Construction Today - January 2017 - 87
IN THIS SECTION Linn-Mathes Inc. - In today's construction market, the skills shortage is so significant that one hears anecdotal accounts of contractors in hot markets seeing subcontractors trying to renegotiate prices upwards between the time initial agreements are reached and work actually begins. Meanwhile, the pace of construction in the United States continues to grow following the Great Recession. The U.S. Census Bureau reported that during the first seven months of this year, construction spending stood at $647.7 billion, up 5.6 percent from the same period in 2015. And the Bureau of Labor Statistics projects employment of construction laborers and helpers to grow 13 percent from 2014 to 2024, faster than the average for all occupations. Against that backdrop, there's troubling news in a recent Conference Board study ranking the risk of labor shortages faced by 457 industries that ranked construction ninth. Many workers left the construction industry following the construction downturn that accompanied the 2008-2009 recession. At the same time, many traditional training paths into the skilled trades such as high school vocational education programs have been eliminated. And the construction industry, like so many others, is feeling the impact of baby boomer retirements with older workers leaving the workforce and taking valuable skills with them. Development Opportunities While the construction industry skills gap presents challenges for industry employers, it provides an opportunity for workers to develop the necessary skills and for employers who can help workers develop the talents they seek. Government policies that support an increased focus on vocational and technical education in industries facing labor shortages are one part of the solution to closing the skills gap in the construction industry and elsewhere. But construction industry employers must also take steps to engage and further develop existing employees in order to retain them. And they must participate in training efforts aimed at recruiting new talent into the construction workforce with the skills needed to ensure both the company's success and that of the workers. Industry partnerships can also play a role in narrowing the skills gap. In Tennessee, for every five people who leave the construction industry only one is replaced through existing apprenticeship programs. What's more, the average construction tradesman is 50 years old. In response to these findings, industry associations have formed the "Go Build Tennessee" initiative, an effort to encourage young people to consider the construction industry, educate them about the opportunities that exist and make the point that skilled construction trades offer the potential for good paying jobs. The organization's website provides detailed information on various construction industry trades, as well as information on training p.88 Linn-Mathes is building a high-end residential tower in Chicago. Mountco Construction & Development Corp. p.94 Mountco's projects help revitalize communities. Company Profiles 88 90 94 Linn-Mathes Inc. - Exhibit on Superior Benchmark Builders Mountco Construction & Development Corp. available at various two- and four-year colleges and through apprenticeship programs. It's the kind of step that's needed to close the industry's skills gap and help those who are looking for laborers. The skills gap facing the construction industry is very real, and its impact is significant. Still, the gap should be viewed as an opportunity for those in the industry to promote efforts to attract workers to construction and to deliver the training needed to create the skilled employees the industry desperately needs. A thoughtful approach to providing that training will ensure not only that the industry has workers with the right talent for the job, but that many more workers can develop the skills that will set them on the path to high-paying careers. Terry McDonough is the CEO of Strayer@Work, a human capital consultancy. Strayer@Work helps organizations close their most critical skill gaps. For more information, visit strayeratwork.com. 87 JANUARY 2017 CONSTRUCTION-TODAY.COM