
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."
In the Southwest, the construction site is what the factory floor is to the MidWest - the place where blue-collar men and women earn their keep. A tour of downtown Los Angeles and the industrial warehouse area to the south finds busy jobs sites few and far between. In Vernon, Oltmans Construction Co., ranked as one of the nation's elite "Top 400 Contractors" by Engineering News Record, is completing a gleaming white 60,000 square foot warehouse and office space for CR Lawrence whose business is construction, industrial, architectural and automotive supplies. Ed Sorbel, superintendent for Carpenter's Local 630, says at the project's peak more than 70 men worked at the site. But the outlook is grim for commercial construction firms such as Oltmans and its union work force. Asked if business is picking up, Oltmans Project Manager James Wu, 37, says, "I have not seen it. It's not looking good ahead."