'We need to better promote construction as a career’

	Peter J. Davoren, president and CEO of Turner Construction Co.

BD+C: How does 2008 look to you?

Peter J. Davoren: We’re going to prepare for change and assume a downturn in ’08. Construction companies revel when the market’s hot, and we whine when the market tanks.

So, I’m telling our people, let’s be prepared to run our business differently if we see signs of the market dropping. If it doesn’t happen in ’08, we’ll dust the plan off and have it ready to go in ’09, just in case.

BD+C: How are commodity prices doing?

PJD: They’re easing a bit. We’re still seeing some increases, but not at the level we’ve seen in the recent past. It’s still more expensive than ever to build in the U.S., but we’re able to predict better and perform our preconstruction services better.

BD+C: What about people resources?

PJD: The number of engineers and architects coming into the industry is not [keeping up] with the need. Ninety-five thousand a year are graduating in architecture and engineering, but it’s been flat for five years, and there’s $230 billion of work for them in nonresidential building.

Meanwhile, China graduates 600,000 engineers a year, India, 450,000. There’s a shortage of engineers in the U.S., and that’s affecting our ability to take Turner to the next generation.

BD+C: What’s the solution?

PJD: We need to better promote construction as a career. Many universities don’t think of it that way; those engineering schools are training students to be engineers, not builders. Last year, we hired a thousand interns, and we recruited from 100 universities across the U.S. to hire 250 graduates. That’s only two-and-a-half per university!

Why are these kids not going into construction? Many students don’t know what opportunities are available to them in our industry.

BD+C: Is the ACE Mentor program helping?

PJD: Twenty thousand kids have been through ACE in the last 10 years, and 90% have gone on to college. There should be more programs like ACE. We’ve started our YouthForce 2020 program to guide youth toward careers in construction through mentoring and scholarships.

BD+C: You’re big on public-private partnerships. What are they?

PJD: In a PPP, the private sector sets up a special-purpose entity to design, build, and operate, say, a school for a certain number of years, then sells it back to public ownership when the lease is up. The problem is that states are blocking them from happening. For example, North Carolina wanted to build 10 schools at $30 million each under a PPP, but the state legislature wouldn’t approve the measure.

BD+C: Last year, Turner was honored by the National Minority Supplier Development Council. How did earn you that honor?

PJD: For the second year in a row, we awarded almost 3,000 contracts exceeding $1 billion to women- and minority-owned businesses, companies that do everything from blueprints to concrete. We were the first major builder to create a community affairs department, back in 1968. Since then, more than 20,000 M/WBEs have graduated from our construction management training program, and we have awarded 40,000 contracts worth $14 billion to M/WBEs.

BD+C: Turner is a member of the Associated General Contractors of America. Why isn’t AGC being more aggressive on construction waste diversion from landfill?

PJD: The construction industry can say that it’s hard to do, but you can get there. Yes, it takes a little more labor, and you have to pay a little more, but it’s the right thing to do. We’re at 55% diversion across the board. And it’s incumbent on building owners to require it.

BD+C: What is Turner doing about climate change?

PJD: In 2006, we became the first construction management firm to join the EPA Climate Leaders. We’re developing a plan to reduce it over a five- to 10-year time frame. Any renovations to Turner offices across the country will be LEED-certified or better.

BD+C: What’s your biggest worry?

PJD: People look at Turner and say we’re a great company. As CEO, I can’t ever say that. I spend my life working on the things that are wrong. We can never assume that the company is on automatic pilot. It’s a seven-day-a-week, 24-hour job. If you make it a great place to work, people are going to come to work with passion for the job.