The Emerging Need
In an industry already beset by a shortage of skilled labor, most contractors have resorted to hiring unskilled workers, hoping that they will learn quickly and perform the work needed by the contractor. Working with untrained individuals is a major cause of frustration for most contractors and subcontractors.
Recently the National Association of Home Builders surveyed contractors and asked them to choose among 38 issues that might affect their business. Overwhelmingly they identified the demand for skilled labor and the cost of worker’s compensation insurance, as principal concerns. This new survey suggests that the skilled labor shortage is growing acute as the construction industry continues to grow.
The problem has been exacerbated by the fact that hundreds of high schools, colleges and vocational schools have abandoned construction programs in the past two decades, replacing them with training for high-tech jobs. National Association of Home Builders officials say that 340,000 new workers find jobs in the residential construction industry yearly, but that the capacity of schools to train workers is only a fraction of that amount. In other words, a substantial number of new workers show up at the job site without any formal training whatsoever.
In 2004, Bobby Rayburn, then president of the National Association of Home Builders (NAHB), identified “a shortage of skilled workers” as being “one of the most serious challenges” facing the homebuilding industry. The housing downturn that has occurred since Mr. Rayburn spoke those words has not changed the situation; a lack of skilled workers is still a real and quickly approaching obstacle to be overcome by the industry. Many firms are already feeling the pinch of an undersupply of skilled workers in certain disciplines.
Although several very small sponsored programs have been established around the country, by their very nature, these programs exclude most Hispanics, Native Americans, the economically disadvantaged, and the youth.
Even though a worker may have high-level trade skills, without the industry specific vocabulary to accompany them, it is unlikely he will be very effective. When errors are made, the contractor usually absorbs the added cost of the correction. Naturally, this added expense has a negative impact on the contractor’s bottom line.
A major problem faced by construction workers is that they have no credibility until they are able to provide proof of their skills. They must demonstrate these skills to their new employer once they have landed the job. However, the NAICP believes that these individuals can overcome such obstacles by holding credentials to prove that they possess the needed skills. All persons need self-respect and the approval and confidence of their peers. The NAICP proposes to provide these less tangible qualities to those persons willing to acquire the necessary training.
For many years General Building Contractors have encountered the problem of providing quality materials and services at a fair price, while at the same time minimizing the risk of loss caused by poor workmanship, yet remain profitable! The contractor has the added problem of locating properly skilled persons and hiring them at a competitive rate. The labor pool for such individuals has changed dramatically.
Many of those currently employed in the construction trades as workers or laborers are Hispanic. Throughout the nation, the numbers are impressive. From 2000 to 2008 many states have seen increases in their Hispanic populations well over 60%.
HISPANIC POPULATION GROWTH BY STATE
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South Carolina
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93.5%
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South Dakota
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92.8
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Tennessee
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86.8
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Arkansas
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83.8
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North Carolina
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80.7
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Maine
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79.6
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Georgia
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78.6
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Alabama
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77.8
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Kentucky
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70.1
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North Dakota
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69.9
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Source: US Census Bureau
These employees have earned a reputation for hard work, dependablity and a willingness to learn. However, education for them is severely limited by the language barrier. Those desiring to be the best that they can be must resort to learning from others who have been in the country longer and who are willing to share what they have learned the hard way. This can often be a case of the blind leading the blind. By no means is this scenario limited to Hispanics, however.
A similar problem exists with people of all nationalities in economically depressed areas, as well as younger persons who are testing their way in the workforce. Information is passed on one to the other, many times with varying degrees of inaccuracy. This misinformation eventually becomes evident on the job, causing problems for their employer, who must then correct improperly installed materials or faulty workmanship at his or her own expense.
These common problems add to the cost of construction, lowers profits for the Contractor, and very often lead to disputes with homeowners. As we all know, many of these disputes end up in court or arbitration, a stressful, long, and expensive process for everyone involved.
Until now, there existed no alternative to this blind on-the-job type of training. The NAICP provides the sorely needed solution by becoming the premier training and education source for all people and segments of our communities in which the demographics indicate a special need exists, particularly, Native Americans, Hispanics, the economically disadvantaged, and young construction workers.