Impact on the Industry
Given the current deficit of workers, the problem gets magnified whenever more investments in infrastructure are made. Sizemore notes every billion dollars in overall construction spending creates 6,300 additional construction jobs on average. “All we’re going to do is exacerbate the problem,” he says. “If we don’t do something, the impact, as we’re sitting here having this conversation, is a year from now we’ll need 1.2 to 1.3 million people to do the work that’s out there, and you can imagine the economic impact.” (Note: Lowe’s estimates the number at 3 million jobs by 2028.)
Mitchell points out many builders struggle to turn a profit. A 2017 U.S. Census survey of construction-industry entrepreneurs reveals almost 20 percent of those businesses reported losses while 19 percent broke even. Almost one-third (27 percent) of respondents reported finding qualified labor as a reason for the negative impact on profit.
“You’re seeing noticeable pressure on builders and remodelers throughout the country, and we hear it firsthand at the store level,” Mitchell says, noting contractors come in on a regular basis looking for laborers and leave their business cards at the store for potential leads.
The ripple effect of the labor shortage in construction extends into every industry; buildings are needed for virtually any type of business or activity. “Whether it’s a new build, whether it’s a greenfield facility, whether it’s public money, private money, whether it’s an upgrade or retrofit or remodel, all of these things have to happen but won’t happen in our industry today unless we really attack this full front,” Sizemore suggests.
Moss notes the severity of the impact on projects often depends on their size. Mid-sized projects with less aggressive schedules aren’t as pressing of a concern as a massive sports complex, for example, which requires an extremely short schedule and where manpower is a very high priority. In those cases, people need to work longer hours and more days to get the work completed. More importantly, he says site superintendents “need to pay a higher level of attention to the quality of work, safety and all the important things that go on during a job each and every day supervising a less-skilled workforce, which is a challenge.”
Changing the Narrative
The current conversation in the U.S. about college and technical education needs to change not only because of economic factors, but because doing so can open up a pathway to success too many have felt isn’t available to them.
“We’ve got a decades-old narrative we have to unwind in America today that says, for whatever reason, ‘Unless you go to college, you’re something less-than, or you’re not employable, or you have less skill.’ I’m telling you that’s wrong,” Sizemore says.
It’s not enough to suggest technical education and apprenticeships are simply an alternative to college. Younger generations need to see them as equal opportunities to success, and education at a national and grassroots level is essential in altering the narrative.
“It’s one thing for us to go and rally the call on a national level, but where it’s really going to take hold is when the local communities begin to put pressure on their school districts, their school boards, their community colleges and the contractors in those communities to get engaged in these programs and processes,” Sizemore points out. “Where it’s going to make a difference is in the backyards of America and the very communities where this work is going to occur.”
Moss notes with the rising costs of a four-year education and as students graduate with large amounts of debt, those who pursue technical education, on the other hand, “can advance pretty significantly into some high-paying construction jobs” in the same amount of time with little or no debt. He adds a number of organizations are working with the public-school system to educate high-school students about the opportunities of becoming a craftsman.
Case in point: Lowe’s launched Generation T, an initiative designed to shift the perception of the trades by demonstrating the economic mobility and the career opportunities skilled trades provide (see “Lowe’s Hosts Build Out to Raise Awareness for Skilled Trades”, page 3, for more about Generation T in action). In addition to working with schools and non-profits, Lowe’s, along with more than 60 national partners, is getting the message out through social-media campaigns, localized outreach, and by donating thousands of dollars in tools and materials to bring shop class back into schools. Additionally, it is offering scholarships and small business grants to transitioning military members, as well as to assist them in finding jobs requiring skilled labor. “It’s sort of a portfolio of community-relations activities, leveraging Lowe’s and its partners to start to reintroduce the trades locally and digitally so we have a truly nationalized movement,” Mitchell says.
Likewise, the Washington-based International Code Council (ICC) has developed a program called Safety 2.0 to create awareness about careers in building safety for students, young professionals and military members alike. “We’ve identified through discussions with organizations and people within the industry that there is significant interest among the trade organizations to educate their members and industry representatives on building-code issues to provide opportunities for people in the trades to get involved in building safety,” says Ron Piester, AIA, ICC’s vice president of Membership/Certification. Through high school and college training programs and discussions with military groups, ICC is getting the message out to help the next generation consider a career in global safety—and the need has never been greater.
“We knew there’s a shortage of people to fill these jobs, and so we’re trying to meet all these different groups where they are and introduce them to the industry and show them how it can fit into their life,” explains Madison Dominescy, ICC’s executive project manager.
The building safety industry is relatively obscure but is no less a viable career than an architect or contractor, Piester points out.
A New Reality
The construction industry is operating under a new set of rules, according to Sizemore. Whereas once the mantra “He who has the people hopes he gets the work” was once the norm, now it’s “He who has the work hopes he gets the people.” Nevertheless, he suggests it’s an exciting time to be in this industry, which is at a nearly all-time high in terms of the volume of work available.
The upside to this challenge is “it translates into huge opportunities for Americans to achieve their dreams,” he says. For that to happen, however, the industry needs to continue raising awareness about the value of careers in the skilled trades, not just as an alternative to college but as a viable, dignified, lifelong career path. And the effort needs to extend across the spectrum of geographies and demographics—not just in rural America but also in the inner cities.
The labor deficit won’t fix itself. “If we sit in a corner and hope they’re going to come, it’s not going to happen,” Sizemore says. “This is not ‘Field of Dreams.’ This is the real world.”
PHOTOS: Lowe’s Generation T