The summer construction season is finally under way, but still lagging in jobs.
Jeff Sachse, regional labor analyst for the state Department of Workforce Development, said the Green Bay
Metropolitan Statistical Area — which includes Brown, Kewaunee and Oconto counties — was about 600 construction jobs short of last year as of May. What is not yet clear is whether that is structural or because of bad weather.
"A lot of contractors I talked to said they started a lot of projects three weeks late this year because of wet weather," he said.
Construction jobs totaled 5,100 in March, 6,100 in April and 6,200 in May. That compares with 6,800 in May 2010 and about 7,000 throughout the summer.
In a normal economic recovery, improvement in the housing market leads the way by creating construction jobs. But home prices haven't stopped falling, and the construction industry nationally has shed 8 percent of its workers since June 2009 — 474,000 jobs in all.
"The hiring patterns are being driven so much by residential construction right now," Sachse said.
While there are some larger commercial projects under way — and more planned — that segment also is struggling.
Mike Johnson, president and founder of IEI General Contractors Inc. of De Pere, said he's hoping at least to maintain business at last year's much-reduced level.
"We are all worried about the long term," he said. "We don't see a lot in the future in any specific area. It's not unusual to see 12 to 15 bidders on a project. And there are people coming from outside the area, too."
IEI is overseeing construction of the new Menards Home Improvement Store in De Pere and will vie for the Menards planned for Howard.
"If we are fortunate enough to get both of those, that will help a lot," he said.
The Menards project will employ about 20 IEI workers, and 60 construction workers at its peak.
Not all is gloomy.
Jeff Knaus of Plumbers & Steamfitters Local 400 in Kaukauna said this year is better than last, due in part to a lot of maintenance projects.
The recently completed refueling and capacity upgrade for Unit 2 at Point Beach Nuclear Plant and a number of wastewater treatment plant projects are keeping union members busy, he said. Also, Point Beach's Unit 1 will be refueled and upgraded in the fall, and Marinette Marine in Marinette and Bay Shipbuilding in Sturgeon Bay have full dockets.
"There's a lot of maintenance work and it's more promising as far as the two shipyards," Knaus said. "They could all use more work, there's no doubt. The light-commercial end is lagging a little bit."
Jeff Gaecke of Howard, executive director of the Mechanical Contractors Association of North Central Wisconsin, said word of new projects is hopeful.
"Anytime you start to hear $50 million projects (Schreiber Foods) are being constructed, it's a positive thing for our community," he said. "I don't necessarily know if (the improvement) has gotten to our members yet."
Projects under way include the Watermark/Younkers redevelopment project in downtown Green Bay, CVS Pharmacy at North Webster Avenue and Main Street, and the Velp Avenue and U.S. 41 highway reconstruction.
Projects on the drawing boards include the Howard Menards, Schreiber Foods Inc. in downtown Green Bay and Veterans Administration medical center on University Avenue in Green Bay.
Sachse said the U.S. 41 work is slower than last summer because much of the work now — mostly on bridges — is less labor intensive.
Tim Rinn, director of business development for Ganther Construction of Oshkosh, which is overseeing the Younkers redevelopment in downtown Green Bay, said businesses that have been considering new projects are thinking now is a good time to get started.
"I think what they are finding is labor has stayed pretty consistently low, but materials are going up," he said. "There is no reason to wait anymore."
Johnson and Rinn said construction companies are looking for the next niche to specialize in.
"We landed the national Jiffy Lube contract. If you look at the demographic shift … it's the biggest demographic shift you've ever seen," Rinn said. "Who who's over 65 is going to crawl under their car and change the oil?"
The impact, too, depends on how much local labor contractors employ. Rinn said that for the Younkers project, Ganther will hire local subcontractors whenever possible.
Sachse said the larger commercial jobs will smooth out the seasonality of employment, but there aren't enough of them yet to cause significant improvement."There is a lot of activity going on. The people that are employed are keeping busy. There just isn't enough to increase hiring," he said.
Jeff Sachse, regional labor analyst for the state Department of Workforce Development, said the Green Bay
Metropolitan Statistical Area — which includes Brown, Kewaunee and Oconto counties — was about 600 construction jobs short of last year as of May. What is not yet clear is whether that is structural or because of bad weather."A lot of contractors I talked to said they started a lot of projects three weeks late this year because of wet weather," he said.
Construction jobs totaled 5,100 in March, 6,100 in April and 6,200 in May. That compares with 6,800 in May 2010 and about 7,000 throughout the summer.
In a normal economic recovery, improvement in the housing market leads the way by creating construction jobs. But home prices haven't stopped falling, and the construction industry nationally has shed 8 percent of its workers since June 2009 — 474,000 jobs in all.
"The hiring patterns are being driven so much by residential construction right now," Sachse said.
While there are some larger commercial projects under way — and more planned — that segment also is struggling.
Mike Johnson, president and founder of IEI General Contractors Inc. of De Pere, said he's hoping at least to maintain business at last year's much-reduced level.
"We are all worried about the long term," he said. "We don't see a lot in the future in any specific area. It's not unusual to see 12 to 15 bidders on a project. And there are people coming from outside the area, too."
IEI is overseeing construction of the new Menards Home Improvement Store in De Pere and will vie for the Menards planned for Howard.
"If we are fortunate enough to get both of those, that will help a lot," he said.
The Menards project will employ about 20 IEI workers, and 60 construction workers at its peak.
Not all is gloomy.
Jeff Knaus of Plumbers & Steamfitters Local 400 in Kaukauna said this year is better than last, due in part to a lot of maintenance projects.
The recently completed refueling and capacity upgrade for Unit 2 at Point Beach Nuclear Plant and a number of wastewater treatment plant projects are keeping union members busy, he said. Also, Point Beach's Unit 1 will be refueled and upgraded in the fall, and Marinette Marine in Marinette and Bay Shipbuilding in Sturgeon Bay have full dockets.
"There's a lot of maintenance work and it's more promising as far as the two shipyards," Knaus said. "They could all use more work, there's no doubt. The light-commercial end is lagging a little bit."
Jeff Gaecke of Howard, executive director of the Mechanical Contractors Association of North Central Wisconsin, said word of new projects is hopeful.
"Anytime you start to hear $50 million projects (Schreiber Foods) are being constructed, it's a positive thing for our community," he said. "I don't necessarily know if (the improvement) has gotten to our members yet."
Projects under way include the Watermark/Younkers redevelopment project in downtown Green Bay, CVS Pharmacy at North Webster Avenue and Main Street, and the Velp Avenue and U.S. 41 highway reconstruction.
Projects on the drawing boards include the Howard Menards, Schreiber Foods Inc. in downtown Green Bay and Veterans Administration medical center on University Avenue in Green Bay.
Sachse said the U.S. 41 work is slower than last summer because much of the work now — mostly on bridges — is less labor intensive.
Tim Rinn, director of business development for Ganther Construction of Oshkosh, which is overseeing the Younkers redevelopment in downtown Green Bay, said businesses that have been considering new projects are thinking now is a good time to get started.
"I think what they are finding is labor has stayed pretty consistently low, but materials are going up," he said. "There is no reason to wait anymore."
Johnson and Rinn said construction companies are looking for the next niche to specialize in.
"We landed the national Jiffy Lube contract. If you look at the demographic shift … it's the biggest demographic shift you've ever seen," Rinn said. "Who who's over 65 is going to crawl under their car and change the oil?"
The impact, too, depends on how much local labor contractors employ. Rinn said that for the Younkers project, Ganther will hire local subcontractors whenever possible.
Sachse said the larger commercial jobs will smooth out the seasonality of employment, but there aren't enough of them yet to cause significant improvement."There is a lot of activity going on. The people that are employed are keeping busy. There just isn't enough to increase hiring," he said.
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