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EDUCATION '99
Where Have All the Tradespeople Gone?
Connecticut's building trades face a crushing labor shortage. Can educational initiatives fill the breech?
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Business New Haven
8/9/1999
By: Susan Froetschel
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With the current building boom, masons, plumbers, carpenters, electricians and other skilled tradespeople have become almost an endangered species, particularly in the residential construction market. Contractors and developers in southern Connecticut are managing to keep up with the work, but severe labor shortages could result if projects on the drawing boards throughout the region - from the mall at Long Wharf in New Haven to a sports arena in Bridgeport - all materialize in the upcoming year.
"I think the real labor shortage is about to come, and that will require early planning on the part of general contractors and construction managers," says John Farnham, executive director of the Associated General Contractors of Connecticut. Construction managers are now calling around for next spring, trying to line up staff and double-check availability.
Ironically, the "feast or famine" nature of the construction industry discourages the training of new workers, says Michael Barbaro, owner of Construction Related Services, LLC in Branford, a division of Omni Business Group which does commercial and residential construction and consulting. During busy times, subcontractors lack time to train unskilled workers, and during down periods, the lack of work for skilled workers imposes too much competition.
"Unfortunately, for many unskilled workers, their talents stay at one level," Barbaro says.
In the meantime, area construction firms receive more blueprints than they can possibly bid on because of the lack of labor. "We had a meeting last week to discuss ways to attract and retain labor," says Barbaro. "We talked about vehicle and tool stipends. We're trying to be creative."
State Apprenticeships
Currently, the state has about 13,000 registered apprentices, about 85 percent of whom are in the construction trades, reports Jack Guerrera, apprentice program manager for the state's Department of Labor. The program is employer-driven and covers about 400 occupations.
The most rigorous programs are in plumbing, heating and cooling, electrical and sheet-metal work, requiring four years of apprenticeship and 16 evening courses on theories, codes, problem-solving and other technical material needed for state licensing exams, all based on a U.S. Department of Labor system which is honored nationwide. Starting apprentice wages are about $7 per hour for non-union apprentices and $9 per hour for their union peers.
Some young adults expect a "cakewalk" and enter and exit the program as through a revolving door, says Guerrera, adding, "They don't realize the requirements."
Students who studied the fields in the state's vocational-technical system enter the field with their coursework completed, but are advised to review before the exam. Even so, they get only nine months credit toward the apprenticeship program.
Some of the most successful apprentices are in their 20s, 30s and even 40s. "It's difficult for the average 18-year-old kid just graduated from high school to devote that kind of commitment," says Guerrera. He himself is a licensed plumber with a bachelor's degree in English. "I can tell you, college is much easier," he says.
Speed Building
The state could accommodate many more apprentices, but one reason behind the labor demand is a shrinkage in schedules. Construction managers and owners set strict time-lines in hopes of cashing in on a strong economy.
"The biggest problem is the unrealistic demands for timely completion of work," says Mitch Sorensen, executive director of the Masonry Contractors Association of Connecticut and the Associated Sheet Metal & Roofing Contractors of Connecticut. "The demands are creating a perception of a labor shortage."
For example, construction at Foxwoods Resort Casino is proceeding at such speed that designers perform "flash tracking," or designing a building as it is built. Retail developers feel similar pressure to open up for business and collect profits before competitors move into a market. Waterbury's Brass Mill Center Mall was completed in 18 months. Fifteen years ago, the mall would not have been built in less than two years, suggests Farnham.
Three summers ago, Yale University attempted renovations of a student residential hall over the summer. "They soaked up all the help around from Memorial Day through to Labor Day," notes Frank Gillon, vice president of KCK Construction, a project-management firm in New Haven that oversees all phases of construction from design to finishing touches. After paying a premium for that work, the university learned a lesson and constructed a "swing dorm," to be used by students when respective residential halls underwent renovation throughout the school year.
The city of New Haven does not have a single construction manager, and perhaps it could achieve greater savings if it stretched some of its building programs over a longer period of time.
"But there could be political costs," says Gillon. "They can't renovate a school at one end of town and ignore the others."
Schools are notorious for demanding work during the tight, busy summer months. "They call up and say they need 20 guys tomorrow," explains Sorensen. "They're not ready for 20 guys, they're only ready for three guys. Or they have delays constructing the steel frame, and they call for 25 masons and expect the masons to make up for the delays in the steel. The unrealistic time frames means there's not as much coordination as there used to be among subcontractors."
Masons in Demand
Of all the trades, masonry is in the greatest demand. "There's an extreme shortage of bricklayers," says Sorensen. "They're unavailable, completely employed."
Masonry is required at both the beginning and end of any construction, for any building meant to sustain the test of time. "There is no substitute for masonry," says Chris Severino, president and owner of Shoreline Masonry Inc. His firm does restoration stonework for colleges and also builds custom patios, pools, garden walls and fireplaces for high-end residences.
Much in demand, Severino is booked through 1999 and currently scheduling work for the spring of 2000 and beyond.
"What upsets me is the work I have to turn away - I've had to turn down hundreds of jobs a year," says Severino.
The need for masons and the shortage will not vanish overnight, and Severino expresses regret about seeing so many young people work at minimum-wage jobs along the shore when they could learn a skill that has a rich history and would eventually lead them to owning their own business. Connecticut is at a particular disadvantage because the nearest school for masonry is in Massachusetts.
"It is laborious work, especially as an apprentice," says Severino. Apprentices must work three years with a professional mason to acquire the skills. "To get skilled, you need to be patient."
Do It Yourself
In the current building climate, finding skilled tradespeople to do home improvements is a challenge. "We're getting a lot of calls and seeing a shortage of workers," says Ronnie Petrillo, vice president with R.S. Petrillo Co. Inc.
Both Severino and Petrillo note that many workers train with small firms and then move on to join unions, find more lucrative commercial work or start their own businesses. Petrillo points out that his firm will do emergency work, such as restoring electricity and air conditioning for an elderly person with a heart condition, at no extra charge. But otherwise, homeowners have to wait a several weeks for his firm to provide a basic repair or installation.
Jamie Genovese, owner of A+ Plumbing in West Haven, enjoys the short-term work and the scheduling control of home repairs. He notes that if he got involved in more construction jobs, homeowners would have to wait up to four months for a basic repair. Hiring new plumbers is impossible.
"I'm not even trying to hire," he says. "There's so much work available, anyone who's licensed works for the unions in construction or opens their own shop."
The combination of long waits and cost factors as well as encouragement from huge home-repair stores like Lowe's and Home Depot encourage more homeowners to do their own work. Petrillo, who installs water heaters for United Illuminating, says he goes into homes and "sees a lot of work done that does not look right." Later, when homeowners go to sell their homes, some of the home repairs have to be re-done. About 30 percent of Petrillo's work is associated with home inspections.
"I feel sorry for homeowners who have to find someone to do work on the home," says Petrillo. "It's hard to find someone who really cares, in any trade.
Even people in the know about construction are surprised by long waits. After purchasing a 70-year-old home last year, Sorensen tried to call landscapers for the spring and was advised that his home could not be scheduled until fall of this year.
Asbestos removal is less in demand, except when homes or buildings are up for sale. Finding employees is still a challenge, even though that skill requires only a week's training, according to Mark Pierne of ABS Environmental Asbestos & Lead Removal, with offices in New Haven and Fairfield. "Young people don't want to go for training," he says.
Typical residential asbestos-abatement jobs average $1,200 to $5,000. Some homeowners remove the asbestos themselves, even though state law requires that abatement be done by a licensed contractor. "It takes time to do the job properly, and people don't feel like they get anything for their money," adds Pierne. "We're removing stuff they don't care about."
Mobile Work Force
Capacity of skilled workers in any region changes from month to month. New Haven still has capacity, but a big project in New London or Stamford could quickly entice workers. "People who work in this industry understand that they have to work away from home," says Farnham. "They get used to working three days in Bridgeport, then two days in New London."
Currently, workers are being imported into the state from Rhode Island, Massachusetts, New York, New Jersey and even Canada. "A lot of interior drywall, ceiling and floor contractors are coming out of Canada," notes Farnham.
But Connecticut workers tend to stay within the state and travel less than workers in other states, according to industry observers. "Connecticut construction workers don't travel to the same degree as workers do in other parts of the country," says Gillon, noting that trips along I-95 and other busy highways can be grueling.
Union workers used to be prohibited from working outside their local area for local wages. Now the unions have portability and receive their home rate regardless of where they work, and according to Farnham, this has allowed contractors to reach out greater distances to secure a workforce.
Cyclical Business
Anyone experienced in construction anticipates booms and busts. As building intensifies, new firms form and wages rise and workers get pulled from the residential workforce. The unions have more training programs built into their packages, but both union and non-union shops have shortages of employees.
Connecticut is currently in an up cycle for construction, and wages and profit margins have increased slightly. Subcontractors are busy, so they tend to offer higher bids on proposals. The increases have a spiraling effect. Labor, which represents 25 to 45 percent of a construction project's cost, is monitored closely.
Trade workers typically find better earnings and benefits with the commercial rather than the residential side of the industry. "The industry has had to do things to retain good people," says Farnham. "Also, people conduct business in a more efficient manner. There is less manpower, but more skilled manpower."
Unlike previous boom periods, however, firms are not expanding as quickly for two reasons: the skilled help is unavailable and business owners don't want to get burned with extra help in case another recession hits.
Wage Pressure
"People are fully booked, and the reality is that very shortly there is going to be tremendous wage inflation pressure," says Gillon.
Unemployment rates are at record lows - and the building trades attract fewer young people. "If you're short of help, you can't create help," says Gillon. "If you need a large pool of workers, you have to steal from someone else."
Skilled tradesmen typically work full-time, with no sick time, no holidays, no vacations; excluding overtime, they might make $40,000 salary per year. "That is not an overly attractive income compared to a lot of industries," says Gillon, adding that young people choose other careers or will jump from jobs to work in better conditions. "A good example is this past week. If you had a nice project in an office with an air conditioning, would you want to work outside?"
At the same time, profit margins have shrunk. "Owners are using more scrutiny - facilities people, project managers - and they charge administrators with keeping the pencils sharp," says Farnham. "They keep the work on time and of a high quality and within budget."
Over the past five years, penalties, or liquidated damages, are written into contracts and imposed by owners when contractors can't finish before the due date. In the current rush-construction climate, delays are costly and cause ripple effects throughout the process, as all the subcontractors work under tight schedules. Even sophisticated contractors take the risk of penalties if they feel they can make the deadline. "If you're a contractor, you're a big risk-taker as it is," says Sorensen.
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\Chart Hed\Average Union Wages In New Haven Area
Wage with Benefit Package
Plumbers $25.30 $35.17
Ironworker 24.40 37.86
Electrician 23.85 34.25
Asbestos remover 23.81 33.81
Sheet metal 22.60 34.70
Roofers 21.95 28.85
Teamster 19.80 26.80
Carpenter 19.30 27.02
Bricklayer 18.30 23.40
Laborers 17.75 24.75
Operating engineer $16-19 $23.70-26.70
Source: Associated General Contractors of Connecticut
\sidebar hed\HELPING SMALL CONTRACTORS
In the busy construction climate, it's not unusual for small contractors to place a bid on a project and find themselves involved in work that's over their head, failing to complete the job in time or within budget.
"This happens a lot," says A. Walter Esdaile, director of the New Haven Small Business Initiative. "The problems can jeopardize the future of the company, either its profitability or its ability to gain other contracts. It's a benefit for everyone - large contractors, owners and small contractors - for small contractors to be successful. But small contractors can only get better by doing more work."
The city of New Haven is preparing for a potential shortage of skilled construction workers. The New Haven Regional Contractors Alliance is a new non-profit corporation, instigated by a mayoral task force, designed to increase the number and size of contracts awarded to small firms owned by minorities and women.
"This is an opportunity to ease the manpower shortage," says John Farnham, executive director of the Associated General Contractors of Connecticut, who served on the mayor's task force and will serve as a consultant to the group.
The Alliance will enhance the ability and capacity of small contractors by offering business and technical training, as well as networking and mentor services, suggests Esdaile. Courses will cover estimating, bidding and other technical topics in the field - and will be taught by experienced contractors. The Alliance will invite both large and small contractors to be members, as well as major construction players in the city, including Yale University, the city and the board of education.
The nonprofit Alliance is based on a model in New York City, where it's a local requirement that certain percentages of work go to contractors owned by minorities or women. New Haven had a similar ordinance, which was contested by Associated General Contractors of Connecticut and was eventually allowed to expire without renewal. Still, New Haven has requirements on individual workers on city construction jobs, requiring certain percentages of minority workers and women to be employed on job sites.
The Urban League is organizing a similar networking/education program for small contractors, with a pilot office in Hartford and additional offices eventually planned for Bridgeport and Waterbury.
The Alliance is currently searching for an executive director. Until then, more information can be obtained from Esdaile at 203-946-7668.
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