Union Construction Labor Cost Trends and Outlook 2017 · Union Construction Labor Cost Trends and Outlook 2017 Construction Labor Research Council [email protected] 1250 Connecticut

Copyright © 2017 Construction Labor Research Council

Union Construction Labor

Cost Trends and Outlook 2017

Union Construction Labor Cost Trends and Outlook 2017

Construction Labor Research Council [email protected]

1250 Connecticut Avenue NW, Suite 200 Washington, DC 20036

202-347-8440 www.clrcconsulting.org

1

This report contains both general and detailed data on union labor rates for craft

workers in the construction industry. Data are presented for the nation as a whole and

for geographic regions for 17 different craft breakouts. In addition, the report has trend

lines which show the union craft labor cost history as well as the results for already

negotiated future increases.

Section I: National Results

The average percent increase for union construction workers in 2016 was 2.8

percent and the average wage and fringe benefits rate was $55.15.

As shown in Exhibit 1.1, from 2012 – 2016 the average percent increase rose slowly,

beginning at 2.4 percent following the Great Recession and reaching 2.8 percent in

2016. Contrast these increases with those from 2005 – 2009, which were much

higher, ranging from 3.9 percent to 4.4 percent. Projected increases for 2017 and

2018, noted with an asterisk, show the continued upward trend. In 2018 the average

increase is likely to top 3.0 percent for the first time in nearly a decade.

Exhibit 1.1

Average increases shown as percents

* The rates for 2017 and 2018 may change as new negotiated settlements are added to the CLRC database.

3.9%

4.2%4.4% 4.4%

3.9%

2.7%2.5% 2.4%

2.6% 2.7% 2.8% 2.8%2.9%

3.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%





2

It should be noted that for any given year in this report the results reflect all wage and

fringe benefits adjustments that occurred during that year, not just those negotiated in

that year. For example, for 2015 the 2.8 percent increase was determined by

averaging the first year of settlements negotiated in 2015, the second year of

settlements negotiated in 2014, the third year of settlements negotiated in 2013, and

so on. CLRC’s companion report, Settlements Report, focuses on just first year

settlements.

Exhibit 1.2 shows the average annual amount of the increases for union construction

workers in dollars. It is interesting to note that the average rate increase projected

for 2018 ($1.77) is still lower than the average rate nearly a decade earlier

in 2009 ($1.81).

Exhibit 1.2

Average increases shown as dollars

* The rates for 2017 and 2018 may change as new negotiated settlements are added to the CLRC database.

$1.50

$1.72

$1.88$1.97

$1.81

$1.31$1.22

$1.46 $1.41 $1.44$1.53

$1.60$1.67

$1.77

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50





3

Section II: Future Results

The average already negotiated increase for 2017 is 2.9 percent ($1.67) and for

2018 it is 3.1 percent ($1.77), as shown in Exhibit 2.1. Although these results are

shown as a glimpse into the future, they are likely to change some as new settlements

are added. For example, the increase shown for 2017 does not yet reflect the first

year increase of settlements to be negotiated in 2017 and the 2018 value does not yet

reflect the second year of increases to be negotiated in 2017 or the first year of

increases to be negotiated in 2018. Thus, these rates are a useful, but incomplete,

first look at the union, craft worker, construction wage forecast.

Exhibit 2.1

Summary of already negotiated future increases

Exhibits 2.2 and 2.3 provide more detail about how the

future increases are distributed. As a percent

(Exhibit 2.2), the most common increase range is

2.0 – 2.9 percent for both 2017 and 2018.

Exhibit 2.2

Details of already negotiated future settlements shown as percents

0%

10%

20%

30%

40%

50%

60%

0% or less 0.1 - 0.9% 1.0 - 1.9% 2.0 - 2.9% 3.0 - 3.9% 4.0 - 4.9% 5.0 + %

Per

cen

t o

f Se

ttle

men

ts

2017

2018

Dollar Percent

2017 $1.67 2.9%

2018 $1.77 3.1%





4

As dollar figures (Exhibit 2.3), the most common increase range in both 2017 and

2018 is $1.20 – $1.49. However, as the exhibit clearly displays, for 2018 nearly as

many settlements were much higher, in the $1.80 – $2.09 range.

Exhibit 2.3

Details of already negotiated future settlements shown as dollars

Section III: Craft Specific Regional Results

Exhibit 3.1 (next two pages) shows the dollar amount of the wage and fringe benefits

package for each craft for each region and for the United States for 2012 and 2017

(five years later), and the amount of the increase during that time.

Exhibit 3.2 (the two pages after Exhibit 3.1) shows the five year and one year

increases as percents for each craft for each region and for the United States.

0%

5%

10%

15%

20%

25%

30%

<$0.90 $0.90- 1.19

$1.20- 1.49

$1.50- 1.79

$1.80- 2.09

$2.10- 2.39

$2.40- 2.69

$2.70- 2.99

$3.00- 3.29

$3.30+

Per

cen

t o

f Se

ttle

men

ts

2017

2018

The following items are included in these analyses: wage rate, health and welfare, retirement (pension, annuity, defined contribution), vacation, holiday, and any unallocated increases. The following are examples of items that are not included: labor-management cooperative committee assessments, industry advancement funds, training and apprenticeship.





5

Exhibit 3.1

Wage and fringe benefits rates by craft and region in dollar amounts

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Boilermakers

1/1/2012 $59.40 $55.02 $54.02 $60.06 $69.59 $61.62

1/1/2017 $65.95 $60.16 $58.81 $67.44 $76.14 $68.06

Increase $6.55 $5.14 $4.79 $7.38 $6.55 $6.44

Bricklayers

1/1/2012 $56.39 $45.10 $29.09 $51.49 $47.62 $50.35 $46.64

1/1/2017 $58.84 $51.55 $31.12 $58.60 $50.57 $56.87 $52.56

Increase $2.45 $6.45 $2.03 $7.10 $2.95 $6.52 $5.91

Carpenters

1/1/2012 $30.30 $48.12 $46.13 $27.71 $46.44

1/1/2017 $34.96 $54.76 $52.21 $31.08 $52.90

Increase $4.66 $6.64 $6.08 $3.37 $6.46

Cement Masons

1/1/2012 $40.08 $28.34 $47.82 $42.44 $48.77 $50.60 $46.91

1/1/2017 $46.09 $30.82 $54.03 $47.45 $54.61 $56.73 $52.78

Increase $6.02 $2.48 $6.21 $5.00 $5.84 $6.13 $5.87

Electricians

1/1/2012 $56.85 $50.97 $36.31 $60.89 $38.64 $36.42 $53.60

1/1/2017 $63.20 $58.91 $39.53 $69.69 $44.26 $40.43 $60.87

Increase $6.36 $7.94 $3.22 $8.81 $5.62 $4.01 $7.28

Elevator Constructors

1/1/2012 $77.45 $71.34 $64.84 $73.49 $70.11 $64.09 $75.85 $75.38 $70.84

1/1/2017 $88.78 $81.83 $74.44 $84.27 $80.39 $73.57 $87.03 $86.39 $81.26

Increase $11.32 $10.48 $9.60 $10.79 $10.28 $9.47 $11.18 $11.01 $10.42

Insulators

1/1/2012 $35.24

1/1/2017 $39.93

Increase $4.69

Iron Workers

1/1/2012 $56.98 $35.46 $53.17 $48.03 $28.47 $55.79 $56.46 $50.09

1/1/2017 $64.43 $40.10 $59.17 $53.72 $32.79 $61.40 $62.66 $56.24

Increase $7.45 $4.64 $6.00 $5.69 $4.31 $5.61 $6.20 $6.16

Laborers

1/1/2012 $50.21 $21.98 $43.09 $37.53 $21.23 $40.37

1/1/2017 $58.26 $24.78 $49.10 $41.92 $24.69 $46.04

Increase $8.06 $2.80 $6.01 $4.39 $3.46 $5.67





6

Exhibit 3.1 (continued)

Wage and fringe benefits rates by craft and region in dollar amounts

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Millwrights

1/1/2012 $33.19 $52.11 $58.15 $52.59

1/1/2017 $37.35 $58.68 $64.66 $58.81

Increase $4.16 $6.58 $6.52 $6.21

Operating Engineers

1/1/2012 $51.95 $48.09 $49.27 $49.96 $27.00 $58.81 $50.92

1/1/2017 $57.15 $55.81 $55.63 $55.78 $31.70 $69.49 $58.32

Increase $5.20 $7.72 $6.36 $5.82 $4.70 $10.69 $7.40

Painters

1/1/2012 $44.82 $52.41 $27.70 $56.69 $53.91 $51.41

1/1/2017 $50.97 $60.98 $30.79 $66.03 $62.61 $59.65

Increase $6.15 $8.57 $3.08 $9.33 $8.70 $8.24

Pipefitters/Plumbers

1/1/2012 $41.15 $60.83 $57.30 $37.51 $66.96 $59.59

1/1/2017 $45.50 $69.64 $63.80 $41.17 $79.80 $68.64

Increase $4.35 $8.80 $6.50 $3.66 $12.84 $9.04

Plumbers

1/1/2012 $51.34 $51.34

1/1/2017 $54.79 $54.79

Increase $3.45 $3.45

Plasterers

1/1/2012 $40.60 $49.26 $47.73

1/1/2017 $45.54 $56.06 $54.07

Increase $4.95 $6.80 $6.34

Sheet Metal Workers

1/1/2012 $70.19 $38.92 $57.13 $42.07 $37.01 $62.01 $62.46 $53.58

1/1/2017 $80.54 $42.10 $63.98 $47.33 $41.44 $70.28 $69.78 $60.28

Increase $10.35 $3.18 $6.85 $5.26 $4.44 $8.28 $7.32 $6.70

Teamsters

1/1/2012 $36.19 $25.82 $38.12 $47.07 $53.10 $42.72

1/1/2017 $44.42 $28.87 $42.81 $55.84 $59.96 $48.47

Increase $8.23 $3.05 $4.69 $8.77 $6.86 $5.75

Total

1/1/2012 $60.58 $52.25 $32.56 $50.11 $44.87 $33.21 $53.71 $56.51 $48.47

1/1/2017 $68.13 $60.23 $36.40 $56.90 $50.35 $37.75 $61.70 $62.25 $55.15

Increase $7.56 $7.97 $3.84 $6.80 $5.48 $4.54 $8.00 $5.74 $6.68

US Average





7

Exhibit 3.2

Increases by craft and region in percents

Regions

New England: CT, MA, ME, NH, RI, VT. Middle Atlantic: DC, DE, MD, NJ, NY, PA. Southeast: AL, FL, GA, KY, MS, NC, SC, TN, VA. East North Central: IL, IN, MI, MN, OH, WI, WV. West North Central: IA, KS, MO, NE. South Central: AR, LA, NM, OK, TX. Mountain-Northern Plains: CO, MT, ND, SD, UT, WY. Northwest: AK, ID, OR, WA. Southwest Pacific: AZ, CA, HI, NV.

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Boilermakers

Increase: 2012 - 2017 11.0% 9.4% 8.9% 12.2% 9.4% 10.5%

Increase: 2016 - 2017 2.0% 1.6% 1.4% 1.6% 1.3% 1.6%

Bricklayers

Increase: 2012 - 2017 4.3% 14.3% 6.7% 13.4% 6.3% 12.9% 12.1%

Increase: 2016 - 2017 0.7% 2.8% 2.0% 2.8% 0.9% 2.5% 2.5%

Carpenters

Increase: 2012 - 2017 15.1% 15.5% 13.6% 13.2% 12.2% 14.4% 13.8% 14.0%

Increase: 2016 - 2017 2.0% 3.0% 2.8% 2.2% 2.6% 2.8% 2.0% 2.7%

Cement Masons

Increase: 2012 - 2017 15.0% 8.9% 12.5% 11.9% 12.2% 12.1% 12.4%

Increase: 2016 - 2017 2.7% 2.0% 2.7% 2.1% 1.3% 2.0% 2.2%

Electricians

Increase: 2012 - 2017 11.2% 15.6% 9.0% 14.2% 14.6% 11.0% 14.5% 13.1%

Increase: 2016 - 2017 1.9% 3.0% 2.3% 3.0% 3.2% 1.1% 3.9% 3.0%

Elevator Constructors

Increase: 2012 - 2017 14.6% 14.7% 14.8% 14.7% 14.7% 14.8% 14.7% 14.6% 14.7%

Increase: 2016 - 2017 3.4% 3.5% 3.4% 3.4% 3.4% 3.4% 3.5% 3.4% 3.4%

Insulators

Increase: 2012 - 2017 13.5% 9.1% 10.8%

Increase: 2016 - 2017 3.6% 2.2% 2.7%

Iron Workers

Increase: 2012 - 2017 12.8% 14.3% 13.3% 11.2% 11.9% 15.2% 9.9% 11.0% 12.3%

Increase: 2016 - 2017 2.4% 3.0% 2.1% 2.0% 1.5% 2.1% 2.0% 2.9% 1.8%

Laborers

Increase: 2012 - 2017 16.1% 12.9% 13.5% 11.7% 16.3% 15.1% 13.8%

Increase: 2016 - 2017 3.6% 2.6% 2.7% 2.2% 2.5% 3.2% 3.0%





8

Exhibit 3.2 (continued)

Increases by craft and region in percents

New

England

Middle

Atlantic

South-

east

East

North

Central

West

North

Central

South

Central

South-

west

Pacific

North-

west

United

States

Millwrights

Increase: 2012 - 2017 12.6% 13.0% 12.5% 11.4% 12.0%

Increase: 2016 - 2017 2.4% 3.7% 2.2% 0.9% 1.8%

Operating Engineers

Increase: 2012 - 2017 10.0% 16.0% 13.9% 12.8% 11.6% 17.4% 18.3% 14.4%

Increase: 2016 - 2017 2.7% 3.9% 2.5% 2.0% 2.0% 5.3% 3.1% 2.4%

Painters

Increase: 2012 - 2017 13.7% 16.0% 11.8% 16.3% 16.1% 15.7%

Increase: 2016 - 2017 2.4% 5.2% 2.4% 4.0% 3.3% 4.1%

Pipefitters/Plumbers

Increase: 2012 - 2017 14.1% 10.4% 14.7% 11.3% 9.7% 19.3% 14.9%

Increase: 2016 - 2017 2.4% 2.1% 2.2% 3.2% 1.8% 3.3% 2.6%

Plumbers

Increase: 2012 - 2017 6.7% 6.7%

Increase: 2016 - 2017 1.9% 1.9%

Plasterers

Increase: 2012 - 2017 10.5% 12.1% 13.8% 13.2%

Increase: 2016 - 2017 1.5% 1.6% 2.9% 2.6%

Sheet Metal Workers

Increase: 2012 - 2017 14.7% 14.6% 8.4% 12.0% 12.6% 12.2% 13.4% 11.7% 12.3%

Increase: 2016 - 2017 2.7% 2.8% 1.8% 2.6% 2.9% 2.3% 3.2% 3.5% 2.6%

Teamsters

Increase: 2012 - 2017 22.7% 11.8% 13.2% 12.3% 18.6% 12.9% 13.4%

Increase: 2016 - 2017 3.5% 2.3% 2.0% 2.7% 3.7% 1.2% 2.2%

Total

Increase: 2012 - 2017 12.2% 15.1% 12.0% 13.4% 12.2% 13.9% 14.9% 10.1% 13.6%

Increase: 2016 - 2017 2.3% 3.3% 2.5% 2.6% 2.2% 3.4% 2.7% 2.4% 2.8%





9

Exhibits 3.3 – 3.9 show the average future increases for 2017 and 2018, where

adequate data are available, in both percent and dollar figures and how those

increases are distributed throughout a range for seven different regions. Note that

these results are preliminary and may change as new settlements are added in the

years ahead.

Exhibit 3.3

Details of future settlements: New England region

Shown in percents

Shown in dollar amounts

Summary

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 13% 50% 38% 0% 0% 0%

2018 0% 0% 50% 50% 0% 0% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 25% 0% 38% 25% 0% 13% 0% 0% 0% 0%

2018 25% 25% 25% 0% 25% 0% 0% 0% 0% 0%

Dollar Percent

2017 $1.56 2.3%





10

Exhibit 3.4

Details of future settlements: Middle Atlantic region

Shown in percents


Summary

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 4% 4% 56% 30% 7% 0%

2018 0% 0% 6% 75% 19% 0% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 13% 13% 6% 19% 19% 19% 0% 6% 6% 0%

2018 0% 19% 31% 19% 6% 19% 0% 0% 6% 0%

Dollar Percent

2017 $1.58 3.0%

2018 $1.66 2.7%





11

Exhibit 3.5

Details of future settlements: Southeast region

Shown in percents


Summary

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 0% 43% 43% 14% 0% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 43% 43% 14% 0% 0% 0% 0% 0% 0% 0%

Dollar Percent

2017 $0.93 2.5%





12

Exhibit 3.6

Details of future settlements: East North Central region

Shown in percents


Summary

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 1% 17% 55% 18% 7% 1%

2018 0% 2% 19% 40% 33% 7% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 21% 33% 4% 12% 21% 4% 3% 0% 1% 0%

2018 19% 21% 5% 5% 43% 7% 0% 0% 0% 0%

Dollar Percent

2017 $1.45 2.6%

2018 $1.68 3.0%





13

Exhibit 3.7

Details of future settlements: West North Central region

Shown in percents


Summary

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 0% 4% 88% 8% 0% 0%

2018 0% 0% 10% 80% 10% 0% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 17% 38% 33% 13% 0% 0% 0% 0% 0% 0%

2018 0% 40% 40% 20% 0% 0% 0% 0% 0% 0%

Dollar Percent

2017 $1.21 2.3%

2018 $1.29 2.3%





14

Exhibit 3.8

Details of future settlements: South Central region

Shown in percents


Summary

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 0% 17% 67% 0% 17% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 67% 17% 0% 17% 0% 0% 0% 0% 0% 0%

Dollar Percent

2017 $1.06 3.1%





15

Exhibit 3.9

Details of future settlements: Southwest Pacific region

Shown in percents


Summary

The following associations sponsor this report:

Associated General Contractors of America (AGC) Central States Insulation Association (CSIA) FCA International (FCA) International Council of Employers of Bricklayers and Allied Craftworkers (ICE) Mechanical Contractors Association of America (MCAA) National Association of Construction Boilermaker Employers (NACBE) National Electrical Contractors Association (NECA) National Fire Sprinkler Association (NFSA) North American Contractors Association (NACA) Sheet Metal and Air Conditioning Contractors’ National Association (SMACNA) The Association of Union Constructors (TAUC)

Year

0% or

less

0.1 -

0.9%

1.0 -

1.9%

2.0 -

2.9%

3.0 -

3.9%

4.0 -

4.9% 5.0 + %

2017 0% 0% 0% 42% 58% 0% 0%

2018 0% 0% 0% 36% 61% 4% 0%

Year <$0.90

$0.90

- 1.19

$1.20

- 1.49

$1.50

- 1.79

$1.80

- 2.09

$2.10

- 2.39

$2.40

- 2.69

$2.70

- 2.99

$3.00

- 3.29 $3.30+

2017 11% 5% 3% 29% 18% 5% 24% 3% 3% 0%

2018 7% 7% 0% 25% 14% 18% 25% 4% 0% 0%

Dollar Percent

2017 $1.83 3.3%

2018 $1.98 3.4%

This report has been prepared from information collected and maintained by CLRC. Reasonable efforts have been made to ensure the accuracy of the data, summaries and analyses. However, accuracy cannot be guaranteed. CLRC disclaims any liability from damages of any kind which may result from the use of this report.

Documents

Union Construction Labor Cost Trends and Outlook 2017 · Union Construction Labor Cost Trends and Outlook 2017 Construction Labor Research Council [email protected] 1250 Connecticut