Published January 2006

Report: projects plentiful,
workers are not

By John Wolcott
SCBJ Editor

Construction projects are plentiful in Snohomish County, reflecting the improving economy, and more are coming. That’s the good news. But the bad news is that there may not be enough skilled workers to build all of the future projects planned for the county.

A recent report by the county’s Workforce Development Council warns that the billions of dollars of local projects being built, and those coming in the next few years, will “overtax the supply of trained workers,” writes WDC researcher Stephen Baldwin.

Construction activity remained strong in the county through the summer quarter of 2005, leading all other business sectors in the county with an 8.3 percent growth rate in jobs.

Regionally, the construction industry has added 8,800 new jobs since December 2004, with “the bulk of the job(s) … among specialty trade contractors,” he says.

Stabilized interest rates, plus new public and private projects coming on line, bode well for continued growth, Baldwin adds.

The outlook for commercial construction in Snohomish County appears to be particularly strong for the next several years, Baldwin writes, with more than $1.7 billion worth of projects in progress or planned for completion during that time.

“The hoopla around the home building industry has obscured the fact that there is a major upturn in the number and dollar value of major government and private developments planned or under way in Snohomish County,” according to the report. “Over the next several years, county residents will see several billion dollars in new projects. In Everett, it will hard to find anywhere that you won’t be behind a dump truck.”

The report notes numerous public and private projects with long-term impacts on the county, including:

• With the start of a $10 million dollar contract for the reconstruction of the city’s sea wall, the Everett waterfront has begun the first stage of a $200 million-plus, 10-year redevelopment of the North Marina as the Port Gardner Wharf neighborhood of condominiums, retail stores and marine industries.
• Everett has chosen the Oliver McMillan Co. as the developer of a 100-acre Snohomish River frontage site as a $200 million mixed-use development.
• Providence Everett Medical Center has announced a $400 million expansion and upgrade at its north Everett site, due to begin in 2006.
• There is $260 million earmarked for the widening of the I-5 corridor through Everett and for the 41st Street overpass revisions. Both projects are under construction. The Legislature’s 2005 gas tax increase will also provide millions of dollars for more road construction throughout the county in 2006.
• In Bothell, $80 million is planned for infrastructure improvements, with $50 million tagged for re-routing Highway 522.
• Edmonds will be spending $25 million to build a new Edmonds ferry terminal.
• Mukilteo has $100 million of waterfront redevelopment planned, including building a new ferry terminal and marina.
• Mountlake Terrace will be redeveloping its downtown retail core.
• Lynnwood has rezoned much of its older business district for high-rise buildings up to 26 stories as part of its new City Center project.
• Monroe has opened up 55 acres of prime developable land a block north of Highway 2, and the state prison in Monroe is designing a 176-bed expansion of its hospital.
• In north Snohomish County, Marysville plans to extend water and sewer service to 500 newly annexed acres west of I-5 to attract new commercial development. Early tenants for that site, announced in 2005, include Costco and Target stores.
• Just north of Woodinville and the Snohomish County line, King County is moving ahead with plans for building the $500 million Brightwater waste-water treatment plant adjacent to Highway 9, a project planned for 2006 to 2010.

A King County analysis of the economic impact of the plant illustrates Baldwin’s point about the construction worker shortage. That project alone will need an estimated 350 workers during peak construction, plus 70 truck drivers.

Including architects, engineers, administration and equipment installation jobs, peak construction employment is estimated at 505 workers.

Finding construction workers for all of those projects over the next several years will be tough enough, Baldwin writes, but there will be competition for workers from outside the county as well, including not only other Puget Sound projects in King and Pierce counties but also billions of dollars in Canadian projects for the 2010 Winter Olympics.

Also, the home building industry in Snohomish County is expected to need hundreds of workers to meet the housing market’s strong growth as contractors try to meet market demand that federal agencies have called the strongest housing market in 30 years.

Already, there is a shortage of skilled workers, especially in the licensed trades such as electricians and plumbers, Baldwin found, noting that “builders are having a difficult time finding licensed residential plumbers and electricians. As with commercial construction, the industry has difficulty attracting qualified employees.”

In fact, looking at entry-level positions that could bolster the construction work force, only about 20 percent of the applicants can pass a basic-math skills test that is needed to qualify for apprenticeship programs, Baldwin found.

“All of these projects will severely strain our local resources to provide skilled workers,” Baldwin reports. “The Snohomish County WDC, its regional counterparts, industry leaders and the educational community are all working together through a Construction Careers Partnership to ensure that a trained labor force is available to meet the needs of the construction industry.”

Rebecca Mulhollen, the enhanced business service manager with Workforce of Snohomish County, said she and Baldwin are meeting regularly with various businesses to get a better understanding of their growth, projects and needs so the WDC can develop customized training programs to meet those needs.

Baldwin’s quarterly reports on jobs, employment and construction trends in Snohomish County are posted by the WDC on its Web site, www.worksourceonline.com.

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