With the construction industry unemployment rate approaching 25 percent and a total job loss of 998,000 in 2009, creating jobs and invigorating the economy is a priority for construction-related businesses across the country.
During his State of the Union address, President Obama focused on the economy and called on Congress to swiftly pass a bill that would benefit small businesses and create new jobs. On Feb. 24, the U.S. Senate responded by passing a $15 billion jobs bill. While Congress’ recent attention to reviving the economy is commendable, the provisions contained in the Senate-approved bill will do little to create significant job growth in the construction industry or in any other industry. Simply providing employers with tax incentives to hire new employees will not solve the crux of the problems facing the construction industry: the lack of projects on which companies can work.
As Congress continues to discuss and review various job proposals this year, Associated Builders and Contractors (ABC) is urging elected officials to consider a wide range of recommendations, outlined in its 2010 Job Creation Proposal, to help stimulate the construction economy and put Americans back to work.
- Eliminate "uncertainty" in the business environment. Federal legislative and regulatory anti-business proposals are negatively impacting the economic recovery of the construction industry. The outcome of these proposals is unclear, which has caused much uncertainty in the industry and has made it difficult for firms to adequately plan for the future. Currently, employers are unwilling to hire additional employees or invest in equipment or facilities. Job creation in the construction industry is best fostered in a pro-business environment where free enterprise and open competition are unconstrained.
- Increase access to capital. The freeze on lending for private sector construction projects must be addressed immediately. The long delay in lending or outright refusal by financial institutions to fund private sector projects has had an extremely detrimental impact on the construction industry. Many businesses have viable low-risk projects or contracts that simply need funding in order for work to commence.
- Provide meaningful tax relief that leads directly to job creation. Under the nation’s current tax system, rates are too high and laws are too complex, thus inhibiting the growth of small businesses. Minimizing the tax burden on American citizens—and the construction industry in particular—would help increase the rate of capital formation, economic growth and job creation.
- Stimulate construction efficiently. Long-term economic success requires the participation of the entire construction workforce on federally funded and assisted construction projects. Federal agencies should be prohibited from requiring union-only project labor agreements, and the Davis-Bacon Act requirements on stimulus-funded projects should be lifted.
- Promote energy efficiency. A comprehensive energy plan will benefit all Americans through less expensive, more stable energy supplies. The potential dividend for the construction industry is considerable. The nation’s energy infrastructure is insufficient and crumbling; new construction and upgrades to plants and transmission infrastructure are desperately needed. These new projects must be built with open competition and without government-mandated project labor agreements.
- Support training programs for all. One of the keys to attracting new workers to the construction industry is to provide high-quality, flexible training that leads to long-term career opportunities in a lucrative field. All workers, regardless of labor affiliation, should enjoy equal access to critical job training, which includes allowing open shop contractors access to federal training funds under the “Green Jobs” program. Additionally, it’s important to support school-to-career programs that offer students a course of study that brings together academics, on-the-job learning and paid work experience—all before high school graduation.
As the nation faces unprecedented economic challenges, businesses large and small are eager to stimulate growth and spur job creation. Throughout 2010, ABC and its industry partners will continue to support measures that revive the economy and increase jobs for the men and women in the construction industry.