The middle and working-classes have been hammered by the Great Recession and no industry has taken it more on the chin than construction. Nationally, unemployment fell to 9.7% in January, but in construction it jumped to 24.7% from 18.7% in October. In many regions, union officials report 30% of their members are unemployed or "riding the bench." "In the previous 14 years, I had not been out of work for more than one week," says Pat O'Connor, 57, a Connecticut carpenter. With no work since July, O'Connor says, "It is a bad dream turning into a nightmare. Is construction dead? It's just horrible right now. No one expected this. It's a depression." He has a mortgage and is worried he will fall behind and lose his condo. "When I go to bed, I keep the TV on just so I have the noise. If it gets silent, I get a panic attack."
Commercial construction workers are in a bind. Before, if work dried up in Boston or Seattle, carpenters, electricians and plumbers would pack up and go to Las Vegas or Texas or Alaska. "Now there is no work anywhere," says Mark Erlich, whose New England Regional Council of Carpenters represents 22,000 union members in six states. "The largest problem is the continued lack of financing," says Jerry Rhoades, executive secretary treasurer of the Florida Carpenters Regional Council. "In the summer of 2009, there were 800 jobs on the books to build across the state. We do commercial, high-rise residential and power plants. The permits were ready, but the financing dried up. I am in my 60s and I've never experienced a downturn like this. Three years ago, three contractors would bid on a project. Now 90 contractors bid on a project. That is how desperate people are."
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The problem isn't financing. But financing and credit expansion IS THE PROBLEM. We as Americans are accustomed to financing everything from financing a car, home, college education, health care needs, a huge flat screen television to credit cards for even a cheeseburger!
ReplyDeleteFinancing and credit make all of the above mentioned items mucn more expensive. Financing and credit is for super expensive items like a turbo jet engine, a nuclear power plant, a factory, etc... And don't forget, all of those things I mentioned have an inherent value and will continue to build wealth and value for our society. While financing a flat screen tv won't.
4:31
ReplyDeleteWell said and let's not forget folks where that flat screen T.V. was MADE !
Now - it's a double whammy - the money moves offshore and the consumer is paying a 20% SERVICE
charge on the damn thing and in the next 25 years
it won't make nuthin'!
What is the demand for skilled trades in China?
ReplyDeleteTo clarify my point about china demand, with all the manufacturing jobs that moved there has a construction boom occurred for the working class?
ReplyDeleteChina has a major housing bubble going in some places now that will probably burst like ours did soon.
ReplyDeleteI live in the midwest and there is a ton of new construction going on, things are really good here, I also hear that CA is picking up bigtime and they are looking for workers but can't find any
ReplyDeleteThat is the Obamabot that has taken up residence here.
ReplyDeletehe is actually a neocon bushbot, but dont let the facts get in your way
ReplyDeleteI too live in the midwest. It is true that there is construction going on, new homes, restaraunts, and business'. However, I have noticed that there are more and more vacancy signs, and some business' going out. Last to hit us and last to recover.
ReplyDeleteIs this a news flash? Construction was horrible two years ago. It's practically non existent now.
ReplyDeleteIf you can find work the wages are in the dirt.
6:13.... this is almost verbatim the wording you use about every other day on this blog.... you must be a government bureaucrat on the 5th floor of some federal building with nothing better to do than plant posts in blogs all day... come out in the real world and make it in the private sector.....
ReplyDelete"the only good government worker is one who is now laid off...."
Good Day Mr. Troll,
and may our paths cross
during the crunch.....
The troll would be more effective if the comments weren't so ridiculous. Very poor troll.
ReplyDelete5:43 is the same jerk I recognise on YouTube. Says the same damn thing over and over.
ReplyDeleteI am from California and have to leave the state soon because THERE IS NO WORK!!!!!!!!
I live in Toledo Oh, we were the center of industry next to Detroit when I was young, 30 yrs ago, so many busunesses and industries are gone it is sickening, large swaths of the city have large buildings that once had robust businesses in them and are now all closed and are closing every week... New Mather Metals is closing and laying off 135 people. Next week it will be another one, its been this way for years, even when times were good, we were losing businesses, but now it has accelerated, and when the auto industry takes it up the ass again more will close,,, but the mall is full of people trying to feel normal browsing around but not buying... Two of the major malls are closed, one was leveled, a third is mostly vacant and has flea markets on the weekend, only one mall remains open but has vacancies... So the midwest guy must live in a bubble somewhere or is so accustomed to bad times he doesnt see it for what it is... I have my own business and my gross revenue is down 25% from two years ago, but Im thankful for what I have and can still support myself, Im not complaining becuase I hear the tales of woe from so many of my customers... I think any preparation for the unknown is wise, like the Boy Scouts Mptto Goes "BE PREPARED"
ReplyDelete6:39 You are correct, I occasionally post here. But to insinuate that I am, in some way, a troll is ridiculous. I feel, in order for intelligent dialogue to take place, there has to be reasonable veracity in regard to posts. I fully understand the dire circumstances that surround our country, our leadership, and our economy. But, for me to be less than honest, would hopefully undermine this blog. I never tried to paint a rosy picture surrounding my logistics, I was just being honest. Good luck to all
ReplyDelete5:43 I live in the midwest and what you say is a lie. I know master electrician and plumbers that aren't working at all right now. There are a few major projects in our area, but they are large retailers that are moving store locations or building a new one... but for every one they build they close one. That is not really growth.
ReplyDelete7:50, in effect then what you are doing is posting the opposite of what everyone else posts just for a reaction.
ReplyDeleteThat is not "truth" either, it is deception.
Things are getting worse, just not for me, yet--I've grossed $32K for the year. Plundering! No matter how this turns out, my plan is to finish near the top, or at least be where the middle-class used to be.
ReplyDeleteI live in So. California. I absolutely hate the illegal Mexican invaders that have flooded the state. They have little or no education and expect to find a new life here. Home Depot allows them to stand in the parking lot and hope to be picked up for a day labor gig.
ReplyDeleteLast week I passed a Home Depot and I saw a white guy holding a sign, reminding us that he is an English speaking American citizen, available to do any kind of day labor work.
When citizens have to compete with illegal aliens for a job, you know things are bad. Don't be surprised to someday read about illegals being beaten or killed in front of Home Depot.
5:43, you are so full of it!
ReplyDeleteI am writing from Shenandoah Valley Virginia, beleive me, we are being impacted big time. Within the past two years, we have lost jobs in the mfg. sector, textiles, construction and medical, yes, medical. Most of the local hospitals are either laying off or cutting hours and wages. Funny though, none of the higher dollar employees are being impacted, not the Doctors. As far as the constructon, my field, I see daily 4-5 people looking for work, indicating they will do any type of labor.
And as 6:55 stated, I see these "flippin" Mexican standing around the Lowe's and Home Depot's soliciting for work, from anyone that walks by. In our town, there is an area where a slumlord housing the Mexicans, if they aren't hanging out windows and laying on cars, their walking the streets like druggies and hookers. As far as competition, if a mexican competes with a caucasion or black, sorry beaner,you are SOL, will never happen. Hell, I will not even go to a Mexican resturant unless they are Naturalized and better be able to prove it. Same goes for a chinaman or any other mongrel.
We left the central coast of CA. in 07 there were no construction jobs. That same year my hometown was declared a sanctuary city. The Mexacan flag was being raised out in the open. I was sick of it. If you still have one leg in another country then you need to put both legs there.
ReplyDelete8:22 AM you are a jerk. You think Mexicans, so called "chinamen", and mongrels are somehow less than human for only one reason- the color of their skin! SICK.
ReplyDeleteYou think you are better than someone because you are white? You are a sick person.
I know the ecnomy is bad. But lets face it, a lot of Mexicans come to our country because they are too poor in their native land. For the grace of God I could have been born in Mexico, India, Haiti, etc.... So am I to think I am better than someone because for the grace of God I was born in the U.S.A.? I don't think so. Try having compassion for others. Or else realize that karma will get you (karma is not just deeds we do but the way we carry feelings of hate, anger, etc... towards others).
10:43 You can hire cheap labor and take advantage of illegal immigrants but at $5/hr your worker has no choice but to suck up all sorts of social services. Guess who pays for them. YOU DO with higher taxes. Still Love em?
ReplyDeleteI feel sorry for construction workers because that industry is practically dead. Why build something new when there are millions of existing homes and commercial buildings that stand empty? Another three or four million homes will be going into foreclosure, and the country hasn't even dealt with the slow collapse in commercial real estate. Businesses are closing up because people don't have extra money to spend or are afraid of losing the jobs they have. After paying all my bills, I have nothing left.
ReplyDeleteHey Robert what you said is all well and good
ReplyDeletebut the fact of the matter is that most of them
sombitches are here Illegally! I cannot go undo-cumented and unabated into any other country of my choosing and set up shop with out some kind of legal process. I was a construction worker
and had a nice little business until my hometown
was completely over run with latinos. It was a nice little town of mainly white folks with a
few blacks and everyone was happy. There was very little crime. Now it is a run down bario only 45 minutes from washington D.C. Gangs roam
around and crime is very high . My Dad still lives there and I visit a couple of days a week.
I gave up on contracting/construction a couple of
years ago. Iam now a deputy sheriff and see all
the illegals in the jail. They are about 70 %
of the inmate population. Who pays for that?
Some are deported and come right back over and over. What the hell did the greatest generation
even fight and die by the hundreds of thousands for , when only a generation later the country
would be invaded from Mexico and not even a shot
fired or a whimper. Disgusting whats benn allowed
to happen to this once great and proud nation.