Messages from the CEO

Live By Faith and Not By Fear.

Dec

27

2020

CEO Message - December 25, 2020. End of Year Reflections

This is my last message for 2020, and I am struggling to capture all that I am feeling as we wind out this strange year. The virus is pernicious. Many have lost friends and loved ones; many have lost jobs; all have been impacted. The deep fissures in our society that run along the lines of race were reopened and are being reexamined. Our lives have changed in countless ways and will never return to the exact same previous state.

However, let us firmly keep all the good lessons from this year for the long term. My personal list of gifts from the pandemic continues to grow as we recover and I look back in reflection. I am inspired daily by the positive spirit and can do attitude exhibited by each of you. TDPartners have adapted and evolved in order to keep working safely. Your tenacious spirit inspired and pulled me up often over the last 9 months when I  needed a lift. Let’s all keep encouraging one another through our actions and words.

Author Laura Kelly Fanucci, writing about our current pandemic, said that we should never again take for granted: "a handshake with a stranger, full shelves at the grocery store, a crowded theater, Friday night out, the taste of communion, a routine checkup, the school rush each morning, the stadium roaring, coffee with a friend, each deep breath, a boring Tuesday, life itself. When this ends, may we find that we have become more like the people we wanted to be, we were called to be, we hoped to be, and may we stay that way – better for each other because of the worst.”

I want to wish all of you, no matter what you believe or don’t believe, the true spirit of a Merry Christmas. And by that, I mean a few loved ones around you (or by video), thankfulness for what we have and where we are, and a generosity to try to help others who are less fortunate. Hold tight to an“attitude of gratitude.”

My prayer is for you to have a safe and Happy Holiday and a Merry Christmas! See you next year!

Sincerely,
Harold

P.S. - The most precious gifts in the world are kind words spontaneously tendered. Never underestimate the power of small gestures! We have TDPartners on call this long weekend who will be working to take care of our customers and commitments. If you know one or can find one, please tell them thank you for working while most of us rest and recharge.   

 

 

Dec

23

2020

CEO Message - December 23, 2020.  COVID-19 Update

​Dear Partners,

The brutal facts cannot be ignored. TD averaged over 3 new positive cases in our workforce each day for the last 7 days. It peaked even higher exactly 2 weeks after Thanksgiving. Near that point we had almost 6% of our workforce in quarantine for exposure or a positive test. That is declining now. We can also be thankful that our case tracing still finds no exposures in the workplace due to our safety protocols.

Please keep your holiday gatherings small-----be cautious and stay safe, so we can all be together for many years to come. This is hard but we can do it.  #TDSTRONG

Sincerely,
Harold

P.S. More difficult USA statistics from the New York Times are below to bolster your resolve and perseverance for distancing and masks for several more months. 

A Tragic Finish to the Year
Let’s check in on the latest coronavirus data, with help from three charts.
The first chart seen below shows that the situation in Europe has worsened over the past week — but not nearly to the level of the U.S.:

1.jpg

Controlling a pandemic during the fall and the winter is simply more difficult than during warmer months, when people can comfortably spend time outdoors. Experts long predicted that the later months of the year would be difficult in much of the world, and those predictions proved to be correct.

In Europe, several big countries have gone through cycles of having more and less success controlling this virus: Cases rise, and countries respond with new restrictions that bring down caseloads — until they lift the restrictions, become careless and then watch cases rise again. That has happened lately in Britain, Germany and elsewhere, and they have responded by announcing new restrictions.

The U.S. went through similar cycles in the spring and the summer. But since September, this country has failed to make another concerted effort to reduce infections. It’s worth emphasizing that the current U.S. problems were not inevitable. Just look at the lines in the chart above for Mexico and especially Canada, which has to cope with even colder weather.

The second chart seen below shows that the recent U.S. trends reflect a real increase in virus cases. It’s not a statistical mirage in which more widespread testing leads to a greater number of official cases. We know that because the share of tests that come back positive has surged:

2.jpg

The final chart below may be the most alarming. 
Deaths in the U.S. are almost certain to rise in the coming weeks — probably to more than 3,000 a day, which would be by far the highest level yet.

3-1

The basic idea is that if you track the number of new virus cases, you can fairly accurately predict the number of Covid-related deaths about three weeks later. Every 100 new cases in the U.S. has led to an average of roughly 1.6 deaths, with a 22-day lag. (Trevor Bedford, a scientist at the Fred Hutchinson Cancer Research Center in Seattle).

The chart here suggests that the surge in cases during the first three weeks of December will lead to a surge in deaths during late December and early January.

All of this points to the same conclusion. As encouraging as the vaccine news is, most Americans will not be vaccinated for at least another several months, leaving plenty of time for the virus to do damage. And absent a rapid change in the country’s approach, tens of thousands of more Americans will needlessly die.

Some perspective - By the end of March, one analysis suggests that the vaccines will have saved 25,000 lives in the U.S.
More frequent usage of masks could save 56,000 lives.


Oct

22

2020

CEO Message - Q3 2020 Update

Please take a few minutes to watch my latest video message - a 2020 Q3 update as we continue into the 4th Quarter.

Hear about some recent successes and what I'm thankful for, as well as a look ahead to the future and things to be excited about. 

And don't forget: Open Enrollment is taking place now. It's a great time to look at your personal savings rates and ESOP/401K contributions. It's never too early to start investing in your future. 

Thank you Partners.

WATCH THE FULL VIDEO HERE

 

 




 

Sep

30

2020

CEO Message - Fall 2020

Where did the summer go? The last 2 months seemed to fly by! At home, my family finally celebrated a pandemic wedding and I got a fantastic new son-in-law! My daughter chose wisely! We enjoyed a post-wedding ceremony dinner with a small group of 15 family members. It was a weekend we’ll never forget with our special wedding masks as souvenirs.

Like most of you--my work days are very long, but we now have clarity on 2020 and what we must do for 2021 to keep all of our Partners working and keep TD growing in a very tough economic cycle. Texas and Arizona have come off their peak infection rates for COVID-19 and TD is also seeing lower infection rates. Our communities and nation continue to grapple with RACISM-20 and I can see baby steps forward on the long road ahead. Inside TD your leadership team continues to learn about systemic racism from wise counselors and each other through reading and dialogue. We are committed to continuous improvement so that TD can be a positive example for others. 

Your company will have a very good Q3 financial result and our projections for yearend are currently solid at 3.3% operating income on about 10% less revenue than our original budget. Construction backlogs are relatively steady, but we are having to fight hard for every new booking. Our new work is not all located where we want it to be, which will continue to require many of us to travel, but the overtime and per diem will ease the pain of being on the road. Tighter cost estimates will require all our collective wisdom and great planning to squeeze all the margin that we can from every job. Thank you for planning your work and working your plan--while embracing change and new ideas.

We are investing more time and money in our future capabilities than we ever have before. This will position us for long term strength to capitalize on opportunity as we come through the pandemic.  Most of this investment is in our new Enterprise Software Project (ERPr) which will go live in early February. It will simplify and transform our execution and accounting in all aspects of our business from marketing and sales to operations and finance. We are also making big investments in PROCORE project management software and many of our Construction Technology tools from estimating and engineering to fabrication and construction. The world is changing and we all have a lot to learn to keep up!  Hold on to your seats!

After a really tough July and August, where COVID-19 positive cases were increasing, our TD rate has slowed to about 3 positive cases a week.  We have had a total of 154 positive tests since early March, with most of those being traced to exposure outside of TD.  We are blessed to have had only 2 very severe cases that were in ICU for weeks. PROSO has been working thru the loss of Luis Boch after a long battle due to COVID-19 complications.  Thank you for your support of the Luis’ family and his 2 sons who are also TDPartners.  Our prayers for strength and peace were felt by the Boch family.  TDCares has also been able to assist over 100 Partners who have been severely impacted by the pandemic with an average award of about $1200 each.  Thank you for your support of TDCares through your payroll deductions or PPT donations. 

My own journey to learn about the history of racial injustice and systemic racism in our country continues to move forward. It has not been easy, and I am regularly shocked by what I did not understand and what I am learning. We continue to have regular dialogue with my direct reports to learn from each other and explore ways that each of us and TD can do better. The latest resource that I want to share is a YouTube channel by Emmanuel Acho titled“Uncomfortable Conversations with a Black Man."  It was recommended to me by my kids and friends at TD.  It is well worth your time and contains many powerful lessons that come in bite size chunks of 30-60 minutes---much easier than taking on a book like "Stamped," which is also excellent and available as an audio book too. 

Thank you for your disciplined adherence to our safety protocols and your hard work that continues to create value for our customers. The virus has not changed, so please do not let your guard down.

Let me close with a grateful heart. In spite of all the difficult daily news in our world, we have much to be thankful for! We are still providing essential services in the greatest country I know of, working in a company where Partners care about each other, and very few of us are experiencing a severe medical impact from the disease. Our partnership is strong and getting stronger through these difficult times.  

I hope you get some backyard time this weekend with close family to enjoy these new fall temperatures.

Make it a great day for someone else!  Stay Safe. Stay Above the Line. 
#TDStrong!          

Sincerely,  
Harold

Bonus Thought!
  The 7 Commandments of COVID-19 Leadership Amidst Soul-Crushing Tumult  (From Tom Peters)

  •  Be Kind.
  •  Be Caring.
  •  Be Patient.
  •  Be Forgiving.
  •  Be Present.
  •  Be Positive.
  •  Walk in the Other Person’s Shoes.



 

Jul

28

2020

CEO Message - 2020 Mid-Year Update

Please take a few minutes to watch my mid-year video message, where we talk about past successes and a look ahead to the future, as well as financial results and a special shout out to several awesome TDPartners who are currently going above and beyond in all they do for TD.

Update: Unfortunately, not all of these Partner names were included in the original video. To our Partners who are sacrificing by being away from their families in order to take care of TD and our customers, we regret any omissions from the previous list and say thank you for all that you do. 

#TDStrong

CLICK HERE to watch the revised video with the updated list of Partners.

 

 

Jul

02

2020

CEO Message - July 2 Update

What a strange couple of weeks it has been.  As we head into a surreal July 4th weekend our country continues to grapple with COVID-19 and RACISM-20. Both challenges are amplified by job loss and a severe economic downturn.  It will take time for the pandemic and systemic racism to be eliminated, but with perseverance I am confident that we can make big progress in defeating both challenges.

Two weeks ago, we thought that our TD COVID-19 positive cases were steady, but they were actually on the increase, mirroring the overall trend. On June 16th, we had 16 positives and now we stand at 54 and rising--over 2 per day for the last 2 weeks. Very few of our TD cases are traced to exposure at work. Our protocols are preventing Partner exposure at work, but it is very easy to unknowingly bring it to TD. Please take your temperature each morning, practice good hand hygiene, maintain a 6 feet minimum physical distance, and wear your mask. We have 96 Partners currently in self-quarantine due to exposure to a positive case or from exhibiting symptoms. PLEASE continue to follow our safety guidelines at home and at work for the protection of each other and our families. The virus has not changed, and it is very resilient.

We have been blessed that our one severe case, where our Partner has been in the ICU for 3 weeks, has improved and has been released home for recovery.  Thank you for your continued prayers for this Partner and for all of us and our families until a vaccine is developed. 

Our offices have been occupied on a limited basis and will continue to be so. The priority will continue to be Partners that need to be present to be productive and accomplish their work. Any Partner may go by an office or attend a meeting only after you have reviewed review the office protocol video - here is the link in the LMS: https://tdindustries.brainier.com/#/object/11479 . Our planned increase in occupancy on July 6th has been pushed out to at least August 3rd and will depend on an improvement in the current negative trends for community spread. 

Our other great challenge is to make progress to overcome RACISM-20. Our nation has been grappling with the systemic racial and social injustices that have permeated our country throughout its history, much of it specifically targeting the black community, and similarly felt to some degree by all persons of color. It is clear that not all people experience the same promise of "liberty and justice for all" upon which our country was founded. Sparked by the recent killing of George Floyd, citizens everywhere are standing up to systemic inequalities and demanding change. We now have an historic opportunity to come together and precipitate reform that is long overdue. Coming together will require political will and ongoing safe dialogue to learn from each other and change lifelong patterns of behavior. Your TD Executive Leadership team continues to set aside time each week to listen and learn from one another’s individual experiences.  Many other leaders and Partners are doing the same thing in their work groups.

Alicia Moore shared a wonderful dialogue tool: Managers’ Guide to Essential Conversations. I think you will find it helpful both in and outside TD. These conversations will help us learn how to stop long overdue disrespectful  behavior and end systemic racial inequality. All of the recent events have given new energy and meaning to our Core Value of Celebrate the Power of Individual Differences. 

Thank you for your disciplined adherence to our safety protocols and your hard work adapting to continue to create value for our customers. I hope you get some backyard BBQ time this weekend with close family or get to your favorite fishing hole early. 😊

I want to close the same way I try to start each day---with a grateful heart. In spite of all the difficult daily news, we have much to be thankful for!  We are still providing essential services in the greatest country I know of, working in a company where Partners care about each other, and very few of us are experiencing severe medical impact from the disease. Our partnership is strong and getting stronger through these difficult times. 

Happy 4th of July!  Stay Safe.  #TDStrong!                   

Sincerely,
Harold



 

Jun

15

2020

CEO Message - June 15 Update

I hope that each of you and your families continue to be healthy and remain diligent with the pandemic safety protocols. We cannot give up on physical distancing, masks when you cannot maintain 6 feet distancing, rigorous hand hygiene, and self-isolation for the protection of others if you experience any virus symptoms. The virus has not changed, and even though we are tired of all this, it is no reason to increase personal risk. We are very fortunate to have only 9 Partners who have tested positive, but one of us is very sick. Please keep this family in your prayers, as well as all of our frontline medical workers. Remember that TDCares is here to help Partners without paid personal time, who get sick or have to self-quarantine to avoid the risk of infecting others. See your supervisor or HR Business Partner for assistance.

Our detailed plans to reenter our densely occupied indoor office environments are ready and are being executed. However, we may delay the targeted July 6th return date for 25% occupancy if community spread continues to increase in the cities where we have offices. While video conferences are getting very old, and I miss seeing everyone in person, we will remain vigilant and flexible as we continue to adapt to our new normal. 

We are very fortunate that TD remains slightly profitable through May at 1.9% operating income thanks to our hard work, but we have seen more jobs delayed, especially in Dallas. We are asking many Dallas Partners to travel to Arizona for work over the next several months. Many hospitals have postponed their much-needed big construction until their cash flow improves from normal operations, and speculative developers are very cautious for the near term. Prospects are still very good long term, but we need the economy to continue its restart in order to keep our construction backlog up. Dallas, Houston, and Arizona service teams, as well as our facilities businesses continue to solidly contribute to operating income. We are closely managing cash to accommodate ongoing business needs in the face of uncertainty, as well as allowing our retiring owners to sell their ESOP shares in a timely manner. We have been working hard on a new ESOP distribution policy and we will share the details this week. 

I am learning a lot from reading "White Fragility: Why It's so Hard for White People to Talk About Racism." Some things I did not know about myself but also many things I did not know about the dark history of racial inequities in our country. I have asked our executive leadership team that reports to me to read or listen to the book. We have begun regular deep conversations about race to learn from each other. It is not easy and there have been emotional moments. I invite you to join us and read to learn. TD will pay for your copy of the book, kindle or audiobook if you self-certify through our LMS.  We are also working on a model for book study dialogue groups that will be required for leaders and open to all Partners. So let’s all keep listening to each other, and work to be a part of positive change, and get some learning credit.

All of you are in my daily prayers for safety and good health. TD will continue to thrive by the strength of our collective Partnership and support for each other. Please continue to "Live by Faith and Not by Fear." Thank you for all that you do to listen and learn from each other as we work to stop racial injustice. Our Partnership and Spirit of Inclusion will serve us well in continuing to be an industry and community leader for positive change.

Stay Safe. #TDStrong!

Sincerely,
Harold

- If you want to learn more, go to Michael. C. Bush, CEO of Great Place to Work® blog on Racism is a 400 Year Old Virus.

 

Jun

03

2020

CEO Message to Partners

To My Partners,

This is a painful time for our country and for us. On top of the stress of the pandemic, the recent events going on around us are heartbreaking and inexcusable, so I want to share a few thoughts with you.

Like so many of you, I am very sad and angry by the senseless deaths of George Floyd in Minneapolis, Breonna Taylor in Louisville, Ahmuad Arbery in Georgia, Atatiana Jefferson in Fort Worth, and Botham Jean in Dallas, and the many others that reflect the deeply ingrained racial prejudice and injustice that still exists in our communities today.  

This is driving strong emotions, which it should. The unnecessary and unjust killing of anyone is unacceptable. The issue of race and the horrific experiences of too many people of color cannot be ignored. We owe it to ourselves, our customers and our communities to be very clear in condemning these acts of violence. They represent a disregard for basic human rights that has no place in our communities. We must support the reaction of peaceful protests and know that they can have a positive impact for change and a better future.

TDIndustries has long believed we are all better and stronger from the diversity that exists within our workplace and communities. Our Core Value of "Celebrate the Power of Individual Differences" has served us well and sets a high bar for continuing to improve. It calls us to create a culture of collaboration and inclusion and to learn from each other's perspectives. We need to keep actively working to make things better, which is why we will continue to invest in the strength that comes from diversity and inclusion. It begins not only by speaking out, but by listening. Listening to each other in dialogue about what it's like to be a person of color in our country today. "Seek first to understand" is why God gave us two ears and only one mouth. Servant Leaders seek to bring people together, not to drive them apart. We need caring leadership now more than ever.

If you really want to learn more about race in America, I urge you to read "White Fragility: Why It's so Hard for White People to Talk About Racism." Doing so will help us all to have deeper conversations about race and become a positive catalyst for change. Our conversations will lead to action, so we can follow in the footsteps of our founder Jack Lowe Sr. He was an amazing man who gave his life up early through intense community work to help peacefully desegregate Dallas schools in the late 1970’s. He was a true servant leader who always sought to give back and improve opportunities for everyone. He left us big shoes to fill and I know that we can keep building on that legacy. 

Our Partnership and Spirit of Inclusion will serve us well in continuing to be an industry and community leader for positive change. Thank you for all that you do to give back and help fight racial injustice.

Stay Safe.  #TDStrong!

Sincerely,
Harold

- If you want a little more, I was deeply moved by this message from George W. Bush.

 

May

12

2020

COVID-19 Update #5

As we head into our 9th week of heavy restrictions and safety protocols, I remain cautiously optimistic after I was able to get a haircut Saturday with masks for me and my barber. The cities are trying to reopen, but it is still a time to be vigilant with our discipline and not throw caution to the wind. Please do not let your guard down and continue to set a good example for our families and friends on the importance of good safe practices and physical distancing. The race still has months to go before we will know the final outcomes.

It is very hard to see so many friends who are not able to work. We are faring far better than most. TD had a slow financial start through March, and it appears that the next 3 months will be tougher. Then we should begin to improve our current financial results and grow again. Your company has been preparing for this challenge since the difficult period of 1989 that almost put us out of business. We’ve been able to do this by remaining focused on the long game, and constantly looking for ways to improve via Continuous Aggressive Improvement (4th C). TD has always taken a long-term view by investing in the future when times are good. We keep cash reserves up for a storm like the pandemic that we find ourselves in.

We are blessed with a strong culture of employee-owners that work hard every day to live by our core values. These values guide our decisions, especially the most difficult ones that impact Partners and their families. It is painful for all involved, and the worst day for any supervisor is to have to tell a Partner that we do not have enough work for you. We are fighting each day for every project and order to keep our people working. Our current projections reflect an overall revenue reduction in 2020 of around 10%. One team is shrinking painfully, others only slightly, yet still some teams growing and needing help and talent transfers. In total, our diversity is helping provide options to many who can travel or move.

A quick update on the hard data: we have only 4 confirmed positive cases and none have been severe. The number of Partners in self-quarantine is declining due to new CDC guidelines and mandatory face covers. I know that masks are a hassle and distracting, but it is our new normal for the near-term future. Thank you for continuing to adapt to keep us working safely.

My weekly calls to front-line Partners and Supervisors, and the stories that they share of Partners helping Partners, continue to inspire me through this stressful time. Your pictures and videos on our Facebook group are very uplifting. Encouraging and supporting each other enables all of us to better handle the stress of the pandemic. We can boost this support even more by replacing worry with prayer.

I am preparing for our annual Shareholder meeting this week for our employee-owners. We will be broadcasting to everyone this Thursday morning at 7:45am CST. You are all welcome and hope that you can arrange with your supervisor to dial in and watch or listen. They are usually only about 30 minutes long, and important information is always shared.

All of you are in my daily prayers for safety and good health. We will get through this test---by the strength of our collective Partnership and support of each other. Please continue to "Live by Faith and Not by Fear." Thank you for all that you do to support each other and our customers. Let’s all go out and make it a great day for someone else!

Sincerely,
Harold

 

May

04

2020

May 2020 Update

Watch the latest state of TD address below, including first quarter results, a look ahead, a recap of my recent discussion with Ed Ramsey, and more. I appreciate your encouragement, and I ask that you keep encouraging and looking out for each other. Thank you for your hard work and all that you are doing, Partners. #TDStrong

 

Apr

27

2020

COVID-19 Update #4

As we head into week 7 of shelter in place, I find my spirits stronger from a weekend of sunshine and opportunities to get outside and enjoy some great spring weather. This is of course relative to those in Arizona who saw enough sunshine to get near 100 degrees--summer is coming. Either way, I hope you had a good weekend and were able to recharge for the marathon that we find ourselves in.

I work hard to start each day with gratitude and give thanks for all God’s gifts that we have received. And I am grateful that TD is blessed with a clear Mission. We are Committed to providing outstanding Career opportunities by exceeding our Customers expectations through Continuous aggressive improvement. These 4 C’s are underpinned by our Core Values that we use to guide our expectations, behavior and decisions for all of us.

Each day I continue to be inspired by calls to our front-line Partners and Supervisors, and the stories that they share of Partners helping Partners through this stressful time. Your pictures and videos on our Facebook group are very uplifting. Encouraging and supporting each other enables all of us to better handle our long list of worries. We can boost this support even more by replacing worry with prayer.

Additionally, I am starting to feel a renewed sense of hope when looking at national trends as well as seeing many states begin to loosen restrictions. I understand that these trends can change from day to day and adhering to the preventative protocol is still critical, but it feels like we are starting hear as much good news as bad news which is a welcome relief.

A quick update on the hard data: we have only 3 confirmed positive cases and none have been severe. The number of Partners in self-quarantine is declining now due to new CDC guidelines and mandatory face covers at all our work sites and offices. I know this is a hassle and distracting, but it is our new normal for the foreseeable future. Thank you for continuing to adapt to keep us working safely.

We have begun the analysis of when we can begin to return to our office environments. This includes what needs to be done to each office to prepare, and what new protocols are needed for working safely in a dense office environment. We have proven our ability to work remotely, so we will be very deliberate in how we approach reentry. This will take some time to do it well without increased risk of infection.

I regret that we cannot gather for our Quarterly All Partner meetings this month to celebrate, learn from each other and have fellowship. We will be sharing lots of info by email and video, and some smaller groups will be experimenting with virtual All Partner meetings. Please continue to check the Pipeline daily for the latest news and updates, so you can be knowledgeable and able to share with your Partners.

The work that we do is important. Our work underpins and enables the restart of the U.S. economy. We have the honor of protecting our nation’s water supply and health in the built environment. We engineer, construct, operate and maintain the hospitals that save lives, as well as the data centers that provide infrastructure for the cloud. We help build the schools that educate our youth, the labs that will find a vaccine, as well as the office environments that enable great work! We are vital and essential.

All of you are in my daily prayers for safety and good health. We will get through this test---by the strength of our collective Partnership and support of each other. Please continue to "Live by Faith and n Not by Fear." Thank you for all that you do to support each other and our Mission. Let’s all make it a great day for someone else!

Sincerely, 
Harold

 

Apr

18

2020

COVID-19 Update: Discussion with Ed Ramsey

We have a special guest to this week's video message, 52-year TDPartner Ed Ramsey! In this important discussion, we cover some of the bigger challenges that TD has faced in its past and how the company pushed through those challenges together.

If you only have a few minutes, you can watch this condensed 4-minute version, but please take some time to watch the full conversation below. Thank you, Partners. #TDStrong
                                                                      

 

Apr

11

2020

COVID-19 Update #3

We are wrapping up week 4 of shelter in place and supporting our field through endless calls and video conference meetings. Every day presents highs and lows, and from my calls to frontline supervisors I know that the stress, uncertainty and new work requirements is weighing on everyone. What has been inspiring to me through these calls is that I consistently hear stories and examples of optimism, care for others and perseverance. Proof that our Core Values and TD Spirit are as strong as ever.

I am thankful that PPE availability is starting to catchup and we are all adhering to the new safety protocols in order to be able to work safely. Masks or neck buffs are highly encouraged for everyone working in proximity to others. We expect to receive more of both this week to better supplement your home versions, which are welcomed and needed.

TD closed the first quarter of 2020 right below our revenue goal, and operating income was OK but below plan. The second and third quarters of 2020 will be much harder as we feel the secondary effects of the pandemic, which will take time to recover from the hard stop to our national economy. Very few businesses will be exempt, but our diversity of offerings and geographies will help us through. Our business development and sales teams are aggressively chasing every opportunity to keep our backlog up to hold our teams together.

It was a weird week to announce such a strong improvement in our ESOP valuation, but we need good news wherever we can get it! The new valuation of $409.99 was earned through the hard work of every TDPartner. It is based on our 2019 results and the market comparisons known at 12-31-19. What has not changed for the longer term is the overall strength of our company, our consistent financial performance, and a strong fiscal position that is not burdened by debt. We are also blessed to have strong leadership at every level, and TD works in growing markets with strong long-term prospects. We also got an additional 3% lift from fewer shares outstanding due to more sellers than buyers last year.

A quick update on the hard data: we had our first positive case in our workforce today. Our safety protocols served us well and this Partner is self-quarantined at home. That brings our total to 90 who have had to self-quarantine, with only 30 still out and 60 Partners who have been cleared to return to work.

I am encouraged by the generally flattening infection curve in our cities where we live and work, but it is not clear when we can begin to migrate back together. I am thankful that we work in an industry that is vital and essential, and that our Partners understand the need to Fiercely Protect each other from the virus. We will keep doing our part to support this economy and get it going again.

Good things can and will come from bad things. Some good things are already apparent and more will be visible with time. The bad things should peak soon and begin to fade. Your prayers for strength and wisdom are felt and continue to be needed. This will be an Easter weekend to remember. I leave you with a thought for the day: For Christians and Jews, this is among the holiest weeks of the year, when, in a word, all PREPARE spiritually for Easter and Passover. Both events are about passing into and out of a crucible. Inside these faiths, loss becomes endurable through the promise of deliverance. It is worth remembering for at least one week. Happy Easter! Happy Passover!

Sincerely, Harold

Apr

02

2020

Partner Appreciation Month

April is here, and that means Partner Appreciation Month! 

We are always thankful for our Partners and everything they do. This year is obviously unique, and we need to find new ways to appreciate and encourage each other.
Watch the video blog below to hear more about the importance of Partner Appreciation Month. We Appreciate You, Partners.

 

Mar

28

2020

COVID-19 Update #2

As we complete another week in the land of COVID-19, I can say that it was a roller coaster ride of highs and lows coming daily and many times hourly from peak to trough. The days are very long and working from home is no fun. I miss seeing everyone. I am inspired daily by our front-line Partners who soldier on each day to safely keep our customer commitments and enable TD to keep billing for our work. I have started to end each day by calling two front-line Partners to listen deeply, so keep an eye out for Harold on your caller ID if your cell phone is current in Ultipro or on the TDPipeline. 😊

Our #1 focus is Partner safety and keeping all our Partners working safely. Thank you for following all the safe working guidelines for personal hygiene and a safe social distance of 6 feet. You have the power to use Stop Work Authority if this is not being followed. Do not lose our discipline and take chances with your health and the health of others.

I can report that as of Friday we had no confirmed COVID-19 Partner cases. We are up to 44 in self-quarantine due to symptoms or possible exposure. Some of these Partners will be back to work soon after meeting the CDC requirements. It is very important that no one goes to work with symptoms or after a known exposure.

TDCares was formed many years ago by Partners wanting to help Partners in times of need. Its source of funding is payroll deductions and elected donations of unused PPT hours. Your top 30 Senior Leaders have all elected to take salary reductions of 10-20% for the foreseeable future to increase the funding of TDCares. This will enable us to better help our Partners of greatest need during this pandemic or fall in a crack in our benefit plans due to being new at TD. It has helped past Partners through hurricanes, fires, death of a family member, and much more.  If you feel that you can donate time or money to help your Partners, every dollar or PPT hour will help.  Thank you for your support.

Our #2 focus is finding the replacement projects that we need in construction and maintaining demand to grow our non-construction businesses for the future. Our entire business development team is hyper focused and feels the weight of this responsibility. We are still seeing good prospects in all markets. All of us can help ensure great sales results by exceeding our customers’ expectations at every opportunity. We can break every tie-on price when we are their first choice based on your great performance. I want to highlight one significant new contract---20 TDPartners will be providing facility services and maintenance for the next 5 years at CPS Energy in San Antonio! It is a big win!

We also continue to work behind the scenes with city, county, and state government via our trade associations to keep commercial construction and service classified as vital and essential so that we can keep doing our part – continuing to work and support the fight. The work that we do is important, and it simply must continue as long as we can do it safely.

Stay informed, but please try not to watch the news too much. Remember to “Live by Faith and Not by Fear” and look for ways to help others wherever and whenever you can. I start each day and replace worry with prayer. I also list the top 3 things that I am grateful for each morning to center myself with a grateful heart.

I know that we will come through this pandemic test even stronger as a company.

Thank you for your trust, your commitment, your hard work, and your support. Hang in there!

Sincerely, Harold

Mar

20

2020

COVID-19 Update #1

What a strange couple of weeks it has been. Life has changed. But this storm too shall pass. It feels like a slow-moving hurricane that is sitting outside our door. It has increased anxiety for everyone. We all have more to be worried about—from personal health to family and friend’s health, and from our ability to earn a living to the strength of each neighborhood and community in which we live and work. It is a lot to think about and the overhyped news is not helping.

We were monitoring the storm for months, but several weeks ago it got very real and very serious. TD formed a COVID Crisis Management Team (CCMT) to guide and adapt our preparations and decisions to protect our Partners and the company. We meet every day at 8 a.m. and 80-140% of our normal week is being spent on this. Our task is an ever-evolving Pandemic Response Plan based on what we learned from past threats and the deluge of data that comes in daily. Like all of you—we are layering these demands on top of our day jobs.

Every decision that we make is guided by our Mission and Core Values. Our #1 goal is to enable our front-line Partners to keep working safely and serving our customers. Without our front-line Partners, there is no office.

We are blessed that our immediate population of TDPartners has no confirmed cases of the virus. In accordance with CDC guidelines, to date there are 27 Partners who are staying in isolation due to their symptoms or exposure to others who are confirmed to have the virus. It is very important that no one goes to work with symptoms or after a known exposure.

Our first line of defense is personal hygiene and 6 feet social distancing. Please, just do it.

Remember, TD has several resources available to help you and family:

• Our medical benefits are ready should you need them.

• Teledoc is easily accessible.

• We have a great sick pay policy.

• TDCares exists to help Partners in a crisis like a pandemic.

Please see the Partner manual or the TDPipeline for more details. CrisisHotline@tdindustries.com is set up to answer your questions and concerns. Your questions and feedback will be helpful for our future communications.

And there is good news – No confirmed Partner infections to date. Our service and facilities business is vital for healthy buildings and customer demand continues. Our project backlog is diverse, solid, and moving forward. Healthcare clients are asking for our solutions to help. Strong sales efforts are underway to help our clients better prepare and improve their buildings. Our industry associations have reason to believe that the Governor of Texas will not shut down construction sites! And we are working on the same in Arizona.

With our news cycle I find it is easy to be drawn into fearful place. I fight it with the mantra of “Live by Faith and Not by Fear.” Then Look for ways to help others wherever I can—by giving of my time and treasure. I replace worry with prayer every day. And ask that we all let our TD light shine bright as an example of hope for others!!

I know that we will come through this pandemic test even stronger as a company.

Thank you for your trust, commitment, hard work, and support. Hang in there!

Sincerely, Harold

PS. My first attempt at a selfie video update did not go well. I am getting some help. 😊

I miss "Between two plants with Dennis."

Mar

21

2017

A Letter From CEO Harold MacDowell

Dear Clients and Community Friends:

As we celebrate our 20th year on Fortune’s “100 Best Companies to Work For” list, I extend my heartfelt appreciation to all of you. We could not sustain a great workplace culture without great customers and strong communities in which we live and work.

Since 1997, it has been a hard-earned privilege to be honored on this prestigious list. Every year, we work to maintain aspects of our culture that are successful. By that same token, we examine and improve the areas where we might have fallen short. Our culture is focused on people – our TDPartners – who are the employee-owners of TDIndustries and ambassadors of our servant leadership culture.  

When I first came to TD in 1985, the first Fortune list was still years away from being published. I have been fortunate to see TD make the list for the past two decades. And for 20 years, our TDPartners have never been complacent. We have self-imposed high standards to live and breathe our Core Values, and we have pursued company and personal excellence with unrelenting stamina. Our commitment to having a great company culture has helped many organizations in the industry and our communities.

We’ve experienced tremendous growth in the past several years, and TDPartners have expanded our service offerings, utilized new technology, and implemented better processes for our customers. In the community, we have achieved record donations for the United Way, and our community outreach groups (TDServes) are setting strong examples of good citizenry in their local neighborhoods.

TDIndustries is many things to many people. But our Core Values are reflected in all that we are.

TD pushes our skilled trades’ education with free training programs, as well as a robust TDUniversity program, making sure that each TDPartner is given the knowledge to pursue their aspirations. Investing in our people is who we are.

TD supports STEM education in high school and college, proving that construction and service are great career paths with endless opportunities for growth. Supporting the future of our industry is who we are.

TD pledges to bring gender parity, diversity, and a global perspective to our company through programs and policies that are fair and unbiased. Celebrating each other’s individual differences is who we are.

TD innovates safety policies, procedures, training, and equipment, pursuing our goal of zero incidents or injuries for anyone – TDPartner or not. Fiercely protecting the safety of all is who we are.

TD creates an atmosphere of transparency, trust, and collaboration with our clients and TDPartners. Building trust and leading with a servant’s heart is who we are.

And so, for our 20th year on the Fortune List, we have a great deal to be thankful for. I extend my sincerest gratitude for allowing us to serve you, and enabling us to give back and be a good organizational example to others.

Sincerely,

Harold


Macdowell_Harold_4x6_3X3.jpgHarold MacDowell is the CEO of TDIndustries and a TDPartner for more than 30 years. He took the reins as TD’s third CEO in 2005—but during his tenure, he’s has worked in almost every role in the company in Dallas and other cities. He is a Southern Methodist University alumnus who spends his free time with family, playing golf, fishing, or enjoying the lake. Follow him on Twitter.