Construction Man-Hours Up for First Time Since 2005
YOUNGSTOWN, Ohio -- The number of man-hours paid skilled tradesmen by members of the Builders Association of Eastern Ohio and Western Pennsylvania rose in 2012 to its highest level since 2005, construction contractors learned Wednesday night at their annual meeting.
“After six years of dismal man-hours, we saw a dramatic increase in man-hours during 2012,” the organization reports. “The question we are all wondering is this: Is this a sustainable recovery or a short-term spike in hours?”
Man-hours rose to 3.74 million in fiscal 2012, compared to 2.9 million in 2011, members learned. Not since 2008 have man-hours exceeded 3 million; in 2005, the 10-year high, man-hours totaled nearly 3.9 million.
V&M Star’s $650 million pipe mill was the biggest contributor to the increase in man-hours. Out-of-town contractors hired employed many local contractors, says Kevin Reilly, executive vice president of The Builders. He anticipates the same will be true with the emerging shale industry, particularly the $900 million two-plant gas processing complex for which excavation work has begun in Columbiana and Harrison counties.
“Hopefully there will be a lot of work and spinoff from those projects,” Reilly says.
Providing the foundation for 2013 are three big construction projects: Penn National Gaming’s $125 million racino in Austintown, St. Elizabeth Boardman’s $100 patient tower and Salem Community Hospital’s $4.2 million patient bed tower. “These are all just getting started,” Reilly reports.
In 2012, building and non-building construction dollars totaled $379.6 million, compared to $381.6 million in 2011 -- again a reflection of the vast V&M project. BY comparison, in 2010, when school construction projects were under way, dollar volume was $670 million, with $345 million of that total also credited to V&M.
The annual meeting was held at The Youngstown Club downtown, and Reilly lamented the club’s closing Dec. 31 in his address.
Reilly highlighted new collaborations with the local chapter of the American Institute of Architects, referenced “some members seeing the impact of Ohio’s new prevailing wage law,” and briefly discussed the implementation last year of House Bill 153, the Ohio Construction Reform law, which substantially altered how public projects are bid. A soon-to-be-formed committee will study the extent to which members have been impacted, he added.
John Watkins, labor relations director for The Builders, reported four labor contracts were negotiated in 2012 and nine are coming up for negotiation in 2013. “I don’t foresee any problems,” he said. “We have good relationships with all the trade unions.”
The Builders negotiates labor contracts on behalf of its 180 members, all of whom employ union skilled tradesmen.
Dan Fry, assistant labor relations director, reported the number of apprentices enrolled in union training programs increased slightly in 2012. Going forward, changes will be made in the application process so it coincides with high school graduation, he said.
During the annual meeting, Joe DeSalvo, executive vice president of DeSalvo Construction Co., Hubbard, stepped down as president of The Builders and handed the gavel to Edwin G. Stevens, president of Stevens Masonry Inc. in New Castle, Pa.
Roger Kreps, owner of Roger Kreps Drywall & Plastering Inc., Youngstown, was named first vice president; Brian Downie, corporate secretary of Alex Downie & Sons Co., Youngstown, second vice president; Howard Agueda, project manager for Jack Gibson Construction Co., Warren, third vice president; and Jim Santini, president of Jim Santini Builder Inc., Washingtonville, Lisbon, secretary/treasurer.
Eight Youngstown State University students were awarded $1,000 scholarships at the event. Since 1971, The Builders has awarded $132,210 in scholarships to YSU students excelling in the school’s Civil & Construction Engineering Technology program. The 2012 scholarship winners are:
- Michael Squibbs, a freshman from Berlin Center.
- Ricky Root, a sophomore from New Middletown.
- Aaron Cessna, a sophomore from Boardman.
- Andre Silvers, a junior from Boardman.
- Stuart Duchek, a junior from Poland.
- Scott Kreefer, a junior from East Liverpool.
- Corey Griffith, a senior from Summitville.
- Zachary Barkley, a senior from Salem.
Copyright 2012 The Business Journal, Youngstown, Ohio.
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