Relationship aims to serve dual purpose of identifying and promoting best practices for effective talent management while also supporting the long-term viability of the U.S. residential construction industry workforce
Building Industry Partners (BIP), the leading private equity firm in the U.S. building industry and Building Talent Foundation (BTF) have formed a strategic collaboration to positively impact industry workers, their families, and the industry at large. BTF is a national non-profit organization dedicated to advancing the education, training, and career progression of young people and people from underrepresented groups in residential construction, helping them develop into skilled technical workers and business owners. BIP and BTF share an interest in changing lives through job creation and career development, while building and fortifying a pipeline of talent to ensure the industry remains viable for the future.
The announcement comes at a critical time for the industry, as it faces a 500,000 worker labor shortage and significant attrition as large segments of the workforce retire or near retirement. The sector needs to add approximately 740,000 workers per year during this decade to sustain itself, according to projections from the Bureau of Labor Statistics and analysis by the National Association of Home Builders. Left unaddressed, the talent gap will inhibit the sector’s ability to expand, to meet the housing demand, and to make homes more affordable.
Through their collaboration, BIP and BTF will attract, develop, and retain talent to and within the U.S. residential building industry and enable employers in the industry to become “Employers of Choice.” The organizations’ plans to collaborate include, but are not limited to, co-sponsoring initiatives designed to drive workforce development at the local level, connecting and leading their respective networks to focus on solutions for industry workforce challenges, engaging in research about the best human capital management practices, and rallying the industry to increase the workforce value proposition on a larger scale.
“We are thrilled to join forces with BTF and have this chance to make an impact in both the short and long term,” said Matt Ogden, Founder and Managing Partner at BIP. “As BTF has demonstrated, creating job opportunities and carving career pathways for those who may be considered ‘unemployable’ in the industry can make an immediate, life-changing difference for individuals and their families. Having a secure job and source of income has a measurable impact on financial wellness which has been proven to be linked to both physical and emotional health. In addition, investing in employees – creating a strong employee value proposition for them – can lead to enhanced business outcomes. It is a true win-win for businesses and their workforces.”
In 2020, BIP evolved its purpose to include elevating the industry’s employee value proposition, in addition to building exceptional businesses and generating world-class investment returns. The firm is now championing broad-based employee ownership at its growing list of portfolio companies, which currently includes West Coast Lumber Supply, Southeast Building Supply Interests, North American Specialty Laminations and Endeavor Fire Protection. It is also in the process of working to enhance the overall employee value proposition at its portfolio companies through a variety of advanced human capital management practices, such as introducing employee financial literacy education, providing clarity around career paths, and offering job training.
“BTF’s mission is wholly aligned with BIP’s newly evolved purpose and ‘people first’ management philosophy, making this relationship such an easy, organic fit,” said Stu Kliman, Partner at BIP. “We are committed to doing our part to support BTF’s mission so that our industry’s workforce – which represents approximately 10% of the GDP of the U.S. – can not only sustain itself, but also flourish well into the future. We are eager to collaborate with BTF to galvanize widespread support so that we can collectively raise the bar for our industry, and most importantly, for the people in it.”
“BIP’s pioneering spirit, its coast-to-coast presence, its leadership across multiple verticals within the industry, and, most importantly, its true appreciation for – and commitment to – the people of the building industry, make it an ideal partner for BTF,” said Branka Minic, Chief Executive Officer of BTF. “Having BIP’s support – and particularly Matt and Stu’s thought leadership, deep macro-level industry knowledge and extensive networks to help propel BTF’s mission – is invaluable, especially during such a critical time for the industry.”