Hosts Kris Lengieza and Sasha Reed introduce The Power of Construction, a Procore podcast focused on industry leaders shaping a better future. With over 40 years of combined experience, they aim to explore how construction can achieve operational efficiency while prioritizing people and resources. The episode addresses the construction productivity gap, noting its $2.8 trillion annual economic impact in the U.S. and its contribution to 13 percent of global GDP.

Peter Tateishi, CEO of AGC of California, leads initiatives like Build California to address workforce shortages and improve industry culture. Josh Bone, Executive Director of ELECTRI International, focuses on research and education to help electrical contractors navigate digital transformation and workforce challenges.

Peter highlights the aging workforce as a primary concern, with many workers nearing retirement, straining the industry's labor capacity. Josh emphasizes the need for strategic approaches like prefabrication and off-site construction to address labor shortages. Both discuss how traditional methods and resistance to change exacerbate the productivity gap.

AGC of California's Build California program aims to attract Gen Z workers by rebranding construction careers and fostering a culture of belonging. ELECTRI International offers free research resources at electri.org and is developing a project management apprenticeship to bring high-school graduates into office roles. Technology, such as virtual design and construction (VDC), is seen as a tool to enhance productivity and appeal to tech-savvy younger workers.

Josh critiques traditional delivery methods like design-bid-build, which prioritize low bids over efficiency, and highlights the decline of integrated project delivery (IPD) due to owners' control concerns. He advocates for balanced contracts and schedules, noting that excessive work hours (e.g., six 10-hour days) reduce productivity. Peter emphasizes rethinking contracts to value workers and improve project outcomes.

Josh envisions a future where contractors adopt a “moneyball” approach, leveraging data and technology to increase profitability and reduce risks. Peter stresses the importance of embracing technology to meet Gen Z expectations, citing a survey where 70 percent of Gen Z would leave for employers offering better tech tools. Both see construction as “Industry One,” foundational to the economy, with opportunities for growth through innovation.

Book Recommendations: Josh recommends Built to Fail and Breathe, while Peter suggests Outward Mindset for challenging assumptions.
Sources for Perspective: Josh uses Peter Diamandis’ abundance blog and Google Alerts, while Peter relies on peer networks.
Advice to Younger Self: Peter advises knowing your worth, reflecting on his early career in politics.

The episode concludes with a powerful message: construction offers limitless opportunities for those with strong work ethic and communication skills. Peter calls it “Industry One,” foundational to all economies, while Josh emphasizes that the American Dream thrives in construction, where anyone can rise from entry-level to CEO.

“As an industry tasked with building the future, can we achieve operational effectiveness while becoming better stewards of our people?” – Sasha Reed, Procore

“We have to do something different because we're still playing by the same old rules. We've created a playbook for ourselves, but the playbook hasn't changed—while everything else has. We need to be more intentional, more strategic. Whether it's how we address our workforce, how our engineers approach design, or how we think about means and methods, we have to be far more deliberate if we're going to overcome the productivity gap.” – Josh Bone