SMART Capital: Expanding Work Opportunities in the Sheet Metal Industry

Published: October 27, 2021

SMART Capital Program was launched in 2018 with the intent to help signatory companies expand into new markets to create more work opportunities for our members. The program creates a partnership between SMART International, Local Unions and signatory companies.

This program is one that allows Local Unions to partner with their signatory contractors to take on larger projects and modernize their operations to stay ahead of the competition as the industry evolves due to technological change. It also assists contractors with resources allocated to the acquisition of union and non-union competitors in order to expand our share of an increasingly diverse market while solidifying our hold on market segments we currently have a presence in.

This unique program partners with the local union and international funds to provide loan guarantees, additional bonding and assistance with equipment purchases.

This unique program partners with the local union and international funds to provide loan guarantees, additional bonding and assistance with equipment purchases. We have also expanded into a program to help start up I Want SMART as a pilot program in two local unions. This leverage secures an overall gain for both members and contractors alike as the expanded market presence strengthens our collective bargaining agreements while tapping into new pools of work opportunities.

The program is already in place across the United States at places such as SM Locals 10, 16, 24, 33, 67, 104, 105.

At Local 105, the SMART Capital program was used to assist a contractor with its acquisition of a non-union firm that saw the company not only establish a presence in the service side of the industry but bring in new positions to fill for current Local 105 members, with staffing levels of up to 80 members — up from 40 prior to when they secured the loan. Another signatory firm utilized a line of credit it secured through the SMART Capital program to establish a solid footing in more complex and larger projects that require the expertise of existing Local 105 sheet metal workers. The growth of the program saw this firm alone expand from six to forty-four Union sheet metal workers.

In the coming months and years ahead, the SMART Capital program is only going to continue to grow as we look to prudently push to expand our reach within the sheet metal industry to create new good paying union jobs. Like all good investments, the relationship does not end with the culmination of the initial transaction. An analysis and review of the company’s financials are made, first ensuring that all trust fund obligations are met. It is only once this step has been achieved that the SMART Capital program begins working with commercial banks to provide underwriting and loan servicing — to ensure the stability of the investment in work hours is made in the best interest of the membership.

This type of innovative thinking is and will continue to be needed as we navigate a transitioning and competitive sheet metal industry while ensuring we continue to set the standard for decades to come.

At the end of the day, all stakeholders in the union side of the industry — the members, contractors and the end users who see their projects secured — come out ahead. This type of innovative thinking is and will continue to be needed as we navigate a transitioning and competitive sheet metal industry while ensuring we continue to set the standard for decades to come.

As my friend and brother Luther Medina, Local 105 Business Manager and SMART GEC member has said: “We told contractors we are here to help. This is a partnership and we have to work together. When a contractor grows, our membership grows.”

I could not agree more.

Fraternally,

Joseph Powell
General Secretary-Treasurer