Big-dollar construction opportunities await businesswomen who know where to find them
Many women are missing out on big-dollar construction opportunities, and a lack of information is one of the main problems.
There’s no reliable data on how many women-owned businesses are not taking advantage of programs designed specifically for them. But Janet Christy, business counselor at the South Carolina Women’s Business Center, said more than two decades of conducting workshops for women business owners has shown that they are consistently out of the loop. Women tend to be either unaware of the opportunities, or unconvinced that they are capable.
“The reason I know that people don’t take opportunities is because when I’m doing a workshop or talking with people, it’s new information to them,” said Christy. “Even after they hear the information it can still take a lot of convincing.”
Many women simply think construction prospects are not for them.
“It’s not always an informed opinion,” Christy said. “Sometimes they just assume it’s difficult [to work with government] or they wouldn’t be able to do it. It’s not easy but neither is doing business with large corporations. You just have to understand their processes, only their process is dictated by the law.”
Seeking Women Contractors
At the same time, those who own the projects are looking for more women. Government requirements and low numbers of women participating mean abundant opportunities for women-owned businesses.
The U.S. Government has a goal of spending five percent with Women-Owned Small Businesses (WOSBs). The deal is even sweeter at the state level, where the goal is to spend 10 percent of project dollars with women and minority businesses. Yet they have difficulty meeting those goals.
Last month new rules at the federal Small Business Association removed a $6.5 million cap on projects set aside for WOSBs in fields where women are underrepresented. The rule applies to projects where agencies have trouble meeting the 5 percent goal through normal channels. As of 2011, the government was only awarding 3.9 percent of its contracts to WOSBs; hence the change.
The 2007 census showed only 54,000 of 911,000 women-owned firms with paid employees were directly involved in construction. Overall, the number of women in the construction industry has declined steadily in recent years, dropping from more than 1.1 million in 2006 to 828,000 in 2011 according to the Bureau of Labor Statistics. They comprise nine percent of the industry.
Even so, there are opportunities for businesses outside the construction field that can provide some of the myriad services complex projects require. Insurance, real estate services, events, public relations and staffing are just a few examples of the services needed.
“Government has an opportunity for just about anything. Probably not selling jewelry or doing hair, but basically any service that’s needed by a business is needed by a government,” Christy said.
Christy said the U.S. Department of Defense (DOD) is especially vigilant about meeting its 5 percent goals, even long before the WOSB/EDWOSB program was formally established. Many private companies also have goals for doing business with companies owned by women.
Getting the Business
Wherever a woman-owned business hopes to use its status to land big projects, certification is key. State and federal agencies have certification lists, as do some private companies.
Four years into her electrical contracting business, Susan Lindsey has benefitted from some state certifications and is still learning to navigate the terrain.
She said being listed as a woman-owned business by the state allowed the California-based INET Airport Services to find AMEC when it had won a contract with GSP Airport.
“We understand that a lot of companies we would like to get in the door with do recognize women-owned businesses, such as BMW, GE and Johnson Controls, which we’ve worked with,” Lindsey said.
Every federal department that works with contractors has an Office of Small and Disadvantaged Business (OSDBU) for potential contractors. The Department of Defense holds “reverse trade fairs” where contractors can learn about what each of its departments needs and has been especially diligent about seeking women contractors, Christy said.
In the Upstate, only Greenville and Spartanburg have formal programs for working with women-owned businesses, and others may be making informal efforts.
One route for private companies is to become certified by the nonprofit Women’s Business Enterprise National Council (WBENC). About 300 of the nation’s top corporations are corporate members actively seeking to do business with women-owned businesses. Michelin recently became a corporate member, joining companies such as Belk, CSX, General Motors, Verizon and Wal-Mart.
The group says more than 1,000 companies accept its certifications, and it is growing its connections with government agencies.
Educating herself is the most important thing a woman can do in order to take advantage of the opportunities. Lindsey said she has known several women to start a business thinking that gender alone would make them eligible for special status. She said she’d soon be working on federal certifications, deterred only by the amount of time needed to complete a hefty amount of paperwork.
“I’m still learning that there’s so much more,” she said. “I think you’re surprised daily with the opportunities that are actually there that are not being taken advantage of.”
