It wouldn't be wise to bet the life of a project or a plant on cheap, low-skilled labor. It takes well-trained and qualified craftspeople to deliver a project on time and on budget.
Industry end-user groups have been vociferously advocating for greater investment in workforce development to ensure a steady supply of skilled labor. They have sought ways to make construction more appealing to the nation's youth to attract them to industrial maintenance and construction projects. The building trades have proven to be very successful in doing it all.
While their counterparts struggle to meet the demand, building trades like the Iron Workers (IW) have maintained an on-demand supply of skilled workers through comprehensive training, registered apprenticeship programs, living wages and measures to boost diversity, recruitment and retention. They are more productive than their counterparts and have never struggled to attract or recruit people. For example, the IW averages nearly 50,000 applications every year.
"I slept out on a lawn chair to make sure I didn't lose my place in the line; I really wanted to join the apprentice program," said Ambra Melendez, a journeymen ironworker from IW Local 361. "I'm grateful to make a decent living with good pay, health care and a pension."
Registered apprenticeship programs teach the skills needed for a given trade and require hours of dedicated safety training. IW's fouryear program provides 6,000-8,000 hours of on-the-job training and over 700 hours of classroom instruction. Apprentices are paired with multiple employers over the course of the program. The IW training centers collectively spend $80 million-$90 million a year on training a skilled workforce. Journeymen are required to complete upgrade training to keep their skills sharp. On average, 2,000- 4,000 journeymen are certified in some crucial skill annually.
The construction industry has experienced stagnant growth in wages for decades. Fair wages increase retention of qualified, experienced career workers. Studies have shown a correlation between good hourly wages and increased productivity. Cheap labor comes with a hidden hefty price tag. Ill-equipped workers without adequate training or qualifications often lead to expensive safety incidents, project delays and rework. Skilled labor shortages are prevalent in areas where workers are paid low wages.
When a high level of skill is compensated with commensurate remuneration, like when engineers and doctors receive pensions and health care, the social benefits far outweigh the costs. The building trades know the importance of benefits and factor them into pay. Their counterparts in areas like Houston get more cash in their paychecks without any benefits.
Many end-users and contractors around the country employ tradespeople with the best safety and productivity numbers in the world. They understand the value of skilled labor. "Sometimes the lowest price is not the right thing," said James Peckham of Chemours during a recent IW conference.
"We're looking for the best value. We need to get off the labor rate conversation." Peckham has worked with union and nonunion contractors. A well-trained, skilled workforce is a cost-effective investment that yields longterm profits.
For more information or to search contractors, visit www.impact-net.org, www.northamericancontractorlink.com or www.tauc.org/forms/CompanyFormPublic/search.
