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You’ve worked hard to build your business through the years. An investment policy statement (IPS) is a critical part of your future growth. But what should or shouldn’t be included in an IPS? Here are some guidelines:

Goals for your company’s investment portfolio should be:

• Specific to your company
• Flexible enough to meet current market and firm needs
• Adaptable to changing needs, but reflect risk tolerance
• Easily modified

Source: CFMA Treasury Management Series Presentation Session 2, Steven Lords, CFO Arizona Pipeline Company

Gilmore Jasion Mahler Audit Partner Bob Bobek is on a team presenting at the upcoming Construction Financial Management Association (CFMA) 2016 annual conference and exhibition "Building it Forward" in San Antonio, Texas on June 25-29. The importance of a company IPS is part of the team's Treasury Management Series presentation at the conference. Gilmore Jasion Mahler's Construction & Real Estate Team works to provide advisory and other services to support financial and strategic goals for businesses within the construction, real estate and utilities industries. Bob Bobek is an active member both locally and nationally with CFMA.

Construction companies must continually monitor the industry outlook to prepare for the year ahead. Since the construction industry is so closely married to the economy, including consumer spending habits, a close inspection of the current climate is required when planning for the next year.

Below, we break down the steps that every contractor should take when planning projects for the coming year.

Understand Your Niche Market

Overall, conditions for industrial construction in 2020 look good. Consumer spending was up 2.5% in 2019. Compared to the previous year, the economy grew 1.8% in 2019 and is expected to grow an additional 1.5% in 2020. Employment is strong; wage gains have been modest across the board. This kind of boost in the economy is good for industries across the board.

It is still important to understand the exact conditions within your niche market, however. When there’s more growth in commercial businesses, industrial businesses organically expand, creating more opportunities for commercial contractors. Understanding the exact factors that affect your niche market can help your 2020 plans.

Plan for New Technology

Those who can leverage new technology will stay ahead of the game, and the same goes for the construction industry. Automation, for example, can eliminate or at least reduce redundancies in your work operations.

Plan for Your Workforce

The industry outlook for construction is generally positive, but the voluntary quit rate is the highest it has been in over a decade. Unemployment is low, which means there are more available jobs than there are people to fill them. As such, it is important for employers to assure workplace satisfaction and promote engagement within their workforce. Offering attractive benefits, such as a competitive retirement package, can help promote employee retention.

“Prequalification of subcontractors is also a crucial step that can help ensure contractors have the workforce necessary to complete all aspects of any project they are taking on,” says Bob Bobek, CPA, who leads GJM’s Construction Specialist Team and works closely with many contractors.

Finally, leveraging technology to find quality employees will be an essential aspect of recruitment in 2020 and beyond.  

Consider, too, holding your profit margins steady with controlled growth. With all the available work and a limited workforce, you want to grow at a pace you can staff. Rapid growth resulting in large receivables and retainage at lower profits can starve a company of its cash.

Stay On Top of Industry News

Contractors will be continually subject to evolving federal regulations, both with regard to employment, construction of projects, and purchase of raw materials. It is essential to stay abreast of industry news and legislation that may affect practice. A commitment to technology, employee retention, and understanding external factors that affect business will help drive your company forward in the New Year.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

You know in a movie when the viewer knows that fate is playing a part to bring the main character to that place they’re meant to be, but the main character just thinks it’s by chance? That’s basically how I ended up on the board of the Down Syndrome Association of Greater Toledo (DSAGT).

I’ve always felt drawn to the Down Syndrome community, ever since I was young. As I’ve gotten older I’ve begun following the stories of families who have children with Down Syndrome on social media. I also read a book last summer, The Lucky Few, which tells a story of adopting two children with Down Syndrome. I was so inspired by the story but had no idea I would be given the opportunity to join that community a few months later.

A few days before the EPIC Toledo Board Fair, I saw a LinkedIn post from one of our Gilmore Jasion Mahler partners who shared that DSAGT was looking for board members. I read the article thinking how perfect a fit that would be for me, but I assumed I wasn’t far enough along in my career yet to join a board. I also didn’t think I had the right qualifications to join a board, nor did I think a board would want someone my age (WRONG! They value a diverse board, including young board members).

A few days later I went to the board fair, primarily in support of a co-worker who was looking to join a board. I was surprised to see the DSAGT booth since they weren’t on the list, however, I went over and met the Executive Director. We immediately connected over the passion we shared. I told her a little about myself and she gave me some information about the organization. I went home, did some research, and attended their next board meeting. I was voted on to the board at that first meeting!

Joining DSAGT has been one of the best decisions I’ve ever made. I was scared and doubtful of my abilities, but in a short amount of time, I discovered that this was a community where judgement did not exist. The little bit of accounting and non-profit knowledge I could contribute to the board was helpful, but more importantly, my passion for the cause was exactly what was required to be a great board member. I was also worried about the time commitment but again, I found out that the time spent with DSAGT was well worth it. When work and life gets to be too stressful, just an hour with the Down Syndrome community brings me back to life and fills up my soul again.

Serving as a board member hasn’t just helped me personally, but it’s also helped me professionally. I’m learning about fundraising, board governance, and programming. I’m also learning how to budget, and strategize on ways to increase revenue. All of these skills help me better serve my nonprofit clients through understanding the challenges and goals they’re facing every day.

I highly recommend serving on a board for a local nonprofit. It’s a great way to learn, meet new people, and make a difference in the community. And, you might just find that the board and its members have a bigger effect on you, than you do on them. You’ll know when you’ve picked the right one. If you’re interested in joining a board, I suggest attending the EPIC Toledo Non-Profit Board Fair (Now named the Non-Profit Palooza). You can check out LinkedIn, or simply talk to leadership at your business. They have great connections and may know a board that would be a great fit for you!

Gilmore Jasion Mahler’s Associate Krista Huff contributed this blog. Krista is a senior associate with over three years of public accounting experience with a specialization in the nonprofit industry. In addition to her work on the board for the Down Syndrome Association of Greater Toledo, Krista is involved in many community service projects through GJM.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory and healthcare management. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Dana Herr recently joined Gilmore Jasion Mahler as a Senior Audit Associate. Here’s a chance to get to know her a bit. Welcome on board, Dana!

Describe your role at GJM: I will work on various audits with an interest in the not-for-profit/governmental sector.

When did you start at GJM? April 30, 2018

Why did you choose the accounting industry? I took an accounting class in high school. My teacher thought I would do well in accounting. I originally had aspirations to be a physical therapist. I did an observation internship and decided I didn’t like it, so I went the accounting route. Once I began getting involved in various organizations in school, particularly Beta Alpha Psi, I knew accounting was a good fit.

What do you like best about accounting? I love the client relationships and interactions. I enjoy the fast paced, always something new to learn environment. I enjoy learning about the various clients and industries in which our client’s businesses are a part of.

Are you from the Toledo area originally? Originally from Swanton, OH, went to Swanton High School.

What do you like about living in Northwest Ohio? Northwest Ohio is where my family is from. Both of my parents grew up in the area (mom- Swanton, Dad- Oregon). After moving to Wisconsin my freshman year in college, I knew I wanted to be close to family in the long run. You get the best of both worlds. Downtown is close where you can go and enjoy festivities similar to a bigger city while still being able to live in the country/suburb area. Close knit community. Many groups are very supportive of each other. The other great thing about NWO is it is close to many cities and they can be traveled to easily (within reasonable distance). I have always been a small town person. Love having all 4 seasons, even in the same week!

Where did you go to college? Freshman year I went to the University of Wisconsin- Oshkosh. I was on their gymnastics team. Sophomore year, transferred to BGSU and was on their varsity gymnastics team for 1 year. Graduated undergrad 2014, graduated with my masters 2015 from BGSU as well.

Do you have any pets, hobbies, family? I did gymnastics for 15 years in the area, did 2 years in college. I coached at a local gym for many years. Now, I am involved by judging at local competitions in the area. I love still being able to be involved with the sport I love! I have 2 sisters. All of our names start with the letter D (Dana, Danielle, and Deanna). My mom was one of 4 girls as well (Heather (my mom), Hannah, Holly, Hillary). My parents have a Yorkie Poo named Bella. She is 9 years old. My fiancé’s name is Brent Lumbrezer (soon to be last name). He also grew up in Swanton. We met in high school.

How do you like to spend your free time? Currently, most of my free time is spent planning my wedding (October 20, 2018). We are looking to buy a house this summer. I am finishing studying for my last CPA Exam (taking in June). I enjoy playing golf, running (short distances, 5ks are my preference), spending time with my family/friends. For vacations, my fiancé and I enjoy visiting family that live further away. When traveling, I enjoy going to local wineries and doing tastings/tours of the facilities. Same thing for local breweries (my fiancé’s preference). We also enjoy going to Oak Openings for runs and bike rides.

Are you involved in any community organizations, do any volunteer work? I enjoy volunteering & giving back to the community. I’ve been participating in 5k runs for various organizations. My goal one day is to put together a 5k run for a cause that I am passionate about. With my previous employer, we participated in the Toys for Tots Drive through the Salvation Army. We had an internal competition to raise money, bought the toys, and then were able to assist at the distribution day the past few years. Such a rewarding experience! We also participated in various Junior Achievement events, particularly JA in a Day. That was a fun program. I would love to get involved with the various community service events GJM takes part in, particularly the honor flight! I enjoy going back to campus/high school whenever possible! Whether that be through community service or recruiting events. I love to give back to my alma maters.

What is something people may be surprised to find out about you? Fun Fact: I have biked down Pike’s Peak in Colorado Springs, CO (14er (14000 ft. above sea level) as they would refer to in Colorado). Other facts: I enjoy watching football. Sometimes I enjoy watching the Swanton Bulldogs on Friday night. Then my Falcons and Buckeyes on Saturday, and watching the Packers on Sunday.Pick ‘em Football fantasy leagues are fun to be involved with. I don’t know a lot of names but I love the sporting event atmosphere (pretty much regardless the sport)!I was in the color guard in high school and played a musical instrument, oboe.

Anything else you’d like to add? Everyone has been so wonderful by making me feel welcomed to the GJM family. I appreciate the open invitation into the family. I look forward to taking this next step in my career with GJM!

How well do you know GJM Senior Audit Associate Ryan Avery? You may have worked with Ryan for a while, but you’re sure to learn something new. Enjoy this Q&A.

Name and title: Ryan Avery, Senior Audit Associate

Describe your role at GJM. I work in our audit and risk assurance practice where I work closely with our clients to help them better understand the company’s potential risks and assist them with meeting reporting deadlines. I often have the privilege to help mentor our young staff and interns while on the job.

When did you start at GJM? I started right out of college with GJM in September of 2013.

Why did you choose the accounting industry? What first led me to the accounting industry was watching my uncle as a kid who was a financial advisor. He was always very successful, and I wanted to be like him when I grew up. When I got to high school, the only business class that was offered was accounting. Therefore, I decided to try it and enjoyed the challenges of my accounting classes throughout college and my internships.

GJM is quite involved in the community. Any particular programs or volunteer work you’ve enjoyed being involved in here? I have really enjoyed being a part of the Big Brothers Big Sisters Christmas party that GJM puts on ever year. I love seeing the excitement on the kids’ faces throughout the event.

What do you like best about the accounting profession? My favorite part of the accounting profession is that I am always learning new things. I am constantly learning not only from my co-workers but from our clients as well. I really enjoy getting to work with so many different types of people and seeing the logistics of many businesses.

Are you from the Toledo area originally? If not, where are you from? I was born in Toledo, raised in Perrysburg, and currently reside in Monclova. Northwest Ohio has always been home!

What do you like about living in Northwest Ohio? My favorite part about living in Northwest Ohio is most of my family lives in the area. With only having one sibling, it was nice growing up with my cousins around as well. I feel so blessed having such a close and supportive extended family.

Where did you go to school? I completed both my undergraduate and Masters of Accountancy degrees at Bowling Green State University.

Do you have any pets, hobbies, family? My wife says that I knew what I signed up for when I married her given that she is a self-diagnosed crazy cat lady. Currently we have six cats, three indoor and three outdoor. Our outdoor cats do a good job of keeping the mice out of the hay, which is great for our two horses. We enjoy taking them for rides at Oak Openings and to the ice cream shop. Our farm still felt like it was missing something, so in June we are getting a blue heeler to help keep everyone in line.

How do you like to spend your free time? When I am not hanging out with my animals, I am usually reading the latest Dave Ramsey or other business development books. I enjoy waking up early to meet up with my 5:30 am workout group. Recently, I have taken up woodworking. My wife loves this hobby, so I can build her more cat towers.

Are you involved in any community organizations, do any volunteer work? I am very excited to be leading a Financial Peace University class at my church this spring. My wife and I have recently started volunteering with our church at Vision Kitchen.

What is something people may be surprised to find out about you? I am always up for a challenge, which is why I think I enjoy doing extreme mud runs such as the Tough Mudder and Spartan races. I have also completed two 50-mile ultra-marathons. One of my goals is to complete a 100 miler in the near future.    

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory and healthcare management. The Firm's professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.