Building Construction Trades Training Demonstration Projects

Discussion Paper

Background

Texas is experiencing a growing demand for workers in the construction industry. The demand is caused by a growing Texas economy and an aging workforce in a number of key trades.

Texas’ population has grown rapidly in recent years. In May 2016, the U.S. Census Bureau reported that five of the nation’s 11 fastest-growing cities are in Texas—Georgetown was the fastest, with a 7.8 percent growth from July 1, 2014, to July 1, 2015. The others were Austin, New Braunfels, Frisco, and Pearland. This rapid rise in Texas population has increased the need for the construction of housing, businesses, and other facilities.

The Texas Workforce Commission’s (TWC) Report on Texas Growth Occupations 2015 estimates an anticipated growth of 53,650 workers in construction occupations from 2012 to 2022 in North American Industry Classification System (NAICS) Code 23 (Construction).

A 2014 survey of Texas construction companies found that:

•35 percent had difficulty filling professional and craft worker positions; and

•33 percent had difficulty filling their craft worker positions but did not have issues finding professional position candidates.

TWC’s Texas Industry Profile for NAICS Code 23 for 2015’s fourth quarter shows the distribution of employment within this construction sector. Specialty Trade Contractors had the largest percentage of employment at 54 percent, with Construction of Buildings and Heavy and Civil Engineering Construction following at 22 percent and 24 percent, respectively.

Texas Construction Industry Employment Subsectors

Construction of Buildings-NAICS 236 / 22%
Heavy and Civil Engineering Construction (highways and utility systems)-NAICS 237 / 24%
Specialty Trade Contractors-NAICS 238 / 54%

On October 4, 2016, the Texas Workforce Commission approved $1.2 million in Workforce Innovation and Opportunity Act funds to support Texas community and technical college programs that provide training to Texas individuals 18 years of age and older to prepare them for employment in high-demand occupations in the building construction trades.Project activities may include:

  • assessment and evaluation of current knowledge, skills, and abilities;
  • enrollment of participants in accelerated courses; and
  • advising, mentoring, and tutoring.

Grant requirements may include:

  • outreaching and recruiting eligible participants;
  • enrolling eligible participants in training;
  • providing eligible participants with training;
  • obtaining formal letters of agreement from Texas employers in the building construction trades to consider hiring trained participants; and
  • assisting trained participants in entering employment.

Issue

Request for Proposals 320-17-06, Building Construction Trades Training Demonstration Projects, resulted in proposals exceeding the $1.2 million that was approved. Staff was asked to provide information on additional funding needed to expand availability of building and construction trades training programs throughout Texas.

Decision Point

To expand the availability of building construction trades training programs throughout Texas, an additional $2,391,512 in funding is required to support all responsive proposals for this initiative, bringing the funding total to $3,591,512.

DP – Building Construction Trades (Notebook) 05 30 201774058