| As we drive lengthwise through the University of Wisconsin-Madison campus, Godwin Amegashie, assistant to the administrator and policy advisor to the state building program at the Wis. Dept. of Administration, points to building after building and talks about so many millions of dollars going into this project and so many millions of dollars going into that project. By the time we get to the other side of University Hospital & Clinics on the far west end of campus, Amegashie has pointed to about a dozen projects throughout campus. Amegashie is in a position to know these things. He also sits on the architectural and engineering selection committee that makes decisions about these projects. He is sitting at the table. "Our job is to make sure it doesn't turn into an 'old boys' network,'" he exclaimed. It would be difficult not to notice that the UW campus is undergoing a construction boom with cranes permeating the skyline. But the magnitude of projects on this scale has never occurred before on this campus. "The University of Wisconsin-Madison campus has in the pipeline as we speak in excess of $1 billion in construction in the Madison area," Amegashie said. "There are a lot of projects such as the public-private partnership at the old University Square, the expansion of Grainger Hall, the new Mechanical Engineering building, and the Interdisciplinary Research Center near UW Hospital. In the pipeline is the Wisconsin Institute for Discovery, a $150 million project, is going to be on University Avenue. So there are quite a few things in the pipeline right now." So far, the state has met its minority business enterprise (MBE) participation goal of 5 percent on the Grainger Hall expansion at the corner of Park St. and University Ave. But Amegashie is concerned that MBEs and the communities of color they represent won't be able to fully participate on these projects and receive the economic multiplier effect that these large projects will generate. "Studies from the construction industry show that for every dollar that the state spends, more than three dollars permeates the rest of the economy," Amegashie said. Amegashie is concerned because he feels that the MBE capacity isn't there at this time to have meaningful MBE participation on each project that is coming by in rapid fire order. "I think there is a shortage right now of construction-related MBEs," Amegashie said. "Many MBE firms are relatively small. In fact, in some cases, they lack the capacity to perform on a lot of sizable projects." Amegashie knows there are no quick fixes to creating an adequate supply or construction-oriented MBEs. However, he feels that with some planning and business evolution activities, the supply can be expanded because the boom isn't going anywhere soon. One thing Amegashie points out is there aren't enough people of color in the skilled trades. "Getting people of color into the skilled trades is one of the building blocks for MBEs," he said. "The skilled trades are very important." Skilled trades people are the future source for new MBE entrepreneurs. Second, Amegashie feels that MBEs should spur their growth through taking on secondary projects that fir their scale, which will allow them to grow into larger projects. "I think a good strategy for small businesses is to begin to develop skills that we can use on projects that are relatively small in size, small from a dollar perspective," Amegashie observed. "A case in point is there is a lot of what I call maintenance type opportunities that require, to a large extent, a small firm, someone with a skill that we can tap into. Perhaps a door isn't closing correctly or there is some major leakage that we want corrected. In the absence of having a sizable maintenance staff, the opportunity to also contract some of these services is good. My hope is that many firms will begin to just develop and use those types of opportunities as a growth path to be able to participate on a much larger contract." A third possible way is for MBEs to develop a mentor-protege relationship with a larger firm. "It's possible that a small firm might need to be mentored by a much more successful firm and use that as a way to grow," Amegashie emphasized. While Amegashie moved to his new position last October, he didn't leave behind some of the tools he has developed to help MBE firms. On April 19 at Monona Terrace, Amegashie and his partners will once more be hosting the Business Opportunities in the Government Sector (BOGS) workshop. Knowledge is power, in Amegashie's view, and he wants to empower MBEs and other small businesses to successfully compete to participate in the state building boom. " At this year's event, Amegashie hopes to address the problems and barriers that prevent communities of color from fully participating. "Knowledge is important," he emphasized. "You need to know how this system works. We're going to teach people how the system works." And he has brought in partners who can help people of color get involved in the construction industry. "We have invited the unions to come in and make a presentation on how they are trying to encourage diversity in the trades," Amegashie said. "We've been able to establish strategic partnerships with several agencies and departments that have common issues. But we've also been able to establish a good relationship with the South Central Federation of Labor and the major building industry organizations." Amegashie encourages people to give serious consideration to becoming involved in the construction industry because the demand for skilled labor and buisinesses isn't going to go away soon. "Building for the state of Wisconsin is not a start-stop kind of opportunity," Amegashie observed. "Many of the buildings we have are 30 years old. The systems have changed. The building codes have changed. And so, the opportunities are still there for even some of the existing buildings to be rehabbed. One of the things that is driving construction nowadays is the Americans with Disabilities Act, which requires things such as larger doors and larger bathrooms. Many of our buildings were built prior to the enactment of the ADA. These represent an opportunity. At some point in time, we will have to refurbish those buildings and make them meet the current codes. So they represent an opportunity for a small firm that understands all of this to be able to see that it can really, really thrive in this environment." The University of Wisconsin will continue to act as a major economic engine for the Madison area well into the future. Amegashie wants to make sure people of color get on board while the engine is still leaving the station. For more information about the Business Opportunities in the Government Sector workshop, call Godwin Amegashie at 267-7806. People can register for BOGS online by going to http://matcmadison.edu/bpac/bogs. |
| $1 Billion in Public Sector Construction in the Madison area Boomtown Madison By Jonathan Gramling |
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