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Atlanta Contractor: IBEW Partnership is ‘Key Pillar of Success’

April 18, 2011

When John Hogue, president of Technical Associates, an Atlanta-area engineering firm, launched an electrical contracting division in 2008, he had a hard time finding qualified labor to staff jobs fast enough.

Then some of Hogue’s managers suggested that he reach out to Atlanta Local 613 Business Manager Gene O’Kelley. A year later, Hogue signed a letter of assent with Local 613.

Today, he says that TA Services Group’s partnership with the IBEW, employing 43 union electricians, is one of the key “pillars of success” of the new division.

Michelle L. Fallon, Local 613’s marketing consultant, submitted the following account of the successful relationship built between the local union and Technical Associates.

IBEW Local 613 Critical to Georgia Contractor’s Diversification and Exponential Growth

By Michelle L. Fallon

Industry Consultant

A great business anticipates challenges with leadership and thoughtful decision making, and drives growth by taking calculated risks. At least that is what John Hogue, president of operations at Technical Associates, believes has led to their success in the last five years, particularly in the last 12 months, as the economy has attempted to rebound. In 2004, the engineering firm based in Albany, Georgia, generated just over $18 million in sales. Growth in the core business plus the addition of two new subsidiaries have driven these numbers tremendously, achieving just over $40 million in sales in 2010, with growth targeted at $100 million in the next seven to 10 years.

Hogue said that TA was able to launch these two new divisions, TA Process Systems, LLC (fabrication) and TA Services Group, LLC (electrical contracting services) in 2008, even in the face of a slow economy, by leveraging their reputation with existing clients to provide a steady customer base as well as exceptional internal leadership. With the support of the board of directors, he explained that the company’s plan was to offer turnkey solutions and invest in future growth with new ventures that are natural extensions of existing business.

Success, however, turned out to be anything but easy. For the first two years, TA Services struggled to convince customers to give them the opportunity to do electrical work. Even with this strong foundation of engineering and design, performing the installation work turned out to be more of a challenge than expected, both because of their inexperience early on, but mostly because of their inability to find qualified labor.

This was particularly true on the TA Services side, which provides large electrical and mechanical installations. As TA Services began to win more electrical work, this problem became more pronounced.  “We could not staff jobs fast enough or with the right people – it was like drinking from a fire hose,” says Hogue, adding:

We could not hire dependable labor and it was killing us to find qualified craft that gave us a chance of success with clients, much less managing and executing ongoing growth with new customers.

TA almost threw in the towel on the venture in late 2009.

That is when internal leadership familiar the IBEW recommended that executive management meet with Atlanta Local 613 Business Manager Gene O’ Kelley. TA was intrigued by IBEW’s new trial program, which allows contractors to sign a letter of assent, a 12 month trial period in which to use union labor and resources before moving into a multi-year contract. If not satisfied, the contractor can walk away with no further obligation.

At the end of 2009, TA began working electrical jobs using IBEW’s on-demand work force; an on-call treasure trove of skilled journeyman wiremen, apprentices and construction wireman and electricians.  

Partnered with the IBEW, Hogue said that they are working to build a core group of electricians that “want to belong” within the growth-driven and entrepreneurial culture at TA. Hogue also identified IBEW’s training programs as a huge benefit of the union. He says:

We have a ready resource for training and education at every level, which only makes our business stronger. IBEW’s training programs are the best in the business.

In October 2010, IBEW opened a new 30,000-square-foot education facility school, employing a mix of state-of-the-art hands-on training and traditional classroom instruction. 

Also last year, TA Services’ work force swelled; it is working with 43 IBEW electricians with more than 20 vehicles, while deploying a large investment of tooling and equipment. In March 2010, TA moved to a new warehouse that boasts a state-of-the-art stainless steel fabrication facility. 

Overall, Hogue identified new, effective internal leadership, their strong existing reputation, and partnership with the IBEW as key “pillars of success” for TA. He says:

There is no way we could be successful without the support of Local 613. Just like any business relationship, it has its challenges, but only with rare exception, IBEW quickly resolves any issues…and after all, since we all know relationships will inherently have their challenges, it is how those challenges are professionally managed and overcome that matters most.

TA is now also a member of the Atlanta Electrical Contractors Association, a relationship that Hogue said adds value both in understanding union requirements and helping to work with union members. “Being a member of the AECA allows me to work on the business without having to become an expert in union guidelines,” said Hogue.

After working with IBEW for a year, Hogue said he is impressed with the customer-focused attitude and in O’ Kelley’s vision and knowledge of business. “He just takes care of things,” said Hogue. He said the union has been good for business, “delivering the skilled labor we need to grow and succeed…they are pro-business, pro-customer and laser-focused on customer relationships.” Hogue said there was never a time that TA considered opting out of the trial program and looks forward to a bright future of significant growth and continued partnership with IBEW.