What Buffalo’s Construction Worker Shortfall Tells us About the Skills Gap (and how to solve it)

ONE THING’S FOR CERTAIN: WHEN IT COMES TO PRODUCING THE NEXT GENERATION OF SKILLED WORKERS, WE’VE GOT OUR WORK CUT OUT FOR US…

BUFFALO’S CONSTRUCTION WORKER SHORTFALL

Buffalo is at the near top of a list of cities that have faced a severe shortage in skilled construction labor. In a 2015 column in the Buffalo News, writer Jonathan Epstein discussed these pains contractors and labor unions were shouldering. It became clear that the pace of development was a double-edged sword. As Epstein put it, “it’s great to have work… as long as you have workers.” From laborers, masons and painters, to electricians and plumbers… the demand was high. And the supply? Not so much.

“It’s great to have work… as long as you have workers”-Jonathan Epstein

Finding the skilled labor needed to support the influx  of multiple large-scale projects (John R. Oishei Children’s Hospital, Roswell Park Cancer Institute Clinical Science Center, a new SolarCity production facility…) was no easy feat. The entire Buffalo region’s labor supply was strained. What’s worse: the shortfall of construction workers is a theme still today—across all fields. 

JUST ONE CASE AMONG MANY

Buffalo wasn’t alone in their struggle to find skilled workers to support a booming construction sector. Contractors across the country faced a similar dilemma trying to reconcile a surge in construction with a shrinking workforce. Trade Group Associated Builders and Contractors confirmed that more than 80% of its members were facing a skilled worker shortage at the time of Epstein’s article.

“…it is only a matter of time before the lack of workers impacts broader economic conditions…”-Stephen Sandherr

This shortage in construction workers persists today, nationally.  The latest labor report from the Associated General Contractors of America confirms that 71% of construction companies are ramping up their 2016 workforces, afraid they will be faced with a shortage of qualified workers.

This leads us to wonder, how are these construction companies faring? In Buffalo’s case, trade groups and contractors were pulling workers from nearby cities like Albany and Syracuse. This tactic isn’t viable long-term, as relocation and housing costs eat into a contractor’s margin substantially. Not to mention, the relocation of workers only shifts an overarching problem: our nation doesn’t have enough skilled tradesmen and women

CLOSING OUR NATION’S SKILL GAP FOR GOOD

So… what’s the solution? Consider that the skilled worker shortage affects all sectors of the economy and therefore all kinds of people. It would then follow that the task of producing the next generation of skilled workers is upon all of us.

The task of producing the next generation of skilled workers is upon all of us.

Realizing this, we propose the following tactics aimed at closing our nation’s skills gap. Check it out… what role can you play in solving the skilled labor shortage, long-term?

LOCAL TRADE GROUPS AND UNIONS:

  • Aggressively recruit new members through community outreach to assist in securing employment in their field
  • Expand apprenticeship programs where young tradesmen and women can learn from a journey-level craft person or trade professional
  • Connect with local high schools to offer scholarships and tuition assistance for students considering a technical or vocational education at a community or trade school
  • Join forces with prospective graduates of trade schools, vocational schools, technical schools and community colleges to recruit new members and assist them in securing employment in their field

EDUCATORS:

  • Revamp shop classes and other technical or vocational craft classes that introduce students to hands-on tradeswork
  • Encourage students, especially women, to explore and pursue a career in the trades
  • Educate guidance counselors in communicating the tremendous opportunity of entering an industry with a dire demand for a talent that students can supply

EMPLOYERS:

  • Adapt your recruiting process to aggressively seek out and hire veterans: an untapped yet unmatched talent. See our recent blog post for tips on this
  • Build an apprenticeship program that aligns all company executives on goals, fosters public-private partnerships, and integrates classroom instruction with on the job training. See The Manufacturing Institute’s guide for assistance
  • Offer tuition assistance and scholarships to students who opt for a technical or vocational program at a community or trades school
  • Build a Workforce Development Plan to improve the scale and quality of the skilled workforce
  • Hire with employment agencies like CraftForce that connect local skilled workers with opportunities through direct placement or employee leasing 

What can be learned from Buffalo’s skilled labor shortage is that we must have a long-term plan for building the skilled workforce of tomorrow. This plan calls on the talents and skills of all of us involved in the skilled trades. From educators to employers. Workers to trade groups… It’s upon us to invest in our nation’s skilled talent. For this up-and-coming generation will ultimately support and sustain our economy, long-term. 

Want to contribute to the CraftForce blog? Submit your blog topic idea(s) at blog@craftforce.com 

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How to Find Skilled Workers During a Labor Shortage

THE SKILLED TRADES ARE MORE COMPETITIVE A BUSINESS ENVIRONMENT TODAY THAN EVER…

Companies need to expand and sustain in the face of a rapidly changing economy. In the construction and manufacturing industries, skilled, experienced workers are core to this growth Unfortunately, our country is in the midst of a major skilled labor shortage. Most companies complain that they can’t find enough skilled workers to fill their projects.

“Many of the skilled workers in the current workforce are baby boomers nearing retirement. And, the demographic projections indicate there are fewer people in the generation behind this retiring group to fill these vacancies.”-Lee Rasch

Fortunately, a little creative footwork can give you the competitive edge over other employers who are vying for the top quality talent you need. Following are five creative tips for attracting your next skilled worker who will help your company grow long term!

1. USE SOCIAL MEDIA

Have you resisted the trend to join social media? Facebook, Twitter, Instagram, LinkedIn? ….Though it all might seem like unnecessary noise to distract you during your busy days, social media has become a great place to find quality employees.

“Hiring managers and recruiters are increasingly turning to the social web to market their companies to job seekers.” – Joe Budzienski

Social media is not only a powerful tool for companies looking to do business. It’s also a highly effective way of recruiting new employees. On LinkedIn, you can run advanced searches to identify potential candidates in your area. On Facebook, you can post your job openings on your company page and ask employees and friends to share with their friend circles. We promise… the return will be worth your time!

Reach out to local unions and trade schools and ask that they share your openings on their social pages as well. They are often to connected to a multitude of skilled talent looking for new work. And remember… the candidates are out there. The trick is connecting with them. Social media is a powerful tool that allows you to do this instantly.

2. INCENTIVIZE EMPLOYEE REFERRALS

You’ve probably wished you could clone your top performing employees, right? Unfortunately, we’re not quite there technologically. Your second best bet is to incentivize quality referrals from trusted employees. Referral bonuses are a great way to incentivize employees to find new hires for you.

You probably have employees with old friends from trade school or previous jobs. These relationships are valuable connections to trusted tradesmen in the industry. Their network could be chock-full of quality candidates!

3. CONSIDER TEMPS, FREELANCERS, AND STUDENT CO-OPS

Hiring temps, freelancers, and student co-ops is a great way to build a roster of talent from which you can choose when hiring full time. Temp agencies bring on workers for overflow work, alleviating stress on your full-time employees. Freelancers and independent contractors can contribute to small projects short term. This gives you a feel for their work ethic. As always, team up with your local trade schools for co-op prospects.

Not only will you be able to handle the influx of work during busy seasons, but you’ll also have a chance to “audition” new talent before taking on a skilled worker full time. Picking up young prospects as freelancers and student co-ops is an excellent way to bring talent into your company before your competitors pick them up! Talk about smart business during a labor shortage.

4. HOLD AN OPEN INTERVIEW DAY

Need to fill a bunch of jobs fast? Instead of dragging out the hiring process over weeks or even months, knock it out over a weekend through open interview days. Holding an open interview day or job fest at your facility is a great way to quicken the hiring process. Advertise your event in your local paper and on social media, asking local trade schools and co-ops to share. As always, ask your employees to encourage their job seeking friends in the field to come out.

If you market the event well, dozens of candidates could show up. You can find your next great employee (or handful of employees) within a few hours.

Want to contribute to the CraftForce blog? Submit your blog topic idea(s) at blog@craftforce.com 

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