The Daily Reporter | A History of Construction | Surviving the Great Depression and World War II

Surviving the Great Depression and World War II

The industry adapts to life in the 1930s and ‘40s

By Dick Snow

The Great Depression of the 1930s followed the high-living days of the ‘20s and had a negative impact on the construction industry in Wisconsin and elsewhere.

This was a period, though, of government construction and public works, and a modicum of activity did take place. It also spawned the birth of labor unions, with craftsmen banding together for better wages, working conditions and job preservation.

Two agencies, the Works Progress Administration and the Civilian Conservation Corps, were organized to provide construction work. There are still many WPA and CCC projects evident, such as parks, bridges, roadways and recreational buildings.

While the Depression era bankrupted some contractors, other new companies formed, primarily from the ranks of craftsmen.

It is noteworthy that labor, education and safety services provided by the various trade associations went a long way in assisting contractors who had to deal with the economic problems of the time. In general, the folks who paid attention prevailed.

Meeting new demands

Construction equipment manufacturers, despite the pain of the Depression, began marketing programs and discovered new equipment as well as ways to improve existing tools. When World War II erupted, the new and improved equipment became essential in facilitating military construction projects.

Graders, backhoes, front-end loaders, trenching equipment, palletizing, hydraulic and pneumatic machinery, much of it manufactured in Wisconsin and the greater Milwaukee area, became working tools for tradesmen.

Despite the demands for military personnel that decimated the private construction work force, there was, indeed, construction in the state. Housing and public service facilities were much in demand.

Military construction led directly to training construction workers in specialized units of the Army Corps of Engineers and the Navy’s Construction Battalions.

Matter of fact, the corps, in cosponsorship with the Associated General Contractors of Greater Milwaukee, formed the 961st Engineer Construction Battalion. Two of its earliest commanding officers were Cols. John Dahlman and Verdayne John. While the unit still exists at the headquarters of the 84th Infantry Reserve Division in Milwaukee, the corps ended its association with AGC in the 1960s, the last such "joint venture" in corps history.

One would think that the demand for construction materials would have caused some less-than-quality construction on the home front. Not so. The quality of craftsmanship remained high in Wisconsin, and the proof rests with the buildings that still stand today.

Changes at home

Some construction manufacturers wound up making war materials, such as shovels and cranes from Harnischfeger, Bucyrus-Erie and Allis-Chalmers; Caterpillar tractors; mixers from Rex Chain-Belt; bomb casings from A.O. Smith; electrical equipment from Allen-Bradley and Square D; and torpedoes by Nordberg Manufacturing.

World War II also sparked the construction of the giant Badger Army Ammunition Works near Baraboo and expansions at Camp McCoy and Volk Field.

The necessity for new manufacturing facilities led to steady accounts for many Wisconsin contractors. Selzer-Ornst did a vast majority of Allen-Bradley construction; the now defunct Siesel Construction Company did virtually all Allis-Chalmers’ construction; and Klug & Smith did heavy construction for Harnischfeger and Chain Belt. Peters Construction, no longer in existence, did much of the work for A.O. Smith.

Industry evolution

Despite the steady accounts, there was diminished activity on the home front during the war. When the war ended, the construction vacuum created great marketing opportunities. Many new contracting and subcontracting firms took advantage, and they didn’t have any trouble finding craftsmen to fill the ranks.

Something else happened during the World War II era. Contracting became more professional, and the newest generations went through college instead of apprenticeships.

Bankers became more sophisticated, requiring more fiscal reporting and thus, more accounting. Building a good financial record became vital to obtaining bonding. It was the end of a long period of construction history when “handshakes” took place between owners and contractors. Now, legal documents and specifications were required and up jumped the law firms. Labor bargaining really toughened up.

In some respects, it was the beginning of the industry’s penchant for litigation.

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