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Filling the Ranks

Industry builds its work force

By Seth Ansorge

Filling the RanksIf someone had told construction insiders 20 years ago that 1983 marked the start of something big, they probably wouldn't have believed it.

Just one year earlier, as unemployment levels across the nation hit 10 percent for the first time since the Great Depression, the number of construction workers in Wisconsin dipped below 57,000, the lowest mark in almost two decades.

In 1983, the field saw slow gains, up to 57,700 workers, but the picture was still grim.

"This was a full-blown recession," said Michael Fabishak, executive vice president of the Associated General Contractors of Greater Milwaukee. "Mortgage rates were up to around 17 (percent) or even 18 percent. As a consequence, many people in this industry were put on hold beyond the point of seasonal layoffs. A lot of those I think had to move on. They could only hold on so long before the faucet got turned back on."

Funny thing was, once the "faucet" opened up again, the initial trickle of jobs grew steadily, year by year, for an astounding 18 years. By the end of that run, the number of construction workers in Wisconsin had reached flood proportions.

In 2000, there were 124,000 construction workers in the state, and talk centered more on worker shortages than unemployment lines.

"At that point, it was almost as though if they were breathing they could be put to work," Fabishak said. "Undoubtedly, employers were looking for the most capable people, but at some juncture, they were just trying to get anyone to fill positions at all levels."

Since their peak in 2000, employment figures have dropped off slightly. Heading into 2003, the construction industry employs about 122,900 people, according to the latest figures from the state Department of Workforce Development.

Diverse work force

But despite recent declines, the 20-year span from 1983 to 2003 is still a remarkable era for the industry. Not only did the number of employees mushroom, but the inclusion of minorities and women in the field made major strides.

Perhaps the largest step came in 1983 when government officials passed Wisconsin Act 390. The Act, signed by then-Gov. Tony Earl, allowed certified minority-owned business enterprises a low-bid waiver if they were within 5 percent of the lowest bid on a project. And it set a target that 5 percent of state purchases and contracts would go to MBEs, a goal now monitored by the state Department of Administration.

Godwin Amegashie, the director of the state's Minority Business Enterprise Program, said the effect of Act 390 was truly groundbreaking.

"What it has done, in very simple terms, is spur the development of minority-owned businesses in the state of Wisconsin," he said. "It got us to the point where the state has made itself a good prospect for opportunity for MBEs."

Not much legislation gets its own party, but to commemorate the 20th anniversary of Act 390, Business Opportunities in the Government Sector is throwing a bash April 17 at the Monona Terrace in Madison.

"It's a celebration of a successful public policy," Amegashie said.

Women get involved

Act 390 was not unprecedented. A year prior, the federal Surface Transportation Act set a national goal of placing at least 10 percent - a figure that has since dropped to 8.7 percent in Wisconsin - of federal highway and transit funds with disadvantaged-business operators.

At the time, neither Act 390 nor the federal bill applied to women. But few argue that there were enough women in construction at the time to merit such legislation.
While exact statistics are not available, most industry analysts agree that women contractors were anomalies in the early 1980s.

"Gender in construction was basically negligible in 1980," said Terry Ludeman, the DWD's chief of the local work force planning section.

But in 1987, a subsequent act to the Surface Transportation Act included women-owned businesses. And the number of WBEs grew throughout the booming 1990s.

Today, women make up a little less than 10 percent of the construction work force nationwide, according to the Center for Women's Business Research in Washington, D.C.

But heading into 2003, the center lists construction as one of the top two traditionally male-dominated industries gaining women workers. From 1993 to 2000, women working construction jobs climbed 20 percent, from 617,000 to 913,000, according to the U.S. Bureau of Labor Statistics.

"In the last 10 years, I continue to see and meet a lot more women in a variety of roles in the industry," said Laura Cataldo, former president of the Madison Chapter of the National Association of Women in Construction, now in its sixth year. "Really, in the past 10 to 15 years, there is a need to fill positions. Employers are looking for sources of labor, and for women, that means more opportunities for nontraditional careers."

Aging workers

There's no question that the employment boom from 1983 to 2000 has cooled off substantially. But looking ahead to 2023, some industry analysts say the prospect of mass layoffs is not what worries them most.

Instead, it's the aging work force - and a paucity of new blood - that has employers nervous.

Karin Wells is an economist for the projections unit of DWD's Bureau of Workforce Information. Collecting employee data from each trade, the DWD estimates a total of 135,800 construction jobs by 2010. That's nearly 13,000 more than in 2002, a level of growth considered slow but steady.

The state's dip in population growth and expected interest rate hikes will have a dampening effect on job creation, while higher household incomes and continuing low levels of overall unemployment and inflation should keep builders punching clocks, she said.

Most of that increase - about three-quarters - will come from specialty-trade contractors. For example, about 6,000 new carpenters will be needed, plus 5,000 new electricians and 2,500 new painters for construction and maintenance.

Wells hesitated to predict what the work force will look like in 2023. But with so many workers today older than 50, finding enough young people to fill retirees' shoes will be a challenge, she said.

New look

To meet that challenge, Cataldo said the construction industry needs an image overhaul. Shows like Fox's "Joe Millionaire," which presented a $19,000-a-year construction worker with a "last resort" for gainful employment, puts a wrecking ball through the industry's reputation.

To fill the ranks in the next two decades, Cataldo hopes more women will be drawn by what construction work can offer: high wages, meaningful work and a feeling of accomplishment at the end of each day.

As a group, NAWIC members raise money for scholarships to put women in construction courses at the University of Wisconsin-Madison or the Tools for Tomorrow program at Madison Area Technical College. And they've hosted LEGO building competitions at the annual Kids Expo and led "cookie-engineering competitions" at Girl Scout meetings. The purpose is to get girls interested early.

- Construction Employment (Chart)

- Construction Employment by 2010 (Chart)

"We need role models out there for women considering construction as a career choice," she said. "They see us in our hard hats, and that's a big thing."

Amegashie said the same is true for minorities. Since Act 390 in 1983, government leaders have shown "a commitment to encouraging minority-owned enterprises," he said. But as the work force dwindles, more needs to be done to attract people of all colors and backgrounds.

"I don't know what will happen in 20 years, but my personal view is that we need to get innovative and try to attract the young people just to keep the industry alive," he said. "The carpenters and metal workers are aging."

And although computers are typically pegged as the new tools of the future, Amegashie said construction workers aren't likely to be phased out.

"Computers don't build houses, humans do," he said. "And I'd venture to say that won't change a lot."


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