Drawing Up Jobs

On the heels of millions of dollars in new construction projects out for bid across the Ozarks, area architecture and engineering firms are showing signs of improvement following the Great Recession. But business owners say they are not out of the woods yet.

“We have continued to be busy and our firm has grown since the bottom fell out in 2008, but there is a cautious optimism,” said Andrew Wells, design director with Dake Wells Architecture Inc. “Some firms merged or were forced to close up shop, but I think many firms have positioned themselves well for the future.”

According to the U.S. Department of Labor’s Bureau of Labor Statistics, the national economy added 162,000 jobs in July and the unemployment rate dropped to 7.4 percent. However, the design and construction industries didn’t fare so well.

The American Institute of Architects reports architecture and engineering services lost 2,700 jobs and construction lost 6,000 jobs in July.

Around the Ozarks, Wells said despite the national numbers, firms are beginning to hire again.

“Pre-2008, we had four employees; now we have 14,” Wells said, adding the firm might hire another employee or two in the coming months. “Now is the time when I think, in general, firms are going to feel comfortable adding staff again.”
 
Worker confidence
As tracked by Diemen, Netherlands-based global human resources firm Randstad, the engineering employee confidence index for the U.S. rose to 61.9 in second-quarter 2013, up seven points from 54.9 in the first quarter.

The index, which measures workers’ confidence in their personal employment situations and optimism in the economic environment, has reached higher than 60 only twice since 2008.

“I think there is a general sense of turnaround in the local industry,” said Jon Robinson, president of the Ozark Chapter of the Missouri Society of Professional Engineers and an associate with GeoEngineers Inc. “Right now, as development picks up in the area, firms like ours are looking to hire.”

Robinson said the Springfield-based company is looking to hire several employees in the coming weeks for pipeline projects spread across numerous states.

The national online survey found significantly more engineering professionals – 40 percent in the second quarter compared to 26 percent in the first quarter – believe the economy is getting stronger. And the number of engineers who believe more jobs are available rose to 35 percent in the second quarter from 21 percent in the first quarter. Additionally, 62 percent of engineers feel confident in their ability to find new jobs, up from 51 percent in the first quarter.

Robinson said the engineer’s society doesn’t track local employment numbers, but he believes the Missouri transportation-funding picture is key in future engineering planning and job creation.

“The Missouri Department of Transportation maintains a certain level of engineering staff and, depending on its funding level, can accomplish all its work in house,” he said. “With a small MoDOT budget, there is no need to hire outside engineers, but as that budget grows, so do the opportunities.

“Transportation is big for engineers and it spurs all sorts of development. Missouri is positioned to be a hub by virtue of geography.”

In June 2012, MoDOT’s $2 billion annual budget was effectively cut in half due to a lack of federal and state funding. The plan called for more than $500 million in system cuts by 2015, including nearly 1,200 jobs, or 19 percent of its staff. Starting in 2010, MoDOT reduced its project plans to roughly $600 million per year through 2015.

Upcoming projects
The U.S. construction industry unemployment rate in June fell to 9.8 percent, its lowest point since September 2007, a possible sign the industry is beginning to improve. In the Ozarks, more than $500 million in building projects are already in the works or slated for the next few years, including Springfield Public Schools’ April bond issue with $55.7 million for five planned construction projects as well as $15.7 million in renovations to the Heer’s building.

“Missouri State University has a lot of work, the Springfield Public Schools have a lot in bond issue projects and generally speaking, there are a lot of projects coming down the pike,” Wells said, noting his company is planning a move to downtown’s Woolworth building by year’s end. “We are fairly confident in the work we know about, but that’s all in the public sector. It’s the private sector work we don’t know about that can be a concern.

“There are always going to be large private sector jobs out there. The problem is nobody wants to talk about those until they are ready. There is another layer of construction out there we don’t even know about.”

In an effort to get a regional plan in place, the Springfield Area Chamber of Commerce, in conjunction with the Springfield Contractors Association and MSU, will host the Springfield Regional Construction Bidding Forecast 3–5 p.m. Sept. 20 at the William H. Darr Agricultural Center.

Wells said the forum would give area industry leaders a chance to get everything on the table and ensure everyone is on the same page going forward.

“These industries are still coming out of the recession. We don’t have the workforce we used to. With so many projects on the slate, there is a concern it will begin to tax the local ability,” he said. “When you have more work than an industry can handle, it leads to escalated prices and drawn out work schedules. Nobody wants that.”