to prognosticate but I love this question when when is the other side in your mind are we going to have a bit of a recession post getting back to work what do you feel like anybody I read in the dodge report soon we might see maybe a 10 to 15 percent drop next year but they're still predicting 5 years of good construction work in the in the Illinois area that's fantastic every article you read is a different guess at this point gentlemen a man on your webinar the other day has one of the investment banks was talking about was March was already we're probably and we are in a recession rating we're absolutely contracting this Porter is shot the last quarter we have a good month that are those numbers certainly probably went backwards but when all this comes out we might be in a definition recession where we are but in terms of guessing I've seen anywhere from second and third quarter contraction of 20% or something like that and then one of the investment banks had the fourth quarter having 20% on its own but of an increase so it's it's guessing right now with people who are you know a lot smarter than I think all of us are on this topic but it's all over the board I think everyone on the phone call can agree that currently today and and in March the and in the first quarter we all move backwards in terms of what got up and what's getting dealt in speed and we're generating it hopefully the third quarters the guests right now in terms of how quickly we can get running and whether or not the fourth quarter we can build some momentum moving forward it's running well Alan I see your back yeah is there anything you wanted to touch on quick that we missed when you were no I think Ryan has a Brian has a really good point as relates to getting things going the economy as a relates to slowing down it's it's it's momentum of the construction right now is keeping us pushing forward the current projects that we have I think what we're gonna see is as we push through that that there is going to be a law worth of construction activity and decreased in construction but I think the fundamen
als are there that we can kind of push through that hopefully here within the next oh you know I'm absolutely speculating on in the next you know nine to eighteen months and then back hopefully move forward we're looking at this right now I think very much through a Midwest lens as well all of our markets are different our East Coast offices are are very slow right now there's executive orders out in Jersey New York we're trying to digest those and what they mean but in general those markets are at a standstill they're handcuffing of trying to get through that on our West Coast market in California their sign I think they signed up three jobs last week so in terms of the connector as a whole I think it's different all around and a month from now you can be humming along maybe I'm he's toast and have a bridge something on the west coast pops up and they need to go and you lay a holding pattern where we see it today the Midwest were we're open for business we're struggling to get through everything on a day to day basis but we're keeping we're keeping moving forward our East Coast is very slow right now and there's there's he hold it as much bigger out there as every day and our West Coast right now they've done a really good job I think of anything Cove it out there and we are humming along and out there so now that's always speaking I think that when you average it all out he's posed next to each post so it really you know we're looking at it from one lens right now what it looks like on the back side I think you need to look in the totality and really digest it and hopefully the parts that weren't as a fact that can help out the ones that were affected and give here's some neutrality on it helps us get out of this little quicker that's a great point about out east I had read that in our tattletale environment people were upset in New York City about the construction workers not social distancing so I I think they're dealing with a little different environment let's hit that question on construction materials are we going to run into supply chain issues are you already what do you foresee for the future so before this really even before Kovac 19 really started to spring up within the u.s. we were keeping an eye on it and and how it was spreading through China because obviously there's a fair component of our supplies that come from China what we've seen is right now there has not been any major impact of supplies I'm sure if you're building a high-end office and you're looking for some sort of hand-cut tile out of Italy that might be affected but broad strokes across the industry it hasn't happened yet one of the one of the lessons you know we talk about how we've never been through this so how do we prepare for it well we we have been through issues in past with spikes and prices be it because of you know limits in raw materials like oil prices surging natural disasters whatever so we've seen a lot of contractors who are kind of taking bigger steps to securing their material in some cases six months out you know they have contracts that warehouse supplies that take them that are out and even those who don't is a is a normal course of construction do that we saw them starting back in January as this you know was kind of just a smaller story in the news they were ordering materials in advance they were they were securing it so as we said today I think most of our major trades you know I talked to Anna pretty much a daily basis they're not forecasting any issues with materials through the end of the summer that's reassuring anyone else let's address small supply chain issues or is not showing up to a job site because that factory had to shut down nobody supplied any details as far as what happened at that factory but pink everybody's been scrutinizing it so much and one of the things that we've seen is that with all that scrutiny you can see that the the supply chain that we have is you know I can very strong very robust supply chain so it's it's it's more good news than bad on that end anybody hearing rumblings of cost escalation question from Doug we hear rumblings all the time of on population boils up asphalt's more expensive it boils down as false more expensive so what we're used to that I think on the back side it's going to be what it looks like how many projects are geared up to go I love people's background looks like and how hungry they want to get and it just seems that Allen's quote is that would apps will come up with cheese when it's kinda released a deal so it just it really matters it really does cycle through we need to see what it looks like in order to really understand what I thought equations gonna look like in my opinion okay moving on I have heard that delivery schedules especially from overseas are impacted in shipping and costs are all over the place accurate you talked about supply chain issues a little while ago are supplying to give you issues right now are just like coil of paper in the market which is domestic important but you can't find toilet paper we can't find hand sanitizer we can't find hand wash dishes we can't find printing is back this seems that all the things you need to accommodate Bogota our job sites or experience on the supply chain in terms of shipping and that's all due to the shipping out I know a lot of as many factors that discharge but overseas and getting it here and the amount of product over here not quite certain if it's sitting on a boat somewhere just being waiting to manufacture so we cut those equipped but terms of getting it over here we're paying more for things you know on the back side as I'm sure we'll find out a little more lodging is truly the the higher cost in general it all ties together right we're involved with a project that's bringing in cabinets from Italy and everybody's been tracking it very closely they're gonna make an announcement yet today they made enough they shut down manufacturing in the leaf for a week and a half which is supposed to expire today and they're supposed to go back to work on Monday and what we've seen really is that they've been extremely resilient there was a lot of anticipation of these things coming up and acceleration on their procurement and producing the cabinets and getting them shipped over here and you know knock on wood good everything's been arriving on schedule and like they could be back on track as soon as Monday to you know start trying to get back to normal or the new normal as it were I mean as far as the transportation side of it goes you know I again I don't think we've seen widespread issues the the only concern I've heard expressed from some people is more of a focus on the trucking side of things you know obviously you know there's so many truck drivers out there and whether they're delivering a load of insulation a load of steel or a load of groceries to a grocery store you still have that body sitting from the driver's seat so as the demand for products and places like grocery stores in it in places like hospitals pushes up there is there some concern impact delivery but it's it's not a concern that we won't be able to get product it's a concern that you know maybe instead of a two week lead time it becomes a three week lead time to accommodate right or perhaps instead of getting max units per day you get three-quarters of that per day we ended our poll so if you want to know what the audience is seen in terms of work stoppages 29% as it said yes they've had a work stoppage due to kovat and 70% say no they're still going strong a good question here that may not be so tapping into what you all are hearing from your developers and bankers and in bidding new projects how do you feel this will impact commercial real estate market in the future demand for all this Todd says demand for office space which we know is probably going to be impacted but other things how do you all see the CRE industry evolving or responding over there I wish there's a broker and a developer on the call here they can probably speak to it but we'll have a webinar eating out there I've been reading a lot over this last month there that there will be an influx back from the city back to the suburbs about back it's speculation it outside of my skis Allen did you have something I do feel that there's going to be more warehousing a distribution there's been so many people who are stuck in their house and what have they been doing they've been ordering from well it's delivered to their house so there's millions of people that are doing there right now if 10,000 people like it more or to say then it's gonna increase warehousing and distribution from our standpoint so I do see there being somewhat of all coming here and then all of a sudden people who didn't like it or never used it before being comfortable with it and being more prevalent but my comment was definitely based on the question itself which was office space I grew it knowing and everything you just said on the industrial side and on the office space as it was where I was heading around all of you I said most of you are working from home it looks like do you do you like it would you continue to do it as a construction person or do you like being in the office I mean I enjoy being in the office I mean there's a certain amount of energy that you have not that there isn't quite a bit energy at home with all the kids and the dog and the gerbils and bones in the frogs and everything else but I do miss the office and the energy that you get with being with all the people and the meetings I couldn't I've been at the training center I haven't taken off anytime and we have all our instructors working and we're working on putting classes together that we can do online to help our members that are in need of a certain type of class we're also planning on once the governor gives us the okay is to to ramp so that we can get some of the certifications and classes that are our members are needed and also a classes that may they may need to go work and for another company so we've been working on and being able to present some of our classes online or present the part of the class online and then when things get back to normal though I'm in complete projects here at the school so our our staff is back here and trying to do the best we can for our members yeah I'm with you Vince I've never been this busy before which is good just pivoting anybody else anybody enjoying working from home I think that productivity can be high at home but there's nothing to take the place that I'm actually collaborating all together with offices across the country we've got used to remote communication before a video conferencing and everything like that so I think we were set up for this pretty quickly but there's nothing to take the place of being in the same room in terms of working from home we're getting a lot done but there's a lot more things we need to deal with right now like pirates listening in to a lot of CDs now I haven't listened to in 20 years because I don't have a bluetooth with my office here so and that going for us Thanks you know I have a daughter that is a great school teacher and of course their school has been closed now for I think maybe four weeks and they are doing learning via the computers and one of the things that she's told me that there isn't a day that goes by that a parent doesn't email her or phone her thanking her for what she's doing and have realized how important teachers were because all the kids are at home and mother is trying to make sure they're doing their schoolwork and keep them away from each other we don't realize how important our teachers are how important those health care workers are the doctors the nurses we really have to give all these people credit as well as our firemen and and our police I mean we can't do enough for these people that have you know step forward for us yep Vince I don't know if you saw there's a thank you shout out on the chat room to you I want to address this question from Elbert what if any talks are taking place within the unions regarding kovat 19 are there going to be new union policies anything that comes out of this well I can I can tell you that our contractors they're following what the CDC is is giving them the information that they are giving them and then you know anything that we do it here at school I would imagine our members bring that back to the to the job site and you know try this try that but we're all learning I mean this like like I've said previously this is nothing that we could look back and say what did we do ten years ago when this happened I mean this is something new in the future god help us if something else comes up at least they could look back at and say well here's what they did you know ten years ago I'll tell you you have a dual advantage of I'm on the board for the Chicagoland AGC and I've had a front-row seat to see how well people at the top levels of the general contracting community the unions and local government have worked really well together to try and keep the safest environment possible for this so anytime you go challenge like the patient is going to be of the utmost importance and I'll give a shout out the Tom Cruise work and all the folks over the chec because they've had you know a lot of brain power over there working together what seems like tirelessly to make sure that that communication of happening that everybody has an opportunity to do what's best or the employees on all the projects in the area you know one of the things that our president Gary Perrin arted of the Chicago Regional Council is he has suspended for three quarters paying of dues for our members he also has taken the amount of hours that you need to keep your insurance he has reduced those hours to help out all the Carpenters whether they're working or not it is it's a it's really a something that is a really appreciated by our members if I can jump into real peckin give a kudos to not only the Carpenters Union but all the labor force out there I've asked our teams we don't sell perform as if we mentioned before but I've asked our superintendents or leaders of our field as well especially when this was starting it up you guys know that do my roles on this officers the taking it the labor force out that are taking this extremely seriously and so it's a pretty tough crowd and a lot of invincibility a lot of marks and younger guys to or in that the crew that are invincible but from my understanding in our field that everybody's taking this extremely seriously their self policing to stop and it's a huge accolade for all the union guy onion in Chicagoland here but it really makes our world easier when that is happening because fungi get sick on a project it's not a project it affects a lot of people find it we see that the job sites are for the most part operating with really taking us seriously and doing what people need to do to try to stay as state awesome to jump out liyan's stay in there is that what you know what we've seen is anybody who's never been on a large jobsite and understand the amount of respect and camaraderie that there's out there a daily basis when you take a bunch of folks who have an extreme amount of safety training and you hold them accountable to each other for each other's safety not only whether it be a fall risk or the the typical kind of constructions risks but you add this in these are some of the same pieces that you can be if we're or if we're approaching well and we have to learn coexist inside of this environment you know were the phrases they use in this area is the lineage well construction can be that living edge because how we approach these these kind of challenges and because of the training that our folks have I know everyone on this phone call everyone on this panel would be an agreement here that safety is 100% the most important thing for us right now money secondary schedule or secondary the safety of people are our own staff our own staff are off staff is completely remote right now they're all stepping up were extremely proud of all of them the field guys for us are going out there in a daily basis they are the ones that allow for all of us to generate revenue at some time we're extremely proud of those
guys but from our companies I'm gonna assure the union's I sure Terry's the same way that the safety of everybody that walks on the jobsite is our number one priority we're not going to waver from that for anything and you need to get through this more than ever all working together we've actually seen that so we're we're really happy with what we're doing that's fantastic we are bumping up against time I'm going to continue to roll this for another couple minutes if any of you have parting thoughts you want to go through I'm gonna flip through everybody's contact information I'll leave it up there for 10-15 seconds at a time reminder we'll send out the youtube link when you're done to re-watch this if you have questions for the panelists you'll see their email addresses and send them through me I'll make sure that they get answered if you have things you want to get into the chat room real quick now's your last chance again it's our time is up at 11:00 but I'm gonna leave the room on four or five more minutes or so any of you want to add last minute comments feel free or when you're done log yourselves off and I'll stay on it thank you it's going first I just want to mention to to all of our members and all to all the trades that keep safe follow what the CDC says about your your brother and your sister journeyman and and just just keep up the good work yeah I just want to say that we're really we're nothing without our people we take a lot of pride in the fact that we have a lot a great deal of really sharp thoughtful conscientious folks that are working for us and we value that and we know that we're nothing without these folks so we have to ensure that they're in the safest possible work environment and I just want to take my hat off to them and thank them for all that they're doing I think that sometimes the worst situations bring out the best in people and from top to down from our developers to our state office staff to our field staff to subcontractors everybody that's been involved everybody has been part of the team and trying to figure out solutions and not making issues and problems and it's been such such a unique opportunity that all the good brought out and all the people it's it's wonderful to see I building on what I said a few moments ago safety of everybody the union trades obviously know the ones at the at the front of the line here any trait the visitors are just with the municipalities anybody on our job sites everybody out there their safety excellence also we are we're focused on everyone and keeping our job sites and our office our office staff keeping everybody safe right now it's imperative in order for us to all get through this just following the recommendations that are out there everybody can just buckle down for a little while longer through this quicker hopefully the less damage on the back end here really getting through this and moving forward but as mention about a few of the previous comments and the collective efforts amongst everyone has been been actually really nice to see and I will continue and and hopefully we can get find that new norm and use your Brown Ronnie yeah basically exactly this yeah definitely the same thing everyone else has said you know definitely is a lot of uncertainty out there we get that we're all living that in every facet of our lives right now but myself I'm very optimistic about where things go moving forward not because I have some great insight that you know someone else doesn't have but just from what I've seen over the past several weeks and how I've seen everyone adapt that everyone takes the challenges in right eye so those challenges and do better than I ever would have thought possible that just gives me a lot of confidence for how things continue unfold as we move forward well we at NRI journals like you really value getting together as an industry and it breaks our hearts to to not be able to see all of your faces and shake hands with everybody but we appreciate our sponsors premier design-build Chicago Regional Council of carpenters power in Chicago power forward to Page Chicagoland associated AGC Sullivan roofing International Union of bricklayers and allied craft workers and international masonry Institute because with without you and bill do these webinars so we'll continue to do them if you have questions that didn't get answered today email them to me and we may add them to a future webinar we want to continue talking because things are progressing daily thank our speakers are gracious go ahead oh I miss something all right well thank you so much we're we've had about 200 people drop off so I'm gonna go ahead and end this but thank you guys it was great to have you appreciate everybody's time and have a wonderful Friday enjoy the weekend thanks for having my feast right enjoy ease by yourselves
