Even as a small boy growing up in Harrisburg, Pa., Steve Sandherr saw big things on the horizon. “When I was 10 years old I knew I was going to study political science at university and law school,” he recalls. “No one in my family had ever graduated from college, and obviously there were no lawyers in my family, but I was interested in politics at a young age.”
Fifty-five years later, Sandherr is nearing retirement after a successful career that took him from the halls of Congress to the ribbons of the construction industry.
On March 31, Sandherr will step down as CEO of the Associated General Contractors of America after 27 years at the helm of an organization that today has approximately 90 chapters nationwide and more than 27,000 member companies. Under his leadership, Sandherr served a diverse membership base, including large and small businesses; general and specialty contractors; and union and non-union stores.
Throughout his tenure he balanced the wide range of member needs, which at times were at odds with each other, to find solutions that ultimately moved the industry forward. Recognized by his peers for his candor and ability to listen, communicate and collaborate, Sandherr collaborated on initiatives that helped advance member companies and the industry at large. In light of his years of service, ENR MidAtlantic nominates Sandherr to receive its 2024 Legacy Award.
Sandherr and industry partners spent decades promoting the importance of dedicated infrastructure funding.
Photo courtesy AGC of America
A set of skills for service
Attending the University of Scranton, a private Catholic university in Scranton, Pennsylvania, Sandherr earned a bachelor’s degree in political science, becoming the first in his family to graduate from college. He then rounded out his skill set by attending the Catholic University of America Columbus School of Law in Washington, DC.
After graduation, Sandherr remained focused on public policy rather than practicing law. “Legal training makes you much more analytical,” he says. “You learn to understand an argument and pick it apart. You learn to challenge assumptions, see potential conflicts, and mitigate concerns.”
“We all need purpose in our lives, and I found that the opportunity I’ve had at AGC has given me the honor of representing people who are trying to do good.”
—Steve Sandherr, CEO, Associated General Contractors of America
Graduating from law school in 1984, Sandherr saw an ad for a position at a construction trade association seeking someone with experience in labor law. In law school, he took a class called “Labor Relations in the Construction Industry,” which he says interested him “because there’s a lot of sociology” in labor law. Ultimately, this course helped establish the arc of his career. “I took this course and thought it counted as experience, so I applied and [AGC] hired me.” The position was assistant director of collective bargaining services.
Sandherr spent the next two years working in labor relations, including working with members of Congress on legislation such as a construction labor law reform bill. These efforts led Sandherr to assume his duties as AGC’s lobbyist. After five years at AGC, however, Sandherr says he saw no future in the partnership, so he accepted an offer to join a law firm. After just over a year there, he returned to the associational world of construction, taking a job with the National Association of Home Builders. About a year later, the opportunity he wanted at AGC opened up and he was invited back to the organization, assuming the role of executive director of congressional relations in January 1991.
Beyond his lobbying efforts on Capitol Hill, Sandherr championed the importance of initiatives like safety, mental health, and diversity and inclusion.
Photo courtesy AGC of America
Find the purpose
Sandherr flourished in her new role, bringing not only her legal and lobbying background, but applying the values she learned growing up in a devout Catholic home. “It teaches us to love others as ourselves and to give respect and dignity to other human beings,” he says.
In that regard, Sandherr says he found AGC to be a good fit, working for members who primarily represent small, family-owned businesses. “I’ve always felt comfortable being an advocate for AGC,” he says. “Our members provide career and employment opportunities for people who add to our built environment. They prioritize maintaining a safe workplace, recognizing that they have a moral obligation to do so, not a legal obligation. We all need purpose in our lives and I found that the opportunity I have had at AGC has given me the honor of representing people who are trying to do good.”
Five years into his government relations role, the CEO position at AGC opened up. At the time, Sandherr recalls, AGC was struggling with relationships between national staff and chapter executives. Over time, trust in AGC had eroded at the chapter level, with some chapters even threatening to leave. At first, he says, AGC thought the best strategy would be to bring in an outsider to run the association. However, when that didn’t pan out, the position was opened to internal candidates. Sandherr came forward and in January 1997, at age 38, took over as head of the oldest and largest construction association representing general and specialty contractors.
His leadership skills were immediately put to the test as he set about restoring relationships with the chapters. Sandherr found her years of working in government relations to be effective in finding common ground. “I was already going to AGC chapters and explaining problems, which was good training for the job I eventually got,” he says.
“I see him as a mentor in the associative world.”
— Ed Brady, President and CEO, Home Builders Institute
Part of the strategy included meeting directly with subsidiary managers, sometimes during headquarters meetings or training sessions, other times in subsidiary offices. This drive to connect directly with others led to a career in travel, often spending more than 100 nights a year on the road.
“You need to be available and accessible in person, have the opportunity to tell people what we’re doing on their behalf, gather new ideas from chapters and members, address people’s concerns, have the opportunity to clarify where there could be a misunderstanding,” he says. “You have to be able to demonstrate the value of the relationship.”
Over time, Sandherr and his team restored relations. Rich Barcaskey, executive director of the Builders Association of Western Pennsylvania, says that as head of an AGC chapter, he appreciates Sandherr’s candor, even when he represents positions that oppose those of members of their union.
“If there is ever an issue, like project labor contracts, where AGC was going to take a position that could upset our [union] members, I always gave you a warning, explained why they took that position and gave you the points,” he says.
Barcaskey says this level of honesty gave Sandherr more credibility. “I’ve seen other association leaders speak and they just tell you what you want to hear and then go do something else,” he says. “Steve explains it honestly. If things aren’t ideal, he tells you, and then lets you know that you have to adapt.”
In addition to advocating for AGC members, Sandherr addressed major issues with industry partners.
Photo courtesy AGC of America
Industry influence
Sandherr’s colleagues also appreciated his approach, especially when working with issues that rise to the industry level. Ed Brady, president and CEO of the Home Builders Institute, says Sandherr has been a respected partner on multiple shared initiatives, including workforce issues. “Steve is very collaborative and recognizes that we are stronger together,” she says. “He’s focused on the direction of his association, but always has the big picture in mind. We’ve advised each other over the years through the challenges we’ve faced. I see him as a mentor in the associational world.”
Tom Gilbane Jr., president and CEO of Gilbane Inc., agrees that Sandherr’s ability to work effectively with industry partners, among members and outside the organization, was one of his strengths. “He’s well-respected and has the ability to network and be known both within various government agencies as well as business groups,” says Gilbane. “He’s able to bring groups together around industry issues, whether it’s safety, mental health or diversity and inclusion.”
Among the most significant initiatives in which Sandherr was associated was pushing decades-old messages about the importance of infrastructure investment. These efforts culminated in the passage of the $1.2 trillion Jobs and Infrastructure Investment in 2021 Act.
Tom Smith, executive director of the American Society of Civil Engineers, who worked with Sandherr through industry groups such as the Transportation Construction Coalition, says Sandherr has had a remarkable track record and leadership at AGC, earning respect within the association and infrastructure communities. “I’ve known Steve for a couple of decades and have always enjoyed his frank and effective communication style, along with a great sense of humor,” says Smith. “Among many accomplishments, it was wonderful to see the Bipartisan Infrastructure Act cross the finish line before Steve’s well-deserved retirement.”
For Sandherr, some of his proudest moments came during the industry’s darkest times. During the recession of 2008 and 2009, as construction companies were hemorrhaging workers and trade associations were laying off staff, AGC did not lay off a single employee. “There was pressure on me from our leaders to fire people and my response was, ‘You’re firing because you have less work,'” he recalls. “‘We don’t have less work. We have more work’”.
“He’s able to bring groups together around industry issues, whether it’s safety, mental health or diversity and inclusion.”
— Tom Gilbane Jr., Chairman and CEO of Gilbane Inc.
From an advocacy perspective, he says one of AGC’s shining moments came during the first year of the pandemic, as his team worked to get construction recognized as an essential service. As part of this mission, his team worked with members, asking them to do their part and provide safe work environments that adhere to the requirements related to COVID-19. “We reminded our members that we have received this green light, but we have to act responsibly,” he says. “Our members responded well. They saw that was the ticket that kept them going.”
While proud of his team’s accomplishments, Sandherr admits he leaves with some unfinished business. “I would say the biggest disappointment from an advocacy perspective was in 2008 and 2013, when we didn’t get comprehensive immigration reform passed in Congress,” he says. “That’s why we have a big mess on our hands today.”
When Sandherr steps down, his position will be filled by current COO Jeff Shoaf. Like Sandherr, Shoaf spent years working in government relations at AGC. Although they followed a similar path, Sandherr says it’s time for AGC to take a new direction. “He’s the right person for the job, so there should be a lot of continuity, although he’ll be doing some things a little bit differently, which is a good thing,” he says. “Maybe it can change things.”
