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Sunday, April 9, 2000

City's builders move north
Bigger cities attract contractors with more and richer work
By Andrea Jares
Caller-Times

David Adame/Caller-Times

Workers lay brick on the exterior of the new federal courthouse on Shoreline Boulevard. Several local contractors are concentrating their energies on other Texas cities such as Austin and Dallas, where it seems there is more than enough work like this to be done. Workers, too, are heading north for higher wages and better job selection, contractors say.

Growth in Corpus Christi is not fast enough to satisfy construction contractors, who are seeing demand for their services explode in central and north Texas.
   Several local contractors have been finding work in other Texas cities such as Austin and Dallas, where it seems there is more than enough work to be done. Workers, too, are heading up Interstate 35 for more money and better job selection, contractors say.
   "People are leaving Corpus Christi to go to places that are paying higher wages," said Philip Skrobarczyk, vice president of the largest construction contractor in town, Fulton Construction, which is building such projects as the new federal courthouse and the new Vista car dealership. "The wages get higher the farther north you go. There's a ton of work up there."
   There's been a decent amount of work in Corpus Christi for the past three or four years, Skrobarczyk said. But with the number of contractors in Corpus Christi, the pie lately has been sliced thinner than usual.
   "I know one builder, for example, who does work in some of those communities. He knows that the demand is there," said Dickson Clements, executive director of the Builders Association-Corpus Christi Area, which represents residential builders. "And I've had others say, 'You know, I'm contemplating how long I want to wait until Corpus Christi can really start to move forward.'
   "Without the demand, housing gets shut down and if there's not enough opportunity for them to compete, it's very difficult for them to make a living."
   The Valley and the corridor between San Antonio and Austin are some of the hot spots where local construction workers are finding a jackpot of growth. But the Coastal Bend seems not to be participating in the brisk expansion of other parts of the state in these flush economic times.
   Corpus Christi's job growth rate, according to The Real Estate Center at Texas A&M University, is among the slowest in the state, with less than half a percent of new jobs generated. By comparison, the Center puts Austin and McAllen's job growth among the highest at 5 percent. New jobs mean new business growth, which translates to construction of workspaces and residences for workers.
   Construction companies are hoping that local growth can be found with a city bond election in November and through other economic stimuli that have fueled construction in other Texas cities. A new company moving to town, or the proposed dredging of Packery Channel on Padre Island, are other sources of hope for local contractors.
   "We need something that's going to employ a large number of people who are going to settle down in the community. That's what we really need," Clements said. "Until we do, we're going to continue to stagnate."
   In Corpus Christi, the amount of construction has generally been up, but not like the rest of Texas, which is in a construction boom.
   The past two years have been excellent for construction in general, said Ken Hayes, executive director of the Associated Builders and Contractors in Corpus Christi. The year 2000 could shape up to be even better.
   In Corpus Christi, commercial permits in 1999 numbered 248. The year before there were 327 permits and in 1997 there were 245 permits.
   Residential permits in 1999 numbered 640 permits, according to the Builders Association. That's less than the 902 permits recorded in 1998 and the 820 recorded in 1997.
   The permits don't tell the whole story. Some large projects don't require building permits, such as the new federal courthouse and projects for the Port of Corpus Christi, such as the refrigerated warehouse and cruise terminal.
   Also, more construction workers are employed in Corpus Christi this year than last. In February, 12,800 people were employed in construction, compared with 11,600 in February 1999 and 12,600 in February 1998. Even so, the workers that are most in demand and hardest to find are the ones with specialized skills and experience, builders say.
   'Where the money is'
   As local builders prepare for the summer building season, some, such as Grant Garrett, a vice president of Garrett Const ruction, say they are already concerned that there will be a shortage of workers here, particularly skilled craftspeople.
   Those who will be the first to leave will be the masons, plasterers, carpenters, painters, electricians, pipefitters, welders and cement finishers, said some construction contractors. Some of those craftspeople already have gone to other cities to find work.
   "Experienced operators float from one area to the next," he said. "They float where the money is."
   Garrett and other area contractors say they try to keep workers in the area by offering competitive wages.
   'No immediate solution'
   A shortage of skilled workers has been something the industry has battled for years and not just in Corpus Christi, Skrobarczyk said.
   The Associated General Contractors of America has local training programs and the AGC state board he is on, the Texas Building Branch Legislative Board, is working on a statewide training program to bring in more craftspeople to an industry where the younger generation has been reluctant to enter.
   Dave Hoffman, vice president at Barcom Construction, a company that has worked on area schools, convenience stores and hospitals, said his company hasn't had problems finding labor yet, but if there is a labor crunch, it will probably mean more workload for his employees to meet project deadines.
   "There is no immediate solution," he said. "You just try to push your guys a little harder."
   But training is a slow way to bring in the workers when there is already an immediate need for skills in the industry.
   "As an industry, we're not doing enough," Skrobarczyk said. "The AGC has training programs in place, but it seems like we're doing too little, too late."


Business writer Andrea Jares can be reached at 886-3678 or by e-mail at jaresa@caller.com

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