Open-shop contractors planning to provide raises to skilled craft workers in 2009 expect to raise wages by an average of 2.88 percent, according to the latest Merit Shop Craft Survey report issued by PAS, Inc. When data from contractors not planning raises are included, the overall anticipated increase averages only 1.96 percent. This compares to actual increases of 4.1 percent (excluding zero-increases) and 3.7 percent (including zero-increases) in 2008, and represents the lowest average increases seen in over 15 years. Based on historical experience and other factors, however, PAS projects that increases will actually end up in the range of 2.3-2.8 percent nationally, and even higher in a few high-demand areas. Although the demand for skilled trades has been limited in most areas of the country so far this year, high demand continues in pockets of the Gulf Coast and Midwest regions, PAS found.
PAS found the following average anticipated increases in benchmark locations:
PAS further reports the following hourly wage rates for all crafts combined and for certain benchmark positions:
"The buying power of construction workers has risen continuously since 1990," observes PAS in the September 2009 issue of its Contractor Compensation Quarterly. While at times last year it seemed that inflation would seriously impact the buying power of the dollar and end the 17-year rise in craft workers' standard of living, that changed by year end, as the CPI flattened out from 5.5 percent in June 2008 to 0.1 percent by year end for an annualized rate. "Though the streak continues, pay close attention to our industry economists and any predications they may make on future prices," cautioned PAS. The drop in energy costs from 2008 to 2009 accounts for the virtually flat or declining CPI, says PAS. When energy costs are eliminated from the equation, the CPI continues to rise.
The full survey report - which covers fringe benefit and other information, and which reports data broken down data by type of construction, geographic location, company size, and other characteristics - is available for purchase from PAS. AGC members that participated in the survey receive a substantial discount on the reports. For more information on PAS reports, visit www.pas1.com or call (734) 429-1199.
| State |
Zero-Increases Excluded |
Zero-Increases Included |
| Alabama |
3.0% |
2.6% |
| Arkansas |
2.38 |
1.95 |
| Georgia |
2.8 |
2.2 |
| Kansas |
2.9 |
2.3 |
| Kentucky |
3.06 |
1.13 |
| Louisiana |
3.0 |
2.4 |
| Massachusetts |
3.58 |
1.16 |
| Minnesota |
3.12 |
0.93 |
| Oregon |
3.0 |
2.2 |
|
Position |
2009 |
2008 |
1999 |
| All Crafts |
$19.77 |
$19.61 |
$14.61 |
| Carpenters |
19.67 |
19.60 |
15.35 |
| General Laborers |
14.43 |
14.11 |
10.90 |
| Electricians |
23.31 |
19.60 |
16.73 |
| Pipefitters |
23.14 |
23.30 |
16.23 |
| Plumbers |
22.24 |
21.70 |
16.73 |