entorship is one of the most valuable tools in the construction industry—and it’s a lot easier than people think. Looking back on my career, I realize that mentorship wasn’t about formal programs or rigid schedules. It was about the small, meaningful moments that made a lasting impression.

Many people assume mentorship requires formal pairings or big commitments, but the truth is, it’s often the everyday interactions that make a difference. It could be a quick conversation on the job site, sharing advice over coffee, or introducing someone to a new opportunity.

I’ve had mentors who shaped my path in simple but meaningful ways—helping me navigate challenges, offering advice when I needed it, or connecting me with people who could open doors. These weren’t big, formal meetings, just honest conversations that helped me grow.

When you approach mentorship as a two-way street, it becomes much more dynamic. You don’t need to feel like you have all the answers. Sometimes your mentee can teach you things you didn’t even know you needed to learn. Fresh perspectives keep us adaptable, innovative, and open to change, which is fundamental in an industry like construction.

I remember one mentor who encouraged me to take on a leadership role within a committee when I didn’t think I was ready. That push helped me develop skills I use to this day.

Another example is peer mentorship. I’ve seen colleagues who regularly share resources—like recommended courses or technical tips—build strong networks and grow together. It’s proof that mentorship doesn’t always need to flow top-down.

Maybe you help someone prepare for a job interview by doing a mock Q&A or offering insight on navigating the workplace. These simple gestures could be exactly what they need to take the next step. When I was starting out, small bits of advice from mentors often had a ripple effect on my career.

If you’re thinking about becoming a mentor, remember that you don’t need to have all the answers. Sometimes, being a mentor is as simple as showing up, listening, and offering encouragement when it’s needed most.

Through workforce development initiatives, safety committees, or leadership programs, each opportunity forms connections and creates meaningful mentorship experiences. So, let’s keep those connections going. Join a committee, take time to meet someone new, and offer guidance when you can. Together, we can create a culture of mentorship that builds stronger careers and a stronger construction community right here in Alaska.

s we dive into a new year advocating for the state’s building industry, let’s ground ourselves in a fundamental truth: The construction industry is a significant contributor to Alaska’s economy. It is vital to all industrial, commercial, residential, and infrastructure development in the state, spanning from the smallest remote community to the largest city. One in twenty jobs in Alaska’s economy are in the construction sector, 82 percent of which are held by Alaska residents.

2025 has potential to be a year of significant economic growth in Alaska. With new energy developments underway in Alaska—including LNG operations in Southcentral; Santo’s Pikka project, expected to come online late 2025 or early 2026; and continued Willow project development on the North Slope—we expect to see more job creation to support these projects. Alaska also continues to see funding from the 2021 Infrastructure Investment and Jobs Act, or IIJA. With the expectation that Alaska may receive more than $8 billion in funding so far, Alaska contractors will help construct clean energy infrastructure, broadband infrastructure, bridge and highway construction, airport and port improvements, grid infrastructure and resiliency, and water and wastewater projects.

Our roadmap for a successful 2025 construction season includes a few key elements, such as stable regulations and predictable permitting processes. We also need to move forward on projects that make for a solid construction season and let us use our big and growing workforce.

Our industry hopes for a robust and consistent annual program from DOT&PF. We are thankful for a strong partnership and will continue to advocate for much-needed construction project funding. Over the last several years, capital funding for DOT&PF projects has increased, especially when taking into account the extreme lows that followed our statewide recession. However, these increases have come at the same time as record inflation, leaving our purchasing power significantly eroded; increased or level funding won’t necessarily lead to more construction projects.

The delay in finalizing the Alaska Statewide Transportation Improvement Program, or STIP, also impacts construction projects moving through the funding, design, and bid pipeline.

For every 100 direct jobs in Alaska, another 65 indirect and induced jobs are supported in the statewide economy. Alaska’s construction industry supports a total of 42,000 good-paying jobs, with 25,000 direct jobs in the industry and 16,700 jobs supported as contractors rent or purchase materials, fuel, equipment, and housing for field workers. Construction employees also spend wages locally, which helps strengthen local and statewide economies. A healthy summer construction season this year will allow us to keep resident workers who have joined our industry through apprenticeships. The industry doubled our apprentices in 2022 to address labor shortages, and they are eager to get to work.

AGC of Alaska remains optimistic about the progress we will see this year with our state and federal agency partners, and we are hopeful for a robust construction season. As long as it doesn’t rain the entire summer, we’ll be good.

early 82 percent of Alaska communities are inaccessible by road and rely on Alaska’s aviation system for transportation and the shipment of materials and goods.

This dependence on aviation means there is a consistent need to maintain and upgrade rural airports.

Similarly, rural airports are owned and operated by various entities; however, the network is much more extensive.

Of the 700 rural airports registered in the State of Alaska, 235 are owned and operated by DOT&PF, with support from the Division of Statewide Aviation. This division assists the department’s mission to provide safe and efficient movement of people and goods across the state by implementing the Alaska Aviation System Plan and managing the airport capital improvement program for the department.

This plan recognizes Alaska’s dependence on aviation, its unique operating environment, lack of basic infrastructure, financial constraints, and the belief that regional diversity is important. The systemwide plan sets the vision for Alaska’s aviation network by identifying airport improvement needs, setting priorities for funding, proposing aviation policy, documenting the existing system using various forms of data and media, and continuously supporting the system through special studies, updates, and reviews.

“Rural airports are lifelines for rural communities not connected by roads or the Alaska Marine Highway,” says Troy LaRue, operations manager for the Division of Statewide Aviation. “They are also major economic contributors to the overall Alaskan economy. Many goods make multiple stops before reaching their final destination, and every community benefits from it.”

From there, the Aviation Project Evaluation Board receives project nominations from the airport planner. The board scores nominated projects based on specific criteria, including whether a community is solely dependent on their airport for year-round access to other parts of the state. From there, scored projects are sorted within DOT&PF’s Airport Capital Improvement Plan depending on anticipated federal funding available. Board-scored projects are placed in the spending plan queue to await funding. Lower-scoring projects may sit in the queue until funding becomes available.

While in the queue, projects are designed, environmental considerations are addressed, and DOT&PF determines if it has all the easements and property ownership pieces in place to meet funding and construction requirements. The project scope, schedule, and estimate are also updated. Once all those steps are completed, then DOT&PF seeks funding through AIP grants and requests necessary state legislative authority authorizing the acceptance of federal grant funds and required state matching funds. In this stage, project bids are developed, advertised, and a contractor is selected. The final phase of this multi-step process is construction and completion. Once a project is completed, DOT&PF’s responsibility for the operations and maintenance continues for another twenty years, depending on the project type and on FAA grant assurances.

The Chevak Airport Rehabilitation Project, scheduled to start later this year, will rehabilitate the runway, taxiway, apron, and airport access road. The goal is to expand the runway safety area and correct runway grades to meet line-of-sight requirements. Additional improvements include rehabilitating and re-leveling the snow removal equipment buildings; replacing airfield lighting, FAA navigational aids, wind cones, segmented circle, and culverts; building a supplemental wind cone access; and the application of dust palliative. The project was awarded at $17.3 million. Total cost will be determined once the project is complete.

“The Kongiganak Airport is their highway for supplies, groceries, and medical transport for getting to Bethel for appointments and treatment,” says Murphy.

The $55 million Kongiganak Airport Improvement Project is slated for completion in September.

Associated General Contractors of Alaska member company Edge Survey and Design worked as a subcontractor on both the Kongiganak and Brevig Mission airport projects.

Aside from construction projects, Douglas says there is another part to rural airports that often goes unseen. She says few people realize that only a handful of employees are responsible for all aspects of operations and safety in these facilities. In addition to assisting planes as they land and take off, rural airport employees also manage homeland security, firefighting and medical services, and runway plowing. Rural airport employees go through extensive training, and Douglas estimates that it usually takes about a year to bring a new employee completely up to speed with all aspects of operations.

“We like to highlight them,” says Douglas. “We are blessed to have such dedicated individuals in DOT&PF who are making a difference and keep Alaska moving.”

“It was a lot of fun seeing them get out there and get their bearings on the ice, especially in the first round,” Maguire reports. “By the third round, everyone was a pro.”

Players learned to fill the four roles of a curling team: lead, second, third, and “skip”—the athlete responsible for managing the game and deciding their team’s strategy.

“It takes some practice when you’re a new curler, being able to move fast down the ice while also sweeping the rock,” Johansen explains, referring to the granite stone curlers slide toward a target, or “house,” in order to score.

Six volunteers taught the attendees of the Learn to Curl, showing them how to maintain footing on the ice and giving them an opportunity to throw stones for the first time.

Johansen, who has been curling for about fifty-seven years, was excited to teach the newcomers and to help host the AGC event. He says he hoped that the fundraiser would introduce people to this family-friendly sport and attract some new members to Fairbanks’s curling club.

“I was also hoping it would expose people in a favorable way to curling, and I think it did that,” he said. “People stayed around afterwards and some of them went out on the ice just to throw rocks and have a good time.”

They did. Curlers came out to compete, and then a crowd of spectators arrived.

“Fairbanks always shows up, and I can’t appreciate that more,” Maguire says. “Teams went up to the mezzanine during their bye rounds and socialized and talked—which is the other goal of this event, to provide an opportunity for our members to get out there and shake some hands and meet people that they maybe have only communicated with via email—to put a face to a name. Especially up here in the Interior, it’s a really tight-knit community, and those connections are important.”

She adds that the annual get-together provides an opportunity for employees to get out of the office and bond in a unique way; some companies, she says, purchase team slots as a team-building opportunity for their staff.

At the event, additional funding was raised through a 50/50 raffle, which offered a selection of prizes supplied by generous donors.

Based on the success of this year’s event, Maguire said plans are looking good for another bonspiel next year.

“People just had a really good time, and I think once they got out there and took the apprehension away from trying something new, they were able to cut loose,” she says.

More Than a Job

By Nancy Erickson

orking with family can be a challenge. But Friend Contractors, a family-owned contracting business operating in the Gulf of Alaska now heading into its fourth generation of operations, has perfected the process.

Friend Contractors was established in the ‘70s on Kodiak Island by Lloyd Devoe Friend. His son, Jerrol Friend, took primary ownership of the company in 1991. Brenda Friend, an Alaska Native and Jerrol Friend’s wife, became managing member thirteen years later. The company has since expanded operations across Alaska, Washington, and Arizona. The couple’s son Jeremy runs the Arizona operation, and their grandson James is currently taking construction management courses in college, preparing to lead Friend Contractors down the road.

“We’re currently teaching our daughter every aspect of construction and hope to have some granddaughters in the field in the future,” says Brenda Friend.

“We live, breathe, and eat construction in all its forms,” says Friend. “We always have multiple projects going at any given time, and when we have a day off or holiday, you will likely find Jerrol and me in the shop, milling our own wood siding or finding a fun little project to build together.”

“We love to teach construction, so with our kids or thirteen grandchildren, we have planned projects like making an outdoor fire pit on the lakeside or teaching them how to frame up a cabin or read a tape measure,” she adds. “We taught our grandson how to demo buildings, so when he was sixteen years old he started his own construction demolition business, using many of his friends from the high school football team.”

Friend came prepared to manage a certified Woman Owned/Alaska Native Owned business.

“So much of the construction industry today is about estimating, bidding, and financing, all of which I have experience,” she adds. “In my previous careers I have built budgets, had many employees, written federal grants and, by trade, I am a paralegal.”

But Friend is a firm believer in hands-on experience.

“Roofing, drywall, insulation, framing, building forms, and pouring concrete—there’s not much I haven’t actually done myself,” she says. “I have a saying I live by: ‘Never ask someone to do something unless you are willing to do it yourself.’”

Friend admits it’s not easy being a woman in a predominantly male construction working world.

“Many times, I have sat in construction meetings being ignored or talked over until I present the specific questions or answers to the questions and they realize I do know construction,” she says. “I wish there were more women in construction, as many women are meticulous and detail oriented.”

“We specialize in knowing what products work on our island in the Gulf of Alaska, where maritime climate and 120-mile winds are pretty standard,” says Friend. “One missed detail costs thousands of dollars from marine-driven rain and high winds.”

That’s one of the many reasons First National Bank Alaska has developed a strong partnership with Friend over the past nine years and anticipates many more years of working together.

“Integrity is everything when it comes to Friend Contractors,” says Mark Lonheim, First National Bank Alaska vice president and Kodiak branch manager. “Brenda and Jerrol are known in Kodiak for their high-quality construction. They are one of the largest local contractors for both residential and commercial projects—and for good reason. They truly are invested in our community both personally and professionally.”

“When Brenda and Jerrol have a vision, they work tirelessly to make that vision a reality,” says Tim Redder, First National Bank Alaska vice president and deputy branch administration director.

“We prioritize our impact on our twenty-eight employees’ ability to remain local [and] provide for their families while working year-round and earning a livable wage,” says Rhinehart.

“Things never get monotonous here,” he adds. “We take on the local jobs that other contractors won’t and have the means to compete with large, off-island contractors on big projects. Many of these projects will impact the community for a long time in a positive way, and I enjoy seeing the community benefit from my work.”

“AGC has an incredible, responsive staff that I call often,” says Friend. “We love the internet trainings because it is so expensive to fly back and forth. I’ve put myself and two others through the Project Management training, and it was the best training we’ve had.”

Technology Tools

By Terri Marshall

hile some people express concerns about using AI, drones, and technological advances, these innovations have already begun to transform project management in the construction industry. For example, AI algorithms can optimize schedules and resource allocation, drones provide aerial surveys and real-time progress updates, and advanced software tools facilitate better communication and collaboration among stakeholders. In numerous situations, these technologies have increased efficiency, reduced costs, and improved safety on construction sites.

“Technology is a game-changer for project managers’ ability to make decisions and to communicate effectively,” says Matt Gutacker, managing principal for Alaska Remote Imaging (ARI). “Depending on the project, there are a lot of different ways to present that information with different software and platforms to choose from.”

Digital twins, a buzzword in the construction and architecture industries right now, is a broad term covering digital file replicas of reality. While speaking at the Associated General Contractors, or AGC, of Alaska Annual Convention last November, Gutacker focused on three benefits of digital twins:

• Enhanced bidding and planning
• Reduction of error and conflicts
• Transformed communication

The benefits vary based on the project, but the expansive data and images available through this technology lead to more efficiency. In the case of Cadence General Contractors, an ARI client, accurate images are everything.

“We initially worked with ARI during COVID when sending groups of people into buildings numerous times wasn’t feasible. Matt was able to send someone in to capture everything in real-time, which allowed us to put together proposals and estimates for work without actually having to physically visit,” says Cadence General Contractors Project Manager Brian Ginder. “With the all-inclusive technology ARI uses, you have it all, and you don’t miss anything—which is a huge benefit.”

KPB Architects invested in virtual walk-through technology during the pandemic to collaborate with clients on a project. Despite that investment, the firm chose to collaborate with ARI for future projects.

Photo provided by Alaska Remote Imaging

Another notable company focused on the forefront of technology, Benthic Geoscience, is a leading geophysical survey and geotechnical evaluation company providing comprehensive data collection, interpretation, and desktop study services for a range of industries.

The company specializes in mobile platform surveys using sonar, lidar, and other measurement technologies. Water, land, and aerial surveys are executed within river, lake, ocean, and terrestrial environments. Senior geophysicist David Oliver says, “We are a geological science company, but what we sell is intelligence from the data we noninvasively acquire, and we turn it into contiguous mapping tools that inform the end user.”

The logistics associated with acquiring the necessary data are significant, given the remote regions they serve.

“We’re just as much an expedition company as we are a geophysical survey company,” says Oliver.

By providing detailed data for their clients—without the necessity of flying potential contractors to these remote sites—bidders can confidently submit bids for projects based on the work level indicated from the information supplied.

“Drones have significantly improved efficiency and accuracy in site inspections, particularly in the challenging environments we have here in Alaska,” says MSE environmental scientist Krista Scott. “By utilizing drones, we can capture high-resolution imagery, enabling us to identify potential issues and track changes over time, which reduces the need for repeated site visits and the costs associated with those.”

“Inspections that used to take me several days, I can get done in a few hours. For some of the document reviews, it used to take an hour. Now we can get a summary and get an answer really quickly,” Scott says.

When Scott’s colleague, Kelly Kennedy, joined MSE, he brought years of drone experience to the company.

“Going on inspections, there were often bad conditions, making it difficult to determine current conditions,” Kennedy shares. “I started flying the drones and looking at things from that perspective. For example, on one railroad project, there was an area with a steep incline. We thought it was getting worse, but when we used our high-resolution drone images, we realized it actually hadn’t changed much.”

By tracking changes over time with the drone’s high-resolution imagery, MSE has reduced the need for repeated site visits and associated costs.

“We have to be in many places at once, and sometimes that means using technology to make our jobs easier,” she explains. “One of the purposes of our technology presentation at the AGC conference was to help train superintendents and project managers of construction how to use technology to make their jobs easier and how that relates to safety specifically.”

Weather stations installed at various job sites are a key example.

“Wind is obviously a huge safety concern in Alaska construction because you can have things blowing off of roofs into active roadways, taxiways, schools, and all kinds of places,” explains Johnson. “The weather stations help us determine the actual conditions at the job site so that we can determine if we need to shut down a crane lift and stop the job.”

Photo provided by Kelly Kennedy, Midnight Sun Environmental

“There’s a lot of fieldwork going on in real-time out in the elements where superintendents have to do daily reports or weekly safety meetings,” explains Johnson. “Using voice memos or Microsoft Teams to record meetings and then have those transcribed by AI really helps capture what was actually said.”

SafeLogic also utilizes QR codes to make things easier for superintendents and project managers.

“They can scan the QR code while doing an equipment inspection and provide the vehicle information and details about any new deficiencies. They’ll hit submit, and the information will go straight to the inbox of whoever is monitoring it,” says Johnson. “If there’s a need for maintenance, we’ll flag it, which expedites the process and eliminates a lot of unnecessary paperwork.”

Working with the US Military’s IRT

construction project that took place in 2024 in a remote Alaska environment presented unique human resources, or HR, challenges and opportunities. The challenges were further complicated by the integration of the US military’s Innovative Readiness Training, or IRT program.

The project, the construction of a 4.3-mile road through challenging terrain, highlights the critical role of HR in ensuring safety, efficiency, and successful collaboration among diverse stakeholders.

The project consists of building a 4.3-mile road from where the current paved road ends on New England Cannery Road in Cordova to the response facility. From its juncture with the existing paved road, the project proceeds immediately into a mountain rock face and an existing resort and then out through dense forest and across numerous streams, as well as through a hydroelectric power plant. The route then progresses through an extremely steep and precarious avalanche slide area to the other side, where the deep-water oil spill emergency response port will be built at Shepard Point in the third year of the project.

This road travels next to the ocean and along treacherous, steep mountain terrain, and clearing the path required blasting through precipitous solid rock for the main roadbed while carefully avoiding disturbance of the pristine environmental aspects of the project. This includes many species of wild birds and animals; the forest, streams, and ocean; and the adjacent eelgrasses, which play a vital role in the coastal ecosystem.

This summer we worked directly with the US Army, Air Force, Marines, and Navy active-duty or National Guard personnel, facilitating training in the remote mountainous setting. The IRT personnel worked with us and trained in project management, marine logistics, clearance logging, heavy-equipment operating, grade checking, mechanical equipment repair work, and hand labor jobs ranging from rock-blasting explosive drill-hole preparation all the way to building large retaining walls and culverts.

The daily logistics of transporting every worker and piece of equipment, material, and tool to the job site by barge or landing craft, in conjunction with the ever-changing weather, is excellent training for our military in Alaska and worldwide.

The 327 IRT personnel were housed in Cordova school cafeterias or in tents on sleeping cots. They dined on Meals Ready to Eat, or MREs, much of the time. Contractors had to train a new group of military personnel every four to six weeks which was difficult at times, depending on experience.

The project’s remote location and demanding conditions created a unique set of HR challenges:

• Recruitment and retention: Attracting and retaining skilled workers in a remote location with a tough schedule and harsh weather requires competitive compensation, comprehensive benefits, and potentially subsidized housing or transportation.
• Safety and well-being: Prioritizing worker safety in a high-risk environment with potential wildlife encounters necessitates rigorous safety training, emergency preparedness, and access to mental health support.
• Logistical complexity: Managing the daily transportation of workers, equipment, and materials by barge or landing craft required intense HR planning.

Partnering with the IRT program introduced a new set of HR considerations:

• Training and development: HR plays a vital role in coordinating training programs, facilitating knowledge transfer between civilian tradespeople and military personnel and ensuring both groups gain valuable experience. Not everyone can or will train others.
• Communication and collaboration: Clear communication channels and training are essential for fostering effective collaboration between military and civilian personnel with diverse backgrounds and work styles.
• Performance management: Adapting performance management systems to accommodate the unique challenges of the project and the integration of military personnel requires flexibility and clear communication of expectations.

It was an honor and a privilege to not only work with the owner, engineers, and contracting team but also with our US military personnel this summer. This project provides a compelling case study in the complexities of managing human resources in a demanding and unique environment. By proactively addressing challenges and leveraging opportunities presented by the IRT program, HR played a pivotal role in ensuring project success, fostering collaboration, and promoting the well-being of a diverse workforce.

The lessons learned from this project offer valuable insights for HR professionals across industries, emphasizing the importance of adaptability, strategic planning, and a commitment to worker well-being in navigating the complexities of today’s dynamic work environments.

n some remote areas of Alaska, such as Port Alexander on Baranof Island, construction projects take on a new level of difficulty. Builders have to deal with the usual challenges that hamper every Alaska construction project, like unpredictable weather, but they also have to find ways to move equipment, materials, and manpower in and out of off-road sites.

When Port Alexander’s water tank reached the end of its useful life, it was imperative that UIC Sanatu, LLC find a way to demolish the old tank and replace it with a new tank so that the community could continue to have water for residential, commercial, and emergency needs.

According to UIC Sanatu Project Manager Geoff Sanger, the water-storage tank had been leaking for a while, in part due to the tank’s degradation from its location near saltwater. The community had only been using 30 to 40 percent of the 120,000-gallon tank’s volume, storing 40,000 to 50,000 gallons of water, which was primarily used for drinking water, as well as to supply the town’s fire water protection system in case of emergency.

If the tank’s foundation failed before it was replaced, there was concern that the tank would tumble down the steep slope on which it was located, taking out pipes and causing other damage. This would also require Port Alexander to go with a more expensive back-up plan to pump water out of a nearby muskeg lake.

“This project was very unique in that Port Alexander is in an incredibly remote area at the farthest southern tip of Baranof Island, and the water tank was located about a 30-minute hike up the side of the mountain, standing at roughly 500 to 600 feet in elevation,” says Sanger of the site about 61 air miles southeast of Sitka. “It was not easy to get to.”

UIC Sanatu is a Small Business Administration 8(a) certified general construction subsidiary under UIC Government Construction, one of four holding companies for one of the largest Alaska Native village corporations, Ukpeaġvik Iñupiat Corporation. The company specializes in logistical and environmental challenges that are unique to the Arctic and remote regions of Alaska.

“The old, bolted steel water-storage tank was built about forty years ago and was constructed on a wooden foundation and concrete piers,” says Sanger, who noted that the company had ‘boots on the ground” in June. “Our guys had to fly up a small mini-excavator and all associated tools and scaffolding to do the project, and use hot saws or concrete saws to cut the tank apart and demolish the wooden foundation.

“We also used the mini-excavator to organize and get materials rounded up, as everything had to come in and out by helicopter,” he continued. “It was pretty exciting and challenging in its own way. It took brute manpower to get the tank down and get a new one erected.”

UIC Sanatu barged 95 percent of the materials needed for the project out of Seattle, Washington, to Petersburg, and then lightered the materials on a smaller barge to Port Alexander.

“Southeast in the summertime is a very wet area and we had six inches of rain on a couple of days, which prevented us from getting to the site,” says Sanger. “There weren’t a lot of sunny and clear days the rest of the summer, either, so the weather made the project very challenging.”

Temsco Helicopters out of Juneau made four all-day trips to move the materials to the site, from the staging area roughly half-a-mile overland up the mountain. On the busiest day, the helicopter made forty roundtrips.

Materials followed stringent specifications for weather treating, including a foundation built out of weather-treated Douglas fir from Idaho. UIC also embedded rebar into the bedrock, pouring concrete pillars to make a stronger foundation. The project was self-performed with no subcontractors and employed four people at the height of the season.

UIC Sanatu is familiar with these types of projects. It recently took part in three similar projects, replacing a fuel tank farm in Shungnak, on the Kobuk River; water storage tanks at Gulkana, about fifteen minutes north of Glennallen; and in Chalkyitsik, an hour north of Fairbanks.

“Gulkana was on the road system, so we were not as logistically challenged by that project,” says Sanger. The company demolished a leaning water tank, replaced the soil foundation, and constructed a new bolted steel water tank for the community, which was only able to use 30 percent of the previous tank.

Because Chalkyitsik is a fly-in only community, UIC Sanatu worked with Lynden and Everts Air to transport the materials it needed to build a full steel foundation on pillars to support a new tank.

“It was the same type of project; the tank was old and leaking, and the community was not able to utilize it to its full capacity,” says Sanger, noting that UIC Sanatu will be working on a similar project in St. George, in the Pribilof Islands, this summer.

According to UIC Government Construction Vice President Jason Strickler, who also serves as general manager of UIC Sanatu, the company enjoys getting involved in these types of projects for a number of reasons.

“These projects are very challenging, which makes them fun and exciting,” Strickler says. “It’s also nice to get into smaller communities in need of these types of facilities and be able to provide a service that helps them and their livelihoods. As an Alaska Native corporation, this is very important to us, and we enjoy doing it.”

or more than 75 years, Associated General Contractors, or AGC, of Alaska has been dedicated to advocating, educating, and promoting its members’ interests. As a foundational force, AGC has played a key role in shaping Alaska’s infrastructure and advocating for impactful legislation. The organization has been a vital resource for members, helping them tackle Alaska’s unique challenges through innovative solutions.

As we move forward, we take time to look back on all the progress we have made over a challenging, yet incredibly rewarding, past year. From bridges and roads to schools, hospitals, and thriving businesses, AGC members have built the foundation for growth and opportunity. Through its unwavering advocacy, AGC has brought about positive change, fostering collaboration, competition, and unity within the industry. AGC has been and will always be the voice of Alaska’s construction industry.

• National Advocacy Efforts
  In 2024, AGC spearheaded advocacy efforts on multiple policies and regulations:
  • Navigating Davis-Bacon Challenges: The US Department of Labor, or DOL, plans to appeal a court ruling that temporarily blocked parts of its expanded Davis-Bacon Act rules, challenged by AGC of America, which include new requirements for truck drivers and material suppliers. AGC argued the DOL unfairly applied the rules retroactively to contracts where the requirements were omitted, and a temporary injunction remains in effect while the appeal is considered.
  • Lawsuits Against Government-Mandated Project Labor Agreements, Or PLA: Multiple AGC member firms have filed pre-award bid protests against nine federal project solicitations, claiming that mandating PLAs on projects valued at $35 million or more violates the Competition in Contracting Act. The contract awards for each protested procurement have been paused pending court review, with a decision expected in early 2025.
  • Build America Buy America Act, or BABAA: AGC and industry allies filed an administrative action to address the Biden administration’s vague and unclear BABAA implementation. AGC has an active petition for rulemaking with the Office of Management and Budget for a streamlined waiver process and has created a contractor’s resource guide for BABAA. Additionally, AGC of Alaska collaborated with Alaska Department of Transportation and Public Facilities, or DOT&PF, to identify Alaska-specific concerns and supported DOT&PF efforts to communicate how challenging these requirements are, specifically within Alaska.
• Statewide Advocacy Efforts
  • STIP Advocacy: AGC closely followed the Statewide Transportation Improvement Program (STIP) process, raising frequent concerns over the program with both DOT&PF and Federal Highway Administration (FHWA). AGC members met with multiple stakeholders, including the Governor’s office and legislators, to offer contractors’ perspective and emphasize the negative economic impact to our state due to a less robust construction program.
  • Ambler Access Project: AGC joined fellow business and development associations in a press release strongly condemning the Biden Administration’s unlawful rejection of the essential right-of-way permit required for the construction of the Ambler Access Road.
  • West Susitna Project: AGC wrote a letter of support for the West Susitna Access Road Project, urging DOT&PF to move forward with the project’s development, considering the broad benefits this project will have on the construction industry and the state.
• Local Advocacy Efforts
  • AGC PAC Success: AGC’s Political Action Committee, or PAC, was actively involved in twenty-eight statewide races on Election Day and had a success rate of 91 percent in candidate support. AGC is looking forward to working with all newly elected and returning legislators.
  • Ballot Measure 1 Impacts: AGC joined dozens of fellow trade associations and businesses in opposition to Ballot Measure 1, which will provide a new mandatory sick leave policy, impact employers’ freedom of speech, and institute new minimum-wage requirements. Unfortunately, the initiative passed. AGC will focus on working with the state and key stakeholders throughout the regulatory writing process to ensure AGC members’ voices are heard.

• A Transformational Gift: In 2024, AGC donated $200,000 to the University of Alaska, or UA, Construction Management Workforce Initiative. The initiative is an industry/UA partnership to address the statewide workforce demand. The gift establishes a new endowment to enhance training and increase enrollment in construction programs at UAA, UAF, and UAS.
• AGC Scholarship: The AGC Workforce Development committee awarded eight scholarships totaling $30,000 in 2024. Through scholarship programs, AGC is proud to support students pursuing careers in the skilled trades and/or higher education throughout the state.
• Contractors in The Classroom: AGC’s Workforce Development committee launched the Contractor’s Classroom Playbook: A Blueprint for Contractors to Connect with Alaska’s Schools. The objective of this playbook is to equip contractors with the resources and information needed to connect with Alaska’s schools and engage, identify, and attract homegrown talent through highlighting the opportunities within our industry and the pathways for entering a career in the construction industry. In conjunction with the Contractor’s Classroom Playbook, AGC’s Workforce Development committee engaged with all eight of the comprehensive high schools in the Anchorage School District to assist with integrating the new Academies of Anchorage education model. Committee members spoke on benefits of and resources to join the construction industry to eleven schools, reaching more than 5,000 students.
• Industry and Educator Mixers: To further connect with local educators, AGC hosted two Industry and Educator Mixers, one each in Anchorage and Fairbanks, bringing together local high school teachers and AGC members to discuss ways to promote the construction industry to high school students.
• AGC Training Programs: AGC is continuously growing program offerings that improve the capabilities of our members and the professionalism of our industry at large. One of the pillars of our mission is to provide educational opportunities for our members so their employees can obtain the certifications necessary for jobsites. In addition to our popular AK-CESCL, CQM, and SWPPP trainings, AGC also offers: Bluebeam Baseline and Estimate Training; Project Engineer Certificate Course; Microsoft Excel Virtual Training Series; Bluebeam Revu for Administrative Professionals; Construction Correspondence and Business Writing; Reading Construction Documents; and Microsoft Excel for Construction Scheduling & Estimating.

Photo provided by AGC of Alaska

• Online Plans: In 2024, AGC listed 1,994 project postings to our Online Plans site, making our members the first to know about new jobs/projects from both public and private sectors across the state of Alaska. AGC’s Online Plans has 2,024 active users who utilize the platform.
• AGC Health Benefit Trust: In 2024, AGC began offering members comprehensive group health benefits through the AGC Health Benefit Trust. AGC encourages members to explore this new benefit!
• Fairbanks Office Relocation: To better serve AGC’s Fairbanks members, AGC relocated its office space to a central location in downtown Fairbanks. Visit the new AGC Fairbanks office at 100 Cushman St., Suite 402.
• Labor Relations: In 2024, AGC successfully renegotiated one collective bargaining agreement on behalf of our industry and signatory members. AGC facilitated a successful contract negotiation with the Western States Regional Council of Carpenters. AGC would like to thank the members who dedicate time and serve a crucial role in ensuring these agreements are fair, equitable, and meet the needs of business for contractors who elect to do work under our Alaska-based agreements.
• AGC 401(k) Retirement Plan: AGC contractors can enroll in this cost-effective, low-maintenance 401(k) program for construction companies of all sizes. In 2024, thirty-four Alaska-based AGC contractors participated in the plan, contributing more than $2.8 million combined towards their employee’s retirement.

NOTE: All employees of AGC member companies are eligible for member-pricing discounts on all AGC training programs.

Photos provided by AGC of Alaska

• The Alaska Contractor Magazine: AGC produced four editions of the Alaska Contractor magazine, distributed to more than 5,000 individuals and available in key Alaska businesses and in Alaska Airlines lounges.
• Excellence in Construction: AGC saw thirty-two impressive projects submitted for consideration for the 2024 Parker, Smith & Feek Excellence in Construction Awards. After hours of deliberation, our judges selected winners for ten categories, including sustainability, transportation, marine, heavy, and vertical construction projects.
• Excellence in Safety: With feedback from safety professionals across the country, AGC was proud to present the ConocoPhillips Alaska Excellence in Safety Awards for 2024 at our annual conference. Five awards were given to worthy nominees, who lead the industry with innovative and thoughtful safety measures statewide.
• Sixty Years of Hard Hats: 2024 marked the 60th anniversary of AGC of Alaska’s most prestigious honor—the Hard Hat Award. Dave Johnson with Anchorage Sand & Gravel was awarded this year’s Hard Hat. Hard Hats also commemorated their 60th anniversary milestone by celebrating with a dinner and a special presentation by Mike Travis, author of The Landmen.
• Update to Governing Documents: This year, AGC undertook the significant task of fully updating two essential governing documents—its bylaws and policies and procedures—to better align with the needs of the association. This was a challenging endeavor, and we extend our heartfelt thanks to every member who contributed to the success of this important project.
• Jim Fergusson Legislative Citation: AGC of Alaska Life Board member and former Board President Jim Fergusson was presented a Legislative Citation in 2024 in a surprise ceremony at AGC’s Anchorage office. Sponsored by State Senator Cathy Giessel, Fergusson was lauded for his steadfast support and advocacy for more than fifty years in Alaska’s construction industry and was recognized for all he has done in the construction industry, including his work with the AIA, AGC, the CIPF, and more.

Of The 52 New Members In 2024:
9 General Contractors
29 Associate
14 Specialty Contractors

• AGC hosted 20 member-networking events in 2024
• More than 190 members attended Construction Spending Forecast breakfasts
• There was a 7-minute record sellout for Annual Conference and Hard Hat Hustle Dinner Dance tickets
• 23 teams took part in the 2024 Sporting Clay Shoot
• 75 teams participated in Anchorage and Fairbanks Golf tournaments
• More than 100 attended Spring Agency Day
• More than 300 attended at the 2024 Safety Fair
• 20 teams participated in the Fairbanks Bowl-A-Thon fundraising event for AGC’s Scholarship Program
• 20 members attended the Legislative Fly-In
• AGC 101 for Legislators: AGC hosted a first-ever “AGC Construction 101” session for new and seasoned legislators in the Anchorage and Fairbanks areas. The goal of these sessions was to introduce elected officials to AGC leaders and to begin conversations on how best to work together in the upcoming legislative session.

or sixteen hours straight, six UAA construction management students worked in a room by themselves, racing against the clock to create a winning construction bid. Their only tools? A hard drive full of project specs and months of preparation they poured into their strategy and to building working relationships with each other.

There are no second chances—when the clock hit 10 p.m., their bid was final. And by sunrise, they were standing in front of a panel of industry experts, defending their work.

“It was down to the wire, just like last year, ” UAA construction management junior Jeremy Horacek says. “The judges love coming to the Alaska room and watching us work together. They are always impressed by how organized and clean our ‘war room’ is and love interacting with us. They stated that the Alaska team impresses them every year.”

Kris Jensen, a UAA construction management professor and the team’s coach, said it’s a huge accomplishment to place, since most universities bring more students to the competition than UAA has in their entire program.

“It is really a David vs. Goliath story,” Jensen says.

Held annually in Sparks, Nevada, the competition is one of the largest student construction contests in the country. More than 2,500 students from fifty universities in the western United States gather for three intense days of problem-solving, teamwork, and real-world application.

“This is the Super Bowl for construction management on the west coast,” says Will Marstall, a UAA construction management senior. “All the big companies who work in the region are recruiting at this event, which goes to show the talent that this has.”

Marstall, who landed a job at Turnagain Marine Construction after last year’s competition, says the event serves as a crash course in real-world project management.

The competition is a rite of passage for many construction management students, offering a direct pipeline to jobs and internships. After competing last year, Marstall received multiple job offers. The connections students make at the event often shape their careers before they graduate.

“This experience has helped to better define my understanding of construction management in a way that is not possible in the classroom alone,” says Michael Austin Stees, a UAA junior who balanced a full course load, full-time job, and weekly club meetings while preparing for the competition. “Being in the presence [of] and engaging with professionals in the industry has been invaluable in understanding the many facets incorporated into managing a construction project.”

Coach Jensen says he loves teaching and engaging with the future leaders of the construction industry, delivering lessons from the real-world side of construction.

Jensen says he works with the team on telling a story, which encompasses the timelines, resources that are needed, pinch points, opportunities, and other details that project managers have to work with in the real world.

“We focus on teamwork—not siloing yourself on a task, but working through problems as a team,” Jensen says. “Communication is also a big factor, as you have to be able to tell the judges how you are going to build the project. You can put in all the hard work behind the scenes, but if you can’t deliver a clear message on how to move forward, it is hard for a team to follow.”

For Kansas Bertollini, a second-year student on UAA’s Heavy Civil team, the competition isn’t just about placing well—it’s about building the skills and connections that will shape his career.

“Kris did a great job preparing us for what Kiewit wants,” Bertollini says. “However, nothing but the experience prepares you for the stress of trying to complete a bid in the short amount of time given to the teams. Being that this was my first competition, it was all foreign to me, but I would definitely recommend the experience to all students. It is a great lesson in team building. It forces participants to trust team members.”

Marstall says coach Jensen has become a great mentor to him.

“Kris is an excellent coach and really hones in on what is important and not important,” Marstall says. “Given the short timeframe, there’s specific things that are heavily focused on and others are more general. The whole competition—and being in the club and learning from Kris—has really helped shape my journey.”

“Much of the course at UAA is online to give working professionals a chance to get a degree,” Marstall says. “This unfortunately has the knock-on effect of removing the social interaction that is key for construction management. The club, competition, and practices give people a chance to learn and interact with each other.”

Regardless of the outcome, the competition serves as a launchpad, preparing students for the breakneck pace of the construction industry.

“It is hard to explain how crazy the competition is until you experience it,” Horacek says. “I think the level of experience in the industry is what gave us an edge and allowed us to perform as well as we did. We definitely took some notes on how we can improve and plan on incorporating that into next year’s preparation.”

t its core, philanthropy is about collective upliftment. Supporting your community through charitable efforts benefits not only those in need but also strengthens the social fabric and can have the secondary benefit of business development. Philanthropy can provide a new avenue for building relationships and enhance your reputation as a socially responsible business, differentiating your firm in a competitive marketplace.

When planning a yearly giving program, solicit ideas from staff to better identify organizations that align with business development opportunities. Not only does this engage staff in business operations, it also casts a wide net of giving and shows that your values align with your employees and that you care about what matters to them. It connects your business to their daily life and helps model a community-focused mindset.

Often, when volunteering, you’re with individuals you don’t normally encounter in your day-to-day work. Experience with individuals from different communities challenges your ability to connect with a broader audience. And any new connection yields the possibility for future business.

hen companies are undertaking a new project and need engineering work done to get it off the ground, one of the best places they can turn to is Coffman Engineers. The Anchorage company presently has a staff of 135 trained in a range of engineering fields including civil, structural, mechanical, electrical, fire protection, and corrosion control services as well as trenchless technologies and landscape architecture. Working together, the team offers clients a one-stop-shop capable of taking a holistic approach to anything from large-scale industrial installations to small undertakings.

“We bring a real breadth of services through all the disciplines that we can handle in-house,” says Ben Momblow, managing principal of Coffman’s Anchorage office. “We provide the depth of a big bench with the numbers of employees and services we have in Anchorage. And if there are areas outside of that expertise or depth, we have the ability to pull in people from other parts of the company.”

Coffman is part of a Seattle-based business with offices in fourteen states and one US territory, but it has deep roots in Alaska. Momblow says founder Dave Coffman first came to the state shortly after the company opened its doors in 1979 to work on a project for what was then Anchorage International Airport.

From there, Momblow says, Coffman “started working on projects to support North Slope Borough in the development of Prudhoe Bay, man camps, industrial camps. And the company basically just took off.”

Today Coffman offers “all disciplines of engineering, landscape architecture, and construction management,” he says.

Momblow says this structure allows his workforce to serve Alaska’s unique needs.

“Our largest department is our corrosion control group,” he says.

Coffman performs corrosion control services for most of the state’s oil and gas operators, and many utilities. “We do field surveys throughout the summer on major pipelines and other critical infrastructure.

“Right now, we have a project in the village of Savoonga for a reindeer processing facility that’s being constructed out there, as well as a fish processing plant,” Momblow explains.

Additionally, Coffman has a term contract with the Alaska District of the US Army Corps of Engineers, primarily working on buildings located on Alaska military bases.

“We were involved in some of the front-end planning for the F-35 facilities that went into Eielson Air Force Base,” he says. “We’re continuing to service the military on all kinds of projects at JBER, Fort Wainwright, and Eielson.”

“A lot of times owners will come to us and say, ‘Hey, we’ve got this project. It needs to meet these requirements. This is about how big we’re thinking. Here’s our user groups.’” He continues, “We’ll work with them through a series of meetings to define what their requirements are, what their budget is, what their schedule is. Then we draft a technical document that is the request for proposals for somebody else to come in and either finish the design or build to those requirements.”

For a sizable job, the company appoints a project engineering manager whose task is to coordinate between different disciplines, establish the scope, schedule the budget for the projects, and be able to implement the company’s internal quality control plan and process.

Then it’s time to bring in the engineers. Momblow explains, “The project manager coordinates with them for the final stamping and sealing of all the plans and specifications before they’re delivered to our clients.”

Alice Bioff, business planning specialist with Kawerak, Inc., applauds Coffman’s ability to provide a range of services, highlighting the company’s work on the Savoonga Reindeer Commercial Company’s Reindeer processing facility.

“Their dedication, expertise, and tireless efforts to the project are beyond expectation,” says Bioff. “Their meticulous guiding of Savoonga/Gambell and Kawerak through various challenges, ensuring that we stayed on course, is very much appreciated.”

Coffman Engineers has the ability to customize its services to whatever its clients’ needs are.

“We are design professionals that typically work for the owner,” Momblow concludes. “We really try to offer scalable solutions.”

laska’s “prompt payment” statute for public construction projects was enacted with a noble goal in mind: to ensure timely payment of our state’s public works contractors on state projects.

The primary mechanism for ensuring timely payment in the statute is an interest penalty on late payments: for every day that a contractor’s payment is delayed, the state must pay interest on the past due amount at an annualized rate of 10.5 percent.

When Alaska’s prompt payment act was first passed in 1982, the state’s deadline for payment was 30 days, after which contractors were entitled to receive interest on past-due amounts. Unfortunately, a well-intentioned effort to reform this statute in the late ‘80s, which was aimed at shortening the state’s payment deadline, ultimately led to the state’s deadline being extended—in some cases to as long as 51 days from a request for payment. In recent years, this legislative oversight has caused issues for state contractors and—in our view—is overdue for correction.

The first draft of his legislation, introduced in April 1989 as House Bill 284, or HB 284, sought to impose a strict 14-day deadline for payment to contractors. This initial draft stated that “if the prime contractor is not paid as required” then “the state or political subdivision shall pay interest on the unpaid amount from the fifteenth day after receipt of the [contractor’s] payment request.”

Predictably, Boyer’s proposal led to push-back from those concerned that a 14-day deadline would result in frequent late payments—and thus, significant interest penalties—on a large number of state projects. Accordingly, in May 1989, a compromise version of the legislation was introduced, setting the deadline for prompt payment at 21 days, after which point interest would accrue.

Subsequent revisions added different payment deadlines depending on the source of a project’s funding; the payment deadline for projects using federal funds is currently 21 days; all other projects have a deadline of 30 days.

The legislative history of this effort, including a statement from the Alaska Department of Transportation & Public Facilities, makes it clear that, when the bill was being considered, those involved understood and believed that the state would have a total of 21 days to pay contractors, or it would be required to pay interest. According to the bill’s sponsor statement, the final version of the bill, “requires that the state or its political subdivisions pay within 30 days after receiving progress payment application or they must pay interest. If the political subdivision is using federal money or grant money, they must pay within 21 days or pay interest.”

However, at some point post-enactment, the provision specifying that interest accrues “from the twenty-first calendar day after the date required for payment,” was re-interpreted as giving the state the right to an additional 21-day, interest-free grace period beyond the deadline for payment. As a result, the state now believes it has 42 days to issue payment on federally funded projects and 51 days on other projects, before any interest penalty kicks in.

This re-interpretation of the prompt-payment statute is a clear departure from what its drafters intended and is out of sync with related provisions in the law. For example, a subsequent paragraph still imposes a 21-day interest penalty on the state if it fails to promptly pay a contractor that has remedied a defective or incomplete payment request. Thus, as currently interpreted, a contractor whose payment request is rejected may be entitled to quicker payment than a contractor who submitted a proper request the first time.

For Alaska’s public works contractors, this isn’t merely an academic exercise. With rising costs and tight margins, predictable cash flow is essential for survival—including subcontractors waiting to get paid on state projects.

fter successfully completing a dredging project at Petersburg’s North Harbor in 2014, Harbormaster Glo Wollen decided it made logical sense to dredge the South Harbor. After all, the collaboration with the US Army Corps of Engineers, or USACE, had gone so smoothly that Wollen didn’t anticipate any problems.

Wollen soon learned, however, that the South Harbor didn’t match the same federal status as Petersburg’s North Harbor, which affected funding for maintenance projects. But Wollen, with the assistance of USACE, persevered. Last spring, Western Marine Construction, Inc. completed dredging Petersburg’s South Harbor for the first time in forty years.

That didn’t stop Wollen from working with USACE to find a way to fund a dredging project for the borough’s South Harbor so it could continue to accommodate larger commercial fishing vessels.

Though the North Harbor was built before statehood and was state-owned at one time, the South Harbor was built under different circumstances and thus not recognized as a federal harbor. Wollen says the borough could not afford to pay the entire cost for dredging the South Harbor and needed assistance from a federal partner.

After working on several waterfront projects, Wollen is familiar with the federal process. She knew Petersburg would need support from Alaska’s state and congressional delegations, along with USACE support. After many meetings with different government agencies, officials determined that Petersburg’s South Harbor actually was eligible for federal assistance, through Section 107 of the River and Harbor Act of 1960. Section 107 allows the Corps of Engineers to improve navigation—including dredging of channels—with a non-federal government sponsor such as Petersburg.

Photo provided by Western Marine Construction, Inc.

Wollen says 90 percent of the 577 total stalls available at the Petersburg Harbor are filled with commercial fishing vessels. As the economic backbone of Petersburg, it wasn’t difficult to justify the need for a dredging project.

In 2022, after USACE and Petersburg Borough hammered out the funding split for the $7.2 million project, Western Marine Construction started the process of removing material from the bottom of the harbor floor.

Joseph E. Zech, project manager for Western Marine, says that the company removed approximately 60,000 cubic yards of material from six areas, creating various depths necessary to accommodate all sizes of vessels. They disposed of dredged material in a dredge disposal area outside the Wrangell Narrows entrance channel in Fredrick Sound. They also removed, documented, and disposed of identified and unidentified objects from the harbor floor and monitored and documented marine mammals during all of the phases of the dredging and disposal operations. Western Marine worked with eTrac (now known as Woolpert) for pre-, interim, and post-hydrographic surveys. As an additional precaution, Western Marine primarily worked during the winter months when marine mammals were less likely to be in the area.

Working winters meant dealing with inclement weather. While winter weather poses challenges, bigger difficulties lay beneath the water. Crews unexpectedly ran into extremely hard soil, which immediately slowed down progress.

“We had to change out equipment and use different techniques to dig through the materials so we could reach specified dredging depths,” says Zech.

The logistics of boat traffic during the project also came into play. Wollen says she worked with Western Marine to stay ahead of working crews, contacting owners who, in some cases, would fly into Petersburg to move their vessels. She says several owners took the opportunity to place vessels in the shipyard during certain months of the project. It helped that all the owners, operators, and businesses were highly responsive and supportive of the project.

Photo provided by Western Marine Construction, Inc.

Western Marine began dredging the South Harbor in October 2022 and completed the project in March 2024. Once completed, the harbor returned to its original depths, which ranged from minus 9 to 19 feet.

Graham says it was shocking to hear how long Petersburg had gone without dredging the South Harbor and was happy that Section 107 provided a solution.

In addition to the pre-project work with Wollen, USACE also worked with Western Marine during dredging, managing paperwork and inspections. After the final inspections were done, a ribbon-cutting ceremony was held in May 2024 to celebrate the project’s completion. But the door on the project is not completely closed; USACE will revisit the South Harbor from time to time as they now have the responsibility of maintaining it and ensuring the harbor floor is kept at a proper depth.

“Our compliments to Petersburg,” says Graham. “They were a terrific sponsor.”

Wollen is equally as complimentary of USACE and Western Marine for bringing this long-needed plan to fruition.

“I can’t say enough wonderful things about the US Army Corps of Engineers,” says Wollen. “And the contractors worked hard through difficult situations to get us here.”

e can expect the financial impact of cybercrimes to continue to rise in 2025 among individuals and businesses of every size. In addition to cyber offenses, criminals will continue to steal mail and use other methods to gather sensitive personal information and bank account data for the purposes of identity theft, check washing, and check counterfeiting.

Cybercrime has become increasingly sophisticated over the past several decades. Unfortunately, as technology advances, it becomes easier for criminals to defraud victims. Factors making it easier for would-be criminals to commit cyber offenses include software tools such as AI large language models that can recognize and generate text, anonymized immediate payment systems such as cryptocurrencies, and a thriving overseas cybercrime economy built to support the theft of funds and data.

Expect BEC scams to increase in frequency and sophistication as criminals re-invest earnings into their cybercrime business model. The FBI shared in September 2024 in FBI Alert I-091124-PSA that there was a 9 percent increase in identified globally exposed BEC losses between 2022 and 2023. The same alert noted that, between October 2013 and December 2023, more than 300,000 BEC incidents were reported worldwide. More than half of those were US victims, with total exposed losses of $55 billion.

Criminals use various methods to trick and threaten potential victims if immediate payments are not made. These methods include sending convincing emails, often with a slightly altered email address; phone calls; or text messages from numbers with a caller ID matching the person or entity the caller claims to be. These criminals convey a sense of urgency by threatening consequences if not acted on immediately. They frequently demand electronic payments through wire transfers, real-time payment applications, gift cards, or cryptocurrency. Criminals know it is difficult or impossible to retrieve funds sent by these methods.

Common red flags include a request for payment that is:

• Unexpected.
• From an email, text, or phone number you do not recognize.
• Instructing you to change account or routing numbers.
• A claim that you’ve won a prize and need to pay a fee.
• A return payment in exchange for a check.

Protect yourself. Never send money to anyone who:

• You haven’t met in person.
• Says they work at a overnment agency.
• Pressures you into paying immediately.
• Threatens consequences if you don’t act.
• Demands payment by wire, payment app, gift card, or cryptocurrency.
• Unexpectedly tries to sell you something over the phone.

Steps businesses can take to reduce their risk:

• Train employees to be aware of common threats.
• Ensure all payment requests follow established procedures.
• Establish appropriate internal IT and financial controls.
• Don’t trust email. Call a known number to verify payment requests.
• Limit external access to email and protect it with multifactor authentication.
• Utilize fraud protection tools offered by your financial institution, such as positive pay, credit card alerts, check blocks, and administrative controls.

If you or someone you know becomes a victim of an imposter scam, immediately contact your financial institution. Learn more at consumer.ftc.gov/features/how-avoid-imposter-scams.

If your business becomes the victim of business email compromise, immediately contact your financial institution and file an Internet Crime Complaint Center report at www.ic3.gov.

Additional information and resources regarding various fraud schemes are available from the Federal Bureau of Investigation and Federal Trade Commission.

n today’s competitive labor market, employers are navigating an increasingly complex landscape when it comes to hiring the right people. With the workforce aging—an estimated 69.4 percent of US employees will be over age 65 by 2030—and fitness levels declining amidst a growing obesity crisis, with 40 percent of adults classified as obese, according to the CDC, the stakes are higher than ever. These factors converge to create a potential tipping point for workplace safety and productivity, making the need for effective hiring practices crucial.

The US Department of Labor underscores the financial implications of hiring missteps, estimating that a bad hire can cost a company 30 percent of that employee’s annual salary. Moreover, the staggering costs associated with workplace injuries—more than $20 billion annually in direct costs for musculoskeletal disorders alone—serve as a wake-up call for organizations. With average workers’ compensation claims ranging from $29,000 to $32,000 per injury, and nearly half of all injuries occurring in an employee’s first year, it’s clear that mismatching employee capabilities with job demands can have devastating consequences.

Gone are the days of a “one-size-fits-all” pre-employment exam. Such outdated practices not only lack compliance with the Americans with Disabilities Act, or ADA, but also fail to assess the specific demands of the job. A legally compliant FFD program begins with thorough job observations and validations to pinpoint essential job functions.

Employers should prioritize understanding the specific physical demands of each position. For instance, a warehouse worker may require different capabilities than an office worker, highlighting the need for tailored assessments. By recognizing the unique requirements of each job, employers can ensure a more effective match between the employee’s abilities and the job’s demands.

• Identification of Pre-Existing Conditions: A musculoskeletal exam helps spot potential issues before they lead to injuries, enabling informed job placements and necessary accommodations. By detecting physical limitations early, employers can mitigate risks that could lead to future claims.
• Clear Ability Ratings: Employers receive straightforward assessments of a candidate’s capacity to perform job functions safely. This clarity reduces the chances of hiring someone who may be ill-equipped for the role.
• Healthier Workforces: By promoting physical well-being, organizations can cultivate a more resilient employee base. Healthy employees are generally more productive, reducing absenteeism and increasing morale.
• Versatility for Returning Employees: The same assessments can be used for employees returning from medical leave, ensuring ongoing capability. This approach aids recovery and boosts confidence in the workplace.
• Reduced Workplace Injuries: By confirming that employees can handle their job tasks, FFD testing significantly decreases the likelihood of accidents, positively impacting Occupational Safety and Health Administration recordables and workers’ compensation premiums. A proactive approach to safety pays dividends.
• Significant Return on Investment: With typical workers’ compensation claims averaging $40,000, the return on investment for FFD testing ranges from 8:1 to 13:1, making it a financially sound strategy. Investing in FFD testing not only saves money but also promotes a culture of safety and accountability.

The benefits of FFD exams extend far beyond compliance; they enhance workplace safety, foster a healthier workforce, and ultimately drive productivity. In a world where the cost of negligence can be astronomical, investing in FFD testing isn’t just a smart choice—it’s a necessity for any business looking to thrive in the modern landscape.

As the labor market evolves, employers must adapt their hiring strategies to prioritize not just qualifications but also the physical capability of potential employees. By doing so, companies can protect their bottom line and ensure a safer, more efficient workplace. Don’t hire your next injury; invest in the future of your workforce with proactive FFD testing.