Boosting MBE Utilization: A Team Effort

Kicked off in 2022, this series of conversations brought together stakeholders to discuss the root causes of low MBE utilization in the construction industry and develop actionable next steps to address these challenges and build a stronger, more inclusive contractor ecosystem for our region.

The Background:

Since 2020, we have seen a decline in Minority Business Enterprise (MBE) utilization. In response to this trend, The Port, Ohio Minority Supplier Development Council (OMSDC), African American Chamber of Commerce, Turner Construction, and HGC brought together general contractors (GCs) and MBEs for a series of conversations facilitated by Hannibal Consulting, Make it Plain Consulting, and Mary Stagaman LLC, to open up the dialogue around this challenge and determine root causes.

Graph - 2020 - 2023 - web

Through these conversations, stakeholders came together to candidly share experiences and discuss roadblocks and opportunities. Some of the stated reasons for low MBE utilization on projects include:

  • Lack of capacity/Too Busy
  • Lack of Scale
  • Unaware/Unable to Find
  • Uncompetitive Pricing
  • Lack of Scale
  • Exclusion/Lack of Outreach

Findings & Recommendations:

Through this process, some common, recurring themes began to emerge in individual discussions with MBEs and GCs. We identified three root causes contributing to the underutilization of MBEs in the construction industry, and associated recommendations to address these root causes.

Root Causes - web

Next Steps:

Following these conversations, stakeholders are collectively challenged to immediately adopt two or more of the recommendations, and share outcomes and new initiatives in future study groups.

Stakeholder Next Steps - web
Port Next Steps - web

A sincere thank you to all of the stakeholders who have participated in these discussions. We appreciate your candor and ongoing dedication to creating a stronger, more inclusive Greater Cincinnati.

Stay tuned for updates on this ongoing regional initiative.