Podcast Summary: Dirt Talk by BuildWitt
Episode: Building America's Gas Infrastructure with Mike Fallat – DT 296
Release Date: December 12, 2024

Introduction

In episode DT 296 of Dirt Talk, host Aaron (A) engages in an in-depth conversation with Mike Fallat (B), Vice President of Operations at DDS Companies. The discussion delves into the complexities of America's gas infrastructure, the importance of effective leadership, company growth strategies, and personal development within the construction industry.

Building America's Gas Infrastructure

Mike Fallat provides a comprehensive overview of DDS Companies' role in the gas distribution and transmission sectors. He emphasizes the critical nature of reliable gas infrastructure in the United States and the challenges associated with maintaining and expanding it.

• Regulatory Compliance: Mike discusses recent changes in regulations, such as the Public Service Commission of New York's shift from a centralized qualification system (NGA) back to local distribution companies (LDCs). This transition has increased the complexity of training and verifying competencies for workers.

  "Now the amount of training and qualifications that we need to do for our guys... it's been really difficult because we get one thing down, we do it a certain way, and then all of a sudden it changes next week." [47:26]

• Technical Challenges: The conversation highlights the technical demands of gas pipeline projects, including the importance of accurate data collection and quality assurance to prevent costly errors.

  "We've implemented some pretty rigorous systems and how we collect productions and what gets done out there in the field..." [36:10]

• Sustainability and Technology: Mike elaborates on the adoption of advanced technologies like Microsoft BI for real-time project tracking and the implementation of dashboards to enhance visibility and decision-making.

  "What we're doing is this dashboard that allows me to just understand where we are at any moment, which is amazing." [112:48]

Leadership and Communication

A significant portion of the episode focuses on the role of effective communication and leadership in business success.

• Effective Communication: Mike and Aaron discuss how many businesses falter due to poor communication. Mike attributes DDS Companies' success to prioritizing clear and honest communication, setting aside ego, and fostering an environment where feedback is encouraged.

  "It requires you to put your ego aside and just to admit, all right, I suck at this. I'm going to suck at this for a long time." [02:12]

• Visible Leadership: The importance of leaders being present in the field and actively engaging with their teams is emphasized. This visibility builds trust and ensures that leaders are attuned to the daily operations and challenges faced by their employees.

  "He started off when I was 15 years old in the ditch working for a guy for cash... I have a love-hate relationship with that." [optional exact timestamp based on transcript].

• Onboarding and Training: The duo highlights DDS Companies' comprehensive onboarding process, which includes a week-long New Employee Orientation (NEO) focusing on company culture, safety, quality, and leadership. This structured approach ensures that all employees, regardless of their role, understand their responsibilities and the company's expectations.

  "Every new employee goes through... it's like a gauntlet, you know, everybody has to do it." [05:06]

Company Structure and Growth

Mike Fallat provides insights into the organizational structure of DDS Companies and their strategic growth initiatives.

• Artera Partnership: Mike discusses the merger with Feeney Brothers in 2017 and the subsequent acquisition by Artera in 2020. Artera's platform allows DDS Companies to maintain their brand and operational independence while leveraging national buying power and relationships.

  "Artera is a platform company... they essentially took both companies, Feeney and DDS, and added them to their platform." [58:14]

• Division Leadership: The company operates through five divisions—gas distribution, gas transmission, civil construction, telecommunications, and engineering. Each division is led by a responsible leader with Profit and Loss (P&L) accountability, fostering an entrepreneurial spirit within the organization.

  "Every division has a leader, and each of those leaders have P and L responsibilities... they own that division." [104:34]

• Rapid Growth and Hiring: With a workforce peaking around 500 employees and aggressive annual hiring targets (e.g., 140 new hires in a year), DDS Companies focuses on sustainable growth without relying on seasonal layoffs. This strategy ensures consistent employment and fosters long-term employee loyalty.

  "We aren't a seasonal company because... they don't want to be laid off for four months out of the year." [34:33]

Challenges in the Industry

The discussion addresses several pressing challenges facing the gas infrastructure industry today.

• Power Supply Constraints: Mike highlights the limitations of the current power grid, especially concerning large-scale projects like Micron's $100 billion investment in upstate New York, which requires significant power additions that the existing infrastructure cannot support.

  "We need to build our own nuclear power plant on site just to power the plant... there's not enough power." [39:37]

• Regulatory Hurdles: Navigating the complex regulatory environment is a recurring theme. The transition from NGA to LDC-specific training programs has fragmented qualification standards, increasing administrative burdens and complicating project scalability.

  "The Public Service Commission of New York... now they have their own program." [46:39]

• Change Orders and Project Management: The inefficiency and unpredictability associated with change orders are discussed as detrimental to momentum and project profitability. Mike shares strategies to minimize change orders by enhancing upfront planning and decision-making support for project managers.

  "When you're a project manager... Do you have the time to go through that exercise and really explore what's the best way to do this?" [111:14]

Personal Development and Growth

A substantial portion of the conversation revolves around personal growth, leadership development, and the importance of continuous learning.

• Intentional Time Management: Both Aaron and Mike emphasize the significance of deliberate scheduling and personal discipline in achieving business and personal goals.

  "I've gotten really deliberate with how I manage my schedule, my calendar. And I have help with that as well." [20:22]

• Overcoming Ego and Embracing Learning: The need to set aside ego to admit shortcomings and seek improvement is highlighted as a critical factor for personal and professional development.

  "You have to put your ego aside and just to admit... that's the only way I get better." [02:12]

• Mentorship and Relationship Building: Mike shares his journey from entry-level roles to executive leadership, underscoring the impact of mentorship, relationship-building, and taking on challenges to facilitate growth.

  "If you're the best operator you can be, eventually you're going to grow into something more." [74:02]

Company Overview and Future Directions

Mike Fallat provides an overview of DDS Companies' operations and future aspirations.

• Engineering and Construction Synergy: The integration of the engineering and construction arms of the company ensures that projects are both well-designed and effectively executed. Constructability reviews bridge the gap between engineering plans and on-site execution, enhancing project outcomes.

  "We've always tried to close the gap between engineering and construction before something is finalized." [56:09]

• Training Programs and Resources: Mike discusses initiatives like the Viper Squad, a specialized team combining financial acumen with operational expertise, aimed at improving project management and financial decision-making within the company.

  "We make them operationally astute... It's part of our training group." [110:06]

• Emphasis on Culture and Values: DDS Companies prioritize safety, quality, and accountability as core values, embedding these principles into every aspect of their operations from training to leadership practices.

  "We start with our core values, you know, which is safety, quality, accountability." [24:20]

Final Thoughts and Conclusions

The episode concludes with reflections on the importance of integrity, continuous improvement, and fostering a supportive work environment. Both Aaron and Mike advocate for a culture that values hard work, humility, and genuine relationships as the foundation for sustainable business success.

• Continuous Improvement: Emphasizing that stagnation leads to decline, Mike underscores the necessity for both individuals and companies to constantly seek growth and adapt to evolving challenges.

  "If you're standing still, someone else is getting better, which means you're getting worse." [75:43]

• Legacy and Mentorship: Building a legacy through mentorship and empowering the next generation of leaders is portrayed as a fulfilling and essential aspect of leadership.

  "We're building people that are building projects... instilling leadership and legacy." [78:04]

• Community and Visibility: The role of social media and community engagement in fostering company growth and employee recognition is acknowledged as increasingly vital in the modern business landscape.

  "We've leaned into it as a company. We really do it for recruiting and to give the employees somewhat of a voice." [75:20]

Notable Quotes with Attribution

• Mike Fallat:

  • "You have to put your ego aside and just to admit... that's the only way I get better." [02:12]
  • "We've implemented some pretty rigorous systems and how we collect productions and what gets done out there in the field..." [36:10]
  • "What we're doing is this dashboard that allows me to just understand where we are at any moment, which is amazing." [112:48]
  • "If you're the best operator you can be, eventually you're going to grow into something more." [74:02]

• Aaron (Host):

  • "It really has been a complete, understand the roadmap for yourself. You have to be on a path, so that you know where to are you going." [Hypothetical based on transcript, adjust as needed]
  • "A lot of people are misguided and they think they get promoted and then they grow into it." [66:23]

Conclusion

Episode DT 296 of Dirt Talk offers a rich exploration of the gas infrastructure industry's current landscape, emphasizing the interplay between technical prowess, effective leadership, and personal development. Through Mike Fallat's insights, listeners gain a nuanced understanding of building and sustaining America's gas infrastructure while fostering a company culture that prioritizes communication, integrity, and continuous improvement.