Houston Chronicle

Rough road

Steve McGough, the new chairman of the American Road & Transporta­tion Builders Associatio­n, is out to save highway and transit infrastruc­ture

- By Ilene Bassler CONTRIBUTO­R

Steve McGough, president and chief financial officer of HCSS, a Sugar Landbased software company that serves the heavy civil constructi­on industry, was just named chairman of the American Road & Transporta­tion Builders Associatio­n.

The national trade group, headquarte­red in Washington, D.C., advocates for transporta­tion infrastruc­ture, and in conversati­on with Texas Inc., McGough drove home the idea that federal transporta­tion policy decisions have major impacts on the private sector and state transporta­tion department­s. Uncertaint­y about future federal funding levels could cause states to continue delaying new highway/transit improvemen­ts and businesses to hold off on hiring and making new capital investment­s.

McGough, 56, who has been in the constructi­on industry for 35 years and with HCSS since 2005, previously worked at consulting engineerin­g firm Turner Collie and Braden, now part of AECOM.

Q: What is the most important focus for the constructi­on industry in terms of working with government agencies and moving the constructi­on industry forward?

A: Three words: funding, funding, funding. The federal Highway Trust Fund is the source, on average, of 50 percent of the highway and bridge capital improvemen­ts made by state transporta­tion department­s annually. In Texas, it’s 35 percent. The trust fund is in the financial hurt locker. Absent new revenue, starting in 2021, states could face a 40 percent cut in investment. State and local officials and the constructi­on industry should continue working together to keep pressure on Congress and the Trump administra­tion to agree on a permanent HTF solution. All revenue options should be on the table.

Q: Why is addressing the need to rebuild infrastruc­ture, which crosses party lines, so hard to get done?

A: The current political environmen­t in Washington makes any policy achievemen­t difficult. That said, President (Donald) Trump and elected leaders from both parties in the U.S. Senate and House of Representa­tives have repeatedly said infrastruc­ture investment remains an area for common ground. A 21-tonothing vote in the Senate Environmen­t and Public Works Committee approving a five-year highway bill in late July was a major bipartisan achievemen­t. Now it’s a matter of getting the full Senate to take it up. If we can get the bill out of the Senate, it should significan­tly increase pressure on the House to act.

Q: What role does ARTBA play?

A: ARTBA is a large, nonpartisa­n federation whose primary goal is to grow and protect transporta­tion infrastruc­ture investment that will meet public and business needs for safe and efficient travel. It’s been around since 1902. We have over 6,500 member firms.

Q: And what is it doing to get the pending legislatio­n moving?

A: With a highway bill introduced in the Senate, it’s playoff season for ARTBA and its public and private sector members. ARTBA’s government affairs team maintains a continual presence on Capitol Hill. Our members are meeting with their representa­tives and senators in D.C. and back home to explain the importance of the bill to the economy, road safety and job creation. A 27-member ARTBA task force completed work earlier this year on a comprehens­ive 32-page policy report with recommenda­tions for the next

highway/transit bill. We’ve met with nearly 100 House and Senate offices and transporta­tion committee staff to share our legislativ­e blueprint. We’ll keep pushing Congress and the Trump administra­tion to pass a robustly funded infrastruc­ture bill.

Q: Have you been personally involved in the effort?

A: I met with last year with Secretary of Transporta­tion Elaine Chao and relayed the same thing to her — that, look, if you’re going to get an infrastruc­ture package done, you need to do it now. We will start seeing states pulling projects back, and they start a good six months out — that’s not conducive to economic growth.

Q: Was she responsive?

A: Yes, Secretary Chao gets the issue. I think the administra­tion, and both Republican­s and Democrats, get the issue. It’s time they come together and put the petty stuff aside and do something that moves this country forward. Right now, if I was running for re-election, I would be petrified, no matter what side of the aisle, because there hasn’t been anything substantia­l, in my mind, that has come out of Congress. They ran on a platform and said they would address infrastruc­ture, so let’s do it. You can tell I’m a little passionate about it but I think rightfully so, it’s good for the nation.

Q: Are you optimistic?

A: We’re going into an election year, so now is the time. We hope this keeps moving forward. ARTBA is doing outreach to gain support for the passage of the Americas Transporta­tion Infrastruc­ture Act. It’s going to require some new user fees, but we have to fix the HTF. Revenue mechanisms that have been in place won’t work.

Q: To what extent does Texas rely on federal funds?

A: Texas is receiving over $3.8 billion in federal funds this fiscal year. Federal funds provide on average about 35 percent of the funds that the Texas DOT uses for its capital outlay of projects.

Here’s the sadness of it — we’ve been living off our grandparen­ts’ investment in the infrastruc­ture from the highway system and have nothing on our end to move forward. Collapsing bridges get people’s attention, and we fix those, but there’s no real appetite to get our system in shape.

Q: What is the most pressing thing that need to get done in Texas?

A: The most pressing thing in Texas is fixing the HTF. Texas, and any state DOT, needs to be certain of their revenue sources. A multiyear surface transporta­tion bill gives state DOTs certainty for funding for three to five years. So the biggest thing for Texas, and other states, is to get a multiyear bill for transporta­tion spending.

Q: What do you think is the biggest challenge facing the constructi­on industry today?

A: It’s our workforce, or really lack thereof. The total U.S. workforce is over 130 million now, and the constructi­on workforce is over 10 million. So how we can have a workforce shortage? It’s because we have an available workforce but not a qualified workforce. According to industry surveys, the percentage of firms having trouble finding craft workers in 2017 was up to 70 percent. By 2018, it was over 80 percent. And we saw the same thing in 2019.

The problem isn’t limited to field workers. In a USA Today study, the fastest growing constructi­on jobs, based on job postings from 2014 to 2017, were chief estimator, up over 100 percent; superinten­dent, up 122 percent; pre-constructi­on manager, up 126 percent; and commercial project manager, up 277 percent.

We need to work with the talent pool we have because it can’t expand fast enough to keep up with demand. This is by far our industry’s biggest challenge.

Q: Why is finding qualified workers such a challenge?

A: A lot has to do with perception. Most people don’t look to constructi­on as a career. They think of constructi­on as hardhats, boots and shovels. But that’s far from the truth. Some of the smartest people I know came out of constructi­on — they’re great problem solvers and very dedicated people. We need to educate parents and kids so they know there are greatpayin­g jobs and rewarding careers in constructi­on.

Q: Are you addressing this problem?

A: At HCSS, we have a program called I Build America, which has been around for about five years. We hope it develops a life of its own. It focuses on instilling a sense of pride in people who work in constructi­on, educating the public about how constructi­on gives us our modern way of life and showing the next generation that there are rewarding, meaningful careers in constructi­on.

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Q: How does HCSS fit into the wider picture?

A: We have customers in all 50 states, and we have a good feel, firsthand, of how uncertaint­y affects contractor­s. When state DOTs pull projects, contractor­s become uncertain about whether they will have work or not. They usually hold close to the vest. They do not hire people they probably should be hiring. They do not purchase equipment they probably should be purchasing.

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 ?? Jon Shapley / Staff file photo ?? Federal transporta­tion policy decisions have major impacts on the private sector and state transporta­tion department­s, said Steve McGough, chairman of ARTBA.
Jon Shapley / Staff file photo Federal transporta­tion policy decisions have major impacts on the private sector and state transporta­tion department­s, said Steve McGough, chairman of ARTBA.
 ?? Brett Coomer / Staff file photo ?? Vehicles drive northbound toward the entrance of the Grand Parkway near U.S. 59.
Brett Coomer / Staff file photo Vehicles drive northbound toward the entrance of the Grand Parkway near U.S. 59.
 ?? William Luther / Staff file photo ?? Southbound vehicles fill all the lanes of Interstate 35 as they cross the Cibolo Creek bridge near San Antonio.
William Luther / Staff file photo Southbound vehicles fill all the lanes of Interstate 35 as they cross the Cibolo Creek bridge near San Antonio.

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