History and Hope: The State of the WorkforceThe state of Houston’s Commercial Construction Craft Workforce is an increasingly frequent topic of conversation with contractors and owners. These discussions always prompt worry and concern. And, well they should. Here are the brutal facts:For the past 30 years, the industry has been unable to attract young Americans to study the construction trades. Craftwork is currently unattractive to high school graduates as a career path, and it is further discouraged as a choice by both parents and guidance counselors; it has become the career of last resort.
Activity Still Outpaces the Numbers, but The Picture is Becoming BrighterWe are well past the mid-year point; everyone is reporting increased bidding or proposal opportunities; yet, at the end of June 2012, the amount of non-residential new commercial construction contract awards was still tepid, even slightly behind last year, at this same point. Specifically, total new non-residential contract awards totaled just under $1.8 Billion, indicating a market of around $3.6 Billion for this year. That number would still be appreciably better than last year’s $3.35 Billion. (Note: These numbers do not include Exxon/Mobil, which is certainly well underway.)To be a better year, however, the market needs to shake off the “2nd half syndrome”. In all of the past 3 years, decent mid-year numbers declined in the last 6 months.
August 23, 2012
Last week, I attended the Texas Carpenters and Millwrights Training Trust meeting in San Antonio. Approximately 15 people participated – a blend of management and labor trustees – from the major cities in Texas. We also had a special guest, Dennis Donahue, the newly appointed head of the Millwrights Union for an 11 state area.We had a special presentation by Kenneth Posey of the Houston Community College; his objective was to explain the relationship between the HCC and the Houston Apprentice School. He is a fine gentleman, a registered engineer, and a former director of the Pipe Fitters Apprentice Program. He is a passionate advocate for craft training.He opened his remarks by distributing the brochure and bragging about the initiative Construction Career Collaborative (C3), suggesting it will only enhance craft training
December 13, 2011
One of our bloggers, Pat Kiley, CEO of Kiley Advisors LLC and former president of the AGC in Houston, attended the recent screening of the Houston 2040 Scenarios presented by the Center for Houston’s Future.Here are his observations and comments.I think all Construction Trade Associations and their members should see this presentation, and simultaneously learn about the Construction Career Collaborative (C3) and the Immigration Reform efforts.Either of the two scenarios, or something in between, creates enormous opportunity and enormous challenge for our industry. The opportunity is to create the built environment required
November 10, 2011
2011 has begun with more optimism, for sure. It is supported by some encouraging facts and activities involving Houston’s energy companies, the real estate community, architects and engineers, even lenders. However, as it relates to actual non-residential contract awards the facts are still sobering; the market is still significantly depressed. Data from McGraw Hill suggests that 2011 will be only slightly better for non-residential construction than 2010, well behind 2009, and light years behind the pre-recession 2008 numbers. While we expect the market to improve over the coming months, it will be gradual, and may not be truly discernible until the 4th quarter of this year.So what gives reason for optimism?There are several “front end conditions” that are significantly better than a year ago. If they continue, they will promote new commercial construction projects over time. Specifically, the overall Houston economy is better, thanks mainly to the health of the energy companies.
May 26, 2011
