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Shrinking labor pool vexes employers: Tech costs, economy also cause concerns. (Who''s Who in Construction, Design & Engineering).

Publication: Indianapolis Business Journal
Publication Date: 04-FEB-02
Format: Online - approximately 10782 words
Delivery: Immediate Online Access

Article Excerpt
A robust economy that brought a labor shortage to much of the state during the latter part of the 1990s left employers scrambling to find competent workers.

The struggle to fill those positions broadsided the construction, design and engineering fields particularly hard while they attempted to keep pace with a construction boom.

Marion County's unemployment rate has jumped nearly 2 percent since bottoming out at 2.8 percent in 1999. Yet a shrinking labor pool continues to badger the building sectors. From the start of the design process to the finishing touches of construction, industry players say young people are avoiding the work for more appealing opportunities.

"It's both in the field and in the office; there's just a shortage of talented people coming out of the schools and coming into our industry," said Darrell Gossett, president of ERMCO, the city's largest electrical contractor. "For whatever reason we have a rap of not being the glamorous place for people to spend the rest of their lives, when in fact it's a pretty good place to make a living."

Finding and keeping skilled manpower again topped the list of important issues identified by construction, design and engineering professionals in a recent IBJ survey. The vexing labor problem also led a similar IBJ list in the spring of 1998. Figuring out how to pay for expensive new technologies that quickly become essential is another concern.

Lastly, some wonder what effect the sluggish economic conditions will have on building contracts. A few point out that backlogs are easing and subcontractors are bidding more work, and largescale projects are missing from their logs. The nearly $1 billion midfield terminal project at Indianapolis International Airport will provide many firms a boost, however. Those contracts could last as long as 2007.

"There's what I'm calling a temporary lull, at least in our industry," Gossett said. "If you look out on the immediate horizon, there aren't any really huge projects, at least in the central Indiana area."

If and when construction begins on larger projects, such as the midfield terminal, the industry could find itself more desperate for labor than it is today. Industry leaders agree the manpower shortage runs the gamut from lofty engineers to beginning apprentices.

"There's not a civil engineer who couldn't move to this town and have a job," said Ed Jolliffe, president of The Schneider Corp., the city's largest engineering firm.

At the top tier, engineers are gravitating more toward higher-profile jobs in the defense, space or information technology sectors, said Gibraltar Design President James B. Thompson. His greater concern, though, is the dearth of construction workers.

"It doesn't seem to be driven by our economy," Thompson said. "It seems to be driven by social issues, in terms of what young people are interested in these days. It's hard to know exactly what the factors are, but I imagine part of it is perception."

Strenuous labor combined with a four-year apprenticeship causes some to lose patience, and interest, Thompson said. For those who complete the requirements and become skilled craftsmen, they're rewarded with $35,000- to $50,000-a-year salaries.

Industry leaders recognize the labor problems and are taking action to combat the disturbing trend. The Indiana Construction Roundtable, comprising mostly business owners and contractors, has formed an outreach in which members visit area high schools to inform students about the benefits of construction jobs. The National Electrical Contractors Association has a similar program in which its members start educating students at the junior-high level.

The region's lack of skilled construction workers would be even more noticeable without the burgeoning Hispanic population, which has quadrupled to 33,290 in the past decade, according to 2000 census figures. Many Hispanic men have found jobs on area construction crews. The challenge there is to knock down the language barriers.

Associated Builders and Contractors Inc., an organization representing non-union contractors has programs to help bridge the communication gap.

"[The Hispanics] have brought a lot of credible craftsmen; they're capable of doing the work," said Anthony Najem, president of construction contractor Meyer Najem Inc. and an ABC member. "The biggest thing, typically, is just the communication with the foremen, who are usually English speaking."

Meanwhile, the benefits of technology have come with a price. Construction companies need to make the investments necessary to keep pace with engineering and architectural firms, Najem said. The technology, sometimes as simple as e-mailing digital photos of construction projects, enables teams in the field to resolve building questions by communicating electronically with the architects or engineers, without bringing them to the site. The process saves time and increases productivity, Najem said.

The Scneider Corp. also spends a considerable amount of money annually to stay current with technological demands. Three-dimensional modeling and design is just one of the new advances made possible by technology. Although expensive, neither Najem nor Jolliffe is omplaining.

Computer networks have even allowed electrical contractor Gaylor Group Inc. to expand its offerings. Instead of just "pulling wire" at new facilities, Gaylor electricians can install computers, too.

"We used to just educate on the volts and amps of the business," said John C. Gaylor, the company's president and CEO. "That seems to be less an less the total package of what we're doing. Now we're teaching how to solve all the technology for our clients."

RELATED ARTICLE: DON ALTEMEYER

Chairman

BSA Design Inc.

Age: 55 (11-25-46)

This former fighter pilot is the driving force behind BSA Design Inc., a full-service planning, design and construction firm.

Long before he distinguished himself in the professional world of architecture, Altemeyer was collecting an impressive list of scholarships and awards during his academic career at the University of Cincinnati. After receiving his bachelor's in architecture in 1970, he went on to be an honors graduate of the U.S. Air Force Officers Training School, and served as a fighter pilot in the Indiana Air National Guard from 1971 to 1977.

He is now the chairman of a company that has 186 employees and direct ownership in several subsidiary companies, including Continuum Solutions Consulting LLC, a firm that offers strategic facility consulting services to the health sciences industry.

A major career focus for Altemeyer has been a series of projects for the Indiana University Medical Center, including the Medical Science Center, Cancer Research Institute, Indiana Cancer Pavilion, Children's Cancer Center and The Riley Outpatient Center. He's completed projects for several other medical organizations as well, for which BSA has garnered two American Institute of Architects Honor Awards.

His civic interests have led to involvement in several organizations, including serving on the executive committee of the Indianapolis Symphony Orchestra and board positions with the Indianapolis-Marion County Building Authority, Indiana Chamber of Commerce and Greater Indianapolis Progress Committee.

ALPHA BLACKBURN

President, CEO

Blackburn Architects Inc.

During her career, Alpha Blackburn has collected several impressive creative credentials and utilizes her extensive experience to lead Blackburn Architects Inc., an architectural, engineering, interior design and space planning firm.

Blackburn graduated from Howard University with a bachelor of arts degree in design and a master of fine arts in painting and art history. She began her career as a free-lance designer, working also as a model and TV talk show host.

In 1980, she became vice president of Blackburn Architects, a firm founded by her late husband, Walter Scott Blackburn. That same year, she started as fashion editor for Indianapolis Monthly magazine and remained in that position until 1990.

She began designing interiors in 1981 and started her own line of designer products, Alpha Inc., in 1988. She was appointed president and CEO of Blackburn Architects in July of 1999.

Among her career highlights is work on the National Underground Railroad Freedom Museum in Cincinnati and the Midfield Terminal at the Indianapolis Airport.

In addition to her successful business ventures, Blackburn is a distinguished civic leader. She has led or supported over 60 boards and committees, and currently serves as chairwoman of the Indiana Civil Rights Commission.

ROBERT L. BOWEN

Chairman, CEO

Bowen Engineering Corp.

Age: 62 (9-30-39)

In 1967, Robert L. Bowen founded Bowen Engineering Corp., an employee-owned company that provides civil, mechanical and underground services in the construction of water treatment, wastewater treatment, industrial process and power plants. He was president until 2000 and currently serves as board chairman and CEO.

Among his honors are two Associated General Contractors Build America Awards for most outstanding construction project in the United States (the Peotone, Ill., Sewage Treatment Plant in 1996 and Evansville Slip Lining Project in 1999).

Bowen was named Habitat for Humanity Contractor of the Year in 1994 and served as president of AGC of Indiana in 1988. He founded the Bowen Foundation, an organization that provides college scholarships to African-Americans, and he serves on the boards of the Indiana Chamber of Commerce, Big Brothers Big Sisters of Central Indiana and the Center for Leadership Development.

Bowen graduated from Purdue University in 1962 with a bachelor's in civil engineering. He was named Purdue Outstanding Civil Engineer in 1996 and Purdue Distinguished Engineering Alumnus in 1998. He continues to be involved with his alma mater through the Purdue Science Bound Advisory Committee and the Purdue Dean of Engineering Visiting Committee.

He completed the Owner President Management Program at Harvard Business School in 1994.

WILLIAM A. BROWNE JR.

President/Principal

Ratio Architects Inc.

Age: 46 (10-25-55)

The soon-to-be completed Indiana State Museum stands as a tall testimony to the talent of Ratio Architects Inc. and its president, William A. Browne Jr.

Under his leadership, this firm has been involved in a number of revitalization projects in downtown Indianapolis. Browne's current involvement with the American Institute of Architects, Indiana Historic Preservation Commission and President Benjamin Harrison Home, and past service with the Historic Landmarks...

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