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The work is there, but are the workers?By Mark CrawfordDespite a sluggish overall economy, Wisconsin's construction industry still has plenty of projects to keep it busy.
But what if there aren't enough experienced workers to tackle all the projects in the pipeline, especially with the growing desire by owners for design/build and fast-track construction? Worker shortages can lead to project delays, higher costs, quality or safety issues and decreased profitability. "The generation gap is creating a knowledge problem with the current work force," says Kelly Hafeman, president of Howard Immel Construction in Green Bay. "There are fewer people joining the trades, and the ones who are coming in are younger and not as experienced. Worker shortages usually occur during the busiest times of the year. If you don't get ahead of the hiring game, you may be stuck with employees who don't fully know their jobs and require more training." Experienced tradesmen, therefore, are in high demand. Some of them, especially laborers, welders and pipefitters, are also being courted away from the construction industry by big oil and gas transmission projects in the state, as well as alternative-energy facilities, creating even more shortages. The bottom line is there aren't enough new workers coming into the trades to learn from, and eventually replace, the higher number of older, more experienced workers who will be retiring over the next five years. At the moment it appears the sluggish economy is keeping the employment crunch in check -- but this could change quickly with an economic reversal. Solid growth Even with the unsteadiness of the economy, the construction industry in Wisconsin expects to see solid growth. According to Industrial Information Resources, a research firm, Wisconsin is one of the top states in the country for industrial and commercial construction in 2008, with 167 projects totaling more than $14.6 billion. Associated General Contractors of Wisconsin (AGC), a trade organization, expects construction to enjoy double-digit growth in the state over the next several years. Wisconsin Department of Workforce Development numbers back up these claims. Some of the hottest current jobs in South-Central Wisconsin are in construction. Cement masons and concrete finishers lead the way with projected job growth of 24 percent from 2004-2014, followed by plumbers and pipefitters (21 percent), carpenters (20 percent), supervisors and managers (19 percent) and electricians (18 percent). "These are high-paying jobs with plenty of openings," said Richard Jones, agency liaison for the office of the secretary of the Department of Workforce Development. "For example, carpenters are eighth on the top 25 job list with a projected 7,000 openings by 2016. The median hourly wage is nearly $17.60, with an annual salary of almost $36,600 (not including benefits)." The top 25 list also includes electricians, welders, plumbers and pipefitters. Changing of the guard Retiring baby boomers are creating staff shortages in many industries. This is especially true in construction, where workers tend to retire earlier because of the physical wear and tear on their bodies. The average age for most tradesmen is about 46-47. For welders, the average age is 50; according to Sean Moran, director for American Welding Society's District 12 in Wisconsin, almost half of all welders are nearing retirement. "Right now there is at least a 35 percent shortfall of new workers coming in to replace retiring welders -- that's a huge gap," said Moran. That gap is similar for other trades. "First-line supervisors, skilled carpenters, cement finishers, masons and steelworkers are all in high demand," said Hafeman. One reason for the gap is that high school students tend to be directed toward college by parents and teachers. "The construction industry and related professions have an image problem with high-school administrators, teachers, guidance counselors, students and parents," said Laura Cataldo, marketing director for AGC. "Teachers tend to encourage at-risk students toward the trades and guidance counselors generally don't encourage good students to consider construction. We're working hard to let these groups know how challenging, rewarding and high-paying construction careers are -- and not just the trades, but for all career paths, including a four-year degree from universities." Ken Starkman, dean of construction, manufacturing, apprenticeship and transportation at Madison Area Technical College, indicated enrollment is up in the college's construction programs. "Projections by our apprenticeship advisory committee show we'll have to keep increasing the numbers of new trainees to meet the industry demand," he said. "So far, I haven't seen a lack of qualified tradesmen in Madison, but there is definitely a heightened awareness of the situation," added Dave Beck-Engel, executive vice president for J.H. Findorff and Son in Madison. "Fortunately, spikes in demand have been short-lived. The unions are very good at finding us qualified labor." Open-shop (nonunion) construction firms struggle more to find qualified workers and often have to pay union-scale wages to stay competitive. Marketing to youth Construction companies and trade associations are keenly aware of the urgency steering high school students toward working in the trades, so they can make informed career decisions when they graduate. MATC presents construction seminars at high schools and designs articulation agreements that align high school coursework with MATC programs to provide a seamless transition when students enroll in college. To create construction work experiences at the high school level, AGC has committed $75,000 to pilot a construction skills certificate program with the Department of Public Instruction in seven high schools in September. The program provides paid school-to-work experience for juniors and seniors who are interested in construction. "The students attend school part of the day and work part of the day, including summer employment," said Cataldo. "They receive a well-rounded understanding of the work opportunities available, including skilled trades, technical college and university career paths." AGC has also hired Kennedy Communications to design and launch a career promotion campaign to improve the image of the construction industry and educate students about construction careers. The campaign includes establishing a social media presence on Facebook and MySpace and creating a scholarship contest, where students compete by participating in an online construction game. The American Welding Society is also getting creative in marketing to students. Its 32-page book "Your Career in Welding" is being promoted via a comic book produced by the society and Marvel Comics featuring Iron Man, the superhero in the blockbuster movie by the same name. It is also enlisting celebrities such as Jay Leno to communicate the need for welders. The North-Central States Regional Council of Carpenters in Madison has been actively recruiting new members through school presentations and advertisements on television and radio. "Our apprenticeship programs have been growing about five to 10 percent a year, a direct result of our marketing efforts," said Tom Benish, the union's business representative. "We have also built a new training center." Individual companies are also proactive in creating workers for the future. Bachmann Construction Co. in Madison hosts a golf outing every year that raises money for scholarships for high-school students interested in exploring the trades. "Our founder, Fred Bachmann Sr., was very passionate about young people getting involved in the construction business," said Jan Daggett, human resources director for the company. "The students use the funds for books, tools or tuition and we can then hire them after they graduate." Future outlook The construction industry will continue to partner with industry associations, high schools, and training institutes to recruit new workers, as well as conduct more internal training to keep the ones they have. "We invest heavily in training," indicated Mark McNally, CEO of Bachmann Construction Co. "Today, to be successful, tradesmen need to be more than just talented with tools -- they need to understand communication, technology and business practices. This in-depth training creates more energy and enthusiasm and broadens the career paths they can follow. "Having fulfilling, financially satisfying careers also creates long-term, loyal employees -- a definite advantage in a competitive industry." Older craftsmen have a tendency to keep their secrets to themselves. "We want our senior workers to share their expertise with the next generation," said Daggett. "We are utilizing nontraditional agreements with our retired employees to job-share part time so they can pass on their knowledge and specialized techniques to our younger workers." If energy costs remain high, business owners will be forced to retrofit buildings with more energy-efficient HVAC equipment and solar and geothermal energy systems. "In response to industry demand for primary apprenticeships in site prep and installing solar equipment and other kinds of alternative energy, MATC offers CERET (Consortium for the Education in Renewable Energy Technology) Renewable Energy Certificates," said Starkman. "We're one of the leading schools for this program, which is designed to provide students with the theoretical knowledge necessary to begin a career in energy management and renewable energy technology." Like other states, Wisconsin will also eventually need to repair its aging infrastructure. "Local, state and federal governments around the country are desperate to fix their outdated infrastructure," said Starkman. "When this happens it will create even higher demand for skilled tradesmen, especially welders, ironworkers, and pipefitters -- it's just a matter of time." Construction careers Source: AGC of Wisconsin Mark Crawford is a Madison freelance writer. He can be reached at mcrawford@tds.net. madison.com ©2009 Capital Newspapers. All rights reserved. |
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