by Greg Beeman
As the new year and decade approaches, ABC MA is focused on helping member firms continue to succeed in a climate of opportunity and challenge.
As 2019 exits and gives way to 2020, ABC National economist, Anirban Basu, notes that contractors continue to report difficulty finding workers and lengthy backlogs. This seems consistent with the notion that America’s economic expansion, now in its 11th year, is not on the verge of ending anytime soon, according to Basu.
While construction spending is generally viewed as a lagging indicator of economic activity (among the last segments to be impacted by a downturn and among the last to begin to recover after one), the performance of the nation’s construction industry remains robust. For the year, the industry added 110,000 jobs, an increase of 1.5%. Looking to the new year, the data indicates, however, that like a growing number of industries, monthly construction job growth has begun to soften, Basu says.
Still, that represents an impressive year-to-date tally for a number of reasons. Ask any contractor about their circumstances, and they are likely to talk about an inability to secure sufficient numbers of electricians, plumbers, glaziers, roofers, superintendents or estimators, he notes.
These shortages come at a time when contractors have elevated demand for new workers. According to the August 2019 reading of ABC’s Construction Confidence Index (CCI), 59.3% of contractors intend to expand their staffing levels over the coming six-month period, while just 9.8% intend to decrease their staffing levels.
For 2020, ABC will be increasing its efforts to help contractors meet these workforce challenges. ABC’s affiliated licensed private occupational school, the Gould Construction Institute (GCI), is training more apprentices than at any point in its history. For the current school year, enrollment stands at 1,035. GCI has hired 10 new instructors and added three now locations. In the new year, GCI will be unveiling a “Career Path” app as a tool to help more easily provide information to people interested in construction careers.
The Building Mass Careers program, which is a joint effort of ABC and GCI, has become an increasingly effective means of linking member companies with much-needed talent. For 2020, we’ll see the launch of an expanded resume bank, and the calendar is already filling up as organizers of career related events are reaching out and asking us to participate. We plan to increase our focus on educating guidance counselors, so they understand the rewarding career opportunities today’s construction industry offers to their students.
These workforce development and education efforts are playing a role in ABC’s membership growth, and we have set a goal of 500 member firms for 2020. Heading in the near year, we added 80 new members in 2019 and saw 9% growth year over year. Our member program and event calendar for 2020 includes a diverse range of informational and networking offerings.
Our Safety and Education Night, which recognizes contractors participating in the ABC STEP safety management program as well as students and teachers, had its best attendance ever last year, and our goal is to hit 300 attendees in 2020.
Government affairs will once again be a top priority, as it must. Our legislative agenda seeks to set high standards for the industry and a level playing field for all contractors. Next year, we will be in the second year of the two-year session, and we will be closely monitoring activity with our in-house staff and our professional lobbyist.
As we enter a new decade, ABC is excited about the future of our industry and our role in helping our members make the most of it. “The beauty of a strong association is that together we can do that much more than we can on our own,” said ABC 2020 chairman, Joe Camilo, Tocco Building Systems. “As we said at our recent 2020 ABC strategic planning meeting, it’s a great time to be in construction. Let’s keep the momentum going!”
For information on ABC, visit www.abcma.org or call 781-273-0123.
Greg Beeman is the president and CEO of Associated Builders and Contractors, Massachusetts chapter.