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News March 1, 2023

How can you retain workers when larger projects boost competition?

Ken Simonson, chief economist for Associated General Contractors of America, said the $1.2 trillion Infrastructure Investment and Jobs Act and the CHIPS and Science Act, which allocates $39 billion to build and expand semiconductor manufacturing plants, will create thousands of new construction jobs in 2023, according to constructiondive.com. As a result, small contractors may struggle to compete with multibillion-dollar projects offering higher wages and more benefits for workers.

Many local companies are offering benefits beyond money to attract and retain workers.

“They’ve got to sell something bigger than just a project, because typically those industrial projects pay a lot more per hour than your average contractor might pay,” said Greg Sizemore, vice president of workforce development, safety, health and environmental for Associated Builders and Contractors. “In middle-class America, it’s about selling the value, which is beyond just the dollar.”

Dorsey Hager, executive secretary-treasurer of the Columbus/Central Ohio Building & Construction Trades Council, said megaprojects are taking over central Ohio, and construction workers have the potential to make up to $135,000 per year. To retain workers, central Ohio construction firms are offering amenities such as free breakfast and lunch, onsite wellness centers, heated restrooms and changing areas, and convenient paved parking.

Construction workers now often are seeking valuable benefits such as paid time off and maternity and paternity leave, and younger generations of workers are interested in company culture, types of projects and safety protocols.

Keyan Zandy, CEO of Skiles Group, Dallas, said his company makes efforts to align workers with the company’s core values and include them in all company activities, such as volunteer programs or company picnics.

“It’s about not treating your labor like they’re a secondary component of what you do,” Zandy said. “That’s really the main thing—we should be doing everything we can to empower these people because if it weren’t for them, nothing would ever get built.”

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