Builders Association Sees Drop in Man-Hours, Volume
YOUNGSTOWN, Ohio -- Members of the Builders Association of Eastern Ohio and Western Pennsylvania once again find themselves at the starting line.
With Vallourec Star pumping out pipe full-force, gas-processing plants built and operating, hospital projects in Boardman, Youngstown, Salem, and New Castle, Pa., complete, and the Austintown racino operating at capacity, union contractors ended fiscal 2014 with reported man-hours returning to 2008 levels, where total construction dollars stood below the start of the Great Recession.
“Obviously that’s an upsetting trend for us,” Kevin Reilly, executive vice president of The Builders, said Wednesday during the organization’s 45th annual meeting last night at the Youngstown Country Club. “Hopefully there’s going to be some nice projects in the future that are going to get us back up toward our historical average in man-hours.”
Reilly reported man-hours in fiscal 2014 totaled 3.1 million, down from nearly 3.4 million in 2013 and 3.7 million in 2012. Total dollar volume of building and nonbuilding (infrastructure) construction projects was $320 million in fiscal 2014, he said, compared to $550.1 million in 2013 and $380 million in 2012. The 12-year average is 3.75 million man-hours.
The 150 members of The Builders employ union tradesmen only, and the organization negotiates labor agreements for its members with 18 building crafts based in the five-county region. Reported man-hour numbers do not include work performed by union electricians and plumbers and pipefitters – craftsmen in great demand at all of the region’s major building projects -- for which The Builders does not negotiate contracts, Reilly clarified.
In 2014, the organization negotiated separate labor agreements with four crafts. Wage increases ranged from a high of 3.6% to 1.66%, reported John Watkins, labor relations director. Watkins is retiring Jan. 1 and will be replaced by Dan Fry, assistant labor relations director, it was announced.
In his remarks to members, Fry found irony in the drop in man-hours and the labor shortage construction contractors face.
“We had a 7% drop in man-hours [in fiscal 2014] Yet as I meet with many of the [union] business agents, they tell me their union halls are empty,” he said.
Fry oversees joint apprenticeship programs conducted by The Builders and the trade unions. Enrollment reached 252 in 2014, up slightly from 249 last year, he reported.
“The biggest problem apprenticeship programs face is not only the lack of qualified applicants but the lack of applicants period,” he said.
Fry cited the “several-month gap” between high school graduations in June and when apprenticeship programs start in November. Discussions continue with trade and technical schools to advance the apprenticeship application process to avoid “this lost opportunity before the graduates move on to a different job or school,” he said.
Five Youngstown State University students in the civil engineering program were awarded $2,000 scholarships each last night. Since 1971, the organization has awarded $150,210 to YSU students, a fact applauded by Paul McFadden, president of the Youngstown State University Foundation.
“You’re paying for one-quarter of their tuition at YSU this year,” he said.
Howard Agueda of VEC, Girard, concluded the annual meeting by accepting his position as 2015 president of The Builders. Agueda thanked his predecessor, Brian Downie of Alex Downie & Sons, as well as his mentors throughout his career in the construction industry.
“I learned to always be honest with people and always do things the right way,” he said.
Copyright 2014 by The Business Journal, Youngstown, Ohio.
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