Tuesday, September 5, 2017

Construction workers in demand as Milwaukee area building booms




With metro Milwaukee’s building boom in high gear and more office and residential projects on the way, just about any skilled construction worker who wants a job probably has one this Labor Day, industry professionals say.

The men and women who drive the piles, erect the steel beams, frame the interiors, install the drywall and perform dozens of other vital tasks are in demand.

“Obviously, we’re in the go-go days of construction right now, as I like to refer to it,” said Mike Fabishak, chief executive of Associated General Contractors of Greater Milwaukee Inc. It’s a building surge that should keep many construction workers busy for years to come.


About 109,000 Wisconsin residents were working in the construction industry at the end of 2016, up from 90,000 in 2010, according to the state Department of Workforce Development. In July, more than 112,000 people were involved in construction work.

Over the past few years, thousands of those jobs have been concentrated in downtown Milwaukee.

So far, about 2,000 people have participated on work related to the new Milwaukee Bucks arena, which is about half finished.

It took 2,600 workers to build the just-completed 32-story Northwestern Mutual Tower and Commons. Nearby, the insurer’s under-construction 34-floor apartment high rise, called 7Seventy7, is employing about 280 workers right now.

Among other job-generating projects:


  • At the former Pabst brewery complex, Hyatt Place, a $27 million, 150-room hotel, is planned.
  • Vim and Vigor apartments, a 274-unit, $40 million development, also will be located in the old Pabst property.
  • The 25-story BMO Harris Financial Center is to be built on the site of the parking garage of the old Marshall & Ilsley Corp. building — now BMO Harris Bank — downtown.
  • Construction on the 44-story, 312-unit lakefront Couture apartment skyscraper could start by the end of 2017.
“My best estimate would be that at least for the next five years, and possibly 10 years, there is a very strong workload in the state of Wisconsin within construction,” said Tony Mayrhofer, business manager for Iron Workers Local 8, which has about 100 members working at the Bucks arena site.

Fabishak said southeastern Wisconsin seems to be keeping up with the demand for construction workers, thanks in part to a local training program that prepares people for the jobs.

Known as WRTP/BIG STEP, it is a joint effort of the Wisconsin Regional Training Partnership and the Building Industry Skilled Trades Employment Program, which is an apprenticeship readiness, tutoring and training program aimed at helping local residents succeed in construction trades careers.

But more workers will be needed, Fabishak said. The results of a survey released last week by the Associated General Contractors of America indicated Wisconsin and the United States alike are finding it harder to fill construction jobs.

Top of Form
Bottom of Form
The state portion of the survey, taken in July and early August among 22 member firms in Wisconsin, showed 73% were having trouble filling hourly craft positions and that most were planning to hire for expansion. The toughest craft position to fill was carpenters, with 67% listing them as hardest to obtain.

State officials also say the construction industry is in growth mode here.

“Long-term projections show growth in the state's construction industry by nearly 12% from 2014-2024, underscoring the need for continued collaboration with the construction industry to find and train the talent needed,” said John Dipko, spokesman for the Wisconsin Department of Workforce Development.

The forecast doesn't include construction of a possible Foxconn Technology Group liquid crystal display panel production complex that might need 20 million square feet of buildings.

'A robust pool of skilled workers'

Dipko said that during the past four years, Wisconsin has invested more than $362 million in state funding to grow and support the workforce. Gov. Scott Walker’s proposed 2017-'19 budget includes $140 million on development investments, he said.

State officials have worked with technical colleges, universities, the construction industry and others to support “a robust pool of skilled workers in the construction trades today and into the future,” Dipko said.

City of Milwaukee officials are using construction growth to help launch unemployed or underemployed residents into careers in the industry through its Residents Preference Program.  RPP certification is meant to promote the use of city residents as part of a contractor’s or developer's workforce on certain city-funded construction and private development projects.  Contractors bidding on public works or development projects financed with public tax money must hire a percentage of RPP workers, typically 40%.

Of the 2,600 people who built the Northwestern Mutual Tower and Commons, about 1,200 were local residents hired through RPP.

Northwestern Mutual’s 7Seventy7 apartment tower doesn’t officially participate in the RPP program, “but we have had numerous workers from the program involved in construction,” said company spokeswoman Betsy Hoylman.

Milwaukee Ald. Russell W. Stamper II said incentives in the RPP program focus on hiring people from economically distressed ZIP codes to apprenticeships.  But it will take “a massive outreach” by contractors, developers and public officials to make the most of the opportunity that exists during the wave of building projects, he said.

“The next 10 to 12 years, it’s construction. Right now is a prime opportunity to develop a career in the construction industry,” Stamper said.

The pay for construction positions often is better than for many jobs that also are in demand and don’t require a college degree.

For example, under the current labor agreement between Iron Workers Local 8 and a group of contractors, workers who reach journeyman status — after on-the-job apprentice training — are paid $33.19 an hour. With benefits and pension, the hourly compensation amounts to $60.79, said the union’s Mayrhofer. Apprentices start at 60% of journeyman pay, and get increases as they progress.

“One of the things that unions try to do is make sure that the workforce within the trades will be able to sustain their families, take care of their families,” Mayrhofer said.

Arena project is leader

The work isn’t for everybody.

“This is hard work. It’s not for the faint of heart,” Fabishak said. “The people who work in this industry undoubtedly earn their money.”

Among projects now underway, nothing is generating more construction jobs than the Milwaukee Bucks arena and its affiliated facilities. Bucks-related projects include the $524 million arena, a new parking structure that is under construction and a $30 million practice facility that opened in August.

Work on the arena itself has employed the most people. Early in the year, a couple hundred, primarily iron workers, were on the site. That portion of the project is winding down and work is ramping up on the interior. Amenities such as escalators, plumbing and electrical networks, and heating and cooling are being set in place.

The arena will be sealed up to the elements by November, and employment will grow from about 700 now to about 800, according to officials with construction manager Mortenson.

Work began on the arena in the summer of 2016 and the facility is expected to open in time for the 2018-‘19 NBA season. The arena is being built with $250 million in public money.

With such a tight construction schedule, Mortenson works closely with subcontractors and unions so that all are aware of employment needs as work moves along, said Jesse Kemp, Mortenson senior project manager.

“It’s definitely a challenge to find all of these qualified people,” Kemp said. “We knew coming in that it was something we needed to keep a close eye on.”

More than a year ago, Mortenson’s construction schedule called for roof beams to be lifted on specific days during the summer of 2017, a timeline that company officials say they have met.

Data from that schedule is used to determine equipment and manpower needs, Kemp said.

“We try to keep an open dialogue with everyone about when and how many workers we are going to need.”

In all, some 2,000 workers have participated in the arena construction.

Work is expected to begin soon on a fourth aspect of the Bucks complex, the Live Block entertainment space, which will include bars, restaurants and public space just east of the new arena.

The Bucks have received praise for honoring commitments to provide jobs for lesser-skilled city residents on the arena project. The Bucks have also worked to encourage interest in construction trades with outreach efforts at Bradley Tech high school.

In addition, they have worked with Froedtert and the Medical College of Wisconsin to create a new laboratory at Carmen High School of Science and Technology’s Northwest Campus to help students and adults develop skills for work in the health and information technologies fields.

Workforce Development’s Dipko said the construction industry has been a leader in outreach to veterans, former offenders, the underemployed and others who have faced employment barriers.

“The construction industry offers family-supporting jobs and a pathway to the middle class,” he said.
 


No comments:

Post a Comment