July 29, 2010
CPGworks-Construction Personnel Group
Headhunters For The Trades
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327 Niagara St. Buffalo, NY 14201
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Outlook for Construction Industry
The following is excerpted from the US Dept of Labor and offers some insight and prediction about the construction industry and the various construction trades. The full article can be found at: http://www.bls.gov/oco/cg/cgs003.htm
The number of wage and salary jobs in the construction industry is expected to grow 10 percent through the year 2016, compared with the 11 percent projected for all industries combined. Employment in this industry depends primarily on the level of construction and remodeling activity which is expected to increase over the coming decade.
Although household growth is expected to slow slightly over the coming decade, the increase will create demand for residential construction, especially in the fastest growing areas in the South and West. Rising numbers of immigrants, as well as the children of the baby boomers, will generate demand for homes and rental apartments. In addition, a desire for larger homes with more amenities will fuel demand for move-up homes, as well as the renovation and expansion of older homes. Townhouses and condominiums in conveniently located suburban and urban settings also are desired types of properties.
Employment is expected to grow faster in nonresidential construction over the decade. Replacement of many industrial plants has been delayed for years, and a large number of structures will have to be replaced or remodeled. Construction of nursing homes and other residential homes for the elderly, as well as all types of healthcare facilities, will be needed to meet the need for more medical treatment facilities, especially by the growing elderly population. Construction of schools will continue to be needed, especially in the South and West where the population is growing the fastest. In other areas, however, replacing and renovating older schools will create jobs.
Employment in heavy and civil engineering construction is projected to increase due to growth in new highway, bridge, and street construction, as well as in maintenance and repairs to prevent further deterioration of the Nation’s existing highways and bridges. Voters and legislators in most States and localities continue to approve spending on road construction, which will create jobs over the next decade. Another area of expected growth is in power line and related construction. Even with increased conservation and more efficient appliances, there is an increasing demand for power. New power plant construction and connecting these new facilities to the current power grids will increase demand for workers.
The largest number of new jobs is expected to be created in specialty trades contracting because it is the largest segment of the industry and because it is expected to grow about as fast as the rest of the construction industry. The number of jobs will grow as demand increases for subcontractors in new building and heavy construction, and as more workers are needed to repair and remodel existing homes, which specialty trade contractors are more likely to perform. Home improvement and repair construction is expected to continue even as new home construction slows. Remodeling should provide many new jobs because of a growing stock of old residential and nonresidential buildings. Many older, smaller homes will be remodeled to appeal to more affluent buyers interested in more space and amenities. Remodeling tends to be more labor-intensive than new construction. In addition, the construction industry, as well as all types of businesses and institutions, is increasingly contracting out the services of specialty trades workers instead of keeping these workers on their own payrolls.
The number of job openings in construction may fluctuate from year to year. New construction is usually cut back during periods when the economy is not expanding or interest rates are high. However, it is rare that all segments of the construction industry are down at the same time, allowing workers to switch from building houses to working on office building construction, depending on demand.
Although employment in construction trades as a whole is expected to grow about as fast as the industry average, the rate of growth will vary by trade. Employment of boilermakers; roofers; tile and marble setters; and construction and building inspectors is projected to grow faster than the industry average because their specialized services will be in greater demand. On the other hand, employment of carpet installers and floor sanders and finishers is expected to experience little or no growth as the demand for their specialties declines due to lower-cost options and changes in consumer preferences. Employment of rail-track laying and maintenance equipment operators and structural iron and steel workers is expected to grow more slowly than the construction industry as a whole as workers become more productive. Employment of paperhangers and floor layers, except carpet, wood, and hard tile, is expected to decline rapidly due to changes in consumer preferences, lower-cost options, and movement towards tile and prefinished hardwood floors.
Employment of construction managers is expected to grow as a result of the increasing complexity of construction work that needs to be managed, including the need to deal with the proliferation of laws dealing with building construction, worker safety, and environmental issues. Also, the growth of self-employment in this industry is leading to a larger number of managers who own small construction businesses.
Job prospects. Job opportunities are expected to be excellent in the construction industry, especially for construction trades workers, due to the need to replace the large number of workers anticipated to leave these occupations over the next decade, coupled with continued job growth. Furthermore, fewer people are expected to enter the construction trades, reflecting “blue collar bias,” the perception that non-professional occupations are associated with relatively low status.
Experienced construction workers, and new entrants with a good work history or prior military service, should enjoy the best job prospects. A variety of factors can affect job prospects and competition for positions. Entering specialties requiring specific education, certification, or licensure are likely to improve job prospects for those willing to get the needed certifications, licenses, training, and education. Jobs that cause a worker to be at great heights, are physically demanding, or expose workers to extreme conditions are also more likely to have less competition for positions and often have conditions related to high replacement needs. Occupations that have few training needs are likely to have increased competition and less favorable job prospects.
Certain occupations should have particularly good job opportunities. Because of the difficulty in obtaining certification as a crane operator, some employers have been unable to fill all their construction equipment operator job openings. Electricians, plumbers, pipefitters, and steamfitters are also licensed occupations that should have a favorable outlook due to projected job growth. Roofers should have favorable opportunities due to job growth and difficult working conditions which leads to high replacement needs. Boilermakers; brickmasons, blockmasons and stonemasons; and structural and reinforcing iron and rebar workers should have excellent opportunities because of the skills required to perform their duties and the difficult working conditions. Installation and maintenance occupations—including line installers and heating and air-conditioning mechanics and installers—also should have especially favorable prospects because of a growing stock of homes that will require service to maintain interior systems. Construction managers who have a bachelor’s degree in construction science, with an emphasis on construction management, and related work experience in construction management services firms, should have especially good prospects as well. Employment growth among administrative support occupations will continue to be limited by office automation. Construction laborers needing less training should face competition for work due to few barriers to entrance to this occupation. The outlook for carpenters will be heavily dependent upon residential construction activity, which is unlikely to grow as fast as in recent years. Painters should have good opportunities because of demand for their work, while paperhangers should have less favorable opportunities because of the reduced demand for their work.
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