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Florida Construction Workforce Taskforce:
Determining the causes of the current shortage of a trained
construction industry workforce and the impacts on the recovery
of the real estate market
Prepared by:
James G. Sullivan
Charles J. Kibert
Andriel E. Fenner
Shirley N. Morque
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
2
Sponsored by a grant from the
“Department of Business and Professional
Regulation” and “Building a Safer Florida, Inc.” to the
M.E. Rinker, Sr. School of Construction
Management at the University of Florida
M.E. Rinker, Sr. School of Construction Management
The M.E. Rinker, Sr. School of Construction Management at the University of Florida
combines the skills, diverse experiences, and talents of its faculty with an innovative educational
curriculum to educate future construction professionals. Housed in the College of Design,
Construction and Planning, the Rinker School is dedicated to construction science and
management and is committed to excellence in education and research. Established in 1935, it is
the oldest school of construction in the U.S. and the first program to receive accreditation from
the American Council for Construction Education (1975). Twenty faculty members teach and
guide the School’s 500 undergraduate and 120 graduate students. The School’s new building,
Rinker Hall, is the 26th building to have been awarded LEED Gold certification by the U.S. Green
Building Council. The Rinker School has substantial experience with crafts training and has had
extensive collaboration with the National Center for Construction Education and Research
(NCCER), the premier crafts training education organization, for the past 18 years. Most recently
the Rinker School developed a crafts training program, Training for Manufactured Construction
(TRAMCON), that provides students with hybrid manufacturing/construction credentials. These
credentials also provide training across multiple crafts including carpentry, plumbing, electrical,
and HVAC using NCCER training modules.
Mission Statement
The mission of the M. E. Rinker, Sr. School of Construction Management is to be the center
of excellence for construction. The Rinker School will pursue this by:
Promoting professional and ethical behavior in education and practice.
Advancing the industry by creating new knowledge through research and scholarly
activities.
Educating individuals in principles, knowledge and skills required to be successful in
their professional careers.
Providing service and transferring knowledge to the citizens of Florida, the
construction industry, professional societies, the nation, and the world.
The Rinker School will achieve this mission by fostering a core culture of value and quality.
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Executive Summary
The Rinker School of Construction
Management at the University of Florida has
been tasked with evaluating workforce
training availability in Florida. This study
will support the evaluation of workforce
development programs in the state and allow
for better understanding of the types and
training offered as well as where they are
offered and how they are sponsored.
Workforce shortages in the state are
historically cyclical and follow significant
lulls in construction volume over time. Most
recently, there was a significant downfall in
construction volume in Florida starting in
2007 (see Figure 1 below), with the recovery
beginning in 2012. The significance of this
most recent economic cycle to the state is that
the downturn started earlier in Florida and
lasted longer than the national average.
Construction employment follows
general housing and building trends as well.
The difficulty for the recovering market is
replacing the trained workforce that left the
state or the industry during the economic
downturn. High demand for trained workers
increases pressure on construction firms to
employ unqualified workers who are trained
through an informal on-the-job training
(OJT) process, resulting in initial quality,
productivity, and safety issues compared to a
trained worker. National construction
employment demands are reflected in Figure
2 below.
Figure 1 - Housing starts from 2005 through 2014
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Figure 2 - Department of Labor Statistics (Job openings in 1000’s)
Construction workforce training appears
in various formats, including high school magnet
programs, vocational schools, and
apprenticeships. The purpose of this report is to
provide a snapshot of the availability of training
relative to the increased demand and the lack of
interested applicants. Training programs
themselves are not adequate for filling the
workforce void. Current studies indicate that
50% of the construction workforce is 45 years or
older. An aging workforce, increasing in
construction volume and decreasing interest in
construction employment is creating the perfect
storm for severe labor shortages. These labor
shortages have the potential to limit the growth
of the construction industry, increase
construction costs, and limit the types of
construction trades available to service market
needs. These factors are the reasons that a
Workforce Task Force and research are required.
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Project Deliverables
The Construction Workforce Taskforce has been established via state legislation to address the
shortage of skilled crafts people and inspectors training in Florida. The taskforce will discuss and
recommend methods for craft workers and inspectors in the state of Florida.
The Workforce Taskforce specifically aims to analyze the following:
Address the critical shortage of individuals trained in building construction and inspection.
Develop a consensus path for training the next generation of construction workers in the state.
Determine the causes or the current shortage of a trained construction industry work force and
address the impact of the shortages on the recovery of the real estate market.
Review current methods and resources available for construction training.
Review the state of construction training available in K-12 schools.
Address training issues relating to building code inspectors to increase the number qualified
inspectors.
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Contact Information
Dr. James Sullivan
Undergraduate Program
Coordinator at M.E. Rinker Sr.,
School of Construction
Management
Dr. Charles Kibert
Director of the Powell Center
for Construction &
Environment at M.E. Rinker Sr.,
School of Construction
Management
Andriel E. Fenner
Ph.D. Student at Rinker School
for Construction Management
Shirley Morque
Ph.D. Student at Rinker School
for Construction Management
Board Members
Chairman: Peter Dyga
(Associated Builders & Contractors of Florida)
Alarm Association of Florida
American Fire Sprinkler Association
Florida Chapter
Associated Builders & Contractors of
Florida
Chair of the Florida Building
Commission
Florida Carpenters Regional Council
Florida Fire Sprinkler Association
Florida Home Builders Association
Florida Representative
Florida Roofing, Sheet Metal & Air
Conditioning Contractors Association
Florida Senator
Florida Swimming Pool Association
Independent Electrical Contractors
National Utility Contractors
Association of Florida
Asphalt Contractors Association of
Florida
Building Officials Association of
Florida
Florida Associated General
Contractors Council
Florida Building & Construction
Trades Council within the Florida AF-
CIO
Florida Concrete & Product
Association
Florida Electrical Workers
Association
Florida Plumbing-Heating-Cooling
Contractors Association
Florida Refrigeration & Air
Conditioning Contractors Association
National Contractors Association
Florida Chapter
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Key Discussion 3:
Determining the causes of the
current shortage of a trained
construction industry workforce
and the impacts on the recovery of
the real estate market.
Possible causes for the current shortage
Several factors can contribute to a
possible shortage of the trained construction
workforce. The following driving forces
were identified as having a major impact on
the state of Florida:
a) The aging workforce
The aging American workforce will
likely emerge as one of the dominant
economic factors in the coming decades. For
the construction sector, particularly, this
factor will have a large impact on
productivity and health issues, especially for
physically demanding occupations.
According to the 2013 American
Community Survey (ACS), the median age
for the construction workforce in the U.S.
was around 42 years, slightly higher than the
overall workforce age of 41 years (Figure 1).
By 2015, the average age of employed
workers in U.S. was almost 43 years,
showing a constant increase year after year
(Figure 2). The average age of the
construction workforce in the state of Florida
was around 44 years in 2013. According to
Steve Cona, from the Tampa chapter of
Associated Builders and Contractors, around
29% of skilled construction workers are 45 to
54 years old and nearly 21% are 55 years or
older. This means that millions of
construction workers are approaching
retirement soon. While retirements will
create openings in many occupations, they
will also trigger an increase in workforce
shortages for many occupations that currently
present low supply levels, especially those
skilled jobs as noted by previous reports.
FLORIDA WORKFORCE TASKFORCE REPORT
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Figure 1 - Median age of the construction workforce by state.
Source: 2013 American Community Survey (ACS)
Industry 2015
Total 16-19
years
20-24
years
25-34
years
35-44
years
45-54
years
55-64
years
>65
years
Median
Age
Total
employed
148,834 4,734 14,022 32,742 31,252 32,643 24,975 8,465 42.3
Construction 9,935 148 725 2,251 2,457 2,321 1,634 399 42.7
Figure 2 - Employment persons by industry and age in 2015 [numbers in thousands].
Source: Bureau of Labor Statistics
b) Lack of exposure to the construction
environment and/or low quality of
training programs.
According to the Florida Education &
Training Placement Information Program
(FETPIP), around 65% of high school
students go to college upon completion of
high school. The major reason is because
current high school programs do not inform
students of career and educational
opportunities such as apprenticeship. Also,
shop classes are no longer featured in high
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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schools as they once were, so students are not
being exposed to the construction
environment in order to consider construction
as a career path.
Training programs are widely available
around the U.S. for a variety of construction
occupations. The Registered Apprenticeship
(RA) is the most well-known career-training
program that offers job training combined
with related technical instruction adapted to
industry needs. The basic components of
current apprenticeship programs are the same
as the National Apprenticeship Act of 1937
that established the foundation for
apprenticeships in the U.S. In this system,
students are registered in a structured
program with classes and paid on-the-job
training (OJT) under the guidance of a
mentor. Upon completion of the program,
students earn an industry-recognized
credential and start looking for jobs.
It is estimated that 91% of all apprentices
find employment after completing the
program. Because of these positive results,
President Obama set a goal in 2014 to double
the number of apprenticeships to 750,000 by
the end of 2018. As a result, the U.S.
Department of Labor has invested $265
million since 2015 to expand apprenticeships
and many states are increasing funding for
technical assistance, tax credits to employers,
and career and technical training to prepare
students.
There are many reasons why a firm might
choose apprenticeship programs as a model,
such as:
Many firms have difficulty
finding company-specific
knowledge and skills in the open
job market. As a result, employers
leave the position vacant, turn
down work or delay product
delivery.
Apprenticeship may reduce
attrition by building a bond of
loyalty between company and
employee or by providing an
opportunity for motivated young
people to stay rooted in their
communities.
Apprenticeship often leads to
faster advancement in the
company, helping firms develop
their future leaders.
Within the apprenticeship framework,
companies found great flexibility to adapt the
model to their needs. As a result,
apprenticeship programs vary significantly in
length and cost. The length of apprenticeship
programs can range from less than one year
to more than four years; and the costs can go
from $25,000 to $250,000 per apprentice.
In the United States, apprenticeships are
concentrated in the building trades. It is
estimated that nearly two-thirds of all
registered apprentices in the U.S. are in the
construction industry. The Building Trades
Unions represent more than 1,600 training
centers nationwide, with over $1.3 billion of
funding per year.
While recent numbers regarding
apprenticeship programs have been vibrant,
the construction industry lost a significant
number of apprentices during the economic
downturn of 2006 to 2009. Nationwide, the
number of new apprenticeships in 2010
declined by 39% compared to 2000 with
significant losses in states like Florida, Ohio
and Pennsylvania. In the state of Florida, the
number of new students have been increasing
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since 2010, but the number of active
apprentices have been fluctuating
significantly (Figure 3; Figure 4). Also, the
number of active programs in the state of
Florida is significantly less than less-
populous states, such as Georgia and South
and North Carolina (Figure 5).
Figure 3 - Number of active apprentices in selected American states.
Source: U.S. Department of Labor, Employment and Training Administration.
34
21
78
48
47
32
16
83 3
19
8
38
68
10
60
2
51
24
12
13
7
66
39
22
26
47
91
48
94
14
77
4
44
49
11
85
3
62
65
20
79
64
12
57
37
15
69
1
32
96
73
95
53
76
15
60
44
85
36
36
11
36
4
39
34
78
83
57
82
18
56
53
67
38
47
12
94
7
A L A B A M A F L O R I D A G E O R G I A M I S S I S S I P P I S O U T H C A R O L I N A
N O R T H C A R O L I N A
T E X A S
ACTIVE APPRENTICES IN SELECTED STATES
2011 2012 2013 2014 2015
FLORIDA WORKFORCE TASKFORCE REPORT
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Figure 4 - Number of new apprentices in selected American states.
Source: U.S. Department of Labor, Employment and Training Administration.
Figure 5 - Number of new apprenticeships by state, 200 and 2010 enrollment cohorts.
Source: U.S. Department of Labor, Employment and Training Administration.
88
6
30
37
13
86
45
8
12
38 1
78
9
40
75
13
01
30
94
13
38
47
3
17
03
14
63
37
46
11
74
35
91
12
09
74
7
20
40 24
26
48
97
1,4
62
3,8
56
2,5
61
69
9
1,5
04
2,2
93
5,0
78
18
23
39
15
26
56
86
3
23
83
22
92
60
56
A L A B A M A F L O R I D A G E O R G I A M I S S I S S I P P I S O U T H C A R O L I N A
N O R T H C A R O L I N A
T E X A S
NEW APPRENTICES IN SELECTED STATES
2011 2012 2013 2014 2015
10
7
24
0
18
7
11
9
28
3
50
1
34
9
11
8
25
9
20
2
12
9
56
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54
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43
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10
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92
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46
3 49
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20
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36
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52
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50
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36
5
A L A B A M A F L O R I D A G E O R G I A M I S S I S S I P P I S O U T H C A R O L I N A
N O R T H C A R O L I N A
T E X A S
ACTIVE APPRENTICESHIP PROGRAMS IN SELECTED STATES
2011 2012 2013 2014 2015
FLORIDA WORKFORCE TASKFORCE REPORT
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Figure 6 - Top occupations in the 2015 fiscal year.
Source: U.S. Department of Labor, Employment and Training Administration
In 2015, the construction industry was
ranked the top industry in the number of
active apprentices, totalizing 132,100
students nationwide. Also, 19 construction
occupations were among the top 25
occupations for the 2015 fiscal year in the
number of new apprentices (Figure 6).
However, the occupation distribution of
students pursuing apprenticeship training is
extremely uneven, which may explain the
differences in the supply gap in several
construction occupations. For example,
carpenters, roofers, sheet metal workers and
ironworkers are expected to have higher or
similar employment growth than electricians,
a factor that should be considered in the
apprenticeship programs.
The quality of local training programs
also contributes to the shortage of trained
professionals. Sometimes, the few students
who decide to pursue construction jobs lack
the skills needed to perform productively on
a construction site. In these cases, on-site
training classes are extremely important for
construction-related jobs. As noted by the
Associated General Contractors of America,
around 73% of construction companies in
Florida rated the overall quality for training
new hourly craft professionals as poor or
below average and 43% rated the quality of
salaried professionals as poor or below
average (America, 2015b). Due to these facts,
more detailed research should be conducted
to understand the reasons for the poor
evaluation.
c) Economic factors and instability
Another explanation could be that
people who left the construction trade after
the great recession did not return to the
construction sector. Most economists call this
the “labor-market scarring”. Nationwide, it is
estimated that there are 17% fewer people
working in the construction industry than at
the market peak. These potential workers
who are either employed or actively seeking
0
5000
10000
15000
20000
25000
30000
35000
40000
Electrician Carpenter Plumber Pipe fitter Sheet MetalWorker
Const. CraftLaborer
Roofer Ironworker Painter
TOP APPRENTICESHIP PROGRAMS NATIONWIDE
2011 2012 2013 2014 2015
FLORIDA WORKFORCE TASKFORCE REPORT
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a job in the industry represent a significant
amount of the needed construction workers
and might partially be a reason for the current
construction labor shortage (Figure 7).
Currently, several construction sectors are
increasingly desperate to bring back fully
skilled laborers that left the industry during
the downturn and do not plan to return due to
the industry’s job insecurity.
In the state of Florida, the
construction sector lost more jobs than any
other sector during the great recession.
Construction employment peaked in June
2006 with about 691,900 jobs and reached
the lowest levels from 2011 to 2012. After
successive growth, employment rates
reached 457,300 jobs in July 2016, but were
still 34% less than 2006 (Figure 8). The
difference in workers between 2006 and 2016
is a significant factor for the current
workforce shortage in the state and should be
carefully considered.
Figure 7 - Graph representing the number of people nationwide that are neither employed nor seeking
employment.
Source: Economic Policy Institute
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Figure 8 - Statewide employments for the construction industry. Data extracted on: September 15, 2016
Source: Bureau of Labor Statistics.
d) Foreign-born workers influence
Foreign-born workers have always been
an important source of new entrants to the
construction industry. The concentration of
immigrants is particularly high in some low-
skilled construction trades that do not require
a high education level, but still require some
level of training such as carpenters, painters,
brick masons, and drywall and ceiling tile
installers. Those occupations also
consistently have the highest labor shortages.
The share of immigrants in the U.S. labor
force rose rapidly during the housing boom
years, when labor shortages were widespread
and severe across construction trades. Even
during the recession, the share of immigrants
remained relatively high in the construction
industry compared to non-construction
sectors. Immigrants started to return to the
construction industry only in 2013, reaching
almost 23% of the construction work force in
U.S. (Figure 9).
FLORIDA WORKFORCE TASKFORCE REPORT
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Figure 9 - Share of immigrant in the U.S. labor force for construction and non-construction occupations
(2004-2013).
Source: NAHB Economics
The reliance on foreign-born labor is
even more noticeable in the most populous
American states like California, Texas and
Florida where the share of immigrant
workers is higher than 30% (Figure 10). Also,
more than 80% of the immigrant workers in
the construction industry are Hispanic and
Latino Americans, and English is not their
native language. Several companies in
Florida already prefer professionals that can
easily communicate in English and, at least,
Spanish due to the high immigrant share.
Also, it is possible to observe a high
participation of lower educated immigrants in
the construction industry. The differences in
scholarity between native and foreign-born
workers can be seen in the Figure 11. About
13% of the native construction workers
nationwide do not have a high school
diploma, while 35.3% have completed high
school. Among immigrants, almost 50% do
not have a high school diploma, while only
27.7% have a diploma. The most prevalent
construction occupations for immigrants in
2013 were plasterers and stucco masons
(59%), drywall installers (49%), roofers
(43%) and hazardous materials removal
(43%) (Figure 12).
19.9%21.2%
22.3% 22.8% 22.2% 22.2% 22.1% 22.1% 21.9%22.8%
14.2% 14.4% 14.9% 15.0% 15.1% 15.3% 15.8% 16.0% 15.9% 16.0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Immigrants in the U.S. labor force
Construction Non-construction
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
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Figure 10 – Share of immigrants by state in the construction sector in 2013.
Source: NAHB Economics
Place of
birth
Less than
high school
diploma
High
school
diploma
Some
college
Bachelor’s
degree
Graduate or
Professional
degree
Total
Native 12.8% 35.3% 39.6% 10.5% 1.9% 7,721,077
Foreign Born 48.6% 27.7% 16.1% 5.6% 2.0% 2,279,291
All 20.9% 33.6% 34.2% 9.4% 1.9% 10,000,368
Figure 11 - The differences in scholarity between native and foreign-born workers nationwide (2013).
Source: NAHB Economics
Construction Occupation Total No high school
diploma
Immigrant’s
share
Construction laborers 1,849,815 30.7% 34.1%
Carpenters 1,097,577 25.2% 27.6%
Electricians 560,499 9.4% 14.1%
Roofers 237,133 45.6% 43.5%
Drywall and ceiling installers 152,939 43.3% 49.2%
Plasterers and stucco masons 36,339 47.3% 59.0%
Hazardous materials removal workers 3,841 23.1% 43.4%
Figure 12 – Share of immigrants in selected construction occupations (2013).
Source: NAHB Economics
FLORIDA WORKFORCE TASKFORCE REPORT
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e) Low female participation in the
construction labor force
Historically, female have participated in
the workforce less than their male
counterparts, even with the recent significant
increase of female participation. The
variation is even higher in some male-
dominated sectors, such as construction.
According to the Bureau of Labor Statistics,
only 9.3% of the employed workers in the
construction sector in 2014 were female. The
women’s share in apprenticeship programs
also reflects the same characteristics. In
2010, women represented less than 9% of
students entered in the RA program. The
share of females was even lower in male-
dominated occupations, such as electricians
(less than 5%), carpenters (less than 3%), and
plumbers (less than 2%) as seen in Figure 13.
Due to these facts, it is also expected that the
completion rates of females would be lower
than men’s completion rates.
Interviews with female students
showed three major barriers as the cause of
low female participation rate. First, women
normally do not know about the skills needed
to enter in the construction sector, which
leaves them with an unrealistic perception of
the construction work, which in turn leads to
failure. Finally, women face some challenges
performing “male dominated” work.
Currently, RA programs and the Women
Apprenticeship in Nontraditional
Occupations (WANTO) are trying to
promote women’s success in apprenticeship
programs, especially for male-dominated
occupations, by ensuring that employers
create and enforce policies to combat
harassment and by connecting women with
their peers for support and encouragement.
Occupation Men Women All
Electrician 25.1% 4.6% 23.4%
Plumber 12.6% 1.6% 11.6%
Carpenters 7.4% 2.9% 7%
Heavy truck drivers 5.9% 3.5% 5.7%
Sheet metal workers 3.8% 0.3% 3.5%
Electrician 3.8% 0.1% 3.5%
Sample size: 21,426 Figure 13 – Share of men and women in apprenticeship programs nationwide in 2010.
Source: Mathematica, Policy Research
f) Employers do not take into account the
relative shortage or abundance of
particular skills when they set wages
The low wage rate for construction
workers may be influential for the current
workforce shortage. The average hourly rate
of a construction worker in Florida,
according to the U.S. Bureau of Labor
Statistics in May 2014 was $17.79 or $37,000
a year. However, research shows that starting
salary for construction workers may be much
lower with very few benefits. In addition to
that, very few occupations in the state of
Florida have had positive wage change
within the 2011-2015 period compared with
the U.S. average (Figure 14). Considering
that the construction industry is stronger in
FLORIDA WORKFORCE TASKFORCE REPORT
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18
Florida than the U.S. average and is expected
to have higher employment growth, it is
expected that the median wage would
represent the same perspective (Figure 15).
Due to these facts, it is argued that with
such low pay, the construction industry
cannot compete with other sectors like
technology and communication jobs.
Therefore, there is a need to increase pay
rates in order to attract more young people to
the construction industry.
Figure 14 – Median wage change of selected construction occupations during 2011-2015.
Source: Florida Employ Marketplace
Figure 15- Projected employment growth for selected construction occupations.
Source: Florida Employ Marketplace
7.30% 0.50%
-2.90% -3.90%
6.40% 0.60% 0.00%
-10.10%
14.80%7.80%5.20% 4.10%
2.50%5.20% 6.00% 7.10% 6.10%
26.40%
Constructionand buildinginspectors
Carpenters Roofers Brickmasons/
Blockmasons
Electrician Plumber Shet MetalWorker
Drywall andCeiling TileInstallers
ReinforcingIron nd Rebar
Workers
Median Wage Change2011-2015
Florida Median Wage change 2011-2015 US Median Wage change 2011-2015
25%29%
39%
46%
32.20%
28.00% 28.30%32.10%
51.90%
8.00% 6.40%
12.80%
18.60%
13.70%12.00%
6.70% 5.20%
23.40%
0%
10%
20%
30%
40%
50%
60%
Constructionand buildinginspectors
Carpenters Roofers Brickmasons/
Blockmasons
Electrician Plumber Shet MetalWorker
Drywall andCeiling TileInstallers
ReinforcingIron ndRebar
Workers
Projected Employment Growth2014-2024
Florida Employment Growth 2014-2024 U.S. Employment Growth 2014-2024
FLORIDA WORKFORCE TASKFORCE REPORT
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19
g) Climatic conditions factor in Florida
Another peculiar reason for construction
work shortage in Florida is the hot humid
climate experienced almost throughout the
year. The Florida heat does not make the
construction profession attractive to the
youth, since most of them would rather prefer
to be in an air-conditioned office space rather
than to be in the heat. In addition to that, there
is a high rate of early retirement for
construction workers due to the physical
nature of construction work. All of these
factors combined with the low wage rates do
not make the industry competitive with other
sectors, even for those with lower pay rates.
The impact of the shortages on the
recovery of the real estate market
a) Impacts on job costs and selling prices
Nationwide, 43% of firms have reported
an increase in use of subcontractors during
the past year, 33% reported an increase of the
use of staffing companies, and 19% reported
an increase of labor-saving equipment, tools
and/or machinery (America, 2015a). In the
state of Florida, 46% of firms have reported
an increase in the use of subcontractors
during the past year, 42% reported an
increase in the use of staffing companies, and
23% reported the use of labor-saving
equipment, tools and/or machinery (Figure
16). Because of the difficulty to fill positions,
8% of companies also noted the use of offsite
prefabrication methods, building information
modeling, and lean construction, and 4% of
companies increased the use of union
workers (America, 2015b).
Florida companies also have reported an
increase in pay and benefits. 52% and 69% of
companies have increased base pay rates for
both hourly craft and salaried professionals,
respectively. In addition to that, 24% have
increased contributions and improved
employee benefits. Overtime, payments and
bonuses also were noted by some companies
(America, 2015b).
Figure 16 - Workforce shortage impacts in the administration of construction companies.
Source: Associated General Contractors of America
According to Turner Construction
company, the continuous increase of the
construction project costs in 2016 are directly
related to the ongoing shortage of skilled
labor. While the labor costs were always
fluctuating, the labor costs only became
0%
10%
20%
30%
40%
50%
Subcontractor dependence Increase in staffing companies Labor-saving methods
Workforce shortage impacts in companies' administration (2015)
U.S. Florida
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
20
significant at the beginning of the 1st Quarter
of 2016 (Figure 17). As a way to combat the
increasing costs, subcontractors became
more strategic and selective in allocating
efforts and resources. Some subcontractors
were also becoming less strict when hiring
experienced workers or hiring multiple
workers to fill the gap in expertise to
complete the job in a reasonable time,
impacting directly the total project costs.
Figure 17 - Graph representing the construction costs for non-residential projects by Turner.
Source: Turner Construction
In the case of residential construction, the
impacts of the workforce shortage could be
even higher. According to the National
Association of Homebuilders, the average
construction costs of a single-family home is
around 14% higher than in the housing boom
of 2007. Among all the factors that could
possibly contribute to the cost increase, the
workforce shortage had the biggest impact
for many American states. Due to these facts,
most contractors and subcontractors are
leaving the low-level home market and
targeting only expensive and high level/
luxurious projects in order to maintain their
margins. Therefore, it is estimated that the
prices for available low-level houses will
increase in the future as the market for that
level shrinks, pushing low-income families
out of the housing market. In the state of
Florida, particularly, most home’s selling
prices increased from 6% to 14% over one
year, with several luxurious residential
buildings and condominiums being built in
the Miami and Orlando metropolitan areas
and expected to be delivered in 2017 (Figure
18).
50
5
52
5
54
9
57
0
59
5
61
3
61
9
62
1
65
5 71
7 79
3 85
4 90
8
83
2
79
9
81
2
83
0
86
4 90
2
91
2 97
0
98
3
99
5
Average Cost Index for Non-Residential Projects
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
21
Figure 18 – Change in home prices over one-year (2016, 2nd Quarter)
Source: Mortgage Guaranty Insurance Corporation
b) Impacts in construction worksite safety
According to the Associated General
Contractors of America, a small but
significant number of companies reported
that labor shortages have affected workplace
safety, meaning there are more injuries on the
job because of the lack of experienced
workers. Nationwide, 15% of firms reported
an increase in the number of reportable
injuries and illnesses because of workforce
challenges, 13% reported an increase in the
number of jobsite hazards identified in
inspection reports, and 11% reported an
increase in worker compensation claims that
they attribute to tight labor market conditions
(America, 2015a).
In the state of Florida, the construction
safety and health performance of companies
has presented higher numbers than
nationwide. Around 27% of firms reported an
increase in the number of reportable injuries
and illnesses, 15% reported an increase in the
number of jobsite hazards identified in
inspection reports, and another 15% reported
an increase in worker compensation claims
that they attribute to tight labor market
conditions (America, 2015b).
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January 27, 2017
22
Figure 19 - Workforce shortage impacts in worksite safety.
Source: Associated General Contractors of America
c) Impacts in the project schedule
The project schedule for most projects is
also being affected due to the problems filling
available positions for both hourly craft and
salaried professionals. It is becoming
common for owners and contractors to
dispute the time allowed to closeout a project.
Summary
The average age of the construction
workforce in the state of Florida was
around 44 years in 2013, meaning that
millions of construction workers are
approaching retirement within the
coming years.
In the state of Florida, the number of new
students in apprenticeship programs has
been increasing since 2010, but the
number of active apprentices has been
fluctuating significantly.
The number of active programs in the
state of Florida is significantly less than
other southern states, such as Georgia and
South and North Carolina.
The occupation distribution of students
pursuing apprenticeship training is
extremely uneven, which may explain the
differences in the supply gap in several
construction occupations.
73% construction companies in Florida
rated the overall quality of training new
hourly craft professionals as poor or
below average and 43% rated the quality
of salaried professionals as poor or below
average.
In the state of Florida, the construction
sector lost more jobs than any other sector
during the great recession. After
successive growth, employment rates
reached 457,300 jobs in July 2016, but
still 34% less than 2006. The difference
in workers between 2006 and 2016 is a
significant factor for the current
workforce shortage in the state and
should be carefully considered.
0%
10%
20%
30%
Reportable injuries Jobsite hazards reports Worker's compensation claim
Workforce shortage impacts in worksite safety(2015)U.S. Florida
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
23
Foreign-born workers have always been
an important source of new entrants to the
construction industry. The concentration
of immigrants is particularly high in some
low-skilled construction trades that do
not require a high education level.
Only 9.3% of the employed workers in
the construction sector in 2014 were
female. The women’s share in
apprenticeship programs also reflects the
same characteristics.
Very few construction occupations in the
state of Florida have had positive wage
change within the 2011-2015 period
compared with the U.S. average.
Considering that the construction
industry is stronger in Florida than the
U.S. and is expected to have higher
employment growth, it is expected that
the median wage would represent the
same perspective.
The Florida heat does not make the
construction profession attractive to the
youth.
Florida’s companies have also reported
an increase in pay, benefits, overtime
payments and bonuses.
Subcontractors became more strategic
and selective in allocating efforts and
resources. Some subcontractors were also
becoming less strict when hiring
experienced workers or hiring multiple
workers to fill the gap in expertise to
complete the job in a reasonable time
period, impacting directly the total
project costs.
The average construction cost of a single-
family home is around 14% higher than
in the housing boom of 2007.
In the state of Florida, the construction
safety and health performance of
companies has presented higher numbers
than nationwide.
It is becoming common for owners and
contractors to dispute the time allowed to
closeout a project.
References:
Associated General Contractor of America (AGC). 2015 Workforce Survey Result: National Results.
Retrieved December 09, 2016, from https://www.agc.org
Associated General Contractor of America (AGC). 2015 Workforce Survey Result: Florida Results.
Retrieved December 09, 2016, from https://www.agc.org
Bureau of Labor Statistics (2016). Employed persons by detailed industry and age. (n.d.). Retrieved
December 09, 2016, from http://www.bls.gov/cps/cpsaat18b.htm
Bureau of Labor Statistics. State and Area Employment, Hours, and Earning. Data extracted on:
September 15, 2016.
Bureau of Labor Statistics. Household Data: Annual Averages - Employed persons by detailed industry,
sex, race, and Hispanic or Latino ethnicity (2015)
FLORIDA WORKFORCE TASKFORCE REPORT
January 27, 2017
24
Economic Policy Institute (2016). Missing Workers: The missing part of the unemployment story.
Retrieved December 09, 2016, from http://www.epi.org/publication/missing-workers/#chart-total
Florida Education & Training Placement Information Program (FETPIP). Retrieved December 09, 2016,
from http://www.fldoe.org/
Florida Employ Market. Job Market Trends. Retrieved December 09, 2016, from
https://www.employflorida.com
Fortune (2016). What’s Holding Back the Housing Market? Not Enough Construction Workers.
Retrieved December 09, 2016, from http://fortune.com/2016/09/06/housing-construction-worker-
shortage/
Mortgage Guaranty Insurance Corporation (2016). Market Trend Analysis October 2016. Retrieved
December 09, 2016, from https://www.mgic.com/pdfs/71-40037_market_trend_analysis.pdf
NAHB Economics. Immigrant Workers in the Construction Labor Force. Special Studies, February 2015.
Reed, D., Liu, A. Y. H., Kleinman, R., Mastri, A., Reed, D., Sattar, S., & Ziegler, J. (2012). An
effectiveness assessment and cost-benefit analysis of registered apprenticeship in 10 states.
Mathematica Policy Research.
Turner Construction (2016). Cost Index. Retrieved December 09, 2016, from
http://www.turnerconstruction.com/cost-index
U.S. Department of Labor, Employment and Training Administration. Data and Statistics. Retrieved
December 09, 2016, from https://www.doleta.gov/OA/data_statistics2014.cfm
Zhao, N. (2015). Age of the Construction Labor Force. Retrieved December 09, 2016, from
http://eyeonhousing.org/2015/12/age-of-the-construction-labor-force/