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
| Dec 6, 2011
Mortenson Construction completes Elk Wind Project in Iowa
By the end of 2011, Mortenson will have built 17 wind projects in the state generating a total of 1894 megawatts of renewable power.
| Dec 6, 2011
?ThyssenKrupp acquires Sterling Elevators Services
The acquisition of Sterling Elevator Services Corporation is the third acquisition completed by ThyssenKrupp Elevator AG in the last three months in North America.
| Dec 6, 2011
Vivenzio named vice president of building performance practice at Thornton Tomasetti’s New York Office
Vivenzio, a licensed architect in New York and New Jersey, has more than 28 years of experience in architectural project management, construction administration, building diagnostic services and forensic investigation.
| Dec 6, 2011
New office building features largest solar panel system in New Orleans
Woodward Design+Build celebrates grand opening of new green headquarters in Central City.
| Dec 5, 2011
New York and San Francisco receive World Green Building Council's Government Leadership Awards
USGBC commends two U.S. cities for their innovation in green building leadership.
| Dec 5, 2011
Summit Design+Build begins renovation of Chicago’s Esquire Theatre
The 33,000 square foot building will undergo an extensive structural remodel and core & shell build-out changing the building’s use from a movie theater to a high-end retail center.
| Dec 5, 2011
Fraser Brown MacKenna wins Green Gown Award
Working closely with staff at Queen Mary University of London, MEP Engineers Mott MacDonald, Cost Consultants Burnley Wilson Fish and main contractor Charter Construction, we developed a three-fold solution for the sustainable retrofit of the building.
| Dec 5, 2011
RJM Construction begins building Nova Classical Academy in St. Paul
As the general contractor, RJM is constructing the 94,000-sf building that will consolidate the St. Paul school’s two other locations.
| Dec 5, 2011
Gables Residential brings mixed-use building to Houston's Tanglewood area
The design integrates a detailed brick and masonry facade, acknowledging the soft pastel color palette of the surrounding Mediterranean heritage of Tanglewood.
| Dec 5, 2011
SchenkelShultz Architecture designs Dr. Phillips Charities Headquarters building in Orlando
The building incorporates sustainable architectural features, environmentally friendly building products, energy-efficient systems, and environmentally-sensitive construction practices.
