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Plenty of work, too few workers

By: Shelby King//October 22, 2014//

Plenty of work, too few workers

Shelby King//October 22, 2014//

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Ken Simonson, chief economist for the Associated General Contractors of America, speaks about a report released Wednesday indicating a shortage of skilled construction workers in Oregon and nationwide. (Sam Tenney/91视频)
, chief economist for the Associated General Contractors of America, speaks about a report released Wednesday indicating a shortage of skilled workers in Oregon and nationwide. (Sam Tenney/91视频)

An aging workforce and a shallow labor pool means the construction industry in Oregon is facing a shortage of workers 鈥 and it will likely worsen before it improves.

Data released Wednesday by the Associated General Contractors of America indicates 83 percent of reporting Oregon construction firms are struggling to find qualified craft workers and 54 percent are having a hard time filling professional spots.

At its peak, in 2006, the U.S. employed 7.7 million workers in the construction industry. By 2011 the industry had lost 2.3 million jobs, or 30 percent of its workforce, Chief Economist Ken Simonson said.

鈥淲hen the industry was at its worst we had a 43 percent unemployment rate,鈥 said , executive director of AGC’s Oregon-Columbia chapter. 鈥淲e’ve found it didn’t take much of an upturn for the industry to be faced with a shortage of workers.鈥

The industry has rehired about 600,000 workers since the economy began improving, Simonson said, and already firms are struggling to find qualified workers. He attributes this to people retiring, finding other careers and dropping out of the workforce entirely.

鈥淣ow that we do have work we’re adding workers at double the rate of other industries,鈥 he said. 鈥淏ut we’re quickly getting to the point where the pool of former workers is depleted.鈥

Simonson said the construction industry is increasing its workforce by about 3.9 percent each year, whereas the nationwide pace is around 1.9 percent for the last 12 months.

鈥淔ifty-six percent of Oregon contractors have increased wages to retain and recruit craft workers,鈥 he said. 鈥淔orty-nine (percent) have boosted base pay rates to attract construction professionals.鈥

Steve Malany, president of Portland-based P&C Construction, said he pays his employees anywhere from $25 to $40 an hour and offers full benefits.

鈥淚t’s not just a job; it’s a career,鈥 he said. 鈥淵ou can support a family on these wages for the rest of your career.鈥

But if there’s no one to hire, it doesn’t matter how much firms like P&C Construction are offering.

Salsgiver said the average age of a construction worker is 43. The average age of a skilled construction worker 鈥 someone who can work unsupervised and has often gone through a formal apprenticeship program 鈥 is 46.

, a public charter high school for juniors and seniors, is hoping to educate the next batch of construction professionals, executive director Mark Clifford said.

Students enrolled at ACE take classes at the Northeast Portland campus for half a day, and then return to their regular school for the other half. ACE offers kids specialty classes in architecture, construction and engineering in addition to typical high school classes like English, math and science.

鈥淪ome of the schools have similar programs 鈥 Reynolds has a construction class, for example 鈥 so students can have that and come here to get an education they can’t get at their high school,鈥 Clifford said. 鈥淭his program is designed not to be just like a regular high school program, but to augment it.鈥

Right now, four Portland-area school districts 鈥 Gresham-Barlow, Parkrose, Reynolds and Centennial 鈥 have partnerships with ACE, though Clifford said the school would like to include other area schools and recruit more students.

Malany, who’s serving as president of AGC’s Oregon-Columbia chapter in 2014, said he and the other chapter members at their monthly meeting have discussed how to reintroduce career technology education into local high schools.

鈥淗igh school officials in this program say graduation rates for the students who participate are up 15 to 20 percent,鈥 Malany said. 鈥淚t holds their attention because they’re participating in hands-on, real-life situations that help them understand what having an education can do for them in the long run.鈥

Salsgiver said there has been a clear directive in public schools over the past 40 years to reduce funding to shop classes and similar ones, and encourage students to follow a four-year college path instead. But he argues that not all students excel in a high-tech environment.

鈥淭here is a clear correlation between a certain type of student, one who likes to work with their hands and isn’t a traditional student,鈥 he said. 鈥淭hose types of students, traditional classrooms don’t work for them.鈥

Malany said that AGC and ACE also are making a concerted effort to educate high school counselors that options like ACE exist.

鈥淲e’re trying to make people aware that construction is a great industry,鈥 he said. 鈥淭hey came through a four-year university, so that’s the way they’re geared. Through training efforts we’re trying to open their eyes.鈥

Of the Oregon construction firms polled by AGC, 51 percent said the local pipeline for preparing new craft workers is poor, and 25 percent of poll respondents expressed a low opinion of the local pipeline for construction professionals.

鈥淭here hasn’t been a place for students to go, and we’re trying to reconnect them,鈥 Salsgiver said. 鈥淚t’s going to take us a long time to rebuild this pipeline.鈥



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