Welcome New SMACNA Members Advanced Air Service Group, Aston, PennsylvaniaF.D. Ramsey & Co. Inc., La Porte, IndianaIndustrial Contracting & Engineering, Angola, IndianaPayne Mechanical Inc., Flushing, MichiganU.S. Engineering Service, LLC, Wichita, KansasYork Plumbing & Mechanical, Tulsa, Oklahoma
The Majority of SMACNAMembers Need a CTO Yet many companies still lack something critical: an executive dedicated to technology strategy.In most industries, that role is the Chief Technology Officer (CTO). The CTO ensures technology decisions align with business goals, but in construction the path to that seat looks different.In my experience, most construction technologists don’t come from big named MBA programs. They tend to start in VDC, BIM, estimating or project management, hands-on roles where they quietly shape the tech stack, usually attacking one problem at a time. They troubleshoot software, smooth workflows and help jobs run safer and more efficiently. Over time, someone notices: “You’re basically the CTO already.”These emerging leaders have succeeded not because of a business degree, but because they deeply understand industry workflows and where technology creates impact. Finance, budgeting and forecasting can be learned. What can’t be taught is the passion for building smarter. As one colleague put it, it’s easier to teach finance to a field-driven technologist than to teach construction to a business generalist.This role needs to evolve, and it is crucial that it grows beyond this stage. The informal “accidental technologist” model eventually breaks down. A BIM manager or project coordinator juggling tech decisions alongside other duties can’t drive long-term strategy. Adoption falters, implementations stall and opportunities are lost.Technology today is operational, not support. Choosing software and structuring data flows directly influences performance and profitability. Systems are interconnected: an ERP decision affects field operations; a fabrication tool influences estimating. Only a leader with a cross-functional view can make sustainable choices.As younger professionals enter the industry, they expect modern tools and efficient systems. Appointing a CTO signals that your company values innovation and is investing for the future. Not only is this important for operational success, but it also differentiates your company and becomes a strategic move.For technologists in the room aspiring to the role, the path starts with visibility. You must build your case. Map your digital workforce like an org chart: systems, contracts, training, support and innovation. Identify gaps and inefficiencies. Document wins, show ROI (even if I contend that they can be vague) and demonstrate how your work drives company-wide value. Don’t assume executives see it; prove it.Succession planning is another marker of readiness. If you’re wearing 12 hats, identify who will take over your day-to-day when you step into leadership. Build your case like a project: scope, budget, timeline and backfill. Then present the vision: “Here’s what we could accomplish if I had the authority to lead these changes.”A common pushback is, “You’re already acting like the CTO; why change anything?” The answer is simple: authority matters. It needs to be made official. Without the title, you lack the power to make decisions, establish policies or hold others accountable across departments. The company expects leadership without granting the mandate or support structure.When formalized, the CTO role unites departments, accelerates decisions and maximizes the value of digital investments. It’s not about a title; it’s about building a future-ready business.It’s important to remember that the best CTOs aren’t isolated in corner offices. They’re out with teams, listening, adjusting and ensuring the tech program works. Done right, the role becomes the athletic director of your digital ecosystem; coordinating coaches, players and equipment to keep everyone moving in the same direction. Travis Voss is the Director of Innovative Technology and Fabrication at SMACNA. He leverages his background in the tech field to explore, adapt and potentially develop technologies and workflows for the construction industry, particularly as it undergoes its digital transformation.
Fifth Circuit Finds NLRB Structure Likely Unconstitutional The Fifth Circuit concluded that the removal protections for NLRB Members and Administrative Law Judges (ALJs) likely violate the U.S. Constitution.The Fifth Circuit’s ruling does not shut down the NLRB. The decision is binding only in Louisiana, Mississippi and Texas — the states covered by the Fifth Circuit. But it marks another setback for the NLRB, which is already facing litigation over President Trump’s firing of NLRB Member Gwen Wilcox and is hampered by a lack of “quorum” that prevents the Board from taking official action.Removal Protections Likely Unconstitutional, Fifth Circuit SaysThe Fifth Circuit focused on how, under the NLRA, decision makers are shielded from termination by the President. Specifically, Board Members may be removed only “for cause,” and ALJs are doubly protected: they may be removed only for cause and only through another board.The court concluded that these removal protections for NLRB Members and ALJs likely violate the U.S. Constitution. It further held that being subjected to unconstitutional proceedings constitutes irreparable harm, granting the employers’ requests for an injunction to halt their NLRB proceedings.The NLRB is expected to appeal to the U.S. Supreme Court, which will ultimately decide whether the NLRA’s removal protections are constitutional.The NLRB’s “Quorum” CrisisAdding to the uncertainty, the NLRB currently lacks a quorum. According to a 2010 U.S. Supreme Court decision, the NLRB must have at least three members to exercise its authority. After President Trump fired NLRB Member Gwen Wilcox in February 2025, the Board was reduced to two members: David Prouty and Marvin Kaplan. Kaplan’s term expired on Aug. 27, leaving the NLRB with only one member. Without a quorum, the Board cannot issue decisions, leaving hundreds of cases in limbo.There is some hope that the quorum crisis may end. In July 2025, the White House nominated Scott Mayer, who is currently Chief Labor Counsel for Boeing Co., and James Murphy, a longtime NLRB attorney and counsel to multiple Republican members, to fill the vacancies. If confirmed by the Senate, the Board would have the three members needed for quorum. However, the Senate has not yet scheduled hearings on either nomination.States Attempt to Step into the FrayIn response to the NLRB’s paralysis, several states are moving to fill the gap by proposing “mini-NLRAs.”New York — Legislators in New York have passed Assembly Bill A8590/Senate Bill S8034A, which would empower the state’s Public Employment Relations Board to handle private-sector labor disputes when the NLRB cannot act. It has passed both houses and awaits Governor Kathy Hochul’s signature.California — Legislators in California are currently considering Assembly Bill 288, which would authorize the state’s Public Employment Relations Board (PERB) to handle private-sector labor disputes if the NLRB fails to act in a timely manner.These efforts may clash with federal law, which normally preempts state regulation of private-sector labor relations, but legislators say they are necessary backups.The NLRB Fires BackOn Aug. 15, Acting NLRB General Counsel William Cowen issued a memo warning that any state attempt to assert jurisdiction over matters governed by the NLRA would be preempted. The memo cited San Diego Building Trades Council v. Garmon, 359 U.S. 236 (1959), which held that states may not regulate conduct “that the NLRA protects, prohibits, or arguably protects or prohibits.” Cowen says legislation like that in New York and California “cannot be reconciled with the Supremacy Clause, found in Article VI, Clause 2 of the U.S. Constitution.” The message was clear: the NLRB intends to continue operating and defending its authority, despite the Fifth Circuit ruling and its current lack of quorum. Grant Collins is a specialist in labor and employment law at Felhaber Larson. Reach him at gcollins@felhaber.com.
Construction Tax PlanningUnder the One Big Beautiful Bill The legislation introduces targeted opportunities to strengthen cash flow, accelerate growth and reinforce long-term financial strategy, especially with early and informed planning.While it does not resolve current industry headwinds, OBBBA introduces tools that can improve financial resilience. Many provisions extend or make permanent key incentives, including depreciation, deductions and rate structures.Bonus Depreciation and Section 179OBBBA permanently reinstates 100% bonus depreciation for qualifying property placed in service on or after Jan. 19, 2025, and expands Section 179 expensing to $2.5 million, with a phase-out beginning at $4 million. These deductions offer powerful incentives to preserve liquidity and reinvest in operations. Capitol-intensive businesses should: align capital investment schedules with property placement timelines, account for tariff-driven cost increases and analyze state-level conformity rules to avoid missed benefits. Construction Income RecognitionOBBBA now allows residential construction contracts to utilize an exempt method, deferring income recognition until substantially complete. Eligibility highlights: residential construction contracts automatically qualify,and other contracts may qualify if the contractor’s average annual gross receipts are under $31 million and the contract is expected to be completed within three years. Research and Development (R&D) Credits Some construction activities may qualify as R&D. For tax years beginning after Dec. 31, 2024, domestic research and development costs may be immediately deductible. Companies with average gross receipts of under $31 million may amend prior year returns for 2022 through 2024. Larger businesses may not amend prior year returns but may elect to accelerate unamortized costs in 2025 or split them over 2025–2026. Qualifying activities may include: design innovation, engineering refinement and material testing; prefabrication modeling or alternative waterproofing techniques; and process improvements with variable outcomes or technical uncertainty.Interest Expense DeductionOBBBA reinstates the EBITDA-based limitation under IRC §163(j), restoring the ability to include depreciation, depletion and amortization when calculating adjusted taxable income. Qualified Production Property (QPP) A 100% deduction is now available for Qualified Production Property (QPP), which is a nonresidential building used primarily for domestic manufacturing or fabrication. SALT Cap and PTET Relief OBBBA increases the federal SALT deduction cap to $40,000 for individuals who itemize and maintains the federal deductibility of taxes paid under elective Pass-Through Entity Tax (PTET) regimes.For contractors structured as partnerships or S corporations in high-tax states, this ensures continued access to valuable deductions. Strategic actions include reviewing current PTET election status, reassessing quarterly estimates considering updated caps and coordinating across entities and jurisdictions to maximize benefits. Estate and Gift Tax Planning OBBBA makes the $15 million individual ($30 million joint) estate and gift tax exemption permanent, with indexing beginning in 2026. While this provides federal certainty, state-level differences persist.Recommended planning moves:Reevaluate estate plans and ownership structure. Align gifting strategies with current valuations. Coordinate with counsel to address state-level nuances. Exemptions may be fixed, but market conditions and state law require regular review. For more information, contact Ronald J. Eagar, CPA, CCIFP Partner at Grassi, at reagar@grassiadvisors.com, through www.grassiadvisors.com or at 516-336-2460.
ARCHITECTURAL: Crafting a Custom Vision in Steel Plan Architecture tapped Thompson Solutions Group (TSG) of Sioux City, Nebraska, to create the exterior of the new Lab and Students Center at the Winnebago Nation’s Little Priest Tribal College, about 30 minutes south of Sioux City. “We have a great relationship with Nathan Kalaher of Plan Architecture in Sioux City,” says James Olson, TSG’s Executive Vice President and SMC-Iowa Chapter President. “He’ll bring us into some of these projects early on to help select a product that’s going to hit his budget as well as be functional and give the look that he’s after.” This project incorporated a unique look that combined a wood-grained texture and prefinished steel. Olson relishes the creative opportunities of starting a project during the design phase. “It’s listening to the architect and figuring out how we can help create the vision that he has for this building, to make it look as beautiful as the initial renderings and bring it to life.” Thompson Solutions Group fabricated and installed 10,000 square feet of custom wall panels on this project.TSG keeps SMACNA Standards handy while making design decisions. “We use the Architectural Sheet Metal Manual often when we’re giving advice on how to build these and make them perform with the intent that the architect wants,” Olson says. “We reference the appropriate gauges and heights of these panels before we put in expansion joints so that they will perform and stay flat and not oil can.For the Lab and Students Center, Plan Architecture chose a one-of-a-kind look that translates a wood-grain texture into prefinished steel. “These are really unique materials that we’re working with,” Olson says. “We probably won’t ever use this color of material again. It’s going to be its own, unique project, and then we’ll move on to the next one.” A custom coil manufacturer printed the wood grain finish onto the steel, then TSG bought the steel from them and fabricated the panels in their Sioux City shop. “This was a product that we were able to fabricate in our own facility, without having to work with a major manufacturer,” Olson says. “We can coordinate that much, much faster and control the schedule, bringing it in at a lower price point than if we had been dealing with a national manufacturer for metal panels.”TSG hit an unplanned obstacle when the supplier took longer than expected to produce the custom coil. “It was a very detailed process to get it manufactured the way that the architect and owner wanted for the building,” Olson says. Multiple runs delayed the work by about six months. “We bid this project in July of 2023, and completed it March 1, 2025,” though the actual fabrication and installation only took about four weeks. “It compressed our schedule toward the end of the project, so we were finishing this up as they were looking to occupy the building. The biggest challenge was working in a compressed schedule to get this building open while still maintaining the quality. We never would have been able to hit the schedule had we not had total control of the fabrication.”Fortunately, TSG has the expertise they needed to meet their high standards while coping with delays. “Our architectural sheet metal crew is roughly 16 to 18 people, which is a good size for our area of the country, and our people have significant experience in doing this sort of work,” Olson says. “We get to an installation standpoint of maybe modifying a detail so that it can functionally work the way that the architect and owner wanted it to.” The shop foreman and the foreman who led the Little Priest Tribal College installation each have over 20 years of experience. “These specific foremen understand how to get these panels to perform, to be weather tight, and to be as flat as possible.” They used all the tricks of the trade and successfully aligned the panels from top to bottom across the three-story walls, as if they were actual boards.TSG fabricated and installed about 10,000 square feet of custom flush wall panels and trim for the three-story, 135,000 square foot building. The 22-gauge prefinished steel panels are 12 inches wide with V grooves at 4 inches and were printed with a Siamese Quarter Sawn wood grain pattern. The fabrication took two men about 300 hours in the shop, and on-site installation took a crew of four about 900 more hours, for a total of 1,200 work hours.
