NJ Construction Industry Turns The Tide: Employment and Prominent Projects rise

Richard Dressel, Business Manager

By Richard Dressel, Business Manager
International Brotherhood of Electrical Workers (IBEW) Local 164

Although New Jersey had a soaring number of construction projects on the books entering into 2008, economic jitters hit the men and women on the front lines - the building trades, where employment took an unexpected downturn.
 From soaring gasoline and material costs for copper and steel, to more stringent financing requirements from the fractured banking sector, signs of construction progress have been virtually nonexistent since the spring. Projects that had previously been planned for a pre-determined total cost skyrocketed by more than 50 percent. The initial reaction was to reduce the scope to remain within budget. In most instances, this only delayed the project and incurred additional costs related to altering the original plans.

Fortunately, the coming year is looking more promising. The source of this guarded optimism is in the numbers: employment within the construction industry is on the rise as are some of New Jersey's most prominent projects.

Despite the trickle-down, global effect of materials costs - copper and steel have tripled in less than two years - and the credit crunch, pipeline projects are now ramping up demand for large numbers of skilled union workers. These include the mixed-use entertainment complex Xanadu, which was eight months behind schedule; Red Bull Park in Harrison, which has been plagued by delays; and the new Meadowlands Stadium for the Giants and Jets, scheduled for occupancy in 2010. Upon completion, the as-yet-to-be named stadium will have seating for 82,500 fans, including 10,000 club seats and approximately 200 luxury suites, as well as an innovative aluminum-louver façade. This feature will be highlighted by interior lighting maintained by Local 164 electricians that will switch colors depending on which team is playing at home.

Within the Class-A office market, where progress is minimal, work continues at Waterfront Corporate Plaza III, a 550,000-square-foot office center in Hoboken. Of course, the plummeting housing market has fueled demand for multi-family housing. Residential mid- and high-rise apartment rental projects remain on-course along New Jersey's Gold Coast where tenants enjoy proximity to Manhattan while paying rents far below New York City-asking rates.

With a New Year Comes Safer Jobsites
The coming year also marks a new era in construction jobsite safety. Jan. 1, 2009 is the first anniversary of New Jersey's first successfully implemented Drug-Free Workforce Program for the building trades. Since being launched by IBEW Local 164, all 3,900 members as well as traveling electricians and telecommunications workers from other jurisdictions have undergone baseline testing. Additionally, 25 percent of registered electricians and telecom workers have undergone random sampling throughout the remainder of 2008. This ground-breaking program has been embraced by union leaders, members, contractors, developers and end-users alike.

While other IBEW Locals throughout New Jersey have followed suit, it is in the best interests of all building trades to adopt similar initiatives to render our jobsites 100 percent drug- and alcohol-free in 2009. To increase awareness, Local 164 and the Northern New Jersey Chapter of the Electrical Contractors Association are collaborating to educate other trade organizations as well as local, state and federal officials regarding the benefits associated with mandatory substance abuse testing for construction workers. Recently, the two organizations developed a direct-mail campaign that includes a DVD to increase awareness and highlight the success of Local 164's program.

Opportunities throughout the electrical and telecommunications fields remain abundant, albeit competitive. At IBEW Local 164, we expect to lose more than 15 percent of our trained workforce of Baby Boomers in the next few years. Prospective candidates must meet minimal requirements for algebra and a high school diploma as well as demonstrate a strong desire to complete a rigorous four- or five-year course of study. These apprentices are the next-generation workforce of highly skilled, expertly trained, drug-free electricians and telecommunications workers.

The construction industry throughout New Jersey has reason to be hopeful. Our ability to remain agile during the course of our 106-year history has enabled skilled workers to weather some of the worst economic periods in our nation's history. Now is no different, and the forecast for 2009 is favorable.

Richard Dressel has served as business manager of IBEW Local 164, based in Paramus, N.J., since 1997. In this capacity, he oversees all of the Local's business-related activities, is a recognized leader in union workforce issues and leading advocate of drug-free construction zones. Comprised of more than 3,900 members, the Local includes electricians active throughout Bergen, Hudson and Essex counties as well as telecommunications workers contracted throughout the state. Today, the IBEW includes more than 800,000 members worldwide.