Construction Careers: Building Your Future A Look at the Economic Impact of Construction Apprentices

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Construction Careers Building Your Future A
Look at the Economic Impact of Construction
Apprentices in Southeast Wisconsin
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Construction Careers Building Your Future
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Construction Careers Building Your Future

• Comprehensive economic impact study
• Conducted by Madison-based NorthStar Economics,
  Inc.
• Commissioned by Construction Labor Management
  Council of Southeast Wisconsin

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Construction Careers Building Your Future

• Purpose of Study
• Economic contribution
• Job creation
• Tax revenues generated
• Return on hiring apprentices for contractors

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Construction Careers Building Your Future
Construction industry helps build economy,
too Impact on region put at 2.3 billion. Impact
on apprentices? Priceless. By Joel Dresang
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Construction Careers Building Your Future
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Construction Careers Building Your Future
Kachelski had begun high school on a college
track, mostly because that's what a lot of his
friends were doing.
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Construction Careers Building Your Future
Then, sophomore year, he transferred to
Milwaukee's Bradley Technical High School from
Thomas More High School after telling his parents
that he really wanted to be a carpenter. He said
they encouraged him to pursue his ambition.
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Construction Careers Building Your Future
By the time he finishes his apprenticeship in
two more years, Kachelski plans to be making more
than 27 an hour at a job that challenges his
intellect, keeps him in shape and frequently gets
him outdoors.
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Construction Careers Building Your Future
The construction industry in Milwaukee's corner
of the state employs more than 30,000 skilled
trade workers.
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Construction Careers Building Your Future

• We are talking about a lot of jobs
• 30,000 construction journeyworkers in Southeast
  Wisconsin alone
• By comparison, STATEWIDE, there are
• 38,300 paper manufacturing jobs
• 33,200 plastics jobs
• 30,900 accomodations jobs

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Construction Careers Building Your Future
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Construction Careers Building Your Future
(Journeyworkers) earn an average 42,582 a year
and benefits such as health insurance and
pensions amounting to an average 46 of pay.
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Construction Careers Building Your Future
The combined gross payroll (of journeyworkers)
exceeds 1.3 billion a year, which amounts to a
total economic impact of more than 2.3 billion a
year.
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Construction Careers Building Your Future
After four years at a University of Wisconsin
campus, the average student has a net debt of
nearly 44,000.
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Construction Careers Building Your Future
In the same time, a construction apprentice in
southeastern Wisconsin would have had net
earnings of nearly 115,000.
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Construction Careers Building Your Future

• What is the benefit in considering a career in
  the trades?
• 25 of all transfer students to Wisconsin
  Technical College System colleges had completed
  four or more years of college (2002-2003
  Wisconsin Technical College System Transfer
  Information)

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Construction Careers Building Your Future
Southeastern Wisconsin is approaching a building
phase punctuated by several large projects,
including the Marquette Interchange, power plants
in Port Washington and Oak Creek and Milwaukee's
Columbia-St. Mary's hospital.
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Construction Careers Building Your Future

• What is the benefit in considering a career in
  the trades?
• Between 2002-2012, there will be a 15 increase
  in construction jobs (US Department of Labor,
  Bureau of Labor Statistics)

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Construction Careers Building Your Future

• What is the benefit in considering a career in
  the trades?
• Jobs not subject to exportation

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Construction Careers Building Your Future
Study Apprentices cost less to train than
college students By Sean Ryan, Sept. 30, 2005
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Construction Careers Building Your Future
Apprentices accumulate less debt and cost
taxpayers less to train than college students.
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Construction Careers Building Your Future
A University of Wisconsin System undergraduate
who earns 7,080 annually, pays no income taxes
and receives 8,354 in state funding costs the
state 8,109 a year.
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Construction Careers Building Your Future
An apprentice who earns 29,661 a year, pays
1,246 in income taxes and receives no subsidy
from the state ends up giving the state an annual
net gain of 1,934 through taxes.
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Construction Careers Building Your Future
Perhaps the most surprising figure is that the
30,150 construction journeymen generate 32,207
jobs to support their work through suppliers and
services.
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Construction Careers Building Your Future
We heard recent college graduates who couldnt
find decent jobs say things like, I wish I would
have known about the apprenticeship program five
years ago, CLMC Executive Director John Topp
said.
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Construction Careers Building Your Future
Construction careers are not just a win-win They
are a win-win-win
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Construction Careers Building Your Future

• Industry (contractors, unions)
• Increased productivity and safety
• Strong workforce
• 9 crew cost reduction

• Apprentices
• Rewarding career
• Earn 21 more than other Wisconsin workers
• Transferable skills
• Big financial head start compared to college grads

• State
• 8.5 million in taxes
• 10,000 less per year to train an apprentice

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Build your future. Visit www.buildingadvanta
ge.org. Learn more about the exciting and
rewarding career opportunities in construction
and contact one of our career coordinators.