Published on March 9, 2016
1. May 2014 Construction Industry Detailed Overview Industry Summary Employee Demographics Common Professions and Averages Working Conditions Industry Trends Union Presence Trade Associations and Publications Confidential – For Informational and Training Purposes Only. These materials contain proprietary information and material that is owned by Aflac and/or its licensors, and is protected by applicable intellectual property and other laws, including but not limited to copyright. By accessing these materials, you agree that you will not use such proprietary information or materials in any way whatsoever except for informative and training purposes only. You further agree not to modify, loan, sell, distribute, or create derivative works based on these materials. Any use not specifically permitted herein is strictly prohibited and may subject you to civil and criminal penalties.Aflac herein refers to American Family Life Assurance Company of Columbus and/or American Family Life Assurance Company of New York and/or Continental American Insurance Company and/or American Life Insurance Company. N140059A 5/14
2. P A G E 2 Employee Demographics Common Professions and Averages Working Conditions Industry Trends Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Industry Summary The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector. In December 2013, Construction sector employed a total of 5.8 million wage and salary workers. This industry accounts for approximately 4% of the total employment in the nation. Over 75% of employment in construction industry is in production and nonsupervisory role. Most establishments in construction sector are small. In first quarter of 2013, nearly 70% of the establishments employ less than five workers. Next, nearly 14.7% of the establishments employ five to nine employees. 1Industry Summary1 Expected CAGR Growth 2012-22 Total sector 2.6% Establishment Ownership Total establishments privately owned Top five states 99.2% 8.5% California 5.59% Texas 5.2% Illinois 7.8% Florida 6.4% New York 33.6% of total establishments 1 “Industries at a Glance,” Construction Sector, U.S. Bureau of Labor Statistics, 2 “Industry Profile Construction Sector,” First Research, 3 “Industries at a Glance,” Construction of Buildings, U.S. Bureau of Labor Statistics = The U.S. construction industry includes more than 660,000 establishments with combined annual revenue of about $1.3 trillion. Major companies include Jacobs Engineering, KBR, Kiewit, and PulteGroup. The industry is highly fragmented.2 The construction sector consists of following subsectors: Construction of Buildings3 The Construction of Buildings subsector comprises establishments primarily responsible for the construction of buildings. The work performed may include new work, additions, alterations, or maintenance and repairs. The on-site assembly of precut, panelized, and prefabricated buildings and construction of temporary buildings are included in this subsector.
3. P A G E 3 Employee Demographics Common Professions and Averages Working Conditions Industry Trends Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Industry Summary 1 “Industries at a Glance,” Construction Sector, U.S. Bureau of Labor Statistics, 2 “Industries at a Glance,” Heavy and Civil Engineering Construction, U.S. Bureau of Labor Statistics, 3 Industries at a Glance,” Specialty Trade Contractors, U.S. Bureau of Labor Statistics Key Takeaways In December 2013, Construction sector employed a total of 5.8 million wage and salary workers Top five states by number of establishments are California, Florida, New York, Texas and Illinois, accounting 33.6% of total number of establishments 1Industry Summary1 cont. Part or all of the production work for which the establishments in this subsector have responsibility may be subcontracted to other construction establishments—usually specialty trade contractors. • Construction of Buildings subsector comprise of 221,093 number of establishments and employed a total of 1.3 million wage and salary workers • The subsector generated revenue of $285 billion. Major companies include DR Horton, KB Home, Lennar, and PulteGroup Heavy and Civil Engineering Construction2 The Heavy and Civil Engineering Construction subsector comprises establishments whose primary activity is the construction of entire engineering projects (e.g., highways and dams), and specialty trade contractors, whose primary activity is the production of a specific component for such projects. Specialty trade contractors in Heavy and Civil Engineering Construction generally are performing activities that are specific to heavy and civil engineering construction projects and are not normally performed on buildings. • Heavy and Civil Engineering Construction comprise of 56,930 number of establishments and employed a total of 0.8 million wage and salary workers • The subsector generated revenue of $565 billion. Major companies include Bechtel, Fluor, Jacobs Engineering, Peter Kiewit Sons’, and Turner Construction Specialty Trade Contractors3 The Specialty Trade Contractors subsector comprises establishments whose primary activity is performing specific activities (e.g., pouring concrete, site preparation, plumbing, painting, and electrical work) involved in building construction or other activities that are similar for all types of construction, but that are not responsible for the entire project. The work performed may include new work, additions, alterations, maintenance, and repairs. The production work performed by establishments in this subsector is usually subcontracted from establishments of the general contractor type or operative builders, but especially in remodeling and repair construction, work also may be done directly for the owner of the property. Specialty trade contractors usually perform most of their work at the construction site, although they may have shops where they perform prefabrication and other work. Establishments primarily engaged in preparing sites for new construction are also included in this subsector. • Specialty Trade Contractors comprise 475,816 number of establishments and employed a total of 0.4 million wage and salary workers
4. P A G E 4 Industry Summary Working Conditions Industry Trends Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Common Professions and Averages Employee Demographics Most establishments in construction sector are very small. Nearly 70% of the establishments employed fewer than five workers, while only 15% of the establishments employed five to nine employees. Overall, this industry sector has high proportion of its workforce as self-employed.1 The median age of the workers in construction sector is very similar to overall U.S. industries. In 2012, the median age for construction worker was 42.6 years as compared to 42.3 years for overall U.S. industries. Majority of the construction workers (25.5%) fall in the age group of 45 to 54 years old. Nearly 44% of the workers were 45 years or older. Major Industry Segments1 : % of Employment 22.6% Construction of building 62.4% Specialty trade contractors 15% Heavy and civil engineering construction Key Takeaways Nearly 70% of the establishments employ less than five workers Majority (25.5%) of workers employed in construction sector were 45 to 54 year old 2Employee Demographics 3Common Professions and Averages • Carpenters construct and repair building frameworks and structures—such as stairways, doorframes, partitions, and rafters—made from wood and other materials. They also may install kitchen cabinets, siding, and drywall • Construction laborers and helpers perform many basic tasks that require physical labor on construction sites • Construction managers plan, coordinate, budget, and supervise construction projects from development to completion • Electricians install and maintain electrical power, communications, lighting, and control systems in homes, businesses, and factories • Operating engineers and other construction equipment operators drive, maneuver, or control the heavy machinery used to construct roads, bridges, buildings, and other structures • Masons use bricks, concrete blocks, and natural and man-made stones to build fences, walkways, walls, and other structures • Plumbers, pipefitters, and steamfitters install and repair pipes that carry liquids or gases to and in businesses, homes, and factories • Painters, Construction and Maintenance apply paints, stains, and coatings to interior and exterior walls, new buildings, and other structural surfaces. They also remove old finishes and apply paints, stains, and coatings later in a structure’s life. Some painters specialize in painting or coating industrial structures, such as bridges and oil rigs, to prevent corrosion 1 “Occupational Outlook Handbook, 2012–13 Edition,” U.S. Bureau of Labor Statistics, Dec. 2013. Key Takeaway Average annual salary for an employee in construction industry ranges from $35,020 to $90,090
5. P A G E 5 Industry Summary Employee Demographics Industry Trends Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Working Conditions Common Professions and Averages 1 “Occupational Outlook Handbook, 2012–13 Edition,” U.S. Bureau of Labor Statistics, Dec. 2013. $ Highest salary $ Lowest salary 3Common Professions and Averages cont. Common Professions1 Average Salaries Median Earning (per hour) Carpenters $44,730 $19.2 Construction laborers $35,020 $14.6 Construction managers $90,090 $39.2 Electricians $52,520 $23.2 Operating engineers and other construction equipment operators $48,590 $20.9 Cost estimators $66,130 $29.4 First-line supervisors/managers of construction trades and extraction workers $63,320 $28.9 Truck drivers, heavy and tractor-trailer $40,040 $17.4 Plumbers, pipefitters, and steamfitters $53,470 $23.5 Painters, Construction and Maintenance $38,590 $16.9 Brick masons, Block masons, Stonemasons, and Tile and Marble Setters $31,100 $13.6 Plumbers, Pipefitters, and Steamfitters $52,950 $23.6 4Working Conditions1 Carpenters: Carpenters may work in cramped spaces, and frequent lifting, standing, and kneeling can be tiring. Those who work outdoors are subject to variable weather conditions. Carpenters have a higher rate of injuries and illnesses than the national average. The most common injuries include muscle strains from lifting heavy materials, falls from ladders, and cuts from sharp objects and tools. • Work Schedule: Nearly all carpenters work full time, which may include working evenings and weekends. Overtime is common in order to meet deadlines • About 36% of carpenters were self-employed in 2012. Self-employed workers often work in residential construction and may be able to set their own schedule Construction Laborers and Helpers: Construction laborers have one of the highest rates of injuries and illnesses of all occupations. Workers may experience cuts from materials and tools, falls from ladders and scaffolding, and burns from chemicals or equipment. Some jobs
6. P A G E 6 Industry Summary Industry Trends Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Employee Demographics Working Conditions Common Professions and Averages 1 “Occupational Outlook Handbook, 2012–13 Edition,” U.S. Bureau of Labor Statistics Key Takeaway Most of the construction industry employees are prone to accidents, and the rate of injuries and illnesses is higher than the national average. Most of these jobs are physically demanding expose workers to harmful materials, fumes, odors, or dangerous machinery. Workers also may experience muscle fatigue and injuries related to lifting and carrying heavy materials. Although they face similar hazards, construction helpers generally experience a rate of injuries and illnesses that is close to the national average. • Work Schedule: Like many construction workers, most laborers and helpers work full time. Although they sometimes stop work because of bad weather, they often work overtime to meet deadlines. Laborers and helpers on highway and bridge projects may need to work overnight to avoid major disruptions to traffic. In some parts of the country, construction laborers and helpers may work only during certain seasons • About 23% of construction laborers were self-employed in 2012. Self-employed workers may be able to set their own schedule. In contrast, very few helpers were self-employed Construction Managers: Many construction managers work from a main office, but most work out of a field office at the construction site, where they monitor the project and make daily decisions about construction activities. For those managing multiple projects, frequent travel between sites is required. Construction managers have a lower rate of injuries and illnesses than the national average. • Work Schedule: Most construction managers work full time. However, the need to meet deadlines and to respond to delays and emergencies often requires long hours. Many managers also may be on call 24 hours a day Electricians: Electricians work indoors and outdoors, in homes, businesses, factories, and construction sites. Because electricians must travel to different worksites, local or long distance commuting is often required. Electricians have a higher rate of injuries and illnesses than the national average. Although few accidents are potentially fatal, common injuries include electrical shocks, falls, burns, and other minor injuries. Workers must therefore wear protective clothing and safety glasses to reduce these risks. • Work Schedule: Almost all electricians work full time, which may include evenings and weekends. However, work schedules may vary during times of inclement weather. During scheduled maintenance, or on construction sites, electricians can expect to work overtime • About 9% of electricians were self-employed in 2012. Self-employed electricians often work in residential construction and may have the ability to set their own schedule Construction Equipment Operators: Operating engineers and other construction equipment operators have a higher rate of injuries and illnesses than the national average. Accidents generally can be avoided by observing proper operating procedures and safety practices, but some repetitive stress injuries do occur. In addition, bulldozers, scrapers, and especially pile-drivers, are noisy and shake or jolt the operator. 4Working Conditions1 cont.
7. P A G E 7 Industry Summary Employee Demographics Common Professions and Averages Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Industry Trends Working Conditions 1 “Occupational Outlook Handbook, 2012–13 Edition,” U.S. Bureau of Labor Statistics , 2 “Industries at a Glance,” Construction, U.S. Bureau of Labor Statistics 3 “Construction Spending,” U.S. Census Bureau, Feb. 2014 4Working Conditions1 cont. 5Industry Trends1 • Work Schedule: Construction equipment operators may have irregular hours because work on some construction projects continues around the clock or must be done late at night. Extremely cold weather or rain can stop some types of construction. Nearly all operators work full time Nonfatal Workplace Injuries and Illnesses2 Number of fatalities 879 802 781 817 Rate of injury and illness cases per 100 full-time workers Total recordable cases 4.3 4.0 3.9 3.7 Cases involving days away from work, job restriction, or transfer 2.3 2.1 2.1 2.0 Cases involving days away from work 1.6 1.5 1.5 1.4 Cases involving days of job transfer or restriction 0.7 0.6 0.7 0.6 In December 2013, the construction sector spending was estimated at a seasonally adjusted annual rate of $930.5 billion, 5.3% above the December 2012 estimate of $883.6 billion. Spending on private construction amounted to $663.9 billion whereas; public construction spending reached at $266.6 billion.3 Employment of construction workers is expected to grow 29% for a period of 2012 - 2022. It is expected to reach 7.3 million in 2022. The percentage change is primarily attributed to the increasing population and increase in infrastructure investment. • Employment of carpenters is projected to grow 24% from 2012 to 2022, much faster than the average for all occupations. Population growth should result in new-home construction which will stimulate the need for many new workers. Home remodeling needs should also spur demand for carpenters • Employment of construction equipment operators is projected to grow 19% from 2012 to 2022, faster than the average for all occupations. Spending on infrastructure should generate many new jobs for construction equipment operators. Workers who can operate multiple types of equipment should have the best job opportunities • Employment of construction laborers and helpers is projected to grow 25% from 2012 to 2022, much faster than the average for all occupations. Laborers and helpers work in all fields of construction, and demand for these workers will mirror the level of overall construction activity Key Takeaway Majorly all construction workers work full time, which may include working evenings and weekends. Overtime is common in order to meet deadlines Key Takeaway Employment of construction workers is expected to grow at 2.6% CAGR for a period of 2012-2022 2009 2010 2011 2012
8. P A G E 8 Industry Summary Employee Demographics Common Professions and Averages Working Conditions Union Presence Trade Associations and Publications Construction Industry All About For training purposes only Industry Trends 1 “Occupational Outlook Handboo k, 2012–13 Edition” U.S. Bureau of Labor Statistics Key Takeaway Employment growth is much faster than the average for all occupations 5Industry Trends1 cont. • Employment of electricians is projected to grow 20% from 2012 to 2022, faster than the average for all occupations. As homes and businesses require more wiring, electricians will be needed to install the necessary components. Electricians with the widest variety of skills should have the best job opportunities Industry Hot-Button Issues • In 2012, construction sector recorded 817 numbers of fatalities; Injuries and illnesses are higher than the national average. This may likely limit the employment opportunity • Employment in this sector is sensitive to the fluctuations of economy. Demand is driven by demographics and the health of the economy. As the population grows, demand for housing, infrastructure, and natural resources also increases, and with it demand for construction workers also increases Human Resources Hot-Button Issues • Shortages of workers may occur in some areas during peak periods of building activity • High focus on building safe working environment for workers. Occupational Safety and Health Administration releases a guide to provide insights on fall-protection concepts and best practices for the construction industry
9. P A G E 9 Industry Summary Employee Demographics Common Professions and Averages Working Conditions Industry Trends Construction Industry All About For training purposes only Trade Associations and Publications Union Presence Some of the larger unions include the following: • International Union of Operating Engineers (IUOE) - founded in 1896, IUOE has approximately 400,000 members in 123 local unions throughout the United States and Canada • Laborers’ International Union of North America (LIUNA) - formed on April 13, 1903, initially known as building construction union, called the International Hod Carriers and Building Laborers’ Union • Associated Builders and Contractors (ABC) – founded in 1950, is a national trade association representing 22,000 members 6Union Presence Few of the common financial service associations are listed below: • Associated General Contractors of America (agc.org) • United Brotherhood of Carpenters and Joiners of America, Carpenters Training Fund (carpenters.org) • Construction Management Association of America (cmaanet.org) • National Association of Home Builders (nahb.org) • Pile Driving Contractors Association (piledrivers.org) • Association of Construction Inspectors (aci-assoc.org) • International Association of Electrical Inspectors (iaei.org) Trade Publication • Constructor (constructormagazine.com) • Contractor (contractormag.com) • Building Design + Construction (bdcnetwork.com) • Free Construction Magazines (freeconstructionmagazines.com) • Construction Equipment (constructionequipment.com) • F+W Media (fwmedia.com) • ForConstructionPros.com (forconstructionpros.com/magazine) 7Trade Associations and Publications 14.9% construction industry workers represented by unions.
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