Some construction projects in Maryland are costing tens of millions of dollars more than original estimates, in large part because of a lack of skilled trades in the region, according to baltimore.cbslocal.com.
For example, on Nov. 20, the Board of Public Works tabled votes on two large projects at the University of Maryland that would cost about $64 million more than originally estimated.
Supporting documentation sent to the board said the cost of the total projects increased based on issues within the construction industry, including a high demand for and low supply of skilled workers, which results in higher wages, adjustments to the scope of projects and rebidding trade packages. The documentation also indicated various large mechanical, electrical and plumbing contractors no longer are in business.
“I would like to see more students in Maryland be exposed to apprenticeships and skills training opportunities so they are aware of all of their options for employment,” said Lt. Gov. Boyd Rutherford in a statement.
At the Nov. 20 board meeting, Rutherford said Maryland’s unemployment rate is the lowest in 11 years, which is creating a challenge for companies looking for skilled labor.
“One of the things that we’ve been working at the last couple of years, particularly with one of the local school districts, is getting the trades back into these local schools,” Rutherford said. “Construction trades are willing to help because they need people.”
Maryland Center for Construction Education & Innovation President Bob Aydukovic said there is wage inflation among construction companies throughout the U.S., “from the lumber yards, to the skilled craftspeople on-site, to the professionals in the office, that are contributing to the increasing costs of construction.”
Daniel Loveless, a business manager for Steamfitters Union Local 602, said informing parents about the opportunities in the trades is key. He emphasizes the importance of getting a message to parents so they talk with their children about the trades rather than discourage their children from pursuing a trades career.
“College isn’t for everyone, whether it is a financial reason,” Loveless said. “Some people are meant to work with their hands and build.”
The state’s Department of Education in November published its four-year Career and Technical education plan, which aims to prepare students for jobs that meet employers’ skilled workforce needs. That report cites state labor projections, which anticipate the state needs at least 30,000 more construction-related jobs by 2026.
