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From March 1-7, ABC celebrated Women in Construction Week, a week that raises awareness and emphasizes the growing role of women in the construction industry. Here is a list of some of the ways ABC and its members demonstrated the success of women in the field:
ABC National shared quotes and photos of women in the merit shop community and articles with other communications professionals and leaders, so they could post the content on their own social media platforms. All photos and quotes can be found on ABC’s Flickr page.
With letters to the editor and local craft competitions, ABC was able to promote Women in Construction Week in everything from industry magazines to news shows.
Examples include:
For more information on women in the construction industry, please visit the NAWIC website.
Information about coronavirus (COVID-19) continues to be issued at a rapid pace. In order to keep ABC chapters and members up to date and provide access to accurate information, ABC has created the COVID-19 Update webpage.
The COVID-19 Update webpage includes resources from the Centers for Disease Control and Prevention, U.S. Department of Labor, DOL’s Occupational Safety and Health Administration, U.S. Small Business Administration, ABC general counsel Littler Mendelson and more. Plus, the webpage will include the latest updates on federal legislative actions related to coronavirus.
In order to keep the information current, the webpage will be updated on a daily basis.
On March 6, President Trump signed the Coronavirus Preparedness and Response Supplemental Appropriations Act, an $8.3 billion emergency spending bill that, among many other things, gave the Small Business Administration the ability to issue an economic injury disaster loan declaration pertaining to coronavirus.
The loans offer up to $2 million in assistance for a small business. These low-interest federal disaster loans for working capital can provide economic support to small businesses to help overcome the temporary loss of revenue for small businesses suffering substantial economic injury as a result of the coronavirus.
The loans are made available upon a request received from a state’s or territory’s governor, at which point the SBA will issue the loans under its own authority. The funds may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses, while the interest rate for nonprofits is 2.75%.
Find more information on the SBA’s economic injury disaster loans at: SBA.gov/Disaster.
These projections depend on the level of construction activity and do not take into consideration the impact of the COVID-19 pandemic, which has paused some construction projects and will assuredly affect what gets built and when. However, overall construction spending is likely to hold up over the next year or so based on ABC’s Construction Backlog Indicator data, and the industry still needs additional construction workers going forward.
Construction Spending
Source: Census Bureau Value of Construction Put in Place Survey Annual Historical Data and “Annual Total Table”
Total Private Employment
Source: Bureau of Labor Statistics, Current Population Survey, Table 42
Excludes the self-employed. Only annual data are available.
Construction Spending Forecast Assumptions
Starting with annual construction spending data for 2019 ($1.30 trillion), the estimate assumes 3% growth (to $1.34 trillion) for 2020 and 3% growth above the previous year’s construction spending level for 2021 and 2022, to $1.38 trillion and $1.42 trillion, respectively.
Construction Spending and Job Creation
According to a model developed by Markstein Advisors to calculate the relationship between the volume of construction spending and demand for private construction employment (excluding the self-employed), every $1 billion in extra overall construction spending generates an average of at least 6,500 construction jobs.
Infrastructure construction—highways, bridges, airports, power plants, etc.—uses a lot of heavy equipment that does not require as many workers as other types of construction. Other types of construction involving the installation of drywall, plumbing, electrical wiring, HVAC systems and the like require more labor and thus create more jobs. Every $1 billion in extra construction spending on infrastructure generates an average of at least 3,300 construction jobs.
Employment Demand Forecast
According to a model developed by Markstein Advisors to estimate total private construction employment demand based on the amount of construction spending, contractors would like to hire 550,000 additional workers in 2020 compared to 2019.
In 2019, ABC estimated the U.S. construction industry needed to hire 440,000 more workers compared to 2018. This figure is consistent with sources reporting employment and available jobs in construction (such as the BLS JOLTS report). The actual BLS 2019 year-over-year construction employment increase was just 325,000. The lower employment figure was due in part to the lack of available skilled labor, rising wages and increased use of labor-saving technologies including prefabrication and modularization. The workforce shortage has also contributed to reduced annual construction spending compared to the original ABC estimate, as the shortage of skilled labor forced some builders to slow the pace of construction to make the best use of their existing labor force or not to bid on projects because of high labor costs. At the same time, the increased cost of construction due to higher labor and materials costs resulted in clients scaling back or eliminating some contemplated projects.
The model to estimate the demand for construction labor adjusts for expected increases in construction costs because construction spending is in nominal dollars (i.e., not adjusted for inflation). Also, the model includes productivity gains in construction, reducing the amount of labor needed to produce a certain dollar amount of construction output. At the same time, the model includes the shift in the mix of projects and added regulations that affect the number of workers needed to complete a project.
Finally, the model is based on construction wages and salaries remaining at 2019 levels (last year’s forecast was based on 2018 wage levels). Higher wages and salaries would reduce the demand for labor. Wages are likely to increase in 2020 and beyond, particularly for skilled labor that is in greatest demand. That will further encourage the use of various technologies that augments or replaces labor and software that promotes better scheduling of labor and materials delivery and reduces the use of labor. The net result will be somewhat lower demand for labor than shown by the model. However, these adjustments take time, so the reduction in the demand for labor in a single year is fairly small (likely less than 5% of estimated demand). Hiring of construction workers will be limited more by lack of qualified workers than by employers reducing demand for these workers.
Employment Demand Forecast with Additional Infrastructure Spending
For the last several years, Congress and the administration have discussed the urgent need to pass a comprehensive infrastructure package with little success. Nonetheless, ABC remains hopeful that such legislation will be enacted into law, especially as the Highway Trust Fund will become insolvent in 2021 under current law. For the purpose of this estimate, a $250 billion-dollar infrastructure package spread out over three years would result in: $25 billion in additional construction spending the first year; $75 billion additional spending the second year; and an additional $150 billion the third year. As a result of this uptick in spending, demand for construction workers would total an additional 82,500 workers in the first year, 247,500 workers the second year and 495,000 workers the third year.
ABC issues news monthly news releases on construction-related economic data and trends, including on federal construction spending, employment, GDP and the Producer Price Index data, as well as state-by-state construction unemployment estimates. In addition, ABC produces the Construction Backlog Indicator, the only economic indicator that reflects the amount of work that will be performed by commercial and industrial construction contractors in the months ahead, and the Construction Confidence Index, a diffusion index that signals construction contractors’ expectations for sales, profit margins and staffing levels.
On March 10, ABC joined several other organizations in submitting comments to the Council on Environmental Quality in support of proposed revisions to its regulations implementing the procedural provisions of the National Environmental Policy Act, which has not been updated for more than four decades. The proposal would modernize and clarify the regulations to facilitate more efficient, effective and timely NEPA reviews by federal agencies in connection with proposals for agency action. Learn more about the NEPA proposal here.
The coalition letter states, “We fully support the fundamental goals of NEPA to appropriately consider the potential environmental impacts of federal actions. The Coalition believes that CEQ’s proposed revisions refocus federal NEPA reviews on NEPA’s original purpose to facilitate excellent agency action through informed decision-making, accomplished through the same balanced goals as the original 1978 NEPA regulations: “to reduce paperwork, to reduce delays, and at the same time to produce better decisions which further the national policy to protect and enhance the quality of the human environment.” We urge CEQ to finalize updates to the NEPA implementing regulations to modernize the federal environmental review and permitting process under NEPA, with the goal of increasing infrastructure investment and project development in a manner that strengthens our economy and enhances environmental stewardship.”
On Jan. 9, ABC President and CEO Michael Bellaman and Miller and Long employees Alan Michael Jenkins and James Spencer Johnson joined President Trump at the White House for the announcement of CEQ’s proposed rule. ABC stated, “ABC supports the modernization of these critical regulations and believes that these enhancements will go a long way toward eliminating unnecessary delays that cause budget overruns in construction. Creating a coordinated, predictable and transparent process to streamline permitting will enable the industry to plan and execute even the most complex projects while safeguarding our communities, maintaining a healthy environment and being good stewards of public funds.”
ABC is a member of the Unlock American Investment coalition, which says, “Updating NEPA will reduce delays hindering critical projects, resulting in better infrastructure, a stronger economy and continued environmental stewardship. Modernizing NEPA is the key to unblocking investments.” To learn more, see the coalition’s fact sheet.
On March 11, the U.S. Department of Labor issued a final rule , officially titled Apprenticeship Programs, Labor Standards for Registration, Amendment of Regulations, which establishes a process for creating high-quality, industry-recognized apprenticeship programs by organizations that apply to become DOL recognized Standards Recognition Entities. The rule prohibits SREs from recognizing IRAPs in the construction sector. DOL’s press release on the proposal is available here.
Associated Builders and Contractors Vice President of Health, Safety, Environment and Workforce Development Greg Sizemore today issued the following statement on the release of the final Department of Labor industry-recognized apprenticeship rule:
“All U.S. workers should have the opportunity to participate in DOL’s new industry programs, particularly as federal registered apprenticeship programs supply only a small fraction of the construction industry’s workforce. ABC, our 69 chapters and 21,000-plus members will continue to utilize an all-of-the-above education approach to ensure our workforce meets the highest standards for safety and quality craftsmanship, which has been and will remain our top priority. ABC members invested $1.6 billion to educate their employees in 2018, up from $1.1 billion in 2013, according to the results of ABC’s 2019 Workforce Development Survey. The 45% increase in spending resulted in nearly twice as many course attendees—more than 980,000—receiving craft, leadership and safety education to advance their careers in commercial and industrial construction.”
Learn more about the final rule here:
On Aug. 26, ABC submitted comments on the DOL’s proposed rule on apprenticeship programs, recommending an “all-of-the-above” approach to workforce development to the DOL.
Applications are now being accepted for ABC's Accredited Quality Contractor Program.
The AQC program is a holistic cultural assessment of a company based on the five core areas of responsibility:
The program sets companies apart from other contractor firms and earns them visibility within the industry through national publications such as Construction Executive magazine. Plus, AQC members can use the program marketing tools to promote their credential, such as customized letters of recommendation, news release templates, use of the logo on hardhats, jobsite signage and bid documents, etc.
The recognition doesn’t stop there. ABC annually publishes its Top Performers lists, which recognize ABC member contractors’ achievements in safety, quality, diversity and project excellence ranked by work hours, with special designations identified. Check out the Top Performers lists here, and watch out for your copy of the 2020 publication, which will arrive with the March issue of Construction Executive!
All AQC applications are due by Oct. 30. Apply today!
On March 9, ABC joined the H-2B Workforce Coalition in a letter to the acting secretary of the U.S. Department of Homeland Security to raise concerns over the release of a temporary final rule to implement supplemental H-2B visas.
On March 5, the Department of Homeland Security announced its plan to make 35,000 supplemental H-2B visas available this fiscal year. While this is the largest increase in supplemental visas from the Trump administration, it does not effectively address the needs of the construction workforce and comes with new requirements for employers that obtain these visas.
ABC continues to advocate for an effective visa program that addresses workforce needs in construction and provides employers with a simplified, timely application process.
On March 4, the House Education and Labor Subcommittee on Higher Education and Workforce Investment held a hearing entitled “Reauthorizing the National Apprenticeship Act: Strengthening and Growing Apprenticeships for the 21st Century.” The National Apprenticeship Act, also known as the Fitzgerald Act, has not been reauthorized since its enactment in 1937 and the Subcommittee released a discussion draft bill to reauthorize the act ahead of Wednesday’s hearing.
The bill seeks to only address registered apprenticeship programs, and while ABC understands registered programs are an important component to providing the construction industry with the workforce it needs to thrive, it is critical that the subcommittee considers the input from the private construction industry that contributes $1.6 billion annually to craft, leadership and safety education for construction employees.
ABC is committed to working with lawmakers to ensure that the reauthorization provides more flexibility while modernizing the current registered apprenticeship program to work better for the entire construction industry, not just union labor.
Also, during the hearing, Maryland Department of Labor Secretary Tiffany Robinson highlighted the important work being done by the ABC Metro Washington Chapter in providing pre-apprenticeship opportunities incarcerated individuals to prepare them to become productive contributors to their communities.
Watch the hearing video here!
Ben Brubeck, ABC’s vice president of regulatory, labor and state affairs, conducted 11 radio and TV interviews during the Conservative Political Action Conference on Feb. 27 in Washington, D.C. Brubeck discussed the outlook for construction spending and infrastructure investment, highlighted the industry’s response to its current skilled labor shortage and promoted the benefits of fair and open competition on taxpayer-funded construction contracts.
Brubeck also raised awareness about federal legislation of concern to merit shop contractors like the Protecting the Right to Organize Act, which recently passed the U.S. House. The PRO Act aims to radically rewrite existing labor law, undermine employee privacy and eliminate state right to work laws.
Check out some of the interviews that have been posted on WRVA, WRFH (scroll down to interview 23) and The Epoch Times.
Brubeck also explained to taxpayers how bills introduced in the Virginia General Assembly, HB 833/SB 8 and HB 358/SB 182, would prevent local and experienced Virginia contractors and subcontractors from building and working on projects funded by taxpayer dollars and needlessly force the Commonwealth to pay 12% to 20% more for construction projects likes schools, affordable housing, roads, bridges and other infrastructure needs. Listen to some of these interviews on WINA, WRVA: Richmond’s Morning News and WSVA: The Mike Schikman Show.