Construction industry slow to rebound

Tonight we dig more deeply into local unemployment numbers. Despite a slight increase in construction spending, industry employment is way down in the Wilmington area. Over the last year the construction workforce has been cut by 20 percent in the Port City. “It's obviously a slow down in the homebuilding industry due to the economic downturn,” said Jeff Stokley of the Cape Fear Home Builders Assoc. Between October 2008 and October 2009, the Wilmington area construction industry cut 2,200 jobs. With few new construction projects open for bidding the job cuts have spread to other industries. Residential, commercial, and industrial building have all come to a standstill. “Pretty much all phases of the industry have been effected by this,” Stokley said. “It kind of kills morale a little bit, not to be able to find enough jobs for the folks that want to work,” Todd Lambeth said. Lambeth is the branch manager for Innovative Hiring Technology, a temp agency that places people in construction industry jobs. Lambeth says it's become more and more difficult to find work for his clients. “In previous years, there were some years we couldn't find enough people to go to all the jobs we had available.” But relief could be in sight. Construction spending increased in October for the first time in six months, and builders are hopeful extending the home buyer tax credit will persuade more people to buy new homes and eventually jump start construction. “Now with the increased tax credit for all home buyers hopefully that's going to open up a market for remodeling,” Stokley said. “Those that buy houses and go in and expect to change the interior of them, that should help the remodeling market.” Then the construction industry can start some rebuilding of it's own. With a big slow down in housing construction many contractors have moved to commercial building, but with consumers tightening their budget because of the economy, retailers have been hesitant to build. Government projects, like the convention center, have provided the bulk of new construction.