TAUC Releases 2017 Union Craft Labor Supply Report
May 24, 2017 - The Association of Union Constructors (TAUC) has released its 2017 Union Craft Labor Supply report, which is designed to give construction professionals an in-depth understanding of the current state of union labor supply in the construction and maintenance industry throughout the United States. The report is available as a free PDF download at www.tauc.org/laborsupply.
This is TAUC’s third annual Union Craft Labor Supply report. It builds on previous studies and provides even more detail, data cuts, and historical trend analysis. TAUC and the Construction Labor Research Council (CLRC) analyze nearly 800 responses to a multi-question survey sent earlier this year to a cross-section of contractors, union representatives, and owner-clients.
In addition to overall findings, the study also features numerous data cuts based on several demographics, including respondent categories, geographic regions and specific industries. Data are presented for each of 14 crafts individually, as well as aggregated, including both actual staffing levels for 2015and 2016 and projections for 2017.
Highlights of the study include:
Optimistic Outlook for Growth
• This year, more than three quarters (78%) of all respondents said they expect the industry to grow by varying degrees. That percentage is up significantly from the 58% who expected overall growth in 2016 (p. 12). Growth was projected to be the strongest in the Commercial/Institutional sector in the Middle Atlantic and Southeast regions.
• Labor remains slightly more optimistic about growth than contractors and owner-clients. Over 86% of union representatives projected growth in 2017 compared to a combined 76% of contractor/subcontractors and owner/clients. The Utility sector was the most bearish on growth, forecasting a still- respectful 67% increase.
• In terms of geographic regions, 93% of respondents forecasted growth in the Middle Atlantic, while 84% saw growth in the Southeast.
Labor Shortage Challenges
• Over half (57%) of all respondents said they had experienced a union craft labor shortage in 2016. This represents an increase of 5% when compared to 2015 and 2014 (p. 22). Meanwhile, 43% of all respondents said that their union workforce had the appropriate number or a surplus of workers.
• Union/labor respondents reported the lowest shortage rates (48%) and the highest surplus rates (18%). Construction managers reported the highest shortage rates (70%). The evident disparity between labor and management, while still significant (22%), has shrunk from last year’s report (34%).
• In 2016, the Manufacturing sector reported the largest shortage of union craft labor at 64% and the Commercial/Institutional and Petroleum/Natural Gas/Chemical sectors reported the “best” union labor supply.
• 65% of respondents (a 10% increase from 2015) said they experienced a shortage of Carpenters & Millwrights in 2016, the highest of the 14 building trades; they were followed by Boilermakers (56% reported a shortage), Electricians (54%) and Iron Workers (52%).