If you’re a student who is wondering about whether to pursue a career in construction, recent forecasts indicate a strong need for construction workers in both the immediate and long-term future.
The American Institute of Architects’ Consensus Construction Forecast “expects spending on nonresidential building construction to increase by 5.4 percent in 2022, and accelerate to an additional 6.1 percent increase in 2023. This same report notes that “road and highway construction is expected to reach $108 billion annually by 2024.”
Furthermore, the long-term forecast for construction workers looks just as promising. According to the U.S. Bureau of Labor Statistics, “Overall employment of construction laborers and helpers is projected to grow 7 percent from 2020 to 2030, about as fast as the average for all occupations. About 167,800 openings for construction laborers and helpers are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.”
“There’s never been a better time for young people to consider a career in Minnesota’s construction industry,” said Mary Stuart, Associate Director for the Construction Careers Foundation, a Twin Cities non-profit that builds bridges for young people to obtain apprenticeships in Minnesota’s construction industry. “Minnesota’s construction industry needs a new generation of young people to build Minnesota.”
Construction Provides Careers with Good Pay and Great Benefits
In addition to a strong need for construction workers for the foreseeable future, careers in construction are forecasted to pay well, too, allowing young people to build a strong financial future.
According to “Building a Strong Minnesota: An Analysis of Minnesota’s Union Construction Industry,” a research report** published in 2021 by the Midwest Economic Policy Institute:
“The study by the Midwest Economic Policy Institute clearly shows that young people who build a career with a Minnesota building and construction trades union can earn a good living,” said Stuart. “More importantly, they would start their careers without incurring college debt.”
Apprenticeship Enrollment in Minnesota is Increasing
According to a 2019 report by the Midwest Economic Policy Institute, the number of Minnesotans enrolled in registered apprenticeship programs “has grown by 27% since 2014, making it the state’s third-largest private post-secondary educational institution.”
In its findings, the Institute noted that “88% of the state’s active apprentices are enrolled in construction programs [registered apprenticeship programs] that are jointly administered by trade unions and their signatory employers [such as construction firms].”
“Minnesota’s registered apprenticeship programs provide participants with job skills that simply cannot be learned in college,” said MEPI Policy Director Frank Manzo. “They offer tuition-free career training that boosts participant earnings by an average of $4,700 per year—nearly double the average for an associate’s degree and more than many bachelor’s degrees.”
Inform Students the Construction Trades have a Career for them
Sam Ebute, Trades Navigator for the Construction Careers Foundation works in tandem with Minnesota’s building and construction trade unions, its largest construction firms (Kraus Anderson, McGough, Mortenson, Opus, PCL, Ryan, among others), school districts and the State of Minnesota (Department of Employment and Economic Development) to help students find their way to registered construction apprenticeships.
“Students interested in apprenticeship need to be 18 years old and have a high school diploma or GED to enter most apprenticeships,” Ebute said. “However, they can begin the online or paper application process while still in high school. Many union training centers will start the students’ application files pending graduation.”
Many students start thinking about their futures after high school in their junior year. In addition to college and military service, Ebute invites high school students to consider applying for a registered apprenticeship with a Minnesota construction trade. Registered apprenticeships are typically three to five years in length and involve on-the-job instruction and classroom instruction. More importantly – you are paid while you learn and work, and by joining a trade union, young people also become eligible for other benefits, such as health and dental insurance and a retirement plan – all without incurring any college debt.
For youth, educators, apprenticeship candidates and parents interested in building a career in construction connect with Sam Ebute at sam.ebute@constructioncareers.org.
About the Construction Careers Foundation
The Construction Careers Foundation is a Twin Cities-based nonprofit dedicated to fostering and developing construction career pathways for Minnesotans, especially young adults. With funding from the Minnesota State Legislature and oversight from the Minnesota Department of Employment and Economic Development (DEED), the Construction Careers Foundation conducts a statewide effort to attract more people, in particular, young people, women and people of color, into the construction trades to support the Minnesota construction industry.
To learn more about the Construction Careers Foundation, visit ConstructionCareers.org.
**Building a Strong Minnesota: An Analysis of Minnesota’s Union Construction Industry,” a research report published in 2021 by the Midwest Economic Policy Institute was researched and written by Frank Manzo IV, MPP Policy Director Midwest Economic Policy Institute Jill Gigstad Midwest Researcher Midwest Economic Policy Institute Robert Bruno, Ph.D. Director Labor Education Program Project for Middle Class Renewal University of Illinois at Urbana-Champaign Kevin Duncan, Ph.D. BCG Economics, LLC and Distinguished University Professor, Colorado State University-Pueblo.
The Construction MMI (Monthly Metals Index) moved in a relatively sideways trend, only budging up 0.65%. Steel prices continuing to flatten out, along with bar fuel surcharges dipping in price, kept the index from breaking out of the sideways movement we’ve witnessed since December. As the index enters 2024, U.S. construction news continues to focus on high interest rates and when the hawkish Fed might consider dropping them. Along with this, the U.S. construction market still faces labor shortages, particularly for specialized skills. While predictions indicate that U.S. construction projects will continue to increase in the future, these current trends remain extremely taxing for the sector.
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According to construction news sources, the construction industry in the United States continues to face a severe shortage of skilled workers, making it difficult for the sector to satisfy the growing demand for building projects. According to the Associated Builders and Contractors (ABC), the business needs over half a million people. Meanwhile, construction news outlets report that contractors continue to see significant demand from an increasing number of mega-projects, sustainable energy facilities, and infrastructure.
Among the numerous crafting positions that need filling are positions for heavy equipment operators, carpenters, masons, electricians, and plumbers. Most industry players anticipate that there will be a continued high demand for these positions, requiring between 300,000 and 546,000 additional hires per year on top of regular employment figures. In particular, the sector continues to struggle to find younger people to fill these roles. The Great Resignation, a declining pool of potential new hires, and unfavorable working conditions are just some of the reasons for these difficulties.
Of course, this lack of skilled construction workers affects the industry in a number of ways. For instance, projects may cost more to complete and take longer to finish. There could also be problems with productivity and quality control, raising questions about the general caliber of building projects. Construction companies are already investigating several strategies to alleviate this problem, including putting training and apprenticeship programs in place, collaborating with hiring agencies, and using technology and automation to lessen the impact of worker scarcity on project costs and construction deadlines.
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China’s robust demand for imports at the start of 2024 left many questioning (and concerned) if the news signaled a thriving Chinese economy or the opposite. However, even if China’s economy or property sector isn’t performing at its peak, this doesn’t impact U.S. construction, right? Think again.
China remains one of the top global consumers of metals. This means that where China goes, global metal demand goes as well. If China’s metal demand proves lackluster in the immediate future, it will snowball into other global construction sectors. Moreover, with an estimated 20 million unbuilt and delayed pre-sold homes, China has a huge backlog of unfinished real estate endeavors that will cost significant amounts of money to finish. Developers continue to experience financial difficulties as a result of this fact. Now it seems that these difficulties may spread to the global construction market, including the U.S.
There are several ways in which China’s property sector difficulties might affect American building projects, according to construction news sources. For instance, if Chinese developers continue to encounter finishing projects, it could result in a decline in the market for building supplies and machinery. This, in turn, could impact American manufacturers and suppliers. In addition, if Chinese metal demand drops significantly due to domestic property construction issues, global demand for several major metals, particularly steel and aluminum, could drop. This would result in higher prices for the U.S. and any other country sourcing these metals from China.
These facts continue to ensure that any construction news out of China should get top priority.
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