Uptick provides reprieve for contractors

After months of steep declines in construction employment, the Reno-Sparks area saw an uptick in construction employment with the start of the 2010 construction season.

The state Department of Employment, Training and Rehabilitation reported 300 more tradesmen were back in the field in March compared with February, and construction employment potentially could trend upward in subsequent months because of an increase in highway projects.

Though March construction employment still was down just over 20 percent from year-earlier figures, any increase in construction employment comes as a boost to Truckee Meadows tradesmen.

"We have gone through a hard time and a hard winter, and to be emerging here in the spring to get some guys back to work is what it really is all about," says Tim Kretzschmar, senior vice president of building and construction for Q&D Construction.

Q&D Construction expects to employ more than 160 additional workers in May alone as its workload ramps up.

"It is not as much work as we would like, but it is enough to get us through," Kretzschmar says. "We have had to size ourselves with the economy, and we had to make some layoffs and get a little bit smaller. As work starts to pick up, hopefully we will be hiring more people back."

Randy Pitts, owner of general engineering and site work contractor F&P Construction, says he's put about 15 new employees to work in the past month. F&P is performing site work at the new Super Walmart in Lemmon Valley, as well as general engineering work at two facilities under construction at Tahoe-Reno Industrial Center.

The volume of work landed in the first quarter gives Pitts some optimism that 2010 will turn out profitable.

"I might even survive this damn thing; I had my doubts a couple of times last year," he says.

To date Granite Construction has seen a year-over-year increase in employment of 22 percent 55 field hands says Rod Cooper, regional manager for Nevada operations. Granite could potentially add another 50 field hands by June, he adds.

The company's major project in northern Nevada is widening U.S. 395 from Moana Lane to the Spaghetti Bowl, a 14-month construction project. At peak the project will employ 150.

Craig Willcut, president and CEO of United Construction, says his company is debating on additions to its payroll depending on how the workload shapes up this summer.

"It appears we probably will need to do something," Willcut says. "Eventually I think we will; a lot of it depends on when we finally get release from owners."

However, the spike in local construction projects mainly involves infrastructure, road and highway work. Commercial contractors say they are still dealing with a lower volume of work and probably won't be adding to their payrolls any time soon.

Although some commercial contractors have landed a decent amount of work, others are wondering where their next job will be.

Dennis Banks, owner of Dennis Banks Construction, has several small retail centers under way in the North Valleys, as well as an auto dealership in Portland, Ore. The company also has tenant improvement work scheduled at Plumgate Plaza, and construction of a new 12,700-square-foot church on Maestro Drive and Double R Boulevard in South Meadows.

That work, Banks says, means added employment to subcontractors. Banks is cautious about adding to his own payroll and instead has current employees working longer hours to manage projects.

"I'm scared to add long-term help because I don't know what the long term is, but we have many, many subs that we are giving work to that are very excited," Banks says. "That puts more people to work; they have to have bodies on the site. Our backlog is definitely very strong right now."

Lee Arnold, president of TNT Construction, says companies involved with dirt work or infrastructure have an advantage of surviving in a down market because of the uptick in transportation work.

Arnold says TNT construction is being selective about the work it pursues and has avoided taking jobs merely to keep doors open and lights on.

"We are not going to get this economy rolling again if everyone is taking work cheap," he says. "We are in this business to make money. If we are making money it will be redistributed into the system."

Buzz Harris, assistant executive director of the Nevada Chapter Associated General Contractors, says the majority of member contractors still are struggling despite the rise in regional hiring.

Outside of transportation work, Harris says, the industry in general is not much better off than it was last year a poor year by all accounts for all but a few northern Nevada construction companies.

"It is pretty shallow as far as opportunities for construction workers to go back to work," Harris says.

Banks says landing work nowadays is a combination of three things: luck of the draw, less competition, and an uptick in work.

"Things are picking up a bit, or we are just very fortunate to be in the right place at right time," he says. "Some contractors are still busy, while other have closed shop."

SIDEBAR

Q&D sees solid start to construction season

The construction season is off to a promising start for general contractor Q&D Construction, which expects to put about 160 tradesmen back to work in the month of May alone.

Q&D's major projects include:

* Carson City bypass bridges. This $7.5 million project calls for building two bridges at Kootnz Lane and Clearview Drive, and adding 1.5 miles of drainage channel as part of preliminary work on the final phase of the U.S. 395 Freeway extension. Work is expected to run through February and employ about 55 workers at peak.

* Widening U.S. 395 south of Carson City. Q&D will widen one lane of the east side of 395 from Jacks Valley Road to Lupin Drive, a $2.3 million project. The job includes building a retaining wall and modifying electrical signals at Topsy Lane and Clear Creek Drive. The project is expected employ up to 25 tradesmen through December.

* Victorian Square Phase 2A Connector. Q&D will build a road connecting the Sparks Century Theater with Victorian Avenue. The $1.2 project includes walking paths, pavers, lights and trees and is expected to employ up to 40 people through late July.

* Autumn Village in Reno. Q&D is erecting 43 units of affordable housing for the Northern Nevada Community Housing Resource Board, a $9 million project. Up to 70 people will work on the three-story, 46,000-square-foot project at Gentry Way and Wrondel Lane into 2011.

The company also expect to break ground on the $11 million IMAX theater at Legends at Sparks Marina in June.

"We are getting there, slowly but surely," says Lance Semenko, senior vice president of the engineering division for Q&D. "If we could put some more guys back to work there would be nothing better for this town."

NNBW staff