The construction industry, whose workforce was decimated during the last recession, is slowly getting back on its feet. However, in certain markets—especially those where oil drilling and production have been prospering—construction workers can still be scarce.
Based on a survey of nearly 1,100 member firms in October, the Associated General Contractors of America (www.agc.org) reported that 83% of respondents were having difficulty finding craft workers, and 61% said other professional positions were hard to fill.
That being said, it appears employment pressures are easing. AGC’S analysis of data from the U.S. Bureau of Labor Statistics finds that construction employers added 12,000 jobs in October, dropping the industry’s unemployment rate to 6.4%, its lowest level since October 2006.
In fact, construction employment in October, at 6,095,000, was the highest it’s been since May 2009, with 231,000 jobs added over the last 12 months, a 3.9% gain.
Residential construction is driving the market’s employment, as 130,600 residential and specialty trade contractor jobs have been added over the past year, representing a 6% increase over the same period in the previous year. Jobs for nonresidential and specialty trades, and heavy and civil engineering, rose by 2.7%, or 99,800, over the past 12 months.
Ken Simonson, AGC’s chief economist, notes that all construction employees worked an average of 39.2 hours per week in October, tying the highest mark since the association has been tracking this data since March 2006. And wages have been rising at their fastest rate—2.6% in the past year—since early 2010.
Still, AGC sees uncertainty in the future construction employment picture, and is calling on government officials to enact measures that would make it easier for school districts, local associations and private companies to establish career and technical education programs.
The Association’s concerns about where the industry is going to find its next generation of labor stem, in part, from its research which shows that its members in the South are most likely to struggle with labor shortages, particularly places like Louisiana where pipeline, refinery, and petrochemical construction jobs have boomed.
That boom has been a double-edged sword, in that the oil industry is grappling to find qualified labor. A recent article posted on the website Industrial Info Resources quotes John Floren, CEO of Methanex, the world’s largest producer of methanol, who said that projected costs for two projects in Geismar, La., rose by $300 million, largely because of labor costs and productivity issues.
And if, as expected, oil-related projects ramp up, labor shortages in Gulf States could become more acute in 2016 and 2017, according to industry observers quoted by Industrial Info Resources.
Related Stories
| Mar 21, 2012
ABI remains positive for fourth straight month
Highest spike in inquiries for new projects since 2007.
| Mar 21, 2012
Iowa’s Mercy Medical Center’s new Emergency Department constructed using Lean design
New Emergency Department features a "racetrack" design with a central nurses' station encircled by 19 private patient examination rooms and 2 trauma treatment rooms.
| Mar 21, 2012
Clary, Hendrickson named regional directors for HDR Architecture
New directors will be responsible for expanding and strengthening the firm throughout the central region.
| Mar 20, 2012
FMI releases 2012 first quarter construction outlook
The last time construction put in place was at this level was 2000-2001.
| Mar 20, 2012
Ceco Building Systems names Romans marketing director
Romans joins Ceco Building Systems with over 15 years in marketing and customer service.
| Mar 20, 2012
UT Arlington launches David Dillon Center for Texas Architecture
Symposium about Texas architecture planned for April.
| Mar 20, 2012
Stanford’s Knight Management Center Awarded LEED Platinum
The 360,000-sf facility underscores what is taught in many of the school’s electives such as Environmental Entrepreneurship and Environmental Science for Managers and Policy Makers, as well as in core classes covering sustainability across the functions of business.
| Mar 20, 2012
New office designs at San Diego’s Sunroad Corporate Center
Traditional office space being transformed into a modern work environment, complete with private offices, high-tech conference rooms, a break room, and an art gallery, as well as standard facilities and amenities.
| Mar 19, 2012
Obama’s positioned to out-regulate Bush in second term
Proposed ozone rule would cost $19 billion to $90 billion in 2020, according to the White House.
| Mar 19, 2012
Skanska promotes Saunders to VP/GM of Bayshore Concrete Products
During his more than 13 years with Bayshore, Saunders has provided products for Victory Bridge in New Jersey, Route 52 Causeway in Ocean City, N.J., and for numerous piers at Naval Station Norfolk and the Norfolk Naval Shipyard.