Workforce Shortage

SmartMarket Report
Construction Industry
Workforce Shortages:
Role of Certification, Training and Green Jobs in Filling the Gaps
Premier Research Partners: Contributing Research Partners:
■ Design and Construction Intelligence
SmartMarket Report
McGraw-Hill Construction Construction Industry

Workforce Shortages:
President Role of Certification,
Keith Fox Training and Green Jobs
Vice President, Product Development in Filling the Gaps About McGraw-Hill
SmartMarket Report
Kathryn E. Cassino Construction
Executive Editor McGraw-Hill Construction
McGraw-Hill Construction Harvey M. Bernstein, F.ASCE, LEED AP (MHC), part of The McGraw-Hill
Research & Analytics/
Industry Insights & Alliances Editorial Directors Companies, connects people,
Michele A. Russo, LEED AP projects and products across the
Vice President, Industry
Managing Editor
design and construction industry,
Insights & Alliances
Harvey M. Bernstein, F.ASCE, LEED AP Donna Laquidara-Carr, LEED AP serving owners, architects,
engineers, general contractors,
Senior Director, Research & Analytics Editor
subcontractors, building product
Burleigh Morton Enver Fitch, LEED Green Associate
manufacturers, suppliers, dealers,
Director, Green Content & Director, distributors, and adjacent markets.
Research Communications Design & Production
A reliable and trusted source
Michele A. Russo, LEED AP William Taylor
for more than a century, MHC
Manager, Content Operations has remained North America’s
Reproduction or dissemination Juan Ramos leading provider of construction
of any information contained
Art Directors project and product information,
herein is granted only by contract
Alison Lorenz plans and specifications, industry
or prior written permission from Matthew Healy news, market research, and
McGraw-Hill Construction.
Contributing Art Director industry trends and forecasts. In
AD-BOUTIQUE, INC. recent years, MHC has emerged
Copyright © 2012, McGraw-Hill
Hisako Fujishima as an industry leader in the
Construction, ALL RIGHTS RESERVED
Research Project Manager critical areas of sustainability and
Susan Barnett, MRA, PRC interoperability as well.
In print, online, and through
events, MHC offers a variety of
For further information on this tools, applications, and resources
SmartMarket Report or for any that embed in the workflow of our
in the series, please contact: customers, providing them with
McGraw-Hill Construction the information and intelligence
Research & Analytics they need to be more productive,
34 Crosby Drive, Suite 201 successful, and competitive.
Bedford, MA 01730
Backed by the power of Dodge,
1-800-591-4462 Sweets, Architectural Record,
[email protected] Engineering News-Record (ENR),
GreenSource and SNAP, McGraw-
Hill Construction serves more than
one million customers within the
global construction community.
To learn more, visit us at
www.construction.com.
SmartMarket Report
Introduction
A
s construction recovers architecture students/recent graduates
CONSTRUCTION INDUSTRY WORKFORCE SHORTAGES: ROLE OF CERTIFICATION, TRAINING AND GREEN JOBS IN FILLING THE GAPS
from the worst recession in a who indicate that they would consider
generation, the industry cannot working abroad.
simply resume business as usual.
One factor that can counter these shortages
Key trends that were just emerging before
and skill gaps is certification, the benefits of
the recession—such as green building, lean
which the study clearly reveals:
construction and greater collaboration—have
now only strengthened. ■■ 1% find that having certified employees
7 Harvey M. Bernstein
In response to this industry increases the competitiveness of their firm F.ASCE, LEED AP
Vice President
transformation, McGraw-Hill Construction and its ability to win contracts.
Industry Insights & Alliances
(MHC) conducted two studies that examine McGraw-Hill Construction
■■ t least three quarters believe that
A
workforce issues: an industrywide study with
certification offers more job opportunities
A/E firms, general contractors and specialty
and valuable, job-applicable knowledge.
trade contractors, and a comparison study
of architecture students and practitioners The rise of green jobs in construction has
working in firms conducted for the American both created opportunities and intensified
Institute of Architects (AIA). potential shortages. In order to gauge their
These studies reveal that near-term impact, this report provides groundbreaking
shortages of skilled, experienced workers definitions of green jobs in design and
are a serious concern. construction that consider the number of
green buildings, uniquely green systems Michele A. Russo, LEED AP
■■ lmost one third (32%) of A/E firms and
A
and work that requires different skills to Director, Green Content &
general contractors are concerned about Research Communications
achieve green goals. (See page 11 for more
a shortage of specialty trade contractors McGraw-Hill Construction
information.)
by 2014.
By these definitions, green jobs currently
■■ early half (49%) of general contractors
N represent 35% of the total construction
are concerned about finding experienced workforce, and we estimate that the percentage
craftworkers by 2014, and well over one of green jobs will grow to 45% by 2014.
third (37%) of A/E firms are concerned We thank the AIA and the U.S. Green
about finding workers with 10 years of Building Council for their partnership in this
experience or more. project as well as the other organizations that
made this report possible. We are pleased to
■■ 9% of architecture firms are not sure that
7
provide these results to help the industry Donna Laquidara-Carr,
the U.S. student pipeline will suffice to
effectively engage in the transformation Ph.D., LEED AP
replace people leaving the profession, a
toward a greener, more collaborative future. Manager, Industry Insights &
problem exacerbated by the 76% of U.S. Research Communications
McGraw Hill Construction
Harvey M. Bernstein, F.ASCE, University of Reading’s School of of products and services and content to MHC’s SmartMarket
LEED AP, has been a leader in Construction Management and directing MHC’s SmartMarket Reports, examining critical
the engineering and construction Engineering in England, where Report series on key construction construction industry trends
industry for over 30 years. he also serves on their Innovative industry trends. Previously, she including BIM, public-private
Currently, he has lead responsibility Construction Research Centre served as Executive Director of partnerships and green building.
for MHC’s market research group as Advisory Board. Bernstein has the Clean Beaches Council and Prior to starting this position in
well as MHC’s thought leadership an M.B.A. from Loyola College, Deputy Director of the National 2008, she worked for nearly 20
initiatives in areas such as green an M.S. in engineering from Pollution Prevention Roundtable. years with MHC’s Dodge division
building, BIM, interoperability, Princeton University and a B.S. in She has authored several articles where she gained insight into the
innovation and global construction civil engineering from the New and is a frequent speaker on green construction news industry. From
markets. Previously, Bernstein Jersey Institute of Technology. building trends. Russo has a B.S. in 2005–2008, she served as Editorial
served as the President and CEO chemical engineering from Cornell Training and Policy Manager,
of the Civil Engineering Research Michele A. Russo, LEED AP, has University and a Masters of Public responsible for educating over
Foundation. He currently serves been working in environmental Policy from Harvard University. 250 reporters on key trends in
as a member of the Princeton policy and communications for 17 the industry. Donna has a Ph.D.
University Civil and Environmental years. She currently is responsible Donna Laquidara-Carr, Ph.D., from Tulane University, an M.A.
Engineering Advisory Council and for helping direct the green LEED AP, currently provides from Boston University and a
as a visiting Professor with the content across MHC’s portfolio editorial direction, analysis and B.A. from Middlebury College.
McGraw-Hill Construction 1 www.construction.com SmartMarket Report

SmartMarket Report
CONSTRUCTION INDUSTRY WORKFORCE SHORTAGES: ROLE OF
CERTIFICATION, TRAINING AND GREEN JOBS IN FILLING THE GAPS
TABLE OF
CONTENTS
04 Executive Summary
04 Executive Summary
07 Recommendations
08 Data
09 Construction Market Influences on Workforce
09 Impact of Construction Activity on Workforce
11 McGraw-Hill Construction Definitions of Green Projects and Green Jobs
12 Green Share of Company Project Activity
14 Influences Promoting Green Design: Results from the Architect Firm
data sidebar
Gap and Student Studies
15 Expectation of Green as a Norm for Firm/Industry by 2016
16 Employment Activity in the Last Three Years
17 Factors Impacting the Decision to Hire
18 Emerging New Jobs
21 Workforce Shortages
21 Workforce Shortages
21 Difficulty Hiring Workers by Level of Experience
22 Expected Shortages by Profession by 2014
24 Factors Impacting Skilled Workforce Shortages
25 Impact of Current Economic Downturn on Anticipated Workforce Shortages
26 feature Workforce Concerns from a Global Perspective
28 feature Role of a Temporary Workforce in the Construction Industry
29 Difficulty in Hiring Skilled Green Workers for A/E Firms and General Contractors
30 Professions with Expected Green Skilled Worker Shortages by 2014
31 Green Skilled Worker Shortages in the Trades According to A/E Firms and General
Contractors
32 Demand for Green Activities: Results from the Architect Firm Gap and
data sidebar
Student Studies
33 Most Effective Strategies for Attracting New Employees
34 feature Attracting the Next Generation of Skilled Workers
35 data sidebar Voice of the Next Generation of Architects
37 data sidebar Viewpoints of the Unemployed
Front Cover: Photograph by Michael Dickter
39 Skills Gaps
39 Skills and Knowledge Sought When Hiring Senior A/E and General Contractor Staff
40 Top Skills and Experience Sought in Job Candidates by Architecture
data sidebar
Firms: Results from the Architect Firm Gap and Student Studies
42 Skills and Knowledge Sought When Hiring in the Trades
43 Needed Green Skills (Top of Mind)
SmartMarket Report McGraw-Hill Construction 2 www.construction.com

CONTENTS
43 Best Approach to Obtain Required Skills for Green Projects

44 sidebar State Initiatives for Job Training and New Job Growth
45 Training and Certification

45 Training and Certification
45 Sources of Initial Training and Their Importance
46 Continuing Training Supported by A/E Firms and General Contractors to Keep Staff
Knowledge Current
46 Best Means for Continuing Training for Specialty Trade Contractors
47 Training Programs in the Trades: Driving the Future by Aligning Training and
feature
Marketplace Needs
49 Benefits of Certification for Individuals
50 Certification Benefits Experienced by Firms
51 feature The Value of Professional Certification in the Marketplace
53 Green Jobs
53 Green Jobs
54 Green Jobs in Construction
57 Most Important Activities for a Job to be Defined as Green
58 Green Job Requirements
59 Type of Green Job Held by Respondents
60 Proportion of Workforce with Green Jobs at Their Firm
61 Retraining Required for a Green Job
62 Benefits of Green Jobs
63 sidebar Renewables and New Job Growth
Thought Leader Perspective

19 General Contractor Perspective: Elizabeth J. Heider, Skanska
20 Architect Perspective: Carole C. Wedge, Shepley Bulfinch
55 Creating Jobs Through Sustainable Communities: Majora Carter, Majora Carter Group
64 Methodology
65 Resources

Executive Summary
Major shifts in the construction industry, as well as

demographics, may cause a shortage of skilled workers.

With the current levels of double-digit unemployment, a workforce shortage may seem like an unlikely problem in the
design and construction industry. However, the low levels of employment during the recession may actually mask
the way that changes in the industry, especially the growing green job market, require new skills and better training.
Certification of employees is one effective way in which the industry can respond to these rising needs.
Skilled Worker Shortages Will Be ■■Retiring Workers

Caused by a Combination of Factors With the U.S. baby boomer generation now approaching
McGraw-Hill Construction (MHC) forecasts that by 2015 retirement age, 60% of the survey respondents are
nonresidential construction project starts (including concerned about the resulting loss of knowledge.
building sectors like commercial, institutional and industrial)
Impact of the Recession
■■
will grow 73% over 2011 levels. This rapid level of growth has
Unemployment levels at double the national average
serious implications for the availability of skilled workers.
have driven many workers in design and construction to
The industry recognizes several other factors that,
seek opportunities in other industries. 58% are concerned
combined with the recovery, contribute to the risk
about the resulting loss of experience and skills.
of shortages.
■■Pipeline of New Workers is Not Sufficient
The architect firm and student studies conducted by MHC

Expecting Significant Shortages by 2014
for the American Institute of Architects findsSkills/Knowledge
that 79% of Needed1
architect practitioners expecting a shortage are unsure
High Expectation of Serious Shortage whether
Skills Widely the student pipeline will be sufficient to prevent
Needed
Moderate Expectation of Serious Shortage Skills Needed
Low Expectation of Serious Shortage
shortages. And 78% of U.S. architecture students and recent
Skills Less Frequently Needed
graduates express interest in working abroad, with over
Specialty Construction
Reported by Architect Engineer
General
Trade half motivated
Reported by by the perception
Project that more
Specialty work is available
Technology Business
Processes
Pe
Contractor Contractors Management Knowledge Proficiency Development Knowledge Mana
outside the U.S.
*
A/E Firms A/ETrades
Firms firms are also concerned about the pipeline:
General **
• 62% believe that their trade does not appeal to the
General
Contractors Contractors
younger generation.
Specialty Trade
* Top three trades in which A/E firms expect shortages: carpentry/millwork, • 56%
Contractors
find the education of the next generation N/A
HVAC/boilermaker, and electrical inadequate.
** Top three trades in which GC firms expect shortages: carpentry/millwork, electrical, 1 For A/E Firms and General Contractors, skills and knowledge indicated sought from senior staff only
concrete finisher/cement mason
Skills/Knowledge Needed1
Skills Widely Needed

Skills Needed
Skills Less Frequently Needed
Specialty Project Specialty Technology Business Construction People Safety

Trade Reported by Processes Communication
Contractors Management Knowledge Proficiency Development Knowledge Management Awareness
* A/E Firms N/A N/A
** General
Contractors N/A N/A
ork,
Specialty Trade
Contractors
ESTableN/A
N/A
work, electrical, 1 For A/E Firms and General Contractors, skills and knowledge indicated sought from senior staff only Source: McGraw-Hill Construction, 2012

Executive Summary CONTINUED
Nonresidential Green Building Market Size (in billions)

Source: Green Market Size, McGraw-Hill Construction, share calculation drawn from
McGraw-Hill Construction Dodge project starts; base value of construction market from
SHORTAGES AND SKILL GAPS Nonresidential Green Building Market Size (in billions)
McGraw-Hill Construction Market Forecasting Service, as of April 2012
The industry is most concerned about shortages in the Source: Green Market Size, McGraw-Hill Construction, share calculation drawn from
trades and engineering. The skills that A/E firms and McGraw-Hill Construction Market Forecasting Service, as of April 2012
$122
general contractors seek include project management billion
and knowledge of construction processes, while trades 48%
$58 of market
$122
firms value specialty knowledge the most. The industry
billion billion
needs to address how to supply all the skills sought to its 41% of market 48%
next generation of workers. $47 $58 of market
billion
billion
$25 31% of market
Strong Green Market Growth Presents billion 41% of market
Opportunities for Workers and 12% of market $47
$3 billion billion
Challenges for Firms 2% of market
$25 31% of market
In addition to the increased construction activity billion
expected in the next few years, there is an even higher 12% of market
$3 billion
level of green market growth. In fact, green is already 31% 2005 2008 2010 2011 2015
2% of market
of the commercial construction market, and by 2015, it is
expected to account for 48% of the market.
The growth of green jobs directly reflects the growth Number
Number of of Nonresidential
Nonresidential Construction
Construction
Jobs
2005 and
Jobs andGreen Share
Green Share
2008(in thousands)
(in thousands)
2010 2011 2015
in green projects. Source: Total Jobs: U.S. Bureau of Labor Statistics (Through the End of 2011);
Source: Total
Green Share: Jobs: U.S.
McGraw-Hill Bureau 2012
Construction, of Labor Statistics (Through the End of 2011);
Green Share: McGraw-Hill Construction, 2012
2011: 35% of the industry have green jobs
■■
Total
2014: 45% have green jobs
■■ Green
TotalShare
Green Share 1946.7
In order to measure the percentage of green jobs in the 1829.0
industry, MHC devised a construction-specific definition 1946.7

1829.0
of green jobs, the first in the industry that considers the
work done and skills required in addition to the output of
green buildings. (For more information on this definition, 895.5
see page 11.) 647.5

35.4% 44.6%
These jobs will continue to grow, not only because of
895.5
the growth in the market, but because they are perceived 2011 2014 (est)
to bring strong benefits compared to traditional design 647.5
35.4% 44.6%
and construction jobs, including greater job availability
and better career advancement. Benefits
Benefits ofof Green
Green Jobs
Jobs (by Player)
(by Player)
Source:2011
Source: McGraw-Hill
McGraw-HillConstruction, 2012 2012
Construction, 2014 (est)
FINDING GREEN SKILLED WORKERS A/E Firms General Contractors Specialty Trade Contractors
A/E Firms General Contractors Specialty Trade Contractors
The industry is already experiencing challenges finding Total
green skilled employees. Total
green_jobs Workers
More Jobs Available for Skilled Green Workers
More Jobs Available for Skilled Green48%
43%
■■ 86% of A/E firms and 91% of general contractors find 43%
green skilled employees difficult to hire.
38% 48%
28%
38%
■■ A higher percentage at A/E firms find senior (32%) and Better Career Advancement Opportunities 41%
28%
mid-level (41%) positions the most difficult to fill with 44%
green skilled workers, while general contractors are
nearly evenly split on the challenge of finding green
green_jobs 44%
Better Career Advancement35%
Opportunities
34%
41%
skilled managers (48%) and craft workers (43%). Greater Job Security 35% 29%
32% 34%
As the green market continues to grow, these gaps may 27%
become even more serious. Greater Job Security
21% 29%
32%
27%
McGraw-Hill Construction 5 www.construction.com
21%
SmartMarket Report
Executive Summary CONTINUED
The top green skills most frequently identified as Difficulty Expected Hiring Staff in 2014
needed in the industry include general green experience (By Level of Experience)
or specific LEED certification experience. In addition, a Source: McGraw-Hill Construction, 2012
small but notable group also reported finding a gap in

10 or More Years
energy modeling, BIM and collaboration skills.
Less than 10 Years
A/E Firms and General Contractors Design/Engineering Staff at A/E Firms

Expect to Have Difficulty Finding 37%
Experienced Workers by 2014 16%
In addition to general workforce shortages expected,
more A/E firms and general contractors anticipate that Craft Worker Staff at GC Firms
their own firms will have difficulty hiring staff with ten or 49%
more years worth of experience by 2014 than staff with 22%
less than ten years of experience.
Training and certification will need to capitalize on
experienced workers to help train the younger workforce.
Given the value placed on the real-world experience in Benefits of Certification
the training of new workers, companies already recognize Source: McGraw-Hill Construction, 2012
the value of capturing experience through internships

A/E Firms General Contractors Specialty Trade
and apprentice programs. Contractors
Currently, A/E firms are investing most in training
offered by associations and unions for continuing For Firms Total
training for their staff, and general contractors most Increase Competitiveness and the Ability
frequently reimburse training at financial institutions. to Win Contracts 71%
However, all three player groups recognize the critical 81%
value of certification. 66%
49%
Certification/Accreditation Provides
Necessary Skills and Knowledge that Green Certified Employees Allow Firms
to Expand Their Green Business 68%
Help Individuals and Firms Succeed
73%
71% of all firms find that having certified/accredited
employees in their staff helps them to increase 71%
competitiveness and the ability to win contracts, while 48%
68% find that green certified employees allow firms
to expand their green business. Strikingly, these direct For Individuals
business benefits are experiences by a larger percentage
Valuable Knowledge that Can Be Applied on the Job 77%
than reduced training costs or having new employees
76%
contribute more quickly. It demonstrates that certification
is recognized in the industry as having an immediate 76%
impact on business success, with architectural firms in 79%
particular finding themselves more competitive. More Job Opportunities 75%
As the industry struggles to deal with the loss of
79%
experience and knowledge, the training and recognition
68%
offered by certification are likely to become even more
important to the industry. 69%

Recommendations
As the design and construction industry continues to adapt to new

approaches and technologies, the workforce required to do jobs efficiently

and profitably will need new skills. Industry players also need to determine
how they can tap into existing expertise and attract new workers.
Industrywide the technological savvy of half the battle. Firms skills valued by these
the next generation and also need to attract players reveals that
■■ Take Green Seriously provide opportunities for new employees. Strong acquiring skills, knowledge
If an organization does them to excel by drawing strategies including and experience that relate
not already have a green on these skills. emphasizing work on green to green, collaboration and
strategy, it needs to develop
building and the firm’s use BIM may be useful as these
one. With green projects ■■ Encourage Certification
of advanced technologies. trends continue to grow
and green jobs already Among Employees
in importance.
accounting for one third of The results are clear— SPECIALTY TRADE
the market and still growing, certified employees bring CONTRACTORS ■■Emphasize Project
in order to stay competitive, business benefits to firms. ■■Emphasize Your Management Skills and
all involved in the industry Therefore, in addition Reputation for Safety Construction Knowledge
need to consider their to using that as a factor Specialty trade contractors Over Specialization
approach to green, in the hiring process, recognize safety as an Specialty knowledge does
including finding green firms should also actively important factor in attracting not carry the weight for
skilled workers, capitalizing support certification new employees. these players that project
on existing green expertise among their employees. management skills and
and their internal green
■■Focus on technology and
general construction
A/E AND GENERAL green to engage the
experts and emphasizing knowledge do.
CONTRACTORS next generation
additional green training.
■■Encourage Experienced These firms express the SPECIALTY TRADE
■■Find Ways to Connect to Employees to Stay in greatest concern about CONTRACTORS
the Next Generation the Industry attracting a younger ■■Focus on Specialized
Specialty trade contractors Both A/E and general generation and seeing them Knowledge and
are already concerned contractor respondents properly educated, but put Jobsite Skills
about the pipeline of new express concern about the least value on green and Specialty knowledge is
workers and the training the loss of knowledge technology. Keeping the critical in the trades, but
they receive. Even though and experience due to next generation engaged there is also an overall
A/E firms express fewer retirement and layoffs. may require a different emphasis on a collection
concerns, reports from As the industry recovers, emphasis on tools and of skills that improve
the students and recent they need to create approaches to projects. jobsite efficiency.
graduates in architectural strategies to encourage
programs indicate that input from experienced Industry Industry Training
many will consider working
employees. Flex-time and Professionals Recommendations
abroad for increased job
part-time arrangements
opportunities. All industry A/E AND GENERAL ■■ More Green Training
may help keep some of CONTRACTORS
players need to engage the
those experienced ■■ More Skills That Promote
next generation of workers ■■Increase Skills That Relate
workers engaged. Collaboration and Use of
to ensure the demographic to Emerging Trends: Green,
New Technologies
eventuality of baby-boomer Attract New Employees
■■ Collaboration and BIM
retirement is addressed. Keeping experienced Examining new, emerging ■■ Offer More On-the-Job
For example, recognize workers engaged is only positions as well as the Experience n

Data:
Data:Section
Section Hed1
Introduction
A Transforming Workforce
T
his is a pivotal time in the design and construction
CONSTRUCTION INDUSTRY WORKFORCE SHORTAGES: ROLE OF CERTIFICATION, TRAINING AND GREEN JOBS IN FILLING THE GAPS DATA
industry. Several factors are impacting the Notes on the Data

industry at once, creating uncertainty about how The data presented in this report are drawn from
well prepared the future workforce and pipeline of three studies.
new workers will be to deal with the changes emerging.
The recession that started in 2008 has had profound Industrywide Study
implications for the design and construction workforce. McGraw-Hill Construction conducted an
Not only has its impact been pronounced and prolonged industrywide study on workforce issues
in the construction industry, but it has also been widely and green jobs. That survey included the
publicized, leading potential future workers to question following participants:
the viability and stability of a career in this industry. The
■■ A/E Firms: This group includes all
loss of jobs in the industry may have also masked larger
architectural and engineering specialities,
workforce issues, such as attracting and training the
but it is important to note that 80% of these
next generation, that could increase in importance as the
respondents are architects.
recovery takes hold.
In addition, design and construction faces the same ■■ General Contractors: This category includes
demographic reality facing many American industries— general contractors, construction managers,
the retiring of baby boomers. The industrywide study design-builders and remodeling firms.
demonstrates that the industry is concerned about the
■■ Specialty Trade Contractors: This category
loss of leadership and experience as these workers retire.
includes respondents from multiple
Combine this with concerns about the experienced
trades, with the largest percentage from
workers that have left the industry due to the recession,
the electrical, HVAC/sheet metal and
and it becomes clear that capitalizing on the experience of
drywall trades.
older workers before they retire will be a major concern in
the industry.
In addition, new skills and knowledge are required for
Architecture Student/Recent
individuals in the industry to succeed. This report’s findings
Graduate and Architecture Firm
show that the green jobs resulting from the rise of green
Gap Studies
project activity do require new training, even if some This report also features data from two studies
are extensions of more traditional jobs. Transformative conducted by McGraw-Hill Construction
industry trends, such as greater collaboration, integrated for the American Institute of Architects—
project delivery and BIM, require workers to draw upon the Architect Firm and Student Gap Studies.
different skills than traditional positions do. The increasing Conducted together, these studies explore
need in construction for greater productivity is likely to the differential between student and recent
drive more rapid adoption of these trends, which will graduate perceptions of the architectural
require a different way of looking at the skills a worker has profession compared to those of currently
to offer. practicing architects on issues including green
This report provides a portrait of an industry in flux and building drivers, methods for networking, job
explores the market forces driving the need for workers, opportunities, technologies and other areas.
the potential shortages anticipated and already being felt, Unlike the industrywide survey, these studies
the skill gaps, and the current sources of training used to were confined solely to architectural students,
prepare workers. It reveals how training and certification recent graduates and practitioners.
can help address these concerns, and it explores these
For more information on both studies, see the
issues through the lens of green projects and green jobs.
Methodology on page 64.
Finally, it provides an important measure of green jobs in
the construction industry, the first to be calculated based
on the feedback of the workers in the industry rather than
on the number of green projects.

Data:Construction Market
Influences on Workforce
Impact of Construction Activity on Workforce
Construction Market Influences

age. Many who may have put off retirement during

on Workforce the downturn could see an opportunity to retire as the
Many factors have an impact on workforce needs
economy recovers. This combination of workers lost due
including new and growing trends in the industry and
to economic conditions and the aging demographics of
changing demographics. However, the single most
the workforce could have serious implications in the face
influential factor is construction market activity. In order
of a healthier construction market in as few as two years.
to understand current and future workforce needs, it is
critical to understand the impact of the down economy, STRONGEST SECTORS FOR GROWTH
the expected recovery and the specific market sectors McGraw-Hill Construction predicts that new commercial
expected to grow. It is also important to note that hiring building starts will show steady growth through 2015.
is a constant activity in this industry, even during the The upward trend has already begun; in 2011 commercial
recent past, a time of high, double-digit unemployment. building advanced 10% in dollar terms, marking a change
Therefore, as the economy improves, and construction from the steep declines reported during the 2008–2010
activity with it, the workload for firms will increase and period. Leading the way in 2011 were warehouses and
have serious implications on the workforce. hotels, climbing 23% and 58% respectively. For 2012,
The rise of green construction is also important. Not commercial building is forecast to rise 11%, and more
only do the number of green projects suggest that the substantial gains for are forecast for 2013 through 2015, with
workforce needs to make sure they are prepared for construction climbing by more than 20% per year.
green, but the larger perception that green is becoming Another structure type on the upward track is multifamily
a norm in the industry is also critical. With the majority housing, which jumped 27% in dollar terms during 2011. A
of emerging new jobs identified in the industry directly similar 25% increase is anticipated for multifamily housing in
related to green building or sustainability, this is one of 2012, to be followed by more gains through 2015.
the most significant workforce shifts underway. Institutional building sector, including publicly-funded
project types as schools and hospitals, fell 12% in dollar
Construction Market Activity terms during 2011, and another 4% decline is forecast for
According to McGraw-Hill Construction’s construction 2012. This sector is being restrained in the near term by the
market forecast, the total value of nonresidential building tough fiscal environment for states and localities; as this
starts dropped 34% from its high point in 2008 to the fiscal stress eases over the next year or so, construction
low point in 2011.1 One of the most serious factors should be able to strengthen moderately.
contributing to this prolonged period of decline was the
challenge of tight project financing. Delayed Projects
McGraw-Hill Construction’s forecast for the next few One indicator of the pent-up demand created by the
years shows a delayed, but sustained recovery. In the recession is the volume of delayed projects. For general
near-term, it will be slow. A nominal drop of 1% in the building projects, the dollar value of delayed projects
value of construction starts is expected in 2012 compared McGraw-Hill Construction tracks in its Dodge project
to 2011. The real burst of construction start activity is database has dropped from $23.2 million in 2009, $14.0
expected to occur from 2013 to 2015. In fact, the amount million in 2010 and $10.7 million in 2011.
of nonresidential building starts in current dollar terms To date, this trend appears to be continuing in 2012.
is estimated to climb 10% to 25% per year during the The average monthly value of delayed projects in the
2013–2015 period. For A/E employment, activity should Dodge project database in the first quarter of 2012 was
increase earlier as these projects enter design. $7.8 million, compared to $12.8 million in 2010 and $17.5
The improvement expected for construction activity million in 2009. These numbers support the notion that
will increase demand for construction workers, gradually the recession is beginning to take hold and that pent-up
at first and then more sharply as the construction demand is slowly re-emerging.
recovery becomes more broad-based. With levels of
unemployment topping 20% during the recession, many The Green Building Market
workers have left the industry entirely. Also, the initial The green building market is transforming the ways
wave of baby boomers are now entering retirement buildings are designed and constructed—not only

Construction Market Influences on Workforce
Impact of Construction Activity on Workforce CONTINUED
through the products and practices used in those nearly double the 12% decline experienced by architects
buildings, but also in the way the work is done, such as the and engineers. However, for the most part, the drop-off
use of more collaborative processes. occurred between 2008 and 2010, with all three groups
Therefore, as green construction activity increases, showing only nominal differences between 2010 and 2011.
so does the need for new skills and training. McGraw- These numbers suggest that a rapid and aggressive
Hill Construction’s nonresidential green building market recovery would have serious implications on the
sizing, based on its Dodge construction starts data and workforce over recent years. Since firms are more likely to
construction market forecast, reveals 41% of construction hire due to increased work they already have contracted
starts were green in 2011 (see page 11 for definition of a than work they expect (see page 17), a sustained recovery
green project), up from 31% in 2010 (a 50% increase) and could lead to significant workforce shortage.
from only 2% in 2005.
McGraw-Hill Construction expects to see this share
Nonresidential Green Building Market Size (in billions)
continue to rise, comprising nearly half of all nonresidential Source: Green Market Size, McGraw-Hill Construction, share calculation drawn from
building by 2015—equating to $122 billion in construction Nonresidential Green Building Market Size (in billions)
McGraw-Hill Construction Market Forecasting Service, as of April 2012
activity. And this growth is not just in new construction. Source: Green Market Size, McGraw-Hill Construction, share calculation drawn from
New green home activity is also on the rise, with McGraw- McGraw-Hill Construction Market Forecasting Service, as of April 2012
Hill Construction estimating its market share rising from $122

2% in 2005 to 17% in 2011. billion
This shift in the way buildings are designed and $122
48%
$58 billion
of market
constructed also fundamentally shifts the skills and 48%
billion
training needed in the workforce. (See page 54 for the $58 of market
41% of market
number of green construction jobs.) billion
$47
billion 41% of market
Labor Statistics by Profession $25 $47
31% of market
Along with the drastic decrease in construction activity, billion billion
$25 31% of market
12% of market
construction employment also plummeted. From 2008 $3 billion billion
to 2011, the U.S. Bureau of Labor Statistics reported 2% of market 12% of market
that construction employment decreased 19%, from 4.7 $3 billion
million workers to 3.8 million. General and specialty trade 2% of market
contractors have seen a steeper decrease than architects
2005 2008 2010 2011 2015
and engineers, with both experiencing a 21% decline,
2005 2008 2010 2011 2015
NonresidentialConstruction
Nonresidential Construction Employment
Employment (in (in thousands)
thousands)
Source:
Source: Bureau
BureauofofLabor
LaborStatistics
Statistics(Through thethe
(Through EndEnd
of 2011)
of 2011)
A/E
A/E Firms
Firms Contractors
Contractors Trades
Trades
Down
Downbyby
12%
12% Down by 21%
Down by 21% Down by 21% by 21%
Down
1,330 826 2,557
1,330 826 2,557
1,215
1,215 1,158 1,173 719
1,158 1,173 719 2,197
658 656 2,197
2,001 2,008
658 656 2,001 2,008
2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011
2008 2009 2010 2011 2008 2009 2010 2011 2008 2009 2010 2011

Data:MHC Green Definitions
McGraw-Hill Construction Definitions
of Green Projects and Green Construction Jobs
McGraw-Hill Construction’s (MHC) industry-leading analysis of the green

project and green job markets are based on the definitions developed
by MHC for green projects and green jobs. These definitions offer the
construction industry clear, measurable standards for determining
whether projects and jobs are green that are industry-specific.
MHC Green Project the U.S. Green Building Council, A green job in the design of
Definition Green Building Certification Institute buildings involves:
In order to begin tracking the size of and other independent experts, MHC • More than 50% work on green
the green construction market, in 2005 crafted a specific definition of green projects, or
MHC created a definition of a green for the construction professions— • Designing uniquely green
project that included projects that architects, engineers, contractors systems on any building.
were not attempting to achieve and specialty trade contractors. Examples include solar energy
green certification. Unlike in other industries, where systems, geothermal systems and
This definition has played a green work can be measured by the green roofing systems.
critical role in helping to establish a output of green products, workers
A green job in the construction of
baseline of green activity and then who specialize in green systems, like
buildings:
accurately tracking how that activity highly efficient HVAC systems, may
• Involves installing a uniquely
has developed over time. It is based install them in buildings that do not
green system. Examples include
on factors recognized across the include enough other green elements
solar panels, composting toilets
construction industry as critical to a to qualify as a green building. Thus,
and green roofs.
green project. measuring green jobs solely through
• Requires different skills to
According to MHC, a project can be the production of green buildings is
meet green goals. Examples
considered green if it is either: not sufficiently inclusive.
include using products that require
• Built to LEED or another In addition, many green jobs in the
different ventilation techniques,
recognized green building design and construction industry
and salvaging and reusing building
standard, or are extensions of existing jobs, with
components in new structures.
• A project that is energy- the same basic functions (creating
efficient and water-efficient design documents, coordinating a For both the design and construction
and addresses improved indoor team of subcontractors, painting of buildings, a green job does not
air quality and/or material or roofing) but with a different involve:
resource conservation. approach, skills or knowledge • Administrative or non-
required to achieve the best construction professionals
MHC Green Job Definition results. No existing green job Examples include procurement
There are many established definitions captured these important officers, accountants and green
definitions of green jobs that are not distinctions effectively. cleaning staff.
industry-specific. Furthermore, many Therefore, one critical result of • Manufacturing or production of
definitions of green jobs are both this research is the creation of a green products n
broad and vague. definition of green jobs that is a truly
In order to conduct this research, applicable and accurate measure of
MHC realized that green jobs in the green workers in the construction
construction industry needed to be industry professions. Because of
specifically defined in order for them the need to capture the distinctions
to be benchmarked and tracked over mentioned above, MHC defined
time. Therefore, in consultation with green jobs in two different ways.

Construction Market Influences on Workforce CONTINUED
Green Share of Company Project Activity
In 2011, 88% of respondents report they were working Green Share of Company Project Activity
on at least some green projects, and by 2014, nearly (2011 and 2014)
all (96%) think they will be. The percentage of green Source: McGraw-Hill Construction, 2012
projects as part of their overall work is also expected to

rise significantly, with firms doing over 50% green work 2011 2014
expected to grow from 26% of all respondents to
37%
nearly half (44%).
These results demonstrate that green has already
penetrated into work at the majority of firms, and that
the growth in green projects is expected to continue at a 26% 25%
vigorous pace, similar to its growth rate over the last five 23% 23%
years (see page 10 for the green building market size). 19%
The steady increase in a firm’s level of green work 14%
has important implications on the need for green 12% 12%
skilled workers. There has been sufficient green work
to enable creation of a cadre of experienced green
4%
workers in the industry who could provide leadership
as the green market continues to grow. However,
None Less than 26% to 50% 51% to 75% More than
the high rate of growth of the overall green market
25% 75%
also demonstrates that firms will need access to
more workers who are trained to efficiently and cost-
effectively execute green projects. designed by A/E firms are not always implemented in the
Previous McGraw-Hill Construction research shows construction phase. Alternatively, they could suggest that
that, as a larger percentage of the work done by firms for A/E firms, involvement with green is becoming a far
becomes green, the degree of sustainability achieved more standard trend, whereas green involvement with
in those projects typically increases. Firms doing more construction firms may be more concentrated among a few
than 50% green projects may not only need more green firms doing a large volume of largely green projects. Most
workers than firms doing less than 25% green, but they likely, both of these factors are influencing the industry.
may also need workers with greater experience and
sophistication in producing sustainable outcomes in Variation by Years in Profession
buildings. Thus, the need for more green skilled workers A significantly higher percentage of respondents (16%) with
in the next three years may be even greater than the 20 years in their profession are currently doing no green
growth expected by the survey respondents suggests. projects compared to those with less experience (9%).
Conversely, far more respondents with less than five years
Variation by Firm Type of professional experience (24%) report that more than 75%
Architects and engineers report doing higher levels of of their projects are green compared to those with five years
green work compared to general contractors or specialty of experience or more (13%).
trade contractors. In fact, 50% of A/E respondents report The gap remains consistent in their estimates of the
that by 2014 more than half of their projects will be green, amount of green work they will do in 2014. Respondents
compared to 38% of general contractors and 31% of with 20 years or more experience account for 78% of those
specialty trade contractors. Previous studies by McGraw- who expect to be doing no green work in 2014, even though
Hill Construction on green and sustainability have they comprise only 51% of the total respondents.
consistently demonstrated that A/E firms have been earlier This result is probably impacted by the importance
adopters of green than contracting firms, and these results that the younger generation places on environmental
bear out that general trend. issues, suggesting they may be going to work for firms
These results could have multiple implications. First, the more engaged in green work. More research is needed
gap in the percentage of green work between design and to determine the extent to which this interest is drawing
construction firms could suggest that some green elements younger professionals into design and construction. (See

Construction Market Influences on Workforce
Green Share of Company Project Activity CONTINUED
page 14 for reasons that architecture students and recent green compared to 47% of commercial and 45% of
graduates from architecture programs want to pursue institutional sectors.

green work.) In 2014, the differential between sectors is more
muted, confirming McGraw-Hill Construction’s
Variation by Region projection that the industry at large is shifting toward
In 2011, a much larger percentage of respondents from green. By 2014, the sectors doing more than 75%
the West (16%) had more than 75% green projects, of projects green are 29% of institutional, 27% of
compared to the Midwest and the Northeast (both commercial and 22% of industrial.
at 9%). However, by 2014, there is no statistically
significant differential by region among firms with more Variation by Accreditation
than 75% green projects, although the Northeast does Not surprisingly, far more respondents who have some
average fewer green projects overall than the other accreditation (including possibly LEED) have a higher
regions. This result indicates that as green becomes the percentage of green projects in 2011 than individuals with
norm, regionality is shrinking in importance in terms of no accreditation and an even higher percentage in 2014:
overall adoption.
More Than 50% Green Projects in 2011
■■
• Accredited: 49%
Variation by Project Sector • Not Accredited: 14%
Not surprising, firms focused in the institutional sectors
are doing the highest levels of green work. These More Than 50% Green Projects in 2014
■■
projects, including schools and hospitals, have strong • Accredited: 71%

green building programs and policies in place. • Not Accredited: 32%
■■More than 75% Green Projects in 2011
• Institutional: 14%
Variation by Gender
A greater percentage of women report that they do more
• Industrial Sector: 9%
than 75% green projects compared to men. In 2011, 19%
• Commercial Sector: 13%
of women versus 12% of men report that more than 75%
Conversely, the industrial sector has the lowest level of of their projects are green. In 2014, the gap continues with
penetration, with 54% of them doing 0%–14% of work 35% of women versus 25% of men.
Green Share of Company Project Activity (by Profession)

Source: McGraw-Hill Construction, 2012
31% 30%
28%
27% 28%
24%
22%
21% 21%
19% 18%
13%
6%
4%
2%
None Less than 25% 26% to 50% 51% to 75% More than 75%

Data:Construction
Influences on Workforce
Market
Influences Promoting Green Design:
Results from the Architect Firm Gap and Student Studies
Architects have been leaders in sustainability, and their influential

role at the beginning of the design process has been and will continue
to be critical to the growth of green building. Understanding what
influences them and the next generation of architects to choose green
design is critical to gauge the future direction of the green market.
T
he survey of practicing motivators. They clearly believe that Factors Influencing
architects reveals that it is necessary for green design to Green Design
the factor most likely to demonstrate its bottom-line benefits
Source: AIA/MHC Studies 2012
increase their sustainable to increase in practice.
practice is greater client demand. This Students, however, believe that the Firm
is in striking contrast to the survey long-term return on investment should Student/Recent Graduate
responses from architecture students carry weight, and many in the industry
and recent graduates, who believe believe that this factor is critical to Client Demand
that they are more likely to increase continued future growth of green 66%
their green practices and procedures in construction. To encourage this, 54%
because of a personal sense of many are seeking ways to help owners
Rising Energy Costs
environmental responsibility. realize those benefits in the market
56%
Architects have been important value of their green buildings as well as
46%
change leaders for sustainability their operating savings. n
in the construction industry, Regulatory Requirements
adopting early and, for some firms, 52%
Client Interest in Green
advocating for greener projects. 31%
However, practitioners recognize
(According to Architectural Firms)
Source: AIA/MHC Studies 2012 Long-Term Return on Investment
that encouraging owner demand
40%
will have the greatest impact on Reduced Operating Costs 51%
increasing their ability to do more 77%
sustainable design because the Government/Industry Incentives
owner ultimately determines the Public Relations/Marketing 40%
project budget and priorities. 64% 31%
The passion that the younger Market Demand
generation have for sustainability may Personal Sense of
40%
help push green activity further as they Environmental Responsibility
gain leadership positions within firms Reduced Environmental Impacts 39%
and deal with clients directly. 28% 65%
Factors that impact the owner’s
Improved Public and Occupant Health
immediate costs or requirements
28%
on a project are also given a strong
weight by architectural practitioners.
These include rising energy costs
and mandates. When asked what
influences client interest in green, in
addition to reduced operating costs,
practitioners also regard strategies to
increase business such as marketing
and public relations as important

Expectation of Green as a Norm

for Firm/Industry by 2016
66% of all respondents believe that green will be the norm Green Construction Will Be the Norm
for their firm by 2016, and 70% believe it will be the norm by 2016 in Firm and Profession
for their profession or trade. This result demonstrates the (According to Industry Players)
strong need for professionals in design and construction with Source: McGraw-Hill Construction, 2012
effective green skills, experience and training. It supports the

general trend that the industry is continuing to grow in terms
Total
of green. As green becomes the norm, the ability to do green
work will continue to gain importance as a differentiator for Firm 66%
workers in the design and construction professions. And 71%
eventually, it will become a necessity—folded into the basic 62%
skills needed for the different professions.
48%
More respondents in all three of the firm types, A/E firms,
general contractors and specialty trade contractors, believe
that green will be a norm in their profession than in their Profession/Trade 70%
individual firm. This finding is interesting because it suggests 76%
that the awareness of green in the industry is acute and may 66%
in fact slightly exceed the actual level of green adoption
51%
levels as share of a firm’s work. The high level of industry
awareness of LEED and Energy Star ratings, the continued
popularity of green conferences, and the active promotion of
■■Green Will Be the Norm for Their Firm
green best practices and other elements may have created
• Less Than Five Years: 75%
the impression that the industry as a whole is going green
• 20 Years or More: 64%
faster than individual firms are able to.
■■Green Will Be the Norm for Their Profession
Variation by Firm Type • Less Than Five Years: 82%
While roughly two thirds to three quarters of A/E firms and • 20 Years or More: 67%
general contractors see green as a norm in their firm and
A lower percentage of those who make hiring decisions
the industry within five years, trade contractors hover at
(67%) believe green will be a norm in the industry compared
50%. These results demonstrate the penetration of green
to those who do not make hiring decisions (75%). This may
in the industry, with design firms as early adopters, general
be directly tied to the finding that those who have been in the
contractors adopting in response to industry demands, and
profession longer are less likely to see green as a norm.
the trades following behind the contractors. Earlier adoption
of green by design professionals compared to contractors
has been demonstrated in other SmartMarket Reports on
Variation by Level of Green Involvement
Over 90% of firms with at least 50% green projects think
green building published in the last five years, and this result
green will be a norm in the profession in the next five years.
further confirms that trend.
While it would be reasonable to expect that those doing
Despite the differential, it is important to note that over
more green work would anticipate that it will be a norm, this
50% of trade contractors do expect green to be the norm in
high level of expectation is striking and demonstrates that
five years for their trade—a substantial figure that should
familiarity with green work leads firms to expect that the
be noted by educational institutions, unions, certification
industry as a whole will be adopting it within five years.
programs and others who provide trade employees with the
skills they require.
Variation by Gender
More women (75%) than men (70%) think green will be a
Variation by Years in Profession norm in their profession in five years.
Workers with fewer than five years in the profession are more
likely to see green as a norm for their firm and profession than
those with 20 years of experience or more. This is consistent
with various findings in this study regarding the passion and
commitment of the younger professionals to sustainability.

Employment Activity in the Last Three Years
Over three quarters of respondents report that their a slightly higher percentage reporting layoffs (79%), but
firm has experienced a change in employment, with not enough to be considered statistically significant.
nearly equal amounts reporting that they had hired or
laid off employees. Also, almost two thirds report that Variation by Firm Size
employees have elected to leave the firm. Firms that have billings of $5 million or more report
This result demonstrates that the design and significantly higher levels of employment activity—93%
construction industry is experiencing a dramatic amount have hired employees, 86% have laid off employees, and
of staff turnover. Even in a down economy, firms are 83% had employees elect to leave the firm in the last five
hiring employees in addition to laying them off. In such years. This no doubt relates to the larger likelihood of
an active market, potential employees need to be able to changes among a larger group of employees, but it also
differentiate their skills and expertise effectively. underscores the need for these firms to be able to quickly
Interestingly, there is no statistically meaningful find and evaluate potential candidates for employment.
variation in employment among firms working in A lower percentage of firms with less than $250,000
different project sectors. in billings report hiring employees (32%) or laying off
employees (52%) compared to those with higher billings.
Variation by Firm Type This indicates that currently larger firms offer more
General contractors are the only firm type in which a opportunity. It would be interesting to track whether this
higher percentage of respondents report laying off changes when the recovery takes hold in the industry.
employees (84%) as opposed to hiring employees (82%).
General contractors often hire workers on a project-by- Variation by Level of Green
project basis. As the projects are completed, workers can Involvement
be laid off. Given the dramatic decline in construction Firms with less than 25% green projects report hiring
starts in 2011 compared to 2008 (see page 9 for more fewer employees and having more employees elect to
information), it is not surprising that these firms report leave compared to those doing more than 75% green
slightly higher levels of employee layoffs compared to projects. This results again underscores the strength of
A/E firms or specialty trade contractors. the green building portion of the market.
Hired Employees
■■
Variation by Region • More Than 75% Green Projects: 87%
A higher percentage of firms in the West (80%) report
• Less Than 25% Green Projects: 79%
laying off employees compared to firms in the Northeast
(74%) or Midwest (72%). This corresponds to some Employees Elected to Leave
■■
of the regions that report the highest declines in their • More Than 75% Green Projects: 75%
construction markets, including Las Vegas and some • Less Than 25% Green Projects: 65%
cities in the Southwest. The South, another region with
sections with dramatic declines in construction, also had
Employment Activity in the Last Three Years

Hired Empoyees
79%
Laid Off Employees
76%
Employees Elected to Leave Firm
65%

Factors Impacting the Decision to Hire
The most common reason for all of the industry firms Factors Impacting Decision to Hire Employees
to hire employees is because of an increased current (by Player)

workload. This demonstrates that their demand for Source: McGraw-Hill Construction, 2012
new workers is likely to coincide with the recovery of

construction in their markets and project sectors rather
than precede it, since projected increases in workload Total
finish a distant second. Increased Current Workload 70%
72%
Variation by Firm Type
63%
While the rankings by importance are similar, there are
significant differences in the percentages of the players 72%
that find these factors to have a major impact. Projected Increase in Work 41%
/E FIRMS
A 43%
During hiring, a much higher percentage are motivated 38%
by current workload increases and the need to replace 40%
staff who are leaving compared to general contractors.
Need to Replace Workers Who Are Leaving 39%
The specialty trade contractors match the architects in
42%
the influence these factors have on their hiring practices.
33%
GENERAL CONTRACTORS
42%
A higher percentage are concerned with replacing retir-
ing workers compared to the other two professions. Availability of Talented Staff Laid Off by Other Firms 34%
36%
PECIALTY TRADE CONTRACTORS
S
34%
A higher percentage consider the need for experienced
workers a strong motivation for hiring compared to the 26%
other two professions. Need More Experienced Workers to Run Projects 25%
22%
Variation by Project Sector 22%
Replacing retiring workers motivates hiring for a higher
35%
percentage of design and construction firms doing
industrial design (23%) compared to commercial (17%), Replace Retiring Workers 17%
industrial (17%) or residential (16%) work. This may be 15%
influenced by the recent spurt of growth in construction 23%
in the manufacturing sector. Because manufacturing
15%
work has been largely reduced in the last several
decades, most of the expertise in this area may lie with an
older generation of workers getting ready to retire. Variation by Level of Green
Involvement
Variation by Region 30% of firms with more than 50% green projects find that
52% of respondents from the Midwest find the need to the need to find more experienced workers to run projects is
replace workers leaving construction to play a role in compelling them to hire new employees, compared to 18%
their hiring decisions, second only to increased current of those who do less than 50% green. This result, combined
workload at 65%. This suggests that in the Midwest, with the fact that those doing a majority of green projects
the number of workers leaving the industry may be far also tend to be newer to the profession (see page 12),
larger than in the other regions, which average only 34% suggests that there may be a need for employees that can
for this factor. combine green skills with project leadership experience.

Emerging New Jobs
Despite the very different types of jobs held by A/E, INTERNAL BUSINESS MANAGERS
general contractor and specialty trade contractor In addition to positions that help make projects greener,
respondents, their responses are generally in agreement a few of the respondents indicate that they expect
when presented with an open question about the types of positions to emerge that will make their firms greener as
new jobs they think are currently emerging due to industry well. These include sustainability managers and energy
trends. In general, all three player groups see new jobs management positions.
emerging in two main areas: green (including energy
NON-CONSTRUCTION POSITIONS THAT
efficiency) and building information modeling (BIM).
ENCOURAGE GREEN BUILDING
While the rise of green projects is driven most by the
New Green Jobs benefits these projects offer, regulations continue
Three quarters of the A/E and general construction
to play a critical role in encouraging green projects.
respondents identified jobs emerging in the area of
In addition to green codes, the emerging trend of
green construction and sustainability. 47% of the trade
reporting building energy use may also impact the
contractors also saw new jobs emerging in the green sector.
construction industry. Thus, some new positions
SPECIALISTS expected include those involving code compliance/
One of the top areas in which A/E, general contractor inspection and energy auditing.
and specialty trade contractor respondents expect to
REDUCING ENERGY USE
see new jobs emerging is in specialization, in green and
In addition to the positions mentioned above that
specifically in LEED. As green projects become a larger
encourage energy conservation, A/E and general
part of the overall construction market (see page 10), it is
contractor respondents also identify emerging jobs in
not surprising that more firms are looking for employees
energy modeling, while all three players report expecting
that have a deep knowledge of green.
to see positions generally addressing energy efficiency.
Interestingly, a higher percentage of specialty trade
contractors identify green specialists compared to
the other players, while general contractors have the
New BIM Jobs
21% of the A/E and general construction respondents
largest percentage who name LEED specialists as a new
and 7% of the specialty trade contractor respondents
emerging position. This may be impacted by the fact
identify new positions emerging to help firms maximize
that speciality contractors are more likely than general
their use of BIM. These include many of the same kinds
contractors to identify their job as green because they
of positions emerging in green including specialists and
work on a specific green system, thus making them more
managers for BIM. A few general contractors expect to
focused on the specific work they do and less focused on
see more BIM engineers, and all three players expect to
elements like third-party certification for green projects.
see more BIM modeling jobs emerge as well as general
CONSULTANTS BIM-related positions that they didn’t specify.
In addition to new internal expertise on green, many of
the respondents also expect to see a rise in green and Other
sustainability consultants. No doubt this is also due to the Over 5% of the A/E and general construction
perception of a growing green market. respondents also see jobs emerging in design,
building commissioning and technology. For the
PROJECT COORDINATION/MANAGEMENT
trades, other emerging job areas include technology,
There is some recognition that coordinating and
solar and engineering.
managing a green project can be a different process than
managing a traditional project. Thus, all three players
name green project coordinators and LEED project
managers as new positions they expect to emerge.

Interview:Thought Leader
Elizabeth J. Heider, AIA, LEED AP, Senior
Vice President Green Markets, Skanska
Heider’s 33-year career encompasses all phases of design and
construction as architect, construction manager, cost manager
and VE facilitator. She has presented papers on cost, value,

eco-efficient building and program management at international
conferences and serves as 2012 Chair of USGBC’s Board of Directors.
How do you think green building standpoint. We look for suppliers What trends concern you about
changes what is required from the and subcontractors who have the the availability of a skilled
current construction workforce? desire to learn and expand their workforce?
HEIDER: What it boils down to capacity. That is one way we attempt HEIDER: The biggest challenge is
is education and awareness. We to transform the market ourselves. that we have been at the bottom
need broader awareness that of the recession for three, four
there are technologies that are How do changing workforce years now, and outside of ongoing
not so difficult and can provide demographics impact the skills construction, there will be pent-up
solutions that really enhance you see at Skanska? demand once the market begins to
environmental performance in HEIDER: People who are more recover ... Hopefully, the recovery is
buildings ... [We need the] builders seasoned professionals bring not rocketing up but rises in a way
and trades to identify solutions different skill sets to the table than that allows companies to bring staff
that perform better. emerging professionals. Those on board, train them and give them
of us who came into the industry the job skills that allow the company
What is the best way to increase before CAD have perhaps greater ... to proceed with confidence,
education and awareness about depth and experience in the craft instead of bringing on board a
green in construction? of delivering a project to market. whole lot of folks who are new to the
HEIDER: On the supply side, Emerging professionals have a lot industry and then expecting that they
the construction and trade of innovative ideas and perhaps a will have the skills that are necessary
organizations [need to] celebrate stronger command of the latest IT to develop.
[green] and educate people, saying technology. They certainly have
this is important, this will allow you experience with social networking How can industry firms best
to differentiate yourself [in a tight and other aids that can enhance respond to the challenge
market]. Then you have the demand productivity. I think that bringing to become more diverse
side ... the extent to which firms those capabilities together creates and inclusive?
that commit to educating their staff a potent combination for market HEIDER: There is a real need for the
and collaborating are rewarded by transformation. design and construction community
projects being awarded to them [by to grow tomorrow’s leaders ... We
owners and architects]. It will just What are the skills you think [at Skanska] are aware of the need
ignite the market. are necessary given the rise of to bring a diverse workforce into
collaboration in construction? the company to create tomorrow’s
Do you experience a challenge HEIDER: It is important that we leaders and create a legacy that will
in finding subcontractors with develop strong interpersonal skills deliver a much more robust, more
green skills? in all stakeholders. We have to diverse community ... You want to
HEIDER: Some markets are more engage in a dialogue and be aware make sure that you develop people
mature than others ... We really rely of [our partner’s] gifts, what brings so that they can be successful,
on the regional supply of expertise, them to the table, what drives instead of promoting people beyond
so when we go into a [less mature] them, what their risk profile is, what where they are ready ... [Skanska
market, we provide coaching to the their ambitions are for the project, is] very committed to growing that
subs so that they can be successful and how you have constructive capability and leaving that as a
from a safety and sustainability conversations about this. legacy to the workforce. n

Carole C. Wedge, FAIA, LEED AP,
President, Shelpley Bulfinch
Carole has led a transformation of Shepley, with the creation of an
open culture and work environment in new office space in Boston;
the rebranding of the firm and its institutional identity; and the
addition of offices in Phoenix (2009) and San Francisco (2012).
In 2011 Shepley Bulfinch was one of three firms honored by the
American Institute of Architect’s Diversity Recognition Program.
Does the rise of green projects together and what communication ideas, experiments, new products
call upon a different set of skills looks like. The processes we used to and new strategies. You have to be
for architects? develop a project 10 years ago look pretty voracious to stay on top of all
WEDGE: Absolutely. I think the role pretty different today. that is going on in the industry.
of collaboration across disciplines [Another] component is The interesting thing about
is huge. Early in my career, the assessment. The hardest part has globalization is that there are so
architect developed a concept, [and] been ... getting good metrics from many parts of the world that do
once we had a conceptual idea, we our buildings, getting their yearly not have the infrastructure and
passed it to the engineers. Now we energy use and getting it converted systems we have. One of the
are meeting at the very beginning [to a form] that we really understand. exciting opportunities is whether
with the entire AEC team to say: [Architects typically ] do not take you can solve the problem without
What are the implications of this site classes in understanding BTUs making it complex? ... The exposure
from all our different perspectives? and their throughput and how to to solutions globally and the way
What are the ambitions for energy extrapolate that to dollars. That problems are being solved in
use or water use from all these connects to the post-occupancy different cultures and communities
different perspectives? You have research and review that we do ... inspires new thinking on all projects.
to be a collaborator, a good listener There is a much more extended
and a synthesizer in ways that a lot of relationship between the AEC team, What trends are you watching
architects were not trained to be. the building itself and the client. with concern?
The second thing that is changing WEDGE: Part of the recession is the
is the need for research and Does this create any new recession echo ... I worry about really
exploration as part of the design positions? bright, creative, talented people con-
process. A lot of architects were WEDGE: That depends on a firm’s tinuing to focus on architecture as a
trained to develop a process that strategy. I have seen firms that are profession they want to pursue.
was about their firm or the lead hiring researchers, energy modelers
designer’s point of view. And now, and building scientists. I think we Will the retiring baby boomers
I see research [taking hold]—asking [at Shepley] shy away from the create shortages in the recovery?
questions, exploring new systems pigeonholing part. We think the WEDGE: The retirement of the baby
and approaches, and taking apart the better, more nimble professional is boomers is actually an interesting
assumptions about systems you use. going to be able to work across those opportunity for firms to have people
skill sets. To really contribute across a act in different roles, as consult-
What impact do you see on large project and have a rich and complete ing principals or mentors ... We are
architectural firms like yours career, you need to be exposed to going to have to be more flexible in
from the increase of trends like the whole spectrum ... But it really how people contribute to the work. I
green, BIM and collaboration? depends on your business model. I can imagine baby boomers working
WEDGE: There is skill development don’t think either is right or wrong. part-time on projects ... Firms that
and process redesign that goes with can be flexible and creative in how
integrated design. It changes the What other trends do you think to fill the voids [created by a talent
way you think about planning out are impacting architecture? shortage in a busy economy] will do
a project, who is supposed to be at WEDGE: Globalization is a huge much better than ones that are very
the table, how often the team comes impact ... There’s an explosion of strict and structured. n

Data:Workforce Shortages
Workforce Shortages
Over two thirds of the industry are concerned about rade Shortages: Carpentry/millwork and electrical
T
■■
workforce shortages. This reflects that the industry is contractors top the list of trades where shortages are
seeing beyond the recession and into future gaps. Key most expected by A/E firms and general contractors.
findings in this section include: For green projects, trades of most concern are HVAC/
boilermakers and carpenters.
rofessions with Shortages: A/E firms and general
P
■■
contractors are most concerned about experienced ■■ reen Project Skills In Demand: Increased shortages
G
workers, while specialty trade contractors worry about of green skilled workers are expected by 70% of
the pipeline of new skilled workers. respondents in the future, with the highest levels of
shortages expected in the trades.
Difficulty Hiring Workers by Level of Experience
A/E Firms Difficulty Expected Hiring Staff in 2014

A/E firms are far more concerned about hiring workers (By Level of Experience)
with 10 years of experience or more than hiring workers Source: McGraw-Hill Construction, 2012
with less experience. Currently, 36% are concerned

10 or More Years
about finding experienced workers, and roughly the
Less than 10 Years
same percentage (37%) are concerned about hiring
experienced workers in 2014. These numbers are Design/Engineering Staff at A/E Firms
consistent between those directly involved with hiring 37%
decisions and those who are not. 16%
In contrast, only 12% are currently concerned about
hiring less experienced workers, although more (16%) Craft Worker Staff at GC Firms
are concerned about this in 2014. However, fewer hiring 49%
managers share this concern both currently and in 2014. 22%
The increase in concern about the student pipeline in
the future may reflect the expected impact of the well-
publicized job losses in design, which could discourage
General Contractors
students from choosing this profession.
More general contractors are concerned about finding
VARIATION BY PROJECT SECTOR experienced craft workers than they are about finding
A/E firms that work in the industrial sector are concerned management staff. Currently, 39% are concerned about
about finding experienced staff, with 43% concerned now hiring craft workers, compared to 27% concerned about
and 45% by 2013. This is in sharp contrast to the commercial hiring management staff. By 2014, nearly half (49%), are
and institutional sectors, where those concerned currently concerned about finding experienced craft workers, far
and in 2014 range from 34% to 39%. more than the 39% concerned about management staff.
VARIATION BY FIRM SIZE VARIATION BY REGION

Firms with billings of less than $250,000 are more A higher percentage of general contractors in the
concerned than larger firms about hiring those with less Northeast believe that it will be more difficult for their
than 10 years of experience, with 21% currently and 31% firm to hire skilled craft workers in the next three years
for 2014 indicating their concern. Smaller firms may face compared to the other regions. While 20% to 23% of
greater recruiting challenges than larger firms, especially respondents in the other regions consider it difficult, 30%
in this down economy. in the Northeast do.

Workforce Shortages CONTINUED
Expected Shortages by Profession by 2014
69% of A/E and general contractor respondents expect Professions with Expected Skilled Worker
some sort of skilled worker shortage by 2014. This finding Shortages by 2014 (by Player)
is supported by other industry research findings. For Source: McGraw-Hill Construction, 2012
example, in a national survey conducted in 2011 by the Total (A/E Firms

A/E Firms General Contractors
Construction Users Roundtable (CURT) of 531 construction and General
industry leaders, 74% reported some sort of shortage Contractors Only)
of skilled labor in the short term (1–3 years), with 20%
reporting a moderate to severe shortage. Specialty Trade Contractors 32%
26%
A/E Firms versus General Contractors 45%
A/E respondents expect the greatest shortages in
engineering, while nearly half of the general contractors Engineering 27%
(45%) expect a shortage in specialty trade contractors. 30%
Since A/E firms typically work with engineering firms and
20%
general contractors hire specialty trade contractors, it is
not surprising that each would be very concerned about General Contracting 23%
worker shortages in these categories. 20%
29%
Hiring Decision Maker Opinions Architecture/Design 20%
More respondents who influence hiring decisions are
23%
expecting shortages in architecture and engineering
than those who do not make those decisions—25% 13%
expect shortages in architecture and 31% expect
shortages in engineering.
This may be the case because architects and engineers
No Shortages Expected 31%
who do not participate in the hiring processes at their
own firms may be more acutely aware of potential 32%
shortages among contractors than they are in their own 29%
field, due to their interaction with contractors during the
construction of a project.
architects, compared to close to a third for those doing

Shortages in Architecture less than 50% green.
Among the firms who expect a shortage in architecture,
41% expect a major/somewhat major shortage of
Shortages in General Contracting
architects, compared to 19% for interior designers, 15%
Out of the respondents expecting a general contracting
for landscape architects and 21% for urban design.
shortage, 44% expect a major/somewhat major shortage
VARIATION BY REGION in general contractors, 35% in construction managers,
54% of respondents expecting a shortage in architecture 33% in design/builders and 28% in remodelers. The
in the South believe that there will be a major/somewhat fact that there is less concern about skilled remodelers
major shortage of skilled architects, significantly higher may be due to the fact that the remodeling market
than those in the Northeast (29%), and slightly higher than has remained relatively steady through the economic
those in the Midwest (36%) or the West (44%). downturn, allowing for more stability in its workforce.
VARIATION BY LEVEL OF GREEN GENERAL CONTRACTORS

INVOLVEMENT For the most part, among those expecting a shortage
Half of the firms that do more than 50% green projects in general contracting, the percentage who anticipate a
expect a major/somewhat major shortage in skilled major/somewhat major shortage in general contractors is

Workforce Shortages
Expected Shortages by Profession by 2014 CONTINUED
consistent across different project sectors, firm sizes, regions a minor/somewhat minor shortage of electrical engineers,
and levels of experience. compared to 27% in commercial and 24% in institutional.
Shortages in Engineering Shortages in Specialty Trade Contractors

Among those who expect a shortage in engineering in Out of 15 skilled trades covered in the survey, the top five
general, the largest percentage expect a major/somewhat with major/somewhat major shortages expected are
major shortage for mechanical and electrical engineers, carpentry, electrical, HVAC/boilermaker, concrete finisher/
with 44% for mechanical and 43% for electrical. cement mason, and ironworker/steel erection, fabrication
and welding (see below).
MECHANICAL ENGINEERING
A significantly larger percentage (67%) of respondents from VARIATION BY FIRM TYPE
firms doing more than 75% green projects expect major/ While contractors are more concerned about shortages
somewhat major shortages in mechanical engineering in the all trades (except HVAC) compared to A/E firms, the
compared to those whose firms have less green involvement, percentage concerned about major shortages of carpenters,
which range from 34% to 47%. concrete workers and ironworkers/steelworkers is much
greater, suggesting more concern about the structural trades
ELECTRICAL ENGINEERING
than the interior trades.
Nearly half of firms that work in the industrial sector (49%)
and that expect an engineering shortage also expect a major/ VARIATION BY REGION
somewhat major shortage of electrical engineers, slightly 36% of firms in the Northeast expect major/somewhat major
more than those in the commercial and institutional sectors shortages in ironworkers and steelworkers, at least double the
(41%–42%). In addition, only 17% in the industrial sector expect percentage in other regions.
Types of Engineers with a Significant Top Five Trades with Skilled Labor Shortages
Shortage of Skilled Workers Anticipated Expected by 2014
(Among Those Expecting a Shortage) (According to A/E Firms and General Contractors)
Source: McGraw-Hill Construction, 2012 Source: McGraw-Hill Construction, 2012
A/E Firms General Contractors Total (A/E Firms A/E Firms General Contractors Total (A/E Firms
and General and General
Contractors Only) Contractors Only)
Mechanical Engineering 44% Carpentry and Millwork 30%

45% 24%
40% 36%
Electrical Engineering 43% Electrical 24%
44% 22%
39% 26%
Plumbing Engineering 38% HVAC/Boilermaker 23%
39% 24%
35% 21%
Structural Engineering 35% Concrete Finisher/Cement Mason 20%
35% 16%
37% 25%
Civil Engineering 32% Ironwork - Steel Erection/Fabrication/Welding 18%
32% 14%
32% 23%

Factors Impacting Skilled Workforce Shortages
The design and construction industry is most concerned Percentage Concerned Over Factors Impacting
about the impact of the loss of knowledge and experience Future Workforce (by Player)
due to retirement and layoffs on the availability of skilled Source: McGraw-Hill Construction, 2012
workers in the future. While the concern about the loss of

knowledge due to retiring leaders is shared by all the firm
types, concern about loss of experience due to layoffs is Total
particularly pronounced in the A/E firms, although more Loss of Knowledge as Leaders Retire 60%
than half of the general contractors and specialty trade 59%
contractors share this concern.
60%
This finding corresponds with the expectation that
workers with ten years of experience or more will be 63%
more difficult to hire than those with less experience. Loss of Experience and Skills as Employees are Laid Off 58%
It is also aligned with general concerns in the U.S. 62%
workforce regarding employee losses when the baby
53%
boom generation retires. However, in this case, the
52%
concern is compounded by the impact the economic
downturn has had on the retention of experience and Low Wages Driving Talented People from Profession 54%
talent in the industry. 61%
Respondents who help make hiring decisions are more 44%
concerned about all of the five factors except concern
46%
over wages compared to those with no hiring authority.
Younger Generation Not Finding Profession Appealing 51%
Variation by Firm Type 45%
53%
A/E FIRMS
A/E firms are more concerned about the impact of low 62%
wages than the other professions. Among A/E firms, Inadequate Education of Next Generation 45%
those with higher billings ($1 million or more) are less 43%
concerned about this issue than the smaller firms.
41%
The architecture and engineering professions require
higher education, and as such, frequently leave younger 56%
professionals with a significant amount of debt that
employees of general construction and specialty trade
contractors are less likely to be burdened with.
commitment to environmental issues may make
GENERAL CONTRACTORS AND SPECIALTY construction more appealing.
TRADE CONTRACTORS
■■Pipeline of Future Employees
■■Attracting the Next Generation Specialty trade contractors are also far more concerned
A significantly higher percentage of general contractors than A/E firms or general contractors about whether the
(53%) are concerned about the younger generation not pipeline of new employees is adequately educated to
finding their profession appealing compared to A/E firm enter the workforce. This suggests that more training
respondents (45%), but the specialty trade contractors are programs focused on the trades are essential (see page
even more concerned about this issue than the general 46 for more information on training for the trades.)
contractors, at 62%. For both general contractors and
the trades, it is second only to concerns about loss of Variation by Region
knowledge due to retiring leaders. Construction work is A higher percentage of firms in the Northeast (60%) are
sometimes perceived to be dangerous and difficult, but concerned about whether the younger generation finds
it is possible that, as green construction becomes more their profession appealing compared to those in the other
widespread, the younger generation’s widely publicized regions, which range from 45% to 46%.

Shortage of Architects and the Student Pipeline:

One third of the architects Of those expecting a the biggest factor motivating
surveyed in the Architect Firm shortage, 79% of the architects students and recent graduates
Gap study believe that there are also unsure whether there is the desire to live abroad,
will be a shortage of architects will be sufficient students to well over half also believe
in the future. While this seems replace the architects leaving that they may find more job
much higher than the 23% who the profession due to economic opportunities abroad than in
expect the same shortage in conditions, and 37% of them the U.S.
the industrywide survey, there are confident the pipeline of These concerns over the
are some important differences students will NOT be sufficient. student pipeline are echoed in
in the questions asked. The The survey of architecture the MHC industrywide survey,
industrywide survey examined students also suggests that in which 45% of architects
the likelihood of shortages by concerns about the pipeline believe that the younger
2014, while the architects in may be valid, with 36% of generation does not find their
the firm gap survey were asked architecture students and profession appealing. Even
if there will be an eventual recent graduates stating that though a lower percentage of
shortage due to professionals they are not sure if they plan architects expressed concern
leaving the profession. It is to stay in the architecture about this factor than the
possible that the differential field. The fact that 76% of other construction professions,
may reflect an expectation that students and recent graduates 45% is still quite significant,
a full recovery of construction express interest in working especially for a field like
activity may not occur by 2014, abroad could also have architecture that typically
thus pushing the expected serious implications for future captures the imagination of
shortages down the road. potential shortages. While its workers.
Impact of Current Economic Downturn

on Anticipated Workforce Shortages
A/E and General Contractor Specialty Trade Contractor

Respondents Respondents
Among the A/E and general contractor respondents Fewer respondents (37%) who think there will be a skilled
who expect a skilled worker shortage in one of the worker shortage in their trade believe the economic
professions, most of them attribute that shortage to the downturn contributes significantly to those shortages
economic downturn. The following is the percentage of compared to the A/E and general contractor respondents.
A/E and general contractor respondents who believe the
economic downturn is the sole cause or a contributing
factor in the workforce shortages they anticipate in the
next three years:
Architecture Shortages: 66%

■■
Engineering Shortages: 38%

■■
General Construction Shortages: 51%

■■
Shortages in the Trades: 51%

■■
These findings correspond to the high level of concern

noted, especially by A/E firms, about the loss of
experience and skills due to layoffs (see page 24 for
more information).

Feature: Global Perspective
Workforce Concerns from a Global Perspective
Global construction output is predicted to increase 70% from 2010 levels by 2020,
according to Global Construction Perspectives and Oxford Economics.1 Much

of that growth is expected to occur in emerging countries, and construction
industry professionals and companies need to prepare for this new world order.
T
he increasing global Middle East and India as the regions regions that are not typically popular
activity and shifting focus with the best opportunities, but a for recruiting employees. He says,
to the developing world larger percentage of students and “When you are looking at regions
have led large design recent graduates express interest in like that, you need people that have
and construction firms to practice going to Europe and Australia. the right mentality, but you also
internationally. In fact, in 2011, The relatively strong level of need to make sure that you look
Engineering News Record (ENR) interest in Australia and Central after them appropriately, not just in
reported that the top 225 international America, however, does correspond terms of security and remuneration,
contractors had revenues of $383.66 to markets that ENR identified but [considering things like] rotation
billion generated by projects outside as growing in its analysis of the packages ... that effectively increase
their home countries in 2010, and the international market,3 so there is the contractor’s cost a lot because
top 200 international design firms some potential alignment of market [they] essentially need one and a half
generated $57.66 billion internationally and interest. people for every post.”
as well, with greater growth in markets The gap between where the work However, Stokes has observed
like Africa, South America and Australia is and where people want to work is that the challenge of finding work in
as the more developed countries not confined to architecture alone. the U.S. has temporarily improved
struggled through the recession.2 Michael Stokes, managing director firms’ ability to find workers for these
Doing work internationally, however, of the MENA (Middle East and North locations. “With the global downturn,
has its own challenges and requires Africa) region for Navigant Consulting you now find people working the
different skill sets. And the growth of Inc., explains that the contractors more hostile locations because they
construction work abroad may have he works with have jobs in places are contractors and they have to go
unexpected consequences for the like Saudi Arabia and Afghanistan, where the work is.”
workforce here in the U.S.
Working Internationally Regional Market Activity of ENR Top 200 International Design Firms
The Architect Firm Gap and Student (% of Total Market)
Studies reveal that 81% of architecture Source: ENR Top 200 International Design Firms, ENR, July 25, 2011
students and 61% of recent graduates Growth of 21%

over 2009 to #1
are interested in working abroad. For 23% 23%
over 70% of them, the desire to live
abroad is a strong motivation, but over
50% also cite more job opportunities in 17%
their field as a reason.
However, their selection of where 12%
11% 14% Growth
they are thinking of looking for over 2009
12% Growth
work does not correspond with 8% over 2009
6%
where the biggest opportunities lay
according to the Firm Gap Study.
The practitioners identify China, the Asia/Australia Europe Middle East U.S. Canada Africa Latin America
1 Global Construction 2020, Global Construction Perspectives and Oxford Economics, 12 November 2009. Page 6. 2 Reina, Peter and Tulacz, Gary. “The Top 225 International Contractors: With Traditionally Strong Markets in
Decline, Firms Look to Break into New Regions,” Engineering News Record. 29 August 2011. Page 46. 3 ibid.

Feature: Global Perspective CONTINUED
Global Market Pespectives for emerging markets are where the vast a couple of people on the local team
Recent Architectural Graduates amount of work is going to be, and we “to make sure that the information is
Source: AIA/MHC Studies 2012 have to be there to take advantage of received and correctly understood.”
Firms Reporting Demand for Recent Graduates those markets.” CH2M Hill places great emphasis
Students Seeking Work (Percentage of Those on preparing its workforce to function
Interested in Working Outside of the U.S.) Skills Required effectively abroad. Debs describes
Putting together the right team for an how they will create corruption
China international project is, according to mitigation plans and project-specific
42%
30% Mike Kirchner, deputy director of risk security plans when sending workers
management at CH2M Hill, “one of our into regions with a high level of risk in
Middle East
23%
primary risk mitigation measures, and these areas.
21% their experience and know-how is really Seaton also discussed how the
how we are going to protect ourselves.” construction industry can tackle the
India
21%
One key skill required in an employee corruption issue: “Many govern-
14% who is expected to work abroad is a ment organizations including the
strong facility to build relationships. United Nations are working with
Asia (not including China and India)
13% In the architect firm survey, qualities non-government agencies like
30% such as communication skills, speaking Transparency International on the
the local language and cultural corruption problem. Our industry
South America
10% understanding are selected by a much needs to be part of that dialogue.”
32% higher percentage of firms than
Canada
project experience. Global Workers in
6% For Jody Debs, enterprise risk the U.S.
37% manager at CH2M Hill, working in the Carole Wedge, president of Shepley
Middle East makes the relationships Bulfinch, also sees the potential for
Europe
4% that a firm builds as fundamental emerging markets abroad to provide
87% as its contracts. “Frequently, it is a greater supply of architects from
Australia
the relationships [with clients] that those regions looking for work in
3% will determine how [contracts] get the U.S. after demand in their home
43% enforced and how the project will be countries dwindles, especially China.
Mexico/Central America implemented. You need to focus on the “They have built a lot of architecture
3% long-standing and deep relationships schools in China,“ she says. She also
20% that are quite common in the Middle questions what will happen if their
East, which are very different from construction bubble bursts. “My
David Seaton, chairman and [those] most people would have with sense of designers is that they are
CEO of Fluor Corporation, affirmed U.S. clients. You need people who endlessly interested. There are a lot
the necessity for creating strategies understand that relationship building of people that work [in the U.S.] from
to work in these regions in his is a very important part of their job all over the world because they are
keynote speech at ENR’s 2012 Global and the success of the project, but interested in a new experience.” n
Construction Summit. While he who also have a talent for it.”
acknowledges that many firms have
shied away from working in the BRIC Preparing the Workforce
and emerging nations, he states, In addition to finding the right people,
“I assure you that those decisions companies can also help prepare their
are short-sighted and increasingly people for working abroad. Stokes
untenable in today’s hyper- asserts that the most successful
competitive world. Going forward, international design programs have

Feature: Temporary Workforce
Role of a Temporary Workforce

in the Construction Industry
Temporary workers have always been a part of the construction

industry, but a rigorous recovery will create additional demand for

their services. As contractors continue to seek ways to increase their
productivity and profitability, these temporary workers may offer a better
solution than the traditional cycle of hiring and laying off workers.
C
onstruction firms must bringing workers to fill these jobs. “We of the temporary staffers that were
be able to have the are able to use our extensive network brought on were the first to be let
right people in the right to find pockets of available workers go. In essence, this illustrates the
positions when they are and then either help move them or role of temporary staffing—it allows
needed. Contractors cannot spend supply them with per diem and travel construction firms to expand and
long hours searching for qualified for customers,” says Shannon Kahn, contract their workforce without
employees, especially when their director of the West Region for CLP, a affecting their full-time employees.
need for specific workers may be nationwide skilled trades staffing firm. However, as the economy has
limited to specific project stages. According to Kahn they are seeing started to recover, the staffing firms
Thus, temporary staffing firms an increased demand for workers have seen rapid growth. Construction
have always been important to the in the skilled trades in the Northeast firms are hesitant to bring people back
industry, supplying skilled workers and Southeast, and they expect the onto their payroll, having experienced
when needed, especially for urgent, surging demand in North Dakota to severe layoffs recently, and consider
last-minute tasks. spill over into Wyoming and Colorado. using temporary staffing firms a safer
The importance of this role is Kahn says, “The skill sets we are and more cost-effective method.
heightened as the industry faces seeing most in demand include the According to Kahn, many
a skilled workforce shortage mechanical trades, pipe fitters, construction firms have determined
problem. Many workers are plumbers, welders, electricians and using temporary staff is better in
reaching retirement, and there is HVAC related.” the long term as well, rather than
an insufficient number of people continually increasing their employees
entering the skilled trades in Impact of Renewables and then laying them off. Kahn says,
construction. Additionally, some Firms like CLP also note growing ”It makes more sense to bring on a
parts of the country are experiencing industries, such as the renewable temporary workforce to handle the
growth and attracting an influx of energy sector, is driving the need short-term fluctuation in need that
workers driven by higher wages, and for temporary staff. Growth in the they have on a project.” She continues,
as a result, contributing to shortages solar and wind energy fields has “Temporary staffing firms are then
in other regions. resulted in an influx of workers, some able to work with laid-off workers,
of which are in highly skilled trades, find them jobs and keep moving them
Skilled Workers Move to such as electricians and environmen- from project to project so that they can
High-Demand States tal technicians, and some of which continue working.”
North Dakota’s shale oil boom and are in more entry-level positions, The demand for temporary staffing
Intel’s $5.2 billion fabrication plant in such as installers and laborers. (See in the construction industry seems
Ocotillo, Arizona,1 are two examples page 63 for more information.) likely to increase. The recession hit
of projects that have caused a spike in construction firms hard, and they
the demand for skilled construction Impact of the Recession may be cautious to hire even with an
workers. Temporary staffing firms, When the recession hit the increased workload. The temporary
especially ones that have a national construction industry, temporary workforce may become one that is part
footprint, can identify where surpluses staffing firms saw a decline in the of regular staffing strategies versus
in skilled labor exist and facilitate need for their services at first. Many being for emergency needs only. n
1 PC Magazine. « Obama to Visit Intel’s Fab 42 Construction Site » Jan 24, 2012. http://www.pcmag.com/article2/0,2817,2399283,00.asp [Accessed April 12, 2012]

Difficulty in Hiring Skilled Green Workers

for A/E Firms and General Contractors
56% of A/E firms and 63% of general contractors Percentage of A/E Firms Who Find Green
experience at least moderate difficulty in finding green Skilled Employees Difficult to Hire
skilled workers to hire. (by Level of Seniority)
Variation by Firm Type

A/E FIRMS 8%
5%
In general, A/E firm respondents find mid-level Senior-Level
employees with green skills most difficult to hire, at 41%. Mid-Level 32%
13%
However, nearly one third also report difficulty finding Entry-Level
senior green skilled staff. There is far less concern about None
entry-level employees, with only 13% reporting any Don't Know
difficulty with finding them. 41%
These hiring challenges likely stem from firms’
recognition of the growing green marketplace. In order to
win jobs and complete green projects successfully, these
firms need firm and team leaders to be knowledgeable
about green building at a deep level. In comparison, the
skills required of younger staff may be easier to offer Percentage of General Contractors Who
as they come on board. Additionally, some architecture Find Green Skilled Employees Difficult to Hire
and engineering schools are starting to recognize green (by Employee Role)
building practices and offer coursework in these areas. Source: McGraw-Hill Construction, 2012
■■Hiring Decision Makers 4%

5%
14% of respondents who participate in hiring decisions
at A/E firms report great difficulty in hiring green staff,
compared to 5% of those who are not involved in hiring. Management Staff
Respondents involved in hiring only report higher Craft Worker Staff 43%
levels of difficulty in hiring mid-level staff compared to None
those not involved in hiring, with 51% reporting this chal- Don't Know 48%
lenge versus 33% not involved in hiring decisions.
■■Firm Size
Consistent with other findings, small A/E firms (those
with billings less than $250,000) report greater difficulty
in finding employees with green skills—72% report at ■■Level of Green Involvement
least moderate difficulty compared to an average of 53% While the percentage that find hiring green skilled
among those with higher billings. workers difficult is the same between those with a
lower level of green involvement (50% or less green
GENERAL CONTRACTORS
projects) compared to those with a higher level (more
Among those who report that finding green skilled
than 50% green projects), the percentage who do not
workers is challenging, general contractors are
find it difficult is quite different. 48% of firms with high
almost evenly split between the challenge of finding
green involvement have little difficulty finding green
management and craft worker staff with green skills.
skilled workers, compared to 32% of those with lower
■■Region green involvement. This may suggest that firms doing
Significantly more firms in the Northeast (23%) report more green work are more appealing to potential hires
that it is very difficult to hire green skilled employees, with green skills and/or they are part of networks where
compared to a range of only 6% to 8% in other regions. experienced green staff can be found.

Professions with Expected Green Skilled Worker

Shortages by 2014
70% of A/E and general contractor respondents expect Professions with Expected Green Skilled
shortages of green skilled workers by 2014 or don’t know. Worker Shortages by 2014 (by Player)
The largest percentage from both professions believe that Source: McGraw-Hill Construction, 2012
there will be shortages among specialty trade contractors.

A/E Firms General Contractors Total (A/E Firms
and General
Hiring Decision Makers Contractors Only)
Interestingly, more respondents that do not make hiring
Specialty Trade Contractors 33%
decisions (73%) expect green worker shortages by 2014 or
30%
don’t know, compared to 66% of hiring decision makers.
However, when they do see a shortage, significantly more 40%
respondents who make hiring decisions expect a shortage Engineering 22%
of green skilled architects and engineers, while those with 25%
no hiring authority tend to see more shortages with green
14%
skilled workers in the specialty trades.
General Contracting 26%
■■ reen Architect Shortages: 22% of decision makers
G 25%
expect shortages in green architects compared to 15%
28%
of non-decision makers.
Architecture/Design 18%
■■ reen Engineer Shortages: 25% of decision makers
G
20%
expect green engineer shortages compared to 19% of
non-decision makers. 12%
■■ reen Specialty Trade Worker Shortages: More non-

G Don't Know 16%
decision makers (37%) expect a green skilled worker 16%
shortage compared to those who do hire (28%). 16%
Shortages in Architecture
A higher percentage of firms expecting green skilled No Shortages Expected 30%
worker shortages in this profession expect them to be
31%
major/somewhat major compared to the general skilled
worker shortages expected, especially for landscape 28%
architects and urban design.
major shortage of green skilled workers compared to 44%
rchitecture: 51% for green skilled workers versus 41% for
A
■■
for general workers.
general skilled workers
Interior Design: 29% for green skilled workers versus 19%

■■ Shortages in General Contracting
for general skilled workers As in the architectural trades, major/somewhat major
green worker shortages in general contracting are
Landscape Architecture: 29% or green skilled workers
■■
expected by a higher percentage than general shortages.
versus 15% for general skilled workers
■■ eneral Contractors: 58% for green skilled workers versus
G
rban Design: 37% for green skilled workers versus 21%
U
■■
44% for general skilled workers
for general skilled workers
■■ onstruction Managers: 45% for green skilled workers
C
Shortages in Engineering versus 35% for general skilled workers
The percentage of firms expecting shortages of
■■ emodelers: 41% for green skilled workers versus 33%
R
green skilled workers in engineering for the most part
for general skilled workers
mirrors the general shortage expected (see page 23 for
more information). The one exception is mechanical ■■ esign-Builders: 42% for green skilled workers versus
D
engineering, with 53% expecting a major/somewhat 28% for general skilled workers

Green Skilled Worker Shortages in the Trades

According to A/E Firms and General Contractors
HVAC/boilermaker and carpentry/millwork are the Top Five Trades with Green Skilled Labor Shortages
trades expected to have severe green skilled worker Expected by 2014

shortages by 2014 by the largest percentage of A/E firms (According to A/E Firms and General Contractors)
and general contractors. HVAC systems are critical to Source: McGraw-Hill Construction, 2012
any green building, impacting energy consumption

HVAC/Boilermaker
and indoor air quality significantly, elements especially
24%
important for a building to meet its green goals.
Carpentry can also affect more than one green category, Carpentry and Millwork
balancing concerns about sustainable forestry, use of 21%
recycled materials and improving indoor air quality by
Electrical
avoiding off-gassing materials.
19%
Green Skilled Worker Shortages Laborers
Compared to General Skilled Worker 16%
Shortages (pages 22-23)
Nearly the same percentage of A/E firms and general Concrete Finisher/Cement Mason
contractors anticipate some level of workforce shortages 16%
overall (32%) and green skilled workforce shortages
(33%) in the trades (see pages 22 and 30 respectively).
However, unlike the green skilled shortages expected in working with specialty trade contractors with green
specific architecture/design and general construction skilled workers has been relatively consistent for A/E
professions, the percentage of firms that anticipate a firms and general contractors.
severe green skilled worker shortage in the trades is
about the same or even smaller for nearly all the trades Variation by Region
compared to those expecting a major/somewhat major A higher percentage of firms in the West (18%) anticipate a
shortage in the general workforce. shortage of green skilled ironworkers/steelworkers than in
The only exceptions to this trend are the following: the Northeast (3%), the Midwest (9%) or the South (11%).
Laborers
■■
• Severe Skilled Green Workforce Shortage

Variation by Level of Green
Involvement
Expected: 16%
For two trades, respondents with less green experience
• Major/Somewhat Major General Workforce Shortage
express greater concern about finding green skilled
Expected: 13%
workers by 2014:
Demolition/Wrecking
■■
■■HVAC/Boilermaker
• 50% Green Projects or Less: 27%
Expected: 11%
• More Than 50% Green Projects: 18%
Expected: 5% ■■Site Work/Excavation/Foundation
• 50% Green Projects or Less: 11%
Painters
■■
• More Than 50% Green Projects: 6%
Expected: 6%
Variation by Size of Firm
16% of smaller general contractors expect a severe
Expected: 3%
shortage in green skilled workers for demolition/
Surprisingly, there are no significant variations between wrecking, compared to 3% in larger firms.
the A/E firms and general contractors in terms of their
expectation of a severe green skilled worker shortage
in any of the trades, suggesting that the experience of

Demand for Green Activities:
In the firm gap survey, architects indicated the green systems and
products they think are important for making projects greener, which
offers an indicator of the near-term green market. Seeing what green
products and systems the students value also suggests that some of
these products and services may increase in importance in the future.
O
ne gauge of the current CONTINUOUS METERING Importance of Design Features for
demand for green skilled EQUIPMENT FOR LIGHTING Sustainable Building
workers in the trades AND HVAC SYSTEMS Source: AIA/MHC Studies 2012
is the materials, trades Post-occupancy evaluation of Firm

Student/Recent Graduate
and practices considered most building performance is gaining
important by practicing architects prominence in the industry as High-Efficiency HVAC
for sustainable building. The survey a necessary step to insure that 92%
85%
of architects asked the respondents buildings are truly high performing.
to rank the importance of several This has implications for electrical Maximize Interior Solar Lighting
83%
design features used in sustainable trade workers and others involved 87%
buildings. Since the top features at in metering. The recognition by
Use of Salvaged, Refurbished, Recycled
the right are considered important architects of the importance of these or Reused Materials
or very important by most of the practices suggests that this area will 66%
architect respondents, it is likely that grow. In addition, 19% of A/E and 79%
architects are incorporating them general contractor respondents from Continuous Metering Equipment for Lighting
more frequently in their designs and the industrywide survey expect a and Heating/Cooling Systems
64%
possibly even advocating for them shortage of green skilled electrical 70%
with their clients. workers, the third highest category. Prediction/Analysis of Material's Environmental
Impact and Life Cycle
Important Features with Looking to the Future: 64%
82%
Implications for Trades Features Important
to Students Highly Reflective Roofing Materials
63%
HIGH-EFFICIENCY HVAC A higher percentage of students/ 57%
Nearly all of the architects (92%) recent graduates consider these
Renewable On-Site Energy
consider high-efficiency HVAC features important compared to the 56%
important or very important for a practicing architects in every category 77%
sustainable and energy-efficient except HVAC, which suggests that Green/Vegetated Roof
building. This is not surprising the use of these green features may 33%
53%
since HVAC typically accounts expand in the future. The feature
for a significant percentage of with implications for the trades that
a building’s energy use and is has the largest differential between
therefore critical to improving practitioner and student response is
building performance. HVAC renewable on-site energy. n
was also selected by the largest
percentage of A/E and general
contractor respondents (24%) in
the MHC industry-wide survey
as a trade in which they expect a
shortage of green skilled workers.

Most Effective Strategies

for Attracting New Employees
Higher salaries, better benefits and greater job security Strategies Considered Most Effective for
are the top three strategies considered very effective by Attracting New Employees
the largest percentage of respondents for attracting new Source: McGraw-Hill Construction, 2012
employees to the design and construction fields. Each

Higher Salaries
of these has a direct financial advantages and therefore
79%
carries great weight when selecting a field to pursue.
Strikingly, for the most part, A/E firms, general Better Benefits
contractors and trade firms value most of the potential 72%
strategies to the same degree. Thus, the top-ranking
Greater Job Security
factors indicated in the chart to the right are the
top-ranking strategies for all three firm types. 70%
However, there are three strategies with notable More Opportunities to Develop a Wide Range of
differences in the percentages of A/E firms, general Skills/Experiences*
contractors and trade firms who consider them effective 62%
for attracting new employees, all of them consistent with
More Use of Advanced Technology
the role they play in the industry.
56%
Emphasizing Green Building
■■
More Positive Publicity about
• A/E Firms: 44% Career Opportunities
• General Contractors: 30%
54%
• Specialty Trade Contractors: 17%
* A/E Firms and General Contractors Only
More Use of Advanced Technology
■■
• A/E Firms: 59%

■■Years in the Profession
• Specialty Trade Contractors: 42%
Respondents who have only been in the profession
Better Reputation for Safety
■■ for one to four years are more optimistic about the
• A/E Firms: 21% effectiveness of all of the strategies than those who have
• General Contractors: 40% been in their profession for 20 years or more, with a
• Specialty Trade Contractors: 41% particularly dramatic differential for emphasis on green
building and creating more programs in that field at the
Variation among A/E and General college level.
Contractor Respondents Large and Small General Contractors
■■
There are a few types of A/E and general contractor
When there is a statistically significant difference, large
respondents who are typically more optimistic or
general contractors (total project value of $500M or
pessimistic about the majority of the strategies presented
more) are more optimistic about the strategies than
to them.
small general contractors (less than $25M), particularly
■■Hiring Decision Makers when evaluating the use of advanced technology and the
Those who make hiring decisions are more pessimistic impact of a better reputation for safety.
about every strategy than those who do not, except
■■Level of Green Involvement
greater use of advanced technology and more
Those who work on 75% or more green projects are
recruitment of underrepresented populations.
significantly more optimistic than those who work on less
Gender
■■ than 25% green projects about three strategies: emphasis
Women are more optimistic than men about the on green building, use of advanced technologies and
effectiveness of several strategies, especially about more recruitment of underrepresented populations.
opportunities to develop a wide range of skills/
experience, emphasis on green building and more use of
advanced technology.

Feature: Next Generation
Attracting the Next Generation of Skilled Workers
The construction industry is facing a growing industrywide shortage of skilled

professionals. Fewer young people are entering into careers in construction.

In addition, a significant portion of the current workforce from the baby
boom generation is expected to retire over the next five to ten years.
S
ome current industry brand and good reputation. Our values The Army Strong commercials are a
efforts to attract the next are very important to new graduates.” constant invitation to that experience,
generation of workers Another area that concerns the and we need to make sure that we’re
include combining general next generation, according to Heider, constantly presenting our message as
academic instruction at high schools is whether companies are looking at an opportunity in a real way.”
and community colleges with innovative solutions. She finds that An innovative approach to training,
occupational training and campaigns there are compelling opportunities the ACE Mentor Program of America,
designed to educate young people for innovation both in the field and in encourages high school students
on the value of learning a trade. the office. She contrasts the appeal to pursue career opportunities
The industry hopes to begin to of field craft, which she describes as in architecture, construction and
dispel misconceptions about the where “magic happens,” with office engineering by matching them with
construction industry. work. “There’s also a [huge] amount mentors from design and construction
of office craft such as managing firms. “The students get to build
Imaging and Branding of the IT, strategizing projects and something tangible and something to
the Industry scheduling and a tremendous support be proud of,” says John Strock, acting
According to Carol Wedge, president infrastructure, which is becoming executive director and vice president of
of the architectural firm Shepley progressively more innovative.” operations. ACE’s surveys of its alumni
Bullfinch, architects need to talk more Heider believes that the message show that 86% were convinced of a
about how interesting their jobs are. that today’s construction firms offer a career in architecture, construction or
She believes that there are many much more progressive environment engineering after participating in the
professions that are not as dynamic than “our great-grandfather’s program and 90% agreed they gained
as architecture, saying, “I think construction firm” is critical. She valuable skills to use in their careers
sometimes we forget to tell everyone also describes how Skanska is and gained an edge in college.
what a powerful impact you can make, committed to the advancement of Don Whyte, president of the
how exciting it is as a profession, and professionals within the company. National Center for Construction
that it’s exciting at the beginning, “It’s not just a job, but it’s a career Education and Research, cautions
middle, and end ... [Every new project] path. There are lots of opportunities that consideration also needs to be
is a whole new set of parameters, a for people to find the spot where they given to the influence of parents.
whole new set of clients, and a whole best fit within the organization.” “We can get a classroom of young
new set of problems to solve.“ people excited about our industry,
Similarly, for Beth Heider, senior vice Outreach and Education but the problem is they then go
president of green markets at Skanska, are Critical home and talk to their parents, and
attracting the next generation comes Jim Sullivan, assistant professor at their parents say, ‘No, you’re going
down to communication. She reports the M.E. Rinker School of Building to a four-year school.” For him, this
that in 2011, 41% of the people Skanska Construction at the University demonstrates the need to revitalize
hired were new graduates and interns, of Florida, agrees that it is really career technical education. He
due to the company’s efforts to attract about getting the word out and notes, “60% of the future jobs are
students that are graduating from communicating in a way the next going to be for students who have
school. According to Heider, “One of generation can relate to. “I tell two-year certificate and degree
the things that they really like about everybody that our military’s been programs and career technical
Skanska is that they’re interested in the good at that for the last 30 years. education background.” n

Data: Workforce Shortages
Voice of the Next Generation of Architects
The market research in this report reveals that the next generation of
architects is deeply engaged by architecture and sustainability. Tech-

savvy like the rest of their generation, they view their technology
tools very differently than those currently practicing.
T
he retirement of the baby Top Sources of Inspiration for undertake and could suggest
boomers will create gaps Students/Recent Graduates to that they are also vulnerable to
in all industries, including Pursue Architecture disillusionment once they enter
architecture. With the Source: AIA/MHC Studies 2012 the workforce.
generation X workforce considerably
Inspired by the Built Environment
smaller than that retiring population,
51%
Sustainability
the next generation, known as the While the results of the study
Millennials or Generation Y, will Experience as a Young Child regarding sustainability are
43%
become increasingly dominant in analyzed in depth throughout
the workforce. Advice of Parents/Relatives this report (see pages 14 and 32
In order to understand this new 14% for more information), the overall
group, their inspiration to become Knew an Architect and Thought implication is that these students
architects and their priorities, the the Career was Interesting value sustainability highly. A higher
American Institute of Architects 14% percentage are influenced in their
(AIA) partnered with McGraw- Advice of High School Counselor/Teacher decision to pursue green design by
Hill Construction to conduct two 11% a personal sense of environmental
studies—one of architecture Inspired to Change Fields Due to responsibility compared to current
students/recent graduates and one of Exposure to Architecture Courses practitioners. This finding suggests
architecture firms. These two studies 10% that architecture as a profession
allow for an assessment of the gaps will continue to influence greater
between thinking in the industry and report experience as a young child adoption of green building
that of the next generation on critical as a major influence, compared to practices industrywide.
issues, such as the use of technology. only 14% being inspired by knowing
Their responses reveal an inspired, an architect and seeing how the Social Media
technically savvy generation of profession worked. Students rely on technology and
new workers. While Generation Y has a social media tools for networking
reputation for idealism in general, and job searches far more than
Inspiration to Become an these findings support the idea practitioners currently recommend
Architect that these students and recent they do. However, given the way
For this generation, the decision graduates are drawn to the ideals email and social media are second
to become an architect is one of of architecture. In addition, it nature to the current generation, it
inspiration rather than calculation, suggests that their commitment is is more likely that the architecture
and a decision made quite early deep and long-held, a positive sign industry will need to adopt these
rather than one influenced by adult when considering the potential tools as an important means of
advisors when they begin seeking for the lack of immediate job networking than that students will
a career. While 14% or less report opportunities to drive people out abandon their use.
being influenced in their choice of of the profession. However, it While the reported use of
profession by parents, relatives, also reveals that the decision to social media tools is high for both
counselors or teachers, over 50% pursue architecture as a career is students/recent graduates and
say that they were inspired by the not founded on an understanding architecture practitioners, the tools
built environment. In addition, 43% of the day-to-day work architects they use vary significantly.

Data Sidebar: Voice of the Next Generation of Architects CONTINUED
Use of Social Media for Networking Channels Respondents with Social

Employment-Related Discussions Recommended by Firms Media Accounts

Source: AIA/MHC Studies 2012 and Used by Students Source: AIA/MHC Studies 2012
Firm Source: AIA/MHC Studies 2012

Firm
Student/Recent Graduate Recommended by Firms Student/Recent Graduate
LinkedIn Used by Students/Recent Graduates
19%
LinkedIn
75%
55% Traditional In-Person Networking
52%
93%
Facebook 87%
7%
Facebook
65%
30% E-mail Correspondence
95%
50%
YouTube 73% Twitter
2%
21%
11% Phone Calls 33%
41%
Twitter 31% YouTube
2%
20%
17%
Social Media 53%
40%
73% No Account
14%
3%
While three quarters of the for discussions, which suggests that The largest percentage (74%)
practitioners are on LinkedIn, when students are using a social of recent graduates say that they
only 52% of students and recent media platform, they are doing so in are interested because they want
graduates are. However, when an intensive manner. to live abroad. This aligns with the
students are disregarded and only Facebook and YouTube are also fact that the regions in which they
recent graduates are evaluated, used by a much larger percentage are most interested in working are
the percentage using it jumps of students and recent graduates not always those in which there
dramatically to 81%, even higher for job-related discussions. As is the most work, with far more
than its use by practitioners. This Generation Y becomes a larger respondents interested in working
suggests that the younger generation percentage of the workforce, in Europe than in China. (See page
recognizes the importance of architecture firms may need to 26 for more information.) Over
LinkedIn as a professional network tap the experience of the younger half (51%), however, also believe
for finding jobs. generation in order to better appeal there may be architecture job
Another interesting dimension of to clients who may be increasingly opportunities abroad.
these results is how young people led or influenced by members of This interest in working
are using social media as more than that generation. abroad may contribute to an
a networking tool. They are actively eventual loss of talent in the U.S.
using it to engage in dialogues Global Workforce If job availability does drive many
and discussion. More than twice A much larger percentage of current architecture students abroad, it may
the percentage of students/recent students (81%) than recent graduates be challenging to lure them back
graduates are using LinkedIn for (61%) express interest in working when the recovery creates more
job-related discussions compared as an architect outside the U.S. opportunities in the U.S., especially
to architecture practitioners. In fact, However, this still means that well since many people create ties to
nearly the same amount of students over half of the recent graduates are places they live in their 20s through
that have a LinkedIn account use it interested in pursuing work abroad. marriage and other relationships. n

Viewpoints of the Unemployed
Survey data from unemployed architects, engineers, general

contractors and trade contractors reveals that the recession has

not lessened their interest in the industry. They also are interested
in green jobs and believe in the value of certification.
T
he industrywide survey on Seeking a Green Job Has Retrained to be Qualified
workforce issues and green in a Different Field for a Green Job
jobs in this report also Source: McGraw-Hill Construction, 2012 Source: McGraw-Hill Construction, 2012
included a representative
sample of respondents who are not
currently employed. A/E respondents Agree 25%
Agree 35% 32%
comprised the great majority of
Neither Agree 46%
this sample (73%), but that can be Neither Agree
Nor Disagree Nor Disagree
attributed to the specific professional 29%
Disagree 33% Disagree
associations involved in distributing
the survey, rather than to a true
representation of unemployment
patterns in the industry at large. unemployed) are currently involved are preferred, but that they remain
For more information on the in training and plan to seek work open to other opportunities.
demographics of the unemployed in construction when that training Considering current economic
respondents, please see the is complete. These are nearly split conditions, this desire to be
Methodology section on page 64. between those seeking training in employed at all is to be expected.
their previous field and those seeking 46% of the green job seekers
Seeking Work in training in a new field. have retrained to be qualified
Construction Interestingly, out of the 9% for their green jobs. Among the
90% of those surveyed intend to who said that they are seeking unemployed architects who report
stay in the construction industry as work outside construction, nearly seeking green jobs in the architect
they seek new job opportunities. all said that they would work in firm survey, the number is closer to
75% of them (over two thirds of the the construction industry if they one quarter. Although there were
total unemployed respondents) are felt that there were more job too few responses in the architect
currently seeking work in the same opportunities. So, even the small firm survey for that percentage
field in which they worked previously. percentage leaving may not be lost to be considered representative,
These numbers suggest that the to the industry as the availability of this differential between architect-
long-term impact of the recession jobs improves. only responses and industrywide
on the availability of workers may responses corresponds to the
not be as severe as many in the Green Jobs percentage by player of employed
industry expect. However, these 58% of unemployed workers are respondents with green jobs who
results may be impacted by the seeking a green job. The portrait report having received training for
survey sample, which reflects many of their commitment to green, their green work. A/E respondents
practitioners who are maintaining though, is a little complicated. Out report less retraining required
their membership in an industry of those seeking green jobs, 16% compared to general or specialty
association, which probably favors are exclusively interested in a green trade contractors (see page 61 for
those who plan to stay in the job. On the other hand, less than more information).
construction industry. half of the green job seekers are However, among the unemployed,
13% of those who are planning to equally interested in a non-green there is a much stronger tendency to
stay in construction (12% of the total job, suggesting that green jobs be willing to switch fields to pursue

Data Sidebar: Viewpoints of the Unemployed CONTINUED
a green construction job. Nearly one Benefits of Certification

third report seeking a green job in a (Unemployed Versus Employed)

different field, while fewer than one Source: McGraw-Hill Construction, 2012
quarter of those currently employed

Unemployed
got a green job in a different field
Employed
than the one they were in previously.
Not surprisingly, those currently Valuable Knowledge That Can Be Applied on the Job
unemployed are more cautious 52%
about the benefits of green jobs
77%
when it comes to job availability
and job security. On the other hand, More Job Opportunities
they essentially agree with the 60%
employed construction professionals 75%
that greater career advancement
Factor in Greater Compensation
opportunities are available to those
with green job skills. 65%
69%
The Benefits Greater Job Security/Opportunities for Advancement
of Professional 68%
Certification 62%
79% of the unemployed respondents
have been certified or accredited. Necessary to Demonstrate Green Skills/Knowledge
While the unemployed are more 74%
skeptical about the ability of 52%
certification to offer valuable,
job-applicable knowledge or to
create job opportunities, well over
50% do believe that certification
offers these benefits. On the other
hand, a much larger percentage of
unemployed respondents believe
that green certification is necessary
to demonstrate green knowledge
and skills, suggesting that they
believe green certification is an
important strategy in their pursuit of
a new job. n

Data:Skills Gaps
Skills and Knowledge Sought
When Hiring Senior A/E and General Contractor Staff
Skills Gaps Introduction Skills and Knowledge Sought when Hiring

Since the most serious shortages are anticipated in senior Senior Staff (by Player)
staff for A/E firms and general contractors, it is important Source: McGraw-Hill Construction, 2012
to understand which specific skills they seek in these staff

A/E Firms
members when addressing the shortage. Also important
General Contractors
is understanding general skill requirements in the trades
and the new skills and degree of training expected for Project Management Skills
green projects. 62%
72%
Skills/Knowledge Sought in Senior
A/E and General Contractor Staff Knowledge of Construction Processes
The largest percentage of A/E firms and general contrac- 59%
tors seek project management skills and knowledge 70%
of construction processes in their senior staff, with a
Specialty Knowledge within Trade/Profession
significantly higher percentage of general contractors
49%
seeking these types of skills and knowledge. However,
it is notable that well over half of the A/E firms consider 35%
knowledge of construction processes to be important Proficiency with Technology
when seeking experienced staff, suggesting an emphasis 48%
on a more holistic view of design and construction.
19%
Variation by Firm Type People Management Skills

30%
A/E FIRMS
Significantly more A/E respondents seek specialty 48%
knowledge within their profession and proficiency with Business Development Skills
technology compared to other players. Specialization by 22%
specific project types is relatively common among A/E
18%
professionals. The rise of building information modeling
(BIM) and other software for calculating building perfor-
Variation by Project Sector
mance may account for their emphasis on technology.
A smaller percentage of respondents involved with
GENERAL CONTRACTORS industrial projects (33%) seek senior staff with proficiency
48% of general contractors consider people manage- in technology, compared to the commercial and institu-
ment skills significant when hiring senior staff, far tional sectors (both at 39%).
more than A/E firms. This also exceeds the percentage
of general contractors who find specialty knowledge to Variation by Years in Profession
be important. A higher percentage of respondents with ten years or
Not only does general construction activity involve more in their profession consider proficiency with tech-
direct management of a firm’s own staff as well as nology and knowledge of construction processes to be
working with trade contractors, but the role of general one of the top three skills/knowledge areas sought when
contractors in the industry has been evolving to provide hiring senior staff versus those with less experience.
greater input during the project design stages, from
providing information during the creation of construc- Variation by Firm Size
tion documents to a fully integrated approach to design More large A/E firms (billings of $5M or more) consider
and construction. People management skills for contract- people management and business development
ing firms are much more important in these collaborative among the top three skills, but fewer seek construction
business arrangements. process knowledge.

Data:Top Skills and Experience
in Architect Job Candidates
Top Skills and Experience Sought in Job Candidates

by Architecture Firms: Results from the Architect Firm Gap and Student Studies
T
he results of the survey of GREEN BUILDING SKILLS/ Skills/Knowledge
architect firms suggest that ACCREDITATION Sought in Experienced

similar skills and experience In all questions on sustainability, Architects
are sought in experienced from what motivates sustainable Not surprisingly, the requirements
job candidates and in architecture design to the value they place on of job candidates that rank
students. General computer skills, specific practices, the students higher for experienced architects
specific design technology skills and recent graduates consistently include several years of previous
and traditional design skills are all respond strongly to green, even job experience and licensure,
selected by a large percentage for more so than the practicing qualifications far more likely in an
both types of job candidates. architects. (See pages 14 and 32 for experienced architect than in a
However, when ranking the more information.) Therefore, it is not recent graduate.
percentage reporting these surprising that potential employers
skills and experience in their have higher expectations of green Architectural Software
job candidates, some skills rank skills and accreditation for students For the most part, students are
differently for students compared and recent graduates than for learning the technologies that
to experienced architects. experienced architects. In addition, firms value most: AutoCAD, Revit
it is possible that these firms see the and Google SketchUp. AutoCAD
Skills/Knowledge Sought green skills in their entry-level staff has been widely adopted for
in Students and Recent as a commitment to green growth in years, and Revit, a BIM software,
Graduates the future, an increasing necessity has seen strong adoption in the
The skills firms ranked as most given the continued growth expected U.S., demonstrated by the greater
important for students and recent in green construction. (See page 10 number of firms that find it essential
graduates they would hire largely for more information.) for students to know compared
correspond to emerging trends in
the profession.
Top Types of Skills/Experience Sought by Firms in Job Candidates
REVIT AND BIM SKILLS/ Source: AIA/MHC Studies 2012
PROGRESS ON IPD PLAN
The current generation either in
Experienced Unemployed Architects Architecture Students/Recent Graduates
or just graduated from college is
generally acknowledged to have 1. Computer Skills 1. Computer Skills
strong technology skills. (See the
Voice of the Next Generation article 2. Several Years Professional Experience 2. Revit Skills
on page 35 for the specific ways
3. Traditional Job Skills 3. Traditional Job Skills
in which architecture students are
using technologies like social media.) 4. Revit Skills 4. BIM Skills
The expectation that they have Revit
and BIM skills corresponds to the rising 5. BIM Skills 5. Green Building Skills/Accreditation
focus on collaboration in the building
6. Licensure 6. Several Years Professional Experience
design and construction process. One
of the primary advantages of Revit/BIM 7. Green Building Skills/Accreditation 7. Progress on IDP Plan
is that they support these collaborative
approaches. This finding is echoed in 8. Progress on IPD Plan 8. New Job Skills
the higher rating of integrated project 9. New Job Skills 9. Licensure
delivery (IPD) skills as the industry
continues to see an evolution into Indicates skills perceived as more important
this approach. Indicates skills perceived as less important

Data Sidebar: Architect Top Skills and Experience CONTINUED
Architectural Software Architectural Software Firms Consider to

(by Student Familiarity and Use) Be Helpful or Essential for Students to Know
Source: AIA/MHC Studies 2012 Source: AIA/MHC Studies 2012
Familiar With but Have Not Used Helpful but Not Essential
Used Essential for Job
AutoCAD AutoCAD
12% 88% 100% 19% 78% 97%
Revit Revit
36% 62% 98% 39% 55% 94%
Google SketchUp Google SketchUp
14% 85% 99% 58% 36% 94%
ArchiCAD ArchiCAD
69% 11% 80% 37% 8% 45%
Rhino Rhino
47% 43% 90% 48% 54%
Grasshopper Grasshopper 6%
47% 14% 61% 35% 36%
Maya Maya 1%
44% 48% 33% 33%
4%
to ArchiCAD, a competing BIM software. Google

SketchUp is 3D presentation software that can be used
for massing studies, to build models and to create
AIA-Skills-Software
renderings, and it has the advantage of being flexible
in terms of the level of detail required. AIA-Skills-FirmSW
More students report using and being familiar
with 3D modeling software, such as Rhino and
Grasshopper, compared to the percentage of firms
that consider such software to have immediate value.
However, the higher level of engagement of students
with these software packages suggests that these may
be the future of architecture as the students become
integrated into the workplace. n

Skills Gaps CONTINUED
Skills and Knowledge Sought

When Hiring in the Trades
Specialty knowledge is by far the most important factor Skills and Knowledge Sought by
when hiring in the trades according to trade contractors, Trade Contractors

with 76% selecting this as one of the top three most Source: McGraw-Hill Construction, 2012
important skills/knowledge areas for their trade. Work in the

Specialty Knowledge within Trade
trades is more specialized than in architecture or general
76%
construction, and it is not surprising that trade contractors
highly value expertise specifically in their area of practice. Safety Awareness
The next five factors, on the other hand, were all selected 41%
by between 30% and 41% of the specialty trade contractors
Project Management Skills
as important skills sought when hiring. All these factors
are important on the job site, including strong safety 41%
awareness, good project management skills and the ability to Communication Skills
communicate, work with a team and manage time effectively.
38%
A combination of these skills would contribute considerably
to reducing the risk of delays and cost overruns onsite. Teamwork Skills
On the other hand, skills that are applicable off the job site, 32%
such as technology and business development, are selected Time Management Skills
by far fewer contractors.
30%
Variation by Hiring Decision Makers Proficiency with Technology

52% of the respondents involved in hiring decisions 22%
regard safety awareness as critical, compared to 32% of
Business Development Skills
the respondents who do not make hiring decisions. Safety
11%
issues can have important implications for specialty trade
contractors, from legal exposure to reputation.
Variation by Trade Variation by Union Membership

While there were too few respondents in any individual Teamwork is one of the top three skills sought by 48%
trades (other than electrical) to draw definitive, of union members compared to 29% of non-union
statistically sound conclusions, there are definite trends respondents. A union member may be more likely to work
suggested when considering the skills valued by trade. with different companies on an as-needed basis compared
to other trade contractors. The ability to create new teams
ime Management: Trades that require extensive
T
■■
may therefore be more important for union members.
coordination with other workers onsite, such as
electricians, drywall and carpentry, value time
management far more than trades like roofing that
Variation by Gender
41% of the men surveyed regard communication as
involve less coordination.
one of the top three skills they seek, compared to 22%
echnology Skills: Nearly half of the HVAC/sheet metal
T
■■ of women. One the other hand, 88% of women regard
contractors value technology skills. HVAC contractors specialty knowledge to be critical as opposed to 74%
have been impacted by the introduction of building of men. In an industry still largely dominated by men,
information modeling (BIM) technology, including for women may feel less inclined to value softer skills over
clash detection and, in some cases, for prefabrication areas in which they can clearly demonstrate equal ability.
of complicated HVAC systems in restricted spaces.
afety: Well over three quarters of the roofing

S
■■
contractors consider safety awareness one of the top

three skills they seek in employees. With the heights at
which they work, it is not surprising that roofers would
give more careful attention to safety.

Skills Gaps CONTINUED
Needed Green Skills (Top of Mind)
When asked an open question about what green skills Some emerging strategies that make projects greener
they think are needed, the top ones mentioned by are also evident in the missing skills identified, such
A/E, general contractor and specialty trade contractor as specific technical expertise in energy and building
respondents are all related to knowledge and education information modeling and skills necessary to approach
about green. In fact, 41% of the general contractors projects collaboratively.
mentioned this as a missing skill, clearly suggesting that
■■ nergy Modeling: Noted by 9% of A/E firms and 5% of
E
the industry sees a strong need for more educational
general contractors
opportunities about green.
While A/E firms note a lack of green experience in ■■BIM Skills: Noted by 2% of A/E firms
general, a larger percentage of general contractors
■■Collaboration Skills
discuss LEED project experience and particularly LEED
• 3% of A/E firms and 2% of general contractors note
certification experience as lacking.
communication as an important missing green skill.
Experience
■■ • 2% of A/E firms note integration skills as missing.
• A/E Firms: 19%
Only a small number of the trade contractors listed
any missing green skills, but over half of those that did
LEED Certification and Project Experience
■■ mentioned knowledge/education. In addition, a few noted
• A/E Firms: 19% a lack of interest in green (a factor noted by 3% of the
• General Contractors: 25% A/E and general contractor respondents as well), energy
modeling, and design/green design skills (also noted by
14% of A/E firms and 3% of general contractors).
Best Approach to Obtain Required Skills

for Green Projects
84% of respondents believe that different skills or Need for and Means of Obtaining Skills
training are required to work on green projects, and that Required for Green Projects
percentage stays consistent between now and 2014.
A small but notable shift occurs in terms of how 2011 2014
that training can be obtained between now and 2014.
The percentage who find on-the-job training sufficient 50%
declines 6 percentage points, while the percentage who 44%
think formal education or certification will be required 40%
increases by the same amount. Even though a larger 34%
percentage still believe on-the-job training is important
by 2014, the difference is far less pronounced. This,
combined with training/education being the top-of-mind
green skill gap for the largest percentage of respondents,
demonstrates that the demand for green training and
10%
certification in the industry will increase. 8%
One notable difference among A/E firms is that larger
firms find more value in on-the-job training. Among the
trades, union respondents are much bigger proponents No New Skills or Needed Skills/ Needed Skills/Training
Training Needed Training Can Be Best Obtained Through
of on-the-job training than non-union respondents, with Obtained Formal Education
the percentage who regard that as the best strategy on the Job or Certification
actually increasing by 2014.

Sidebar: State Initiatives
State Initiatives for Job Training

and New Job Growth
Construction is ultimately a local business, and state policies directly

impact the size of the market and the availability of a skilled workforce.
In response to industry needs, states across the country are engaged in
workforce development, making strategic investments in infrastructure
and encouraging job creation in the energy and environment sectors.
Training Today’s trade, dispel their misconceptions high school diploma, but courses may
Workforce for about the construction industry and be tailored toward the skilled trades.
Tomorrow’s Jobs inspire them to consider a career as
One way to address skilled labor a skilled construction tradesman. New Job Growth
shortages is to develop continuing Through advertising, public relations States are also working to fuel the
education programs for workers and a social media campaign, ACRI growth of the construction industry
in the skilled trades that update provides highly skilled employees and create new jobs. For example,
existing skills and teach new ones. for construction businesses and Michigan passed a Green Jobs
Collaboration between community enhanced economic development Initiative with the primary goal of
colleges, technical colleges and for Alabama. building a strong supply of well-
apprenticeship programs is A key focus for states is increasing trained and highly skilled workers and
providing opportunities for workers demand and access to construction a more diverse, sustainable economy.5
to receive academic instruction and related programs to encourage more Companies in the renewable energy
on-the-job training. One example is K–12 students to prepare for careers in and green construction and retrofit
the degree and certificate programs construction. One example is a School- sectors stand to benefit.
offered in electrician apprenticeship to-Work program in Washington, In New York, the Solar Industry
technologies and industrial which was designed to give high Development and Jobs Act is under
mechanics and maintenance school students a taste of the trades.3 consideration; it would develop over
technology apprenticeships through Students attend classes at community 5,000 megawatts of solar power
Oregon’s Portland Community colleges and apprenticeship training capacity in New York by 2025.6 At
College.1 Programs like this are made centers and receive graded high school least 50% of the total solar capacity
possible through a partnership credit in areas such as construction would be installed by electric utility
between business, industry, building trades, applied math and customers and provide on-site
education and government, which all applied communication. The hands-on power to customers. The 41,705 job
have a stake in increasing the training approach allows students to work opportunities that are expected to be
of today’s workforce. with apprentices and journeymen in created through 2025 include green,
the trades. Many of the students have clean tech jobs as well as operations
Developing a Skilled started apprenticeships or found jobs and maintenance (O&M) jobs.
Future Workforce in construction-related fields. In New York, $785 million was
States are looking at ways to create a Wisconsin recently passed a new awarded through the Regional
pipeline of skilled workers by getting law that allows school districts to Economic Development Council
the younger generation to pursue offer technical education high school initiative to drive economic
careers in construction. For example, diplomas.4 Under the new law, a school growth and create jobs. The plan
in 2009 the Alabama Legislature district can offer a course of study represents a community-based,
established the Alabama Construction providing training in skilled trades performance-driven approach to
Recruitment Institute (ACRI), which such as welding and electrical work. economic development and invests
runs the Go Build program,2 a A student must still earn the same in areas such as smart growth
campaign designed to educate young number of credits in the same general infrastructure and developing
people on the value of learning a subject areas required for a traditional a 21st-century workforce.7 n
1 Portland Community College Apprenticeship and Trades, Accessed April 4, 2012, http://www.pcc.edu/programs/apprenticeship/. 2 Go Build Alabama, http://www.gobuildalabama.com/. 3 Washington State Department of Labor
& Industries, http://www.lni.wa.gov/TradesLicensing/ Apprenticeship/About/IntroProg/default.asp. 4 “Technical Education High School Diploma Received Wide Bipartisan Support,“ Wispolitics.com, http://www.wispolitics.com/
index.iml?Article=265347 3/26/2012. 5 Michigan NWLB Green Jobs Initiative, Accessed April 4, 2012, http://www.insightcced.org/ uploads/nnsp/michigan-green-jobs.pdf. 6 “The Solar Industry Development & Jobs Act 2011,”
The Vote Solar Initiative, http://votesolar.org/new-york-solar-jobs-act-of-2011/. 7 New York Governor Andrew M. Cuomo Press Office, December 8, 2011, http://www.governor.ny.gov/press/12082011RegionalCouncils.

Data:Training and Certification
Training and Certification
Both technical and soft skills are important to all Value of Certification: Certification has value to both
■■
players. Training and certification help the industry individuals and firms. For individuals, the knowledge it
gain these skills. offers is the most widely recognized benefit, but nearly
as many also cite it brings them more job opportunity,
■■Value of Training: While the sources of initial train-
better pay, greater job security and opportunities for
ing conform to industry expectations and requirements,
advancement. For firms, the two top benefits of certifica-
the importance assigned to those sources reveals a high
tion include increased competitiveness and ability to win
value placed on on-the-job experience.
contracts and expansion of their green business.
Sources of Initial Training and Their Importance
The providers of initial training selected by the largest that the industry as a whole recognizes the value of
percentage of respondents as most used and most practical, real-world experience. Even A/E professionals
important are not surprising when considered by regard on-the-job training as a critical source of initial
profession—colleges and universities for A/E firms and training, in addition to the college education expected of a
on-the-job training for general contractors and specialty practicing architect or engineer. While only 68% selected it
trade contractors. as a source of initial training, nearly all of those that select it
The prominence and importance of on-the-job training, (95%) consider it important.
apprenticeships, internships and licensure demonstrates
Use and Importance of Initial Training Sources

Consider Important Use
Colleges/Universities On-the-Job Training On-the-Job Training

76% 87% 67% 72% 80% 84%
On-the-Job Training Colleges/Universities Apprentice Programs
64% 68% 43% 55%
56% 68%
Internship Apprentice Programs Vocational and Technical Schools
48% 59% (College Level)
30% 41%
State Licensure Requirements Vocation & Technical Schools
29% 45%
39% 54%
(College Level) Vocational High Schools
Vocational and Technical Schools 27% 44% 14% 26%
(College Level)
High Schools Unions/Professional Organizations
16% 25% 18% 22%
12% 20%
Unions/Professional Organizations
Unions/Professional Organizations Internships
8% 15%
19% 32% 12% 21%
High Schools
13% State Licensure Requirements High Schools
16% 28% 13% 19%
6%
Vocational High Schools Vocational High Schools State Licensure Requirements
8% 10% 21% 10% 15%
3%

Training and Certification CONTINUED
Continuing Training Supported by A/E Firms

and General Contractors to Keep Staff Knowledge Current
A/E firms and general contractors engage in multiple Means Used by A/E Firms and General
strategies to keep their staff knowledge current. The four Contractors to Keep Staff Knowledge Current
options listed in the survey were adopted by over 50% of (by Player)
the A/E respondents, with only a 15% differential among Source: McGraw-Hill Construction, 2012
them. The general contractor responses were slightly lower,

A/E Firms
but even more closely clustered together. These findings
General Contractors
show that associations, unions, certification programs,
educational institutions and mentor programs all play an Financial Reimbursement for Training
important role in keeping profeassionals up-to-date on the Offered by Associations/Unions
most important developments in their industry. 67%
The one category selected by a nearly equal percentage 51%
of A/E and general contractor respondents is payment for
Payment for Certification Programs
certification programs. As the strong benefits associated
with certification make clear (see pages 49 and 50), these 56%
programs are recognized by the industry as a whole as 55%
playing an important role in professional development. Financial Reimbursement for Training at
More A/E firms are investing in mentor programs than Educational Institutions
general contractors. This may be influenced by their 52%
high level of concern about the loss of experience and 58%
skills as employees are laid off, as well as about the
loss of knowledge as leaders retire (see page 24 for Mentor Program
more information). 52%
Over 80% of A/E firms and general contractors believe that 45%
they or their staff face challenges in keeping their knowledge
current, especially lack of time and the cost of training.
Best Means for Continuing

Training for Specialty Trade Contractors
Best Means for Trades to Keep
Knowledge Current
Nearly two thirds (65%) of the respondents from the Source: McGraw-Hill Construction, 2012
trades think that the courses offered by associations are
among the best ways to stay current, but they also place Courses/Training Offered by Professional Associations
high value on courses from educational institutions and 65%
certification programs (both basic and advanced). Courses/Training Programs Offered by
Although there are not enough respondents by trade Educational Institutions
to draw any conclusions, it is interesting to note that 52%
nearly all of the HVAC/sheet metal respondents find
Basic Certification Programs
training offered by educational institutions to be one of
the best ways to stay current, significantly more than in 46%
the other trades. Advanced Certification Programs
Similar to A/E firms and general contractors, over 80% 44%
of specialty trade contractors face challenges in keeping
their knowledge current. They also regard lack of time Courses/Training Offered by Unions
and the cost of training as the most significant challenges. 14%

Feature: Training Programs for the Trades
Training Programs in the Trades:

Driving the Future by Aligning Training and Marketplace Needs
One of the overarching workforce challenges in the construction industry

involves the lack of skilled professionals in the trades. There are many programs
available to help create the skilled workforce needed in the construction

industry. However, one critical challenge that must be overcome is convincing
the next generation of workers of the attractiveness of a career in the trades.
A
cross the nation, fewer Callanan, the executive director of study comparing union crafts with
people have been the National Joint Apprenticeship nonunion crafts in terms of the
seeking training in the and Training Committee (NJATC)— graduation rates of nontraditional,
construction-related the training arm of the International underrepresented populations, and
trades due to public misconceptions Brotherhood of Electrical Workers that data proves that we have been
about the career potential of these and the National Electrical a leader in that area.” He believes
jobs. Concern about the reduced Contractors Association—states, pre-apprentice programs are key
pipeline of workers is heightened “[Apprenticeship] is a pretty to that success. “We are not trying
because many experienced trade comprehensive model that ... has to circumvent the apprenticeship
workers are baby boomers who are proved to be an extremely effective model. We’re trying to use the pre-
expected to retire in the upcoming way to teach young people skills apprenticeship tool to increase the
years. Moreover, young, entry-level that require technical mastery with likelihood that candidates will be
workers continue to enter the trades theoretical understanding.” successful in a difficult, four-year
without adequate job training and Callanan sees an evolution in the apprentice program.”
skills. Industry leaders report that the profile of those who participate in An example is the Edward J.
capacity and capability of education their apprentice programs—the Malloy Initiative for Construction
and training providers that serve average of apprentices has shifted Skills, which provides pre-
both entry-level and existing workers to the mid-20s, and apprentices in apprenticeship training that prepares
could be improved and their curricula his program are more likely to have graduating New York City public
more aligned with employers’ needs. college experience. He credits these high school seniors for entry into
The industry is focused on meeting changes to the nature of the work. unionized trade apprenticeship
these challenges. Partnerships Thomas Haun, an administrator programs. Upon successful
connecting employers, associations, with the Insulation Industry completion of the program,
labor unions, community colleges, International Apprentice Fund, graduates are referred to union
workforce boards and related points out that people no longer apprenticeship programs through a
stakeholders are underway to consider working in the trades a direct entry track.1
develop workforce skills that meet family legacy. “15 years ago, if you
employers’ needs, as well as career asked the membership of most Reaching a Younger
pathways and recognized industry local unions ‘How did you get in Generation
credentials. State and local officials the trade?’ most would say through Jim Sullivan, assistant professor at
are encouraging these partnerships family. If you asked that question the M.E. Rinker School of Building
and all efforts to align, integrate and today, it would be, ‘[I answered] an Construction at the University
connect construction education ad in the newspaper.’” He sees this of Florida, believes that most of
and training at all levels of the PreK– shift as creating new possibilities the construction associations,
20 education system. for involvement by minorities and both union and non-union, have
women in the trades. training programs in place, but the
Union Apprenticeship Callanan also thinks that the messaging is also critical. “They have
The unions value the real-world unions are doing better at recruiting the curriculum and they have the
experience and rigor offered by underrepresented populations. instructors, but they just need to do a
the apprenticeship training model, “The University of Massachusetts better job expressing the importance
their traditional approach. Michael Labor Resource Center has done a of these jobs and how there’s an

Feature: Training Programs for the Trades CONTINUED
opportunity to make a career in them,” institution that provides a standardized of the NJATC, affirms that “our
says Sullivan. curriculum in over 60 craft areas. data show that these returning
One aspect of his program In addition, it offers assessments service men and women make great
that Callanan thinks needs to be of the knowledge and skill level of candidates and apprentices.”
emphasized more to attract generation individuals in specific craft areas
Y is the opportunity to go to college and a program for updated training Critical Trends
while earning a full wage. He believes through its National Craft Assessment Impacting Training
that the NJATC program offers a and Certification Program (NCACP). Needs
potentially appealing career path: According to Don Whyte, President Callanan states that the trend toward
“You’ll be able to work yourself of NCCER, “When we developed prefabrication is changing the nature
into that engineering technology [NCACP] back in the early 2000s, we of electrical work dramatically. He
degree as you work through your had a lot of skill deficiencies across the describes how the skilled worker
apprenticeship model, and when you workforce, and there really wasn’t any shortages predicted during the height
end up designing electrical products, measure to determine what the true of the construction boom in the mid-
you will do so with an even better competency level of our workforce 2000s inspired manufacturers of
base because you will have done was. So we developed journeyman electrical components and products
an installation from the ground up.” assessments where we could go out to simplify the installation of their
Apprenticeship offers experience that and assess a worker’s knowledge systems through prefabrication
can provide an edge in the job market. and skills and provide credentialling because they “recognized that it will
Some programs are actively pursing to them if they had the appropriate be easier to get bodies than it will be
apprentices with college experience to journey-level knowledge and skills.” to get skilled bodies.”
increase the skill level and education For Haun, the rise of green
of youths entering an apprentice Innovative Approaches building has had a major impact
program. One strategy to do so is to to Training on his trade. It has not changed the
link the program with community Another example of an innovative nature of the work, which has always
college programs. Employers solution in the construction industry been green. However, he finds that
are increasingly turning to local is the congressionally funded the emphasis on green work has
community colleges and vocational Helmets to Hardhats program, which reduced the recession’s impact on
schools to create tailored educational connects National Guard, Reserve, his trade. While Callanan reports
programs to help fill their job openings. and transitioning active duty that electricians have seen a 20%–
Collaboration between community servicemen and women to jobs in the 25% reduction in the number of
colleges and apprenticeship programs construction industry. The program apprentices due to the recession,
makes sense because professional is sponsored by the fifteen unions of Haun says that insulators have not
success in the trades requires skills the building and construction trades, seen the declines experienced in
beyond hands-on training about the along with construction industry many other trades because “there has
trade, such as problem solving. employer associations.2 been more attention to the retrofitting
Through Statewide Direct Entry of buildings, the greening of buildings
Determining Training programs, the program allows joint and mechanical insulation.” He
Needs in the Industry apprenticeship training councils and finds that one strategy to increase
Training needs are not confined to just local unions to accept current and awareness of his trade is to educate
new workers and apprentices, but they former military personnel into their its members on how to tell the public
can continue throughout a worker’s training programs on a prioritized about their green role. This approach
career. The National Center for basis, and it provides credit for is critical to attracting more people
Construction Education and Research military training and experience. to the trade, a challenge given its
(NCCER) is a 501(c)(3) educational Michael Callanan, executive director specialized nature. n
1 “Pre-Apprenticeship Training,” The Edward J. Malloy Initiative for Construction Skills, Accessed April 19, 2012, http://www.constructionskills.org/pages/pat.html. 2 “Helmets to Hardhats,” Building and Construction Trades
Department, AFL, CIO, Accessed April 22, 2012, http://www.bctd.org/About-Us/Partners/Helmets-to-Hardhats.aspx.

Benefits of Certification for Individuals
75% or more of all the respondents agreed that Benefits of Certification to Individuals
valuable knowledge applicable on the job and more job (by Player)
opportunities are benefits that individuals gain by being Source: McGraw-Hill Construction, 2012
certified/accredited.
The percentage of respondents who find that they
get valuable knowledge from certification/accreditation Total
is nearly equal across the firm types, and it is the Valuable Knowledge that Can Be Applied on the Job 77%
benefit selected by the highest percentage of general 76%
and specialty trade contractors. This suggests that
79%
certification/accreditation programs are doing a good job
of addressing the educational needs of the industry. 76%
More job opportunities is one of three categories More Job Opportunities 75%
selected by a significantly higher percentage of A/E 79%
respondents compared to the other two firm types.
69%
Combined with the other two categories—factor
68%
in greater compensation and greater job security/
opportunities for advancement—it is clear that A/E Factor in Greater Compensation 69%
respondents see the most direct financial and career 66%
benefits from professional certification. However, 56%
with well over 50% of all respondents from the general
59%
and specialty trade contractors also selecting these
categories, certification has a strong, positive overall Greater Job Security/Opportunities for Advancement 62%
impact on individuals’ careers and compensation. 73%
62%
Variation between Certified and 66%
Uncertified Respondents
Necessary to Demonstrate Required
Interestingly, several key benefits are recognized by as
Green Skills/Knowledge 52%
many respondents who are not certified/accredited as by
53%
those who are.
54%
/E and General Contractor Respondents: The benefits
A
■■
40%
are again those with the most direct financial and
career impacts.
• More job opportunities
greater compensation compared to those not involved in
• Greater compensation
hiring decisions (62%). This reinforces this as an important
• Greater job security/opportunities for advancement
benefit for certified employees in these fields.
pecialty Trade Contractor Respondents: Slightly
S
■■ However, fewer decision makers at these firms think
different benefits are equally recognized by certified that certification/accreditation is necessary to demonstrate
and uncertified. required green skills/knowledge compared to those not
• More job opportunities involved in hiring decisions.
• Greater compensation At the specialty trade contractors, a much lower
• Valuable knowledge that is job-applicable percentage of decision makers (57%) agree that certified
• N ecessary to demonstrate required green employees have greater job security/opportunities for
skills/knowledge advancement than non-decision makers (68%). They
are even more reticent about whether certification/
Variation by Hiring Decision Makers accreditation is necessary to demonstrate required green
A slightly higher percentage of respondents who are knowledge and skills compared to the decision makers at
involved in hiring decisions at A/E firms and general A/E and general contractor firms, with only 33% of them
contractors (66%) believe that certification is a factor in expressing agreement with this benefit.

Certification Benefits Experienced by Firms
The benefits of certification for firms vary more by firm Benefits of Certification to a Firm (by Player)
type than the benefits experienced by individuals. Still, Source: McGraw-Hill Construction, 2012
with over 50% of the respondents affirming that firms

with certified employees experience nearly all of these
benefits, the value of finding employees with certification
Total
across the industry is clear. Increase Competitiveness and the Ability
to Win Contracts 71%
Variation by Firm Type 81%
A/E FIRMS 66%
49%
■■Increasing Competitiveness and Ability to Win
Contracts: 81% report this as a benefit of certification. Green Certified Employees Allow Firms
to Expand Their Green Business 68%
Such a high percentage reveals the value A/E firms place
on certified employees. Compared to general contractors 73%
and specialty trade contractors, more A/E firms cite 71%
this as an important benefit of certification. Selection 48%
of A/E firms for contracts is often driven by reputation
Improves the Hiring Process by Allowing Pre-Screening 57%
and experience, either directly or through a proposal
62%
process, while the selection of contractors is often more
influenced by their cost. 50%
55%
■■ xpanding Their Green Business: 73% believe that
E
green certified employees bring them this benefit. Improves Safety Outcomes 57%
This suggests that firms may be using the credentials of N/A
their staff as a way of demonstrating their ability to do 55%
green projects successfully. 59%
■■Improving the Hiring Process: 62% report find Helps New Hires Contribute More Quickly 53%
certification improves the hiring process by allowing 55%
for pre-screening and by helping new hires contribute
50%
more quickly.
52%
This demonstrates that these respondents find that the
training offered through certification is often directly Reduces Training Costs 34%
applicable on the job, reinforcing the value of certification 34%
to individual professionals since certified individuals have 33%
increased job opportunities.
38%
GENERAL CONTRACTORS
SPECIALTY TRADE CONTRACTORS
xpanding Their Green Business: 71% find that green
E
■■
certified employees bring this benefit. ■■Improved Safety Outcomes: It is the number one benefit
This reinforces the finding that clients are seeking firms of certification for specialty trade contractors and third
with demonstrable green capabilities. most important for general contractors.
These players recognize the productivity benefits
■■Increasing Competitiveness and Ability to Win
increased safety can provide their firm. They clearly
Contracts: Two thirds select this as a benefit.
believe that the training offered in certification makes their
Despite the fact that the selection of general contractors
projects safer.
can be largely driven by price, their reputation is also
critically important to their job prospects. They clearly ■■Improving the Hiring Process: This benefit to the hiring
recognize the role that having certified employees can process ranks higher than the potential to expand
play in demonstrating their expertise to potential clients. their business.

Feature: Certification
The Value of Professional Certification

in the Marketplace
Increasingly today’s construction industry professionals are

seeking certifications and industry-based credentials to distinguish

themselves and to demonstrate to employers that they have attained
an in-depth and specialized knowledge in specific areas.
T
he construction industry Project management and as business, journalism and
has changed and grown specialized project knowledge product marketing, who work in
dramatically over the last are not the only ways in which architectural or engineering firms
century, and these changes firms benefit from having certified or contractors demonstrate their
have created a need for a workforce employees on their staff. According knowledge of the industry and
that can demonstrate that they to Dan Taddei, director of education good business practices.
possess many unique specialties and certification at National
and technical and managerial skills. Association of the Remodeling Creating Value for
Given this, it is not surprising that Industry (NARI), many workers Individuals
half of the industrywide survey also need to demonstrate that they Clearly, individuals benefit when
respondents find that certification have effective business skills. To firms recognize the value of the
allows them to pre-screen employees become a NARI Certified Remodeler, certifications they earn, both during
and reduces training costs, giving candidates must possess skills and the hiring process and in their
them the insight they need into knowledge in a range of business opportunities for advancement. For
potential employees. management and technical skill the National Center for Construction
areas, and the certification program Education and Research (NCCER),
Creating Value for Firms includes how to run a business. which provides curricula for training
For certification to have value for “A good 40% of the questions [on and education in more than 60
individuals, it must be considered the certification exam] are about different construction trades to
valuable in the marketplace as a business operations because most individuals that go through its
whole. The survey respondents note of our guys get into this from the accreditation program, the fact
many benefits their firms gain from trades. They’re good tradespeople, that their program is nationally
having certified employees, and the but business is a challenge for them. recognized and their credentials
certification industry recognizes We want to make sure that they’re portable adds value for the individual
that this is central to their industry. able to handle the business side,” earning the certification.
Joseph Sapp is chief operating says Taddei. However, Don Whyte, president of
officer of the American Institute of According to Ron Worth, NCCER, notes that certification can
Constructors and the Constructor president of The Society for help individuals get future employers
Certification Commission (AIC), Marketing Professional Services to recognize their hard work and
which provides certification of (SMPS), the advantages that dedication: “Our craft professionals
construction knowledge for both certification provides for firms will are proud of their accomplishments,
new professionals and experiences continue to increase the demand and certification is a means for
professionals in the industry. He for them and eventually make them us to do two things. Number one,
states, “The employers [of certified mandatory. “Once you enter into a it helps build their esteem and
workers] benefit [because] the profession and specialize in a field, professionalism; number two, it
certification provides a recognized a certification in that field shows shows the industry [the time] that
credential within their company that that you’re a stronger resource for this person has actually invested in
improves marketability to clients. And a firm to use because firms are very preparing their skills.”
in turn, clients get an increased level focused on return on investment.” Many of the individuals seeking
of assurance that their projects are SMPS helps individuals in NARI certifications are self-
being managed more effectively.” nontechnical backgrounds, such employed, and for them, certification

Feature: Certification CONTINUED
is critical to build their reputations are still challenges to growth. Taddei the architecture, engineering and
with their clients. Taddei explains states, “One part is the cost, but the construction sectors. The rest
that these certifications demonstrate big part is the time. These guys are come from more specialized areas
to clients that the contractors are just working, trying to survive, and such as facility management,
exceptional professionals. He when you throw in that they’re going landscape architecture, real estate,
states, “They are able to show their to have to do two hours of class, plus manufacturing, owners, planners,
clients all of the rigorous work and the study time in between, for a 12 marketing and other areas such as
requirements they have successfully week period, that’s a lot of work. It’s sales, finance and legal. Templeton
completed and the exams they have certainly a big commitment.” states, “Most of these are individuals
passed and tell their clients it makes that are involved with projects,
them not only better at being able to Helping Market specifically looking at how they are
do their job, but it also makes their Transformation able to make a difference, and this
company a better run business.” All of the credentialling organizations is a means for them to be able to
are dedicated to providing the demonstrate the expertise that they
Impact of the Recession professionals who seek their bring to the table.”
on Certification certifications with the tools to The GBCI’s surveys of LEED
Programs excel in their industry and to make professionals find similar increased
Sapp also finds that individuals the industry more productive and job opportunities and market
recognize that the efforts they make profitable. However, the Green advantages reported in the MHC
in achieving certification helps Building Certification Institute industrywide survey (see pages 49
distinguish them in a very competitive (GBCI) has even greater goals for and 50):
job market. “A few years ago when their Leadership in Energy and
■■ 85% of its credentialed
people were not finding work, they Environmental Design (LEED)
professionals believe that
were going back to school, and the professional accreditation. They
their credential gives them
individuals that were looking for are seeking nothing short of
a competitive edge in the
work were trying to find a way to set transforming how the practice of
job market.
themselves apart. Certification is one design and construction is done.
way to do that.” Sapp describes how With the growing green building ■■ 71% of hiring decision makers
AIC has seen steady growth in their market creating an increased need maintain that being credentialed
certifications, with a modest increase for a skilled green workforce, it is not increases competitiveness.
even through the recession. He surprising that the LEED accredited
■■ 81% of LEED professionals believe
explains, “For the individual, it not only professional is one of the fastest
that earning their credential has
provides a marketable credential that growing certifications in the industry.
given their organization an edge.
sets them apart from other individuals, As part of its mission, the GBCI is
but it also enhances the individual’s focused on market transformation, ■■ 90% of LEED professionals believe
personal image as a professional to the moving the entire industry from that earning their credential
employer, the clients and the industry.” conventional practices to sustainable facilitated recognition from peers
However, not all certification and healthier ones. A key part and employers in their field.
programs have fared as well of that strategy involves getting
Templeton notes, “Many LEED
during the challenges caused by professionals to approach design
professionals believe that by
the recession. For example, the and construction conscious of green
earning a LEED credential they
recession had a big impact on impacts, which LEED accreditation
are contributing to the movement
NARI’s certification programs. As can help foster.
towards green building and that
many companies contracted and According to Peter Templeton,
[its value is] not only a personal
unemployment increased, there were president of the GBCI, about 60%
accomplishment and professional
fewer applications and renewals. of the professionals seeking LEED
development but also what it says
Applications are up again, but there credentials come primarily from
about them and their values.” n

Data:Green Jobs
Green Jobs
Recognizing that non-industry specific green jobs ractices Self-Defined as Green: Before providing a
P
■■
definitions did not fully capture the nature of green jobs green job definition, respondents were asked to indi-
in the construction industry, McGraw-Hill Construction cate the most important green practices and what they
devised a green jobs definition that reflects work done considered to be requirements of a green job. Strik-
to produce green buildings, work on uniquely green ingly, the green job requirements selected by the
systems and green work that requires different skills industry align closely with the McGraw-Hill Construc-
or knowledge (see page 11 for the full definition). This tion green job definition.
more precise definition allows this research to reflect
etraining Needed for Green Jobs: Despite the fact that
R
■■
the number of green jobs in the construction industry
many green jobs are emerging from traditional work in
reported by the industry itself, rather than estimated as a
the construction industry, the majority report at least
product of green projects alone.
minor retraining was needed for their green job.
Aside from the number of green jobs, the key findings
in this section include: enefits of Green Jobs: Workers with green jobs report
B
■■
several benefits, including more job opportunities

Type of Green Job Held: McGraw-Hill Construction’s
■■
and better career advancement. Over one quarter also
green job definition allowed for measurement of the type
report more job security, a rarity in an industry with
of green job held by the respondents.
such a high employment activity level based on the
• A /E firms place great emphasis on green projects
volume of work available.
completed, as would be expected.
• Specialty trade contractors are most likely to work on
uniquely green systems.
• General contractors put more emphasis on the different
skills that differentiate their green work from their
traditional work.
Sustainability and the Practice of Architecture:

The architecture profession warming concerns, such as More students also consider
already believes strongly in green potential cost savings from green a wide range of green design
design, but the next generation efforts and improved design features to be important to
graduating from architectural features. Students in particular creating a sustainable building
programs places even greater believe that sustainable design compared to the architecture
emphasis on green. yields a long-term return firm respondents. Those
93% of both practicing on investment, a motivator features include the use of onsite
architects and students/recent that a higher percentage of renewable technologies and
graduates believe that architects them select compared to the green roofs, practices still in
should practice sustainable practitioners (see page 14 for limited use in the industry (see
design whenever possible. more information). page 32 for more information).
Interestingly, this percentage 65% of architecture students While the specific demands
exceeds those who believe and recent graduates report that and restrictions of clients may
global warming is caused by they will do green design out of a impact the use of specific,
human activity. This supports sense of personal responsibility, expensive approaches today, the
the conclusion that for students a factor that only motivates 39% commitment and enthusiasm by
and practitioners alike, the of current practitioners. This today’s emerging professional
decision to pursue sustainable demonstrates the commitment to sustainability is likely
design may be influenced by to green—and the idealism—of to translate into greater
factors unrelated to global the students. penetration in the future.

Green Jobs CONTINUED
Green Jobs in Construction
Green Building Market Is Fundamentally Number of Nonresidential Construction

Shifting Construction Practices Jobs and Green Share (in thousands)

McGraw-Hill Construction has been tracking the share Source: Total Jobs: U.S. Bureau of Labor Statistics (Through the End of 2011);
Green Share: McGraw-Hill Construction, 2012
of construction starts that is green (for definition, see
page 11) since 2005. As seen on page 10, the green Total
building market share was 31% in 2010, climbing to 41% Green Share
in 2011. By 2014, the share is expected to comprise 48%
of all starts. 1946.7
1829.0
This market has been driving change throughout the
industry—more green building products are available,
accessible and affordable; collaborative approaches
are becoming more prevalent in design and
construction; and the use of BIM and prefabrication are 895.5
accelerating in these projects due to the benefits they
offer in achieving green outcomes. 647.5
35.4% 44.6%
Correspondingly, as design and construction
practices have shifted, so have the design and
construction professions. New skills are now needed, 2011 2014 (est)
new professional specialities are emerging, and new
practices are becoming standard.
Green Construction Jobs Take Hold

in the Industry
In order to measure the percentage of green jobs in SPECIALTY TRADE CONTRACTORS
the construction professions—architects, engineers, The specialty trade contractors lag their AEC
contractors and specialty trade contractors—McGraw- counterparts in percentage of green jobs. In 2011, 15%
Hill Construction created a construction-specific
definition of green jobs (see page 11). This definition is
green_jobs
reported having green jobs, and 25% expect to have
one by 2014. Given the requirement that a green job is
the first to consider the work done and the skills required one that involves work on a uniquely green system or
to produce green projects, instead of solely basing requires significant retraining, many trade jobs would
numbers on green construction activity. not qualify specifically as green. Therefore, the true
impact of the green market on the trade specialties could
ARCHITECTS, ENGINEERS AND CONTRACTORS
be much greater than these percentages might suggest.
In response to McGraw-Hill Construction’s definition,
over a third (36%) of architects, engineers and
contractors (AEC) report having a green job in 2011,
and nearly 45% expect to have one in 2014.
It is notable that these percentages so closely match
McGraw-Hill Construction’s green building market size,
which is built from actual project data. This consistency
confirms the impact the green market is having on
jobs—at nearly a 1:1 ratio in projects to jobs. It also
reinforces the validity of these green construction
job numbers.

Majora Carter, President Majora Carter Group
Creating Jobs through Sustainable Communities
Majora is producer and host of the Peabody Award winning public
radio series, The Promised Land, and serves on the boards of the
U.S. Green Building Council and The Wilderness Society. From

2001 to 2008, she was Executive Director of the non-profit she
founded, Sustainable South Bronx, where she pioneered green-
collar job training and placement systems in one of the most
environmentally and economically challenged parts of the U.S.
When you think of a green job, that I run in, people might see the buildings in ways that are actually
how do you define it? benefits of green infrastructure, healthy ... Also training people in
CARTER: I define green jobs as but they haven’t linked them to job these places that were considered
any job that has a net benefit to the creation. New York City is a great regional sacrifice zones to be a part
environment, whether it is through example. When I was running of that rebuilding is a symbolically
the products that are produced or the Sustainable South Bronx, my team beautiful way to incorporate new
processes that are used. put together some white papers people into the transformation of
about why green infrastructure was their communities.
Taking that more narrowly, how going to be so important for the city
do you think of green jobs in the of New York. Several years later How do you think the industry
construction professions and [the city] actually released a green can better attract members of
trades? infrastructure plan, and we were the minority community into the
CARTER: [Design and construction very excited, but what they missed construction professions?
jobs] are incredibly important. The was directly linking it to job creation CARTER: First of all, there has to be
built environment is … obviously in our cities and specifically better outreach into those groups.
about the building, but it’s also focusing on the people who needed The non-white groups in particular are
[about] the way the building is those jobs the most and who underrepresented in the design world,
situated within the actual landscape could benefit from an economic which is one of the reasons why the
of the community itself. I think standpoint as well as a social one. USGBC not only acknowledged [that
it is broader than just the under-representation] but worked to
buildings themselves. How do you think the building create a way to deal with it through
I particularly see green stock plays a role in the larger the diversity mentoring initiative,
infrastructure as a way to support issues of social justice? which I’m a part of.
the built environment. So, you’re CARTER: The quality of the building I think of my own situation. It didn’t
talking about planted medians stock in poor communities often occur to me that there was such a
and green roofs and southern leaves a lot to be desired. And thing as a design industry. It was just
forestry, because that actually definitely in the past, [buildings never brought up to me, so for me it is
provides an infrastructure goal. burdened poor communities] with about exposure. Once [people] realize
Storm water management, air lead paint and the way the buildings that we can play a role in how our
quality improvement, actually were built and how sick building communities are designed and built,
conservation in terms of mitigating syndrome was such a normal why wouldn’t we want to be part of
urban heat islands. Those type of occurrence in our communities. that field?
things. For me it is part of the That in itself was a problem.
built environment. When you helped start
Do you see a role for the building Sustainable South Bronx,
How specifically do you see green industry as part of the solution what impact did the Bronx
infrastructure creating job? to these problems? Environmental Stewardship
CARTER: The frustration that I CARTER: As far as solutions go, it Training (BEST) Academy
have is that in many of the circles would be also be [to build] these program have on jobs?

Interview: Thought Leader CONTINUED
CARTER: I have to say that I have

no connection to it at all now, but

when I did run it, the reason we
created it was to link job creation
with environmental remediation, and “We need to create infrastructure so that people
we wanted to provide jobs for folks
in our communities as opposed to
who are trained can actually get work.”
bringing other people from outside
our neighborhood to do this kind of
work. We wanted to create a personal
and a financial stake in improving the to me like they were so focused on education and even capital
environment right where people work. training people that there wasn’t as development. In this time of
Then they could see the environment much focus on placing them. That fear and widespread economic
as not just something where [people] is incredibly troubling to me. We insecurity, we’re really interested
go hiking—because that’s what people need to create infrastructure so that in cultivating assets that are
thought the environment was. That people who are trained can actually essential to revitalizing America’s
was incredibly important, and we had get work. So, I’m trying to put policies hometowns, wherever they are,
an 85% success rate. in place that will actually support and in particular the low-income
the creation, not only of training communities around them.
What was the focus of the work? opportunities, but of placement We are going to be using real
CARTER: We focused mostly on green opportunities to support robust estate development in particular
infrastructure and climate adaptation, local economies. as one of our primary tools.
things such as storing water and We see it as a platform for
reducing the urban heat island [effect]. Are there any organizations social, environmental and
We wanted to engage in [activities] that you think are taking an economic change.
where people could be active now innovative approach to green We are going to try to harness
to make sure our community was job training? the power of gentrification so
benefiting on the giving and the CARTER: There is a great group that we can use it to create social,
receiving end. called Detroiters Working For environmental and economic change
Environmental Justice. A number in our communities by developing
Do you think these are new jobs of years ago ... they did a great mixed income housing and mixed
or do you think they’re transitions green jobs training and placement use commercial development,
of existing jobs? system. They trained people, which, if done in a way that provides
CARTER: The jobs that I’m trying to definitely worked on job skills and an opportunity for local economic
pitch are new ones, [not transitional job readiness, but then also worked development, can lead to sustainable
ones]. For example, we’re talking to create their own companies so job creation. n
about horticultural engineers that they could hire people. And I just
focused on green infrastructure, and thought now that is smart.
there aren’t a lot of people [in that
profession] right now. What are you focusing on
right now?
What do you think of green job CARTER: We’re starting a new
training programs? organization called Hometown
CARTER: I definitely have some Security Laboratories. And
issues with how some of those we’re focused on the revitalizing
training programs have happened communities, including things like
over the past couple years. It seemed job training, life skills, community

Most Important Activities for a

Job to be Defined as Green
Before the survey respondents were presented with a Most Important Activities for a Job
definition of green jobs (see page 11), they were asked to to be Defined as Green (by Player)
indicate which two of six green activities they considered Source: McGraw-Hill Construction, 2012
most important for a job to be considered green.

Reduction in Energy Use Total

Beyond Mandates Reductions in Energy Use Beyond Mandates 67%
67% identified reducing energy use beyond mandates 72%
as the most important activity that could define a job as
67%
green. A/E firms are the biggest proponents of energy use
reduction at 72%, but only 50% of the trades respondents 50%
selected this category, making it only the second highest Reductions in Use of Natural Resources 45%
category for the trades. 44%
It is not surprising that for A/E and general contractor 46%
respondents, energy use reduction ranks high. It can offer
52%
clear cost savings for their clients, and reduction in energy
use is also associated with reducing the carbon footprint of Installation of Renewable Energy Systems and
a building. An emerging trend toward reporting energy use Reduction of Greenhouse Gas Emissions 31%
for commercial real estate may also drive the importance 29%
of this category in the future. 29%
42%
Reduction in the Use of
Reductions in Water Use
Natural Resources Beyond Requirements or Mandates 25%
The top ranking category for the trades and the second
26%
highest overall is reductions in the use of natural
resources. For contractors, this may be the area in which 25%
they are most able to contribute to greening a project, 16%
either through the selection of building products with a Creation of Better Indoor Environments 23%
high degree of renewable or recyclable content or through
23%
sustainable waste management.
25%
Renewable Energy Systems and 22%

Reduction of Greenhouse Gas Emissions
Specialty trade contractors also place considerable created in this industry are often entirely new positions
weight on the installation of renewable energy and thus easier to track. Many trade contractors may
systems and the reduction of greenhouse gas perceive this same link between renewables and green.
emissions. Lower responses among A/E and general
contractor respondents may reflect the still limited Other Factors
use of renewables in buildings, demonstrated in other Reductions in water use and creation of better indoor
McGraw-Hill Construction market research in various environments are reported at essentially the same level,
SmartMarket Reports. with roughly one quarter considering them to be among
General public perception often associates green, the two most important activities for a job to be defined
and especially green jobs, with the renewable energy as green. For many green experts, water shortages are
industry. (See page 63 for more information on renewable expected to become paramount in the future, currently,
energy and jobs.) This relationship is particularly there is far less attention paid to water than energy.
compelling because, unlike the subtle distinction Creating better indoor environments quality (IEQ) may
between an electrician wiring a traditional building and be critical, but some energy efficiency practices, such as
an electrician wiring a green building, the green jobs better ventilation, could also address IEQ concerns.

Green Job Requirements
Before being presented with the green job definition Green Job Requirements
developed by McGraw-Hill Construction (MHC), (see (Percentage Who Agree or Strongly Agree)
page 11) respondents were also asked whether certain Source: McGraw-Hill Construction, 2012
requirements—the percentage of work that goes toward

making a building greener, involvement with LEED projects
Total
and the firm’s percentage of green work—are necessary A Job Can Only Be Counted as Green
for a job in their profession to be considered green. If at Least 50% of Work Involves
Making Buildings Greener 51%
Their responses indicate that slightly over half believe
that their direct work needs to make buildings greener for 53%
their job to be considered green, but slightly under half 48%
also regard those who work on LEED projects as having 46%
green jobs as well. This nearly equal split corresponds
Any Firm that Works on LEED Projects Can
to the elements of the green job definition developed by Consider the Staff that Works on
MHC, demonstrating that the definition reflects the larger those Buildings as Having Green Jobs 47%
industry’s approach to green. 48%
50%
Variation by Player 39%
■■ A/E Firms: More favor the notion that work must be green
All Employees of a Firm whose Work
Involves 50%+ of Green Projects
■■ eneral Contractors: More believe that working on
G Should Be Considered Green Jobs 36%
LEED projects meets the requirements of a green job.
36%
■■ Specialty Trade Contractors: Their responses 37%
correspond to those of A/E firms, with greater 36%
emphasis placed on greening a project than on LEED.
The architects’ emphasis on making the project greener

may be influenced by their higher levels of green
involvement in general, which may make the affirmation
of third-party certifications less important. General Variation by Years in Profession
contractors, who have less overall green involvement 52% of the A/E and general contractor respondents
than the A/E firms, prefer to gauge the greenness of who have worked less than five years in their profession
projects through a third party. believe that working on a LEED project makes a job green,
Specialty trade contractors are likely more focused on more than the 49% of those with 20 years of experience or
the outcomes of their specific efforts than overall project more. This suggests that LEED certification carries great
certification. This conclusion is supported by the finding weight with those still new to the profession.
that far more respondents with green jobs among the 47% of those with less than five years experience also
trades work on uniquely green systems compared to A/E believe that all who work for a firm doing more than 50%
firms or general contractors (see page 59). green projects have green jobs, including support staff.
Only 36% of those with 20 years or more experience
Variation by Level of Green Involvement believe the same, suggesting greater caution in how they
60% of the A/E and general contractor respondents whose define design and construction jobs as being green.
firms do more than 75% green projects agree that a job
can only be counted as green if at least 50% of the work Variation by Accreditation
involved makes the project greener, compared to 45% 57% of A/E and general contractor accredited respondents
of firms with less than 25% green projects. Interestingly, believe that those who work on LEED projects have green
though, there is no notable difference by level of green jobs, and 40% believe that all staff of a firm working on
involvement among those who consider working on a more than 50% green projects should be considered
LEED project to be a prerequisite for a green job. green, compared to 32% of non-accredited respondents.

Type of Green Job Held by Respondents
Type of Green Job

A/E Firms Type of Green Job
74% of A/E respondents consider their jobs green Source: McGraw-Hill Construction, 2012
because more than 50% of their work is on green

A/E Firms
projects. Only a small fraction (13%) design uniquely A/E Firms
green systems. Given the large percentage of architect
respondents compared to engineers, this makes
sense, since very few architecture projects can be aptly
described as a uniquely green system.
74% 13% 12%
VARIATION BY REGION
80% of A/E respondents in the West believe their More74%
than 50% of Work 13%
Designs Uniquely 12%
Neither
job is green because they do more than 50% green Is on Green Projects Green Systems
More than 50% of Work Designs Uniquely Neither
projects, significantly more than those in the Midwest Is on Green Projects Green Systems
or the Northeast.
VARIATION BY LEVEL OF GREEN

INVOLVEMENT General Contractors
31% of the A/E respondents who work for firms that
do less than 25% green projects identify their job as General Contractors
green because they design uniquely green systems for
buildings. As the level of green involvement rises, this
54% 25% 16%
percentage drops, with only 1% who work for firms that
do more than 75% green projects selecting this as the way Job Requires Different Skills Installs Uniquely Neither
to identify their job as green. to Meet
54% Green Goals Green
25% Systems 16%
VARIATION BY GENDER Job Requires Different Skills Installs Uniquely Neither

85% of women describe their job as green because more to Meet Green Goals Green Systems
than 50% of the projects they work on are green, compared
to 69% of the men. Conversely, 15% of the men design Specialty Trade Contractors
uniquely green systems, compared to 9% of the women.
General Contractors Specialty Trade Contractors

Twice as many general contractors believe their job is green 43% 42% 14%
because it requires different skills to meet green goals
compared to other criteria for defining green jobs. Even Job Requires Different Skills Installs Uniquely Neither
though the percentage of general contractors working to Meet Green Goals Green Systems
on uniquely green systems is double that of the A/E 43% 42% 14%
respondents, more general contractors still identify their
green jobs based on the skills they have rather than the Job Requires Different Skills Installs Uniquely Neither
to Meet Green Goals Green Systems
specific systems they work on.
This finding has strong implications on the need for more
education on green skills in the construction industry.
Specialty Trade Contractors
VARIATION BY FIRM SIZE At 42%, a much higher percentage of respondents from
Although the total number of respondents is too low to the trades state that they have a green job because they
draw a definite conclusion, the data shows a trend toward work on a uniquely green system compared to the A/E or
more respondents employed by very large general general contractor respondents. This is to be expected
contractors (total value of projects $500M or more) since specialty trade contractors are more likely to focus
having green jobs that involve installing uniquely green on systems within a building rather than the building as
systems compared to those in smaller firms. a whole.

Proportion of Workforce with Green Jobs

at Their Firm
Just as the share of green projects has grown over the Proportion of Firms with Workforce
last few years and is expected to continue to grow, the More than 50% Green (by Player)
share of green jobs in firms follows the same pattern. Source: McGraw-Hill Construction, 2012
More than 50% Green Jobs

■■
• In 2008, only 8% of the respondents report that more
than half of the jobs in their firm are green. 38%
• In 2011, the percentage has more than doubled to 18%.
• By 2014, 30% of the respondents believe that more than
half of the jobs in their firms will be green, nearly four
times the percentage in 2008. 23%
10% or Less Green Jobs
■■
20%
• In 2008, 58% of the respondents report that 10% or less 15%
of their employees had green jobs. 11% 12%
• In 2011, 37% fall in this category. 8%
• By 2014, 23% fall in this category, less than half the
3% 3%
amount in 2008.
2008 2011 2014

Variation by Player
A/E FIRMS
McGraw-Hill Construction’s research on green building firms, at 29% and 26%, respectively. This demonstrates
has consistently demonstrated that A/E firms are at the that many small firms will be largely dedicated to green,
forefront of green adoption, and this survey confirms a major shift. It also reveals a different pattern for large
that. Even in 2008, 11% of the A/E respondents believed firms, which have always had some green positions and
that the jobs at their firm were more than 50% green, are slowly becoming greener over time.
and one third of them expect that to be true in 2014. This
is considerably higher than the general contractors or GENERAL CONTRACTORS
specialty trade contractors, and the disparity does not General contractors are converting to green jobs at a
appear to lessen in the near future. higher rate than the specialty trade contractors. Each
starts at a minimal 3% rate in 2008, but by 2014, one fifth
Size of Firm
■■
of the general contractor workforce has a green job,
The largest firms and the smallest firms have the largest
compared to just 15% of the specialty trade contractors.
percentage of green jobs by 2014.
Size of firm also plays a major role in the percentage
• In 2008, very few large firms (11%) report having no
of green jobs for general contractors, but in this case, the
green jobs, compared to the others, which average
larger firms consistently have more green jobs than the
between 26% and 47%. A much higher percentage of
smaller ones, with 19% of the largest firms in 2011 and
large firms (9%) also report having between 50% and
29% in 2014 having over 50% green jobs.
75% green jobs in that year, compared to 3%–6% of the
rest of the firms. However, 15% of the small firms report
that more than 75% of their jobs are green, compared to
just 4% of the larger firms.
• In 2011, this pattern holds, with 18% of the large
firms reporting that 50%–75% of their jobs are green
compared to 3% of the small firms, but with 26% of
the small firms reporting more than 75% green jobs
compared to 11% of the large firms.
• By 2014, a shift occurs, because the top firms with more
than 75% green jobs are now the smallest and the largest

Retraining Required for a Green Job
Most of the survey respondents with green jobs were Retraining Required for Green Job (by Player)
able to get green jobs in their own fields. Source: McGraw-Hill Construction, 2012
A/E Firms: 83%

■■ A/E Firms General Contractors Specialty Trade Contractors
General Contractors: 74%

■■
Total
Speciality Trade Contractors: 75%
■■ Major/Somewhat Major Retraining 9%
11%
This finding demonstrates that many green jobs in
9%
construction are an evolution of existing jobs, rather
completely new positions in fields like solar array 5%
installations or wind turbine technicians. This finding Some Retraining 21%
is further supported by the types of new jobs survey 21%
respondents see emerging as a result of construction
20%
trends, most of which are green and are also extensions of
25%
existing design and construction jobs. (See page 18 for
more information.) Minor/Somewhat Minor Retraining 36%
However, even for those whose green job is in their 33%
existing field, the majority (67%) required some sort of 41%
retraining for their new green job, and 9% found that
54%
retraining to be rather significant. With green projects
expected to continue to grow for the next several years, this No Retraining Needed 33%
again confirms that more green training is essential for firms 36%
and individuals to capitalize fully on the emergence of green 31%
as a norm in design and construction.
15%
On the other hand, the largest percentage of overall
respondents (36%) only required minor/somewhat minor
retraining for their green jobs. pre-existing experience of their employees, while
The breakdown by player of those who find no retraining smaller firms may need their employees to adapt more
required also correlates inversely to the degree to which dramatically to seize opportunities when they arise. This
respondents in these categories are involved with the general tendency for small firms was likely to be even
design or construction of uniquely green systems. The more widespread during the recession, due to the tighter
A/E respondents, who are largely not involved in uniquely competition for a smaller overall pool of projects, which
green system designs, also more frequently do not require may have impacted their response.
retraining, while specialty trade contractors, who do more
unique green systems, have the lowest percentage stating Variation by Level of Green
that no retraining for green is needed. Involvement
For respondents whose firms do a higher percentage
Variation by Firm Size of green work, only between one quarter and one third
87% of the A/E respondents with green jobs who work for report the same level of minor retraining required.
a firm with annual billings of more than $1 million report This result aligns with findings of other studies that
that their green job is in the same field as their previous suggest that firms that do more green work overall
job, compared to 71% of those whose firms earn less than usually do more intensively green work as well, which
$1 million. would likely require somewhat greater retraining.
In addition, 20% of the respondents from smaller firms
who stayed in the same field also report needing major/
somewhat major retraining, and only 9% in larger firms
report the same.
Large firms, which have a larger pool of candidates
to choose from, may be more inclined to build on the

Benefits of Green Jobs
GREATER JOB AVAILABILITY AND BETTER Benefits of Green Jobs (by Player)
CAREER ADVANCEMENT Source: McGraw-Hill Construction, 2012
The two top benefits for green skilled workers are

greater job availability and better career advancement.
Each of these was selected by over 40% of the total Total
respondents. In both cases, a larger percentage of A/E More Jobs Available for Skilled Green Workers 43%
respondents found these benefits to be compelling, but 48%
they were selected by the largest percentages of general
38%
contractors and specialty trade contractors as well.
The market numbers bear out these findings. As 28%
green projects account for a larger percentage of the Better Career Advancement Opportunities 41%
industry as a whole, it is not surprising that green job 44%
skills would offer more job opportunities and better 35%
advancement opportunities.
34%
GREATER JOB SECURITY Greater Job Security 29%
A significant percentage, from over one fifth of the trade
32%
respondents to nearly one third of the A/E respondents,
27%
also find that green job skills offer greater job security. In
an industry that has experienced severe cutbacks in staff 21%
and the amount of work available, job security is not a Higher Salaries 14%
common experience. Therefore, despite the slightly lower 15%
percentages, this is still a compelling reason for design
13%
and construction professionals to be able to demonstrate
green knowledge and skills. 15%
HIGHER SALARIES
Only a small percentage of respondents report that of those from firms doing $500 million or more annually
green job skills can help secure higher salaries. Notably, believe that there are more jobs available for green
this is the only category where the percentage of trade workers, compared to 23% of those from firms doing less
firm respondents exceeds the other two groups. The than $25 million.
additional salary reported by trade respondents is also
significant, with 36% reporting an increase of 7% or more. Variation by Level of Green
This may be due in part to the fact that trade respon- Involvement
dents with green jobs more frequently report working More A/E and general contractor respondents with
on uniquely green systems compared to the other high involvement in green find that there are more jobs
professions (see page 59). This greater degree of green available for skilled green workers, that green jobs offer
specialization may allow them to receive a higher wage greater job security and that green jobs offer better
for their green skills. career advancement compared to those in firms with low
green involvement.
Variation by Accreditation For the respondents from specialty trade contractors
A significantly higher percentage of A/E and general with greater green involvement, the only benefit with
contractor respondents who have professional a significantly higher response is that green jobs offer
certification find that green jobs bring all four of these better career advancement opportunities.
benefits compared to those who are not certified.
Variation by Union Membership
Variation by Firm Size Only 11% of the union members believe that green
49% of general contractor respondents from firms that do jobs offer greater job security compared to 23% of the
$100 million to $500 million in projects annually and 48% non-union members.

Sidebar: Renewables
Renewables and New Job Growth

In recent years the renewable energy market has seen significant growth
driven by increasing consumer demand, venture capital infusions, and
policy reforms by federal and state lawmakers seeking to spur fiscal

recovery. During this period, studies report that jobs in the renewable
energy economy have grown at a faster rate than U.S. jobs overall.1
Rise of Solar Power and related fields. Wind energy has

Driving New Job Growth been one of the fastest-growing
Specification of Solar
Specifications digitized by
After a decade of rapid growth, the sources of new U.S. manufacturing McGraw-Hill Construction
solar energy industry grew ten times jobs. Today, over 400 American (comprising approximately
faster than the overall economy in manufacturing plants build wind 60,000 projects annually)
2011. According to the Solar Energy energy components, a 12-fold show that the specification
Industries Association, total U.S. increase from just a few years ago.5 rate of solar/photovoltaic
solar electric capacity surpassed Jobs in the construction industry panels almost doubled in
the office sector from 2010 to
3,650 megawatts in 2011, enough to expected to grow as a result of
2011—from 1.3% to 2%. While
power 730,000 homes.2 erecting wind turbines include these numbers are small,
According to the Solar Foundation, project managers, construction the significant growth in the
currently more than 100,000 U.S. laborers, construction equipment specification rate in just one
workers are employed in the solar operators, crane operators year suggests that the design
industry. In 2011 6,735 new solar and electricians. community is increasing its
jobs were created, for industrywide attention on renewables.
job growth of 6.8%, and employers Other Renewable Energy
expect to increase their workforce by Trends and Job Growth
24% in 2012. This growth is expected The U.S. geothermal industry grew biofuels is expected to create 190,000
to boost employment in occupations in 2011 and the first quarter of 2012,6 direct new jobs in the U.S. by 2022.8
such as construction managers, contributing to economic growth
equipment operators, civil engineers, and jobs, often in rural areas with Drivers and Challenges
welders, ironworkers, steelworkers, high unemployment. Government policy has helped drive
photovoltaic installers, electricians One example is the new power the renewables market. Two of the
and roofers. complex planned by CalEnergy in most prominent include: (1) Renewable
Imperial Valley, CA, an area with one energy standards—Currently in 29
Wind Energy and Wind of the highest unemployment rates states, they require that a certain
Farms Creating Jobs in the state. The project will employ amount of the electricity sold within
The wind energy industry has 323 construction workers and infuse a state comes from renewable
experienced rapid growth in the past nearly $1 billion into the energy sources, and (2) Production
decade as well. According to the local economy.7 Tax Credit—It provides a 2.2 cent per
American Wind Energy Association In the field of bioenergy, the U.S. is kWh benefit for the first ten years of a
(AWEA), wind energy capacity in the expected to lead the world in global renewable energy facility’s operation.9
U.S. today is over 46,900 megawatts, development according to a report Though the future of both policies
enough electricity to power from the World Economic Forum. The is uncertain due to some political
approximately 10 million homes.4 report shows that as of June 2010, and industry opposition, interest in
According to AWEA, an estimated the biorefinery industry accounted renewables remains high, and their
85,000 Americans are currently for more than 40,000 jobs in the U.S., growth is expected, albeit at lower
employed in the wind power industry and further commercialization of rates in the absence of policies. n
1 The Clean Energy Economy Report, The Pew Charitable Trusts, 2009 www.pewcenteronthestates.org/uploadedFiles/Clean_Energy_Economy_Report_Web.pdf. 2 “Facts on America’s Solar Industry,” Solar Energy Industries
Association, March 5, 2012, http://www.seia.org/galleries/pdf/factsheet_solar_industry_facts.pdf. 3 National Solar Job Census 2011, The Solar Foundation, August 2011, http://thesolarfoundation.org/research/national-solar-
jobs-census-2011. 4 American Wind Energy Association, Accessed April 22, 2012, http://www.awea.org/learnabout/publications/upload/AmericanWindpowerBrochure.pdf. 5 Ibid. 6 Geo Thermal Energy Association, Accesed
April 22, 2012, http://www.geo-energy.org/reports/2012AnnualUSGeothermalPowerProductionandDevelopmentReport_Final.pdf. 7 “Why Support Geothermal Energy?” Geo Thermal Energy Association, Accessed April 22, 2012,
http://www.geo-energy.org/pdf/FINALforWEB_WhySupportGeothermal.pdf. 8 King, David and Hagan, Andrew, “The Future of Industrial Biorefineries,” World Economic Forum, June, 2010, http://www3.weforum.org/docs/WEF_
FutureIndustrialBiorefineries_Report_2010.pdf. 9 Union of Concerned Scientists, Accessed April 22, 2012, http://www.ucsusa.org/clean_energy/smart-energy-solutions/increase-renewables/production-tax-credit-for.html.

Methodology
Workforce and Green Jobs Study Research
McGraw-Hill Construction • 250 engineers (includes 2012 AIA/MHC

Industrywide Workforce mechanical, electrical, civil and Architect Firm Gap

and Green Jobs Survey structural engineers) and Student Studies
McGraw-Hill Construction conducted McGraw-Hill Construction partnered
the 2011 Workforce and Green ■■ 31 general contractor
5 with the AIA to conduct the Architect
Jobs Study to explore trends in respondents: Includes general Firm Gap and Student Studies to
the construction workforce and in contractors, construction managers, explore what architecture school
green jobs in construction. This design-builders, contractors students and recent graduates
study investigated the differing (non-building) and remodeling firms. are anticipating as they enter the
experiences and perspectives of the workforce and what architecture
■■ 271 specialty trade contractors:
architect, engineer, general contractor firms are expecting from prospective
Largest percentages include electrical
and specialty trade contractor architect hires just entering the
contractors, HVAC/sheet metal
communities regarding construction workforce. The study also identifies
contractors, drywall contractors,
workforce needs. Areas explored key gaps in perception between
floor and ceiling covering contractors,
include: workforce shortages, level these two groups.
roofing contractors, carpentry and
of engagement with green projects, This study incorporates two
millwork contractors, bricklayer/
extent of green job adoption, training surveys: one of 614 current
block mason contractors and glazier
and professional certification, and undergraduate and graduate
contractors, as well as a small
ways to attract skilled workers. students at U.S. architecture schools
percentage of contractors from
The research was conducted and recent graduates of such schools
various other trades.
online from September to October (453 students and 161 graduates)
2011. Samples were drawn from ■■ 64 unemployed construction
1 and a second of 448 licensed and
McGraw-Hill Construction’s database professionals: Includes A/E associate AIA members.
representative of the industry and professionals, general contractors and Both surveys were conducted
member lists from the following specialty trade contractors online from December 2011 to
industry association: AIA, NARI, January 2012. Sample sources were
1,210 (54%) of the respondents
SMPS, WSCSMW, USGBC and the AIAS for the Student Study and
were from surveys conducted with
BCTD. Screening criteria required the AIA for the Firm Study. For the
association members (AIA, NARI,
that respondents: Firm Study, those who were retired
SMPS, WSCSMW, USGBC and BCTD).
• Be currently or formerly employed were screened out.
The total sample size benchmarks
at an A/E firm, general contractor or The total sample size of 614 students
at a 95% confidence interval with
specialty trade contractor located and recent graduates has a margin
a margin of error (MOE) of 1.96%.
in the U.S. of error of 4.6%, and the sample size
The principal subgroups also have
• If not unemployed, work at least 10 of 448 firm representatives has a
a 95% confidence interval, and their
or more hours per week. margin of error of 4.6%, each at a 95%
corresponding MOE is as follows:
• Work at firms with no more than confidence interval.
• A/E: 2.7%
50% of their projects either non- In a few instances, results from
• General Contractors: 4.2%
building or single-family (employed subgroupings with less than 30
• Specialty Trade Contractors: 5.9%
respondents only). respondents are discussed. These
• Unemployed: 7.6%.
small sample sizes are referenced
Interviews were conducted with
In a few places, there are less than in text, and differences among such
2,223 construction professionals,
30 respondents in the sub-group groups should be interpreted as
including the following:
analyses. These small sample directional only. n
1,257 A/E respondents:
■■ sizes are referenced in the text,
• 1,007 architecture firms (includes and the differences among such
architecture firms, A/E firms, interior groups should be interpreted as
design and landscape design) directional only.

SmartMarket Report
Resources
Organizations, websites and publications that can help you get smarter
about construction industry workforce issues and green jobs.
ACKNOWLEDGEMENTS:
The authors wish to thank our premier research partners, the American Institute of
Architects (AIA) and the U.S. Green Building Council (USGBC), for helping us bring
Nobisit De
McGraw Hill Construction this information to the market. In particular, we thank Robert Ivy, James Chu and
Main Website : construction.com Kevin Fitzgerald at AIA; Joshua Caulfield at AIAS; Judith Webb, Maggie Comstock
Dodge : construction.com/dodge and Jason Hartke from USGBC; and Peter Templeton from the Green Building
Analytics : construction.com/dodge/ Certification Institute for their support on this project. A particular thanks to AIA for
Pratest Harionse-
dodge-market-research.asp allowing the surveys of firms and students be included in this report.
Achitectural Record : archrecord.com
Engineering News-Record : enr.com We would also like to thank Elizabeth Heider, Skanska; Carol Wedge, Shepley
quat Autecat
GreenSource : greensourcemag.com Bullfinch; and Majora Carter, Majora Carter Group for their willingness to be inter-
Sweets : sweets.com viewed for this report. We would also like to thank all of our association research
SmartMarket Reports : partners who supported this study and helped us disseminate the survey to their
construction.com/market_research members. Finally, we would like to thank the associations, organizations and indus-
try experts that provided information about their role and experiences in education,
job training, certification, recruiting and other workforce development related areas
in the construction industry.
U.S. Green Building Council American Institute of Architects

www.usgbc.com www.aia.org
Green Building Certification Institute American Institute of Architecture Students
www.gbci.org www.aias.org
Contributing Research Partners Other Industry Resources:

• ACE Mentor Program: acementor.org • American Society of Civil Engineers: asce.org
• A merican Institute of Constructors & Constructor • American Society of Landscape Architects: asla.org
Certification Commission: professionalconstructor.org • American Subcontractors Association: asaonline.com
• Building & Construction Trades • American Wind Energy Association: awea.org
Department, AFL-CIO: bctd.org • Associated Builders and Contractors: abc.org
Produced with support from
• National Association of the Remodeling Industry: nari.org • Associated General Contractors of America: agc.org
• National Center for Construction Education • Building Green, LLC: buildinggreen.com
and Research: nccer.org • Construction Users Roundtable: curt.org
• Society of Marketing Professional Services: smps.org • Database for State Incentives for Renewable
Energy (DSIRE): dsireusa.org
Government Resources: • Design-Build Institute of America: dbia.org
• American Recovery and Reinvestment Act: recovery.gov • International Code Council: iccsafe.org
• Better Buildings Initiative: eere.energy. • Laborers International Union of North America (LIUNA)
gov/buildings/betterbuildings Training and Education Fund: liunatraining.org
• National Institute of Standards and Technology: nist.gov • Solar Energy Industries Association: seia.org
• Pacific Northwest National Labratories: pnnl.gov • The Solar Foundation: thesolarfoundation.org
• U.S. Department of Labor Bureau of • Western States Council Sheet Metal Workers’
Labor Statistics: bls.gov International Union: wscsmw.org
• U.S. Department of Labor Employment and
Training Administration: doleta.gov
• U.S. Department of Energy Weatherization and
Intergovernmental Program: eere.energy.gov/wip
■ Design and Construction Intelligence
SmartMarket Report
www.construction.com
McGraw-Hill Construction SmartMarket Reports™
Get smart about the latest industry trends.

For more information on these reports and others, visit
www.construction.com ⁄market _ research

Workforce Shortage

Uploaded by

Copyright:

Available Formats

Workforce Shortage

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Workforce Shortage

Uploaded by

Copyright:

Available Formats

SmartMarket Report

McGraw-Hill Construction Construction Industry

McGraw-Hill Construction 1 www.construction.com SmartMarket Report

SmartMarket Report McGraw-Hill Construction 2 www.construction.com

43 Best Approach to Obtain Required Skills for Green Projects

45 Training and Certification

Thought Leader Perspective

McGraw-Hill Construction 3 www.construction.com SmartMarket Report

Major shifts in the construction industry, as well as

demographics, may cause a shortage of skilled workers.

Skilled Worker Shortages Will Be ■■Retiring Workers

The architect firm and student studies conducted by MHC

Skills Widely Needed

Specialty Project Specialty Technology Business Construction People Safety

* A/E Firms N/A N/A

SmartMarket Report McGraw-Hill Construction 4 www.construction.com

Nonresidential Green Building Market Size (in billions)

McGraw-Hill Construction Market Forecasting Service, as of April 2012

industry, MHC devised a construction-specific definition 1946.7

see page 11.) 647.5

small but notable group also reported finding a gap in

A/E Firms and General Contractors Design/Engineering Staff at A/E Firms

the value of capturing experience through internships

SmartMarket Report McGraw-Hill Construction 6 www.construction.com

As the design and construction industry continues to adapt to new

approaches and technologies, the workforce required to do jobs efficiently

McGraw-Hill Construction 7 www.construction.com SmartMarket Report

industry. Several factors are impacting the Notes on the Data

SmartMarket Report McGraw-Hill Construction 8 www.construction.com

Impact of Construction Activity on Workforce

Construction Market Influences

age. Many who may have put off retirement during

McGraw-Hill Construction 9 www.construction.com SmartMarket Report

Hill Construction estimating its market share rising from $122

SmartMarket Report McGraw-Hill Construction 10 www.construction.com

McGraw-Hill Construction’s (MHC) industry-leading analysis of the green

McGraw-Hill Construction 11 www.construction.com SmartMarket Report

Green Share of Company Project Activity

projects as part of their overall work is also expected to

SmartMarket Report McGraw-Hill Construction 12 www.construction.com

graduates from architecture programs want to pursue institutional sectors.

projects, including schools and hospitals, have strong • Accredited: 71%

Green Share of Company Project Activity (by Profession)

A/E Firms General Contractors Specialty Trade Contractors

McGraw-Hill Construction 13 www.construction.com SmartMarket Report

Architects have been leaders in sustainability, and their influential

SmartMarket Report McGraw-Hill Construction 14 www.construction.com

Expectation of Green as a Norm

effective green skills, experience and training. It supports the

McGraw-Hill Construction 15 www.construction.com SmartMarket Report

Employment Activity in the Last Three Years

Employment Activity in the Last Three Years

SmartMarket Report McGraw-Hill Construction 16 www.construction.com

Factors Impacting the Decision to Hire

to hire employees is because of an increased current (by Player)

new workers is likely to coincide with the recovery of

McGraw-Hill Construction 17 www.construction.com SmartMarket Report

Emerging New Jobs

SmartMarket Report McGraw-Hill Construction 18 www.construction.com

and VE facilitator. She has presented papers on cost, value,

McGraw-Hill Construction 1 www.construction.com SmartMarket Report

McGraw-Hill Construction 3 www.construction.com SmartMarket Report

McGraw-Hill Construction 7 www.construction.com SmartMarket Report

McGraw-Hill Construction 9 www.construction.com SmartMarket Report

McGraw-Hill Construction 11 www.construction.com SmartMarket Report

McGraw-Hill Construction 13 www.construction.com SmartMarket Report

McGraw-Hill Construction 15 www.construction.com SmartMarket Report

McGraw-Hill Construction 17 www.construction.com SmartMarket Report

McGraw-Hill Construction 19 www.construction.com SmartMarket Report

McGraw-Hill Construction 21 www.construction.com SmartMarket Report

McGraw-Hill Construction 23 www.construction.com SmartMarket Report

Shortage of Architects and the Student Pipeline:

McGraw-Hill Construction 25 www.construction.com SmartMarket Report

McGraw-Hill Construction 27 www.construction.com SmartMarket Report

McGraw-Hill Construction 29 www.construction.com SmartMarket Report

■■ reen Specialty Trade Worker Shortages: More non-

Interior Design: 29% for green skilled workers versus 19%

• Severe Skilled Green Workforce Shortage

McGraw-Hill Construction 31 www.construction.com SmartMarket Report

McGraw-Hill Construction 33 www.construction.com SmartMarket Report

McGraw-Hill Construction 35 www.construction.com SmartMarket Report

McGraw-Hill Construction 37 www.construction.com SmartMarket Report