The impending exit of the baby boomers from construction jobs offers an obstacle for the industry to overcome
The construction industry in America is standing in the shadow of a historically unprecedented hurdle. The workforce is aging, and candidates are not being drawn into the industry quickly enough to compensate for the inevitable mass exodus of the baby boomers. In 2004, Bobby Rayburn, then president of the National Association of Home Builders (NAHB), identified “a shortage of skilled workers” as being “one of the most serious challenges” facing the homebuilding industry (source: Sacramento Business Journal). The housing downturn that has occurred since Mr. Rayburn spoke those words has not changed the situation; a lack of skilled workers is still a real and quickly approaching obstacle to be overcome by the industry. And that is just the residential sector. Commercial construction has been booming while residential construction has been swooning, and some firms are already feeling the pinch of an undersupply of skilled workers in certain disciplines.
Statistics tell the story well. A recent Human Resources Blog entry offers some interesting numbers from Ira S. Wolfe’s Perfect Labor Storm 2.0. For example, “there are now more people over 90 or 100 years old than in all of American history put together.” Even more startling for this paper’s purpose is this: “the 50 and older population in the U.S. from 2000 – 2050 will grow at a rate 68 times faster than the rate of growth for the total population.” Or try this one on for size: “Almost 90% of the net increase in the traditional working age population is projected to occur in the age 55 – 64 group,” and “over the next 15 years, 80% of workforce growth in developed economies of North America…will occur among people 50 years and older.”
Crane operating has been a big issue in the news during the first half of 2007, and we are likely to see it continue into 2008. There have been countless reports on the shortage of not only cranes, but more importantly the experienced workers qualified to operate them. Due to this, crane operator wages have increased as their supply has decreased. Take crane operators as the bellwether of the skilled construction job market: other disciplines are soon to find themselves in the same situation.
A recent article in EC&M points out that the “size of the 20- to 24-year-old male group continues to decline slowly throughout 2007, reduced by stronger immigration enforcement and hiring by manufactures and motor carriers.” Meanwhile, the average age of a skilled construction worker, depending on where you are in the country, is currently hovering around 47. With such a high average age and the number of younger people entering the industry falling, the fact that there will be a labor shortage is undeniable. As Beck Ireland points out in the EC&M article, “firms may have difficulty finding qualified workers or, if they do, then they’ll have to offer higher salaries and better benefits to remain competitive.”
These observations offer encouragement to the young people who are choosing to enter the construction industry. First and foremost, the U.S. Bureau of Labor Statistics shows that over the past year or two, employment growth in construction was higher than any other of the Bureau’s chief subcategories. Additionally, in 2005 – 2006 every region of the United States reported an increase in construction employment more than double the increase in total employment. In other words, construction has some of the strongest job growth of any major industry.
So, what does this all mean? Basically, construction jobs, even with the housing downturn, continue to grow thanks to great performances on the commercial end. With the baby boomers poised to retire, there will be a shortage of qualified and experienced people to sustain the industry’s demands. Also, with the exit of so many highly experienced individuals with long tenures in the industry, positions up the ladder will be opening up as well, meaning that individuals choosing to enter the construction industry today will not only find themselves comfortable with strong job security, but also fortunate in the host of opportunities available to them to climb the career ladder. In fact, the possibilities available to young people entering the industry today are phenomenal. The sheer variety of different positions, firms, and specialties, combined with excellent prospects for the future, make construction a top industry for employment to people smart enough to realize its potential.
Comment on this article by clicking here to visit the related post on ConstructionJobsBlog.com!
Please feel free to contact Mark Avera about this or any other article you read on this site at MAvera@TopBuildingJobs.com.
RECOMMEND THIS ARTICLE
You must be logged in
to recommend articles
|
