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The reason contractors in the Houston area need comprehensive immigration reform immediately is straightforward: to have legal access to immigrant workers so that they can help build all the projects that are planned or are already under construction in this market, which is coming on like gangbusters. The market is projected to keep booming for at least the next three to five years.There is no doubt in my mind that the greater Houston area is in the midst of an unprecedented building boom. In my 31 years of closely monitoring this construction marketplace, I have never seen the conditions that exist now. And it’s projected to continue going forward. All major market sectors – residential, heavy industrial, highway and civil, and commercial – are on fire and so is every segment within those sectors.In residential, both single-family and multi-family units are being built at record levels. In heavy industrial, it is both power and chemical plants – driven by natural gas as both a power and feedstock source – that are being built here in Texas and next door in Louisiana. In highway and civil construction, the Texas Department of Transportation as well as cities and counties all have projects underway, and more projects are on the drawing board. And in commercial, it is the medical segment, the K-12 school segment, the colleges and universities segment, the warehouse segment, and general purpose office space segments that continue to all see building at near record levels.
Reshaping the Construction Industry
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I had the pleasure of shooting the breeze with Chamberlin Roofing and Waterproofing President and CEO, John Kafka the other day. As he recalled days gone by, he shared with me what he thinks has been a powerful caveat for the collective success of the company – a refusal to give up. Even in the most difficult times, he shared, he never wondered IF Chamberlin would succeed, though he perhaps wondered HOW at some particularly low points over the past 36 years.Since “success is not a destination but a journey,” we at Chamberlin continually strive as an organization and as individuals to grow. We keep in motion, always taking the next step forward as challenges confront us. Throwing our hands up in the air and giving up is never even a consideration.To that end, I am proud to announce that a handful of key Chamberlin folks have recently taken the next step in their professional journey, having been promoted to Vice President.
December 10, 2014
Construction employment hits 5½ year high in November; spending climbs in OctoberEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Nonfarm payroll employment increased by 321,000 in December, seasonally adjusted, and by 2,734,000 (2.0%) over 12 months, the Bureau of Labor Statistics (BLS) reported on Friday. Construction employment rose by 20,000 for the month and 213,000 (3.6%) over the year to 6,109,000, the highest total since April 2009. Residential construction employment (residential building and specialty trade contractors) climbed by 16,700 for the month and 122,800 (5.6%) for the year. Nonresidential employment (building, specialty trades, and heavy and civil engineering construction) increased by 3,600 in November and 90,100 (2.4%) year-over-year. Average hourly earnings for all employees in construction rose 2.7% from November 2013 to November 2014, the largest year-over-year increase since September 2009 and double the 1.3% increase recorded a year earlier. The number of jobseekers who last worked in construction hit an eight-year low of 629,000 and their unemployment rate fell to the lowest November level in seven years:
December 09, 2014
Far too often, construction companies cheat taxpayers and their workers by pretending their employees are independent subcontractors when, by law, they should be paid as employees. It’s a practice known as worker misclassification. Some ethical contractors have called it a “cancer that is eating at the heart of our industry.”
December 08, 2014
ImmigrationWorks USA held a national conference call to discuss President Obama's announcement of an executive action that will grant work permits to up to 4 million unauthorized immigrants – primarily parents of U.S. citizens and permanent residents – who will now be allowed to remain in the U.S. legally.Joining the call were members of the IW legal advisory team to discuss the policy and what it means for you.
December 05, 2014
The following article originally appeared in the December newsletter to clients of Kiley Advisors, LLC for the purpose of providing the latest leading indicators and industry issues to those clients. Reprinted with permission.As the year comes to a close, Houston did significantly better than we expected. We started the year by telling you to expect the “new normal,” the Greater Houston Partnership’s forecast of 69,800 new jobs, 30,000 new home starts and 12,000 multi-family units to be built in 2014. And eleven months later, we are expecting over 100,000 new jobs, 18,000 multi-family units delivered thus far with another 24,500 under construction and an estimated 30,000 new homes. This year was a much better “normal” than anyone expected, so will this be the “normal” in 2015?
December 04, 2014
Now that the election is over, political news has quickly become dominated by the impending immigration showdown between President Barack Obama and the Republicans on Capitol Hill. In my opinion as an employer, the president's intent to use an executive order to extend legal status to millions of undocumented people in our country is simply misunderstood. To the tea party, it is amnesty. To the faith community, it represents compassion. As a practical matter, it's just a reflection of reality.
December 02, 2014
A recent study prepared by NRG Research for the Independent Contractors and Businesses Association of British Columbia (ICBA) reveals that 59% of the respondents were unaware of how to get into the trades because of misperceptions of the construction trades. The study also showed that less than 50% of the respondents saw the construction trades as a long-term career. Most of the respondents (British Columbians aged 18-29 years old) ranked construction jobs and skilled trades at the bottom of the list of possible jobs. The study concluded that the industry has not done a good job of defining a road map for careers in the skilled trades in construction.
December 01, 2014
Most states record job gains through October; PPIs for inputs, highway cost index slideEditor’s note: Construction Citizen is proud to partner with AGC America to bring you AGC Chief Economist Ken Simonson's Data DIGest. Check back each week to get Ken's expert analysis of what's happening in our industry.Sign up now for December 4 NABE Webinar with economists from AGC, AIA and Redin.Seasonally adjusted construction employment increased in 37 states and the District of Columbia from October 2013 to October 2014, decreased in 12 states, and remained flat in Hawaii, an AGC analysis of Bureau of Labor Statistics (BLS) data released last Friday showed. Florida again added the most jobs (38,900 jobs, 10.2%), followed by Texas (38,500, 6.2%) and California (34,300, 5.3%). The largest percentage gains were in North Dakota (15%, 4,900 jobs), Utah (14.9%, 11,000) and Florida.
November 26, 2014
Sweeping education reforms passed by the Texas Legislature in 2013 will be a great help to business leaders in Houston as they embark on an unprecedented push to promote “middle skills” jobs. Those are well-paying jobs that, as the Construction Citizen team has been telling you, require more than a high school diploma but less than a degree from a four-year college or university. It’s estimated that a whopping 40 percent of jobs in the greater Houston area fit that definition.A huge piece of that education reform package, known as House Bill 5, was the creation of multiple pathways for students to earn their high school diploma. Among the options students and parents can now choose from is a career in the blue collar trades like construction.
November 25, 2014
