Construction Management as a College Major (Part 4 - Economic Impact)

As discussed in the earlier articles, the demand for Construction Management graduates is high with a national average starting salary of $42,232 as indicated in a CNN/Money article in early 2004 called “Most lucrative college degrees”. Why is this true, mostly due to the size of the construction industry and its huge economic impact on the United States and the rest of the world. Just in the US along, for every dollar spent on construction, 3 dollars is created economically.According to Engineering News-Record Magazine, the world spent about $ 3.22 trillion on construction in 1998. Given estimates by such groups as the International Monetary Fund that the total gross domestic products of nations around the world is in the neighborhood of $32 trillion, that means that construction accounts for 10%of the world's economy. The Department of Commerce estimates that The value of construction put in place in 2003 totaled $916 billion representing 8% of the nation’s gross domestic product (GDP).According to the U.S. Census Bureau, there are approximately 1.9 million construction companies in the U.S. 1.5 million are not incorporated (partnerships or proprietorships). 166,000-9.1%-are owned by minorities or women. 80% of construction firms have fewer than 10 employees, only 1% employ 100 or more and .1% of construction firms employ over 500 individuals. Of the 116 million workers in the U.S., just over 6 Million, or 5.1% are employed in the construction industry. 1.6 million are self-employed workers. The construction industry is the second largest employer in the nation only to the U.S. Government, which includes the Armed Forces. All construction occupations projected job openings through 2012 is 2,548,000 or 15% and for Construction Managers it is 197,000 or 14.1%.According to the Associated General Contractors of American, over the next ten years the demand for construction services will be astronomical. The United States will need to replace 375,000 bridges as part of $360 billion spent on roadwork. Mass transit will need $72 billion worth of construction. The nation's infrastructure will use $3.3 trillion in construction and related services. We will need to repair or renovate one out of three schools at a cost of $60 billion.According to U.S. Department of Labor – Bureau of Labor Statistics and its State of the Construction Industry 2002 – 2012, construction is the only goods-producing sector in which employment is projected to grow. From June 2003 to June 2004 construction added 193,000 employees – nearly one out of seven new non-farming jobs. With this market demand and the typical Construction Management college major taking courses such as construction law, construction finance, construction safety, scheduling, estimating, project management, human factors, labor relations, etc., it becomes obvious why the construction industry finds these graduates uniquely qualified to fill entry level field or office management positions.

Construction Management as a College Major (Part 3 - Related College Majors)

Many students that choose Construction Management as a college major have also looked into the related majors of Civil Engineering, Architecture, and Architectural Engineering and some students have started off their academic career in one of these construction related majors before moving into Construction Management. It is important to choose the right major when entering college or your time may be extend well beyond four-years by switching majors. According to the U.S. Department of Labor, Construction Management or what the department classifies these employees as Construction Managers plan and direct construction projects. They may have job titles such as constructor, construction superintendent, general superintendent, project engineer, project manager, general construction manager, or executive construction manager. Construction managers may be owners or salaried employees of a construction management or contracting firm, or may work under contract or as a salaried employee of the owner, developer, contractor, or management firm overseeing the construction project. Managers who work in the construction industry, such as general managers, project engineers, and others, increasingly are called constructors. Through education and past work experience, this broad group of managers manages, coordinates, and supervises the construction process from the conceptual development stage through final construction on a timely and economical basis. Given designs for buildings, roads, bridges, or other projects, constructors oversee the organization, scheduling, and implementation of the project to execute those designs. They are responsible for coordinating and managing people, materials, and equipment; budgets, schedules, and contracts; and safety of employees and the general public.Construction managers direct and monitor the progress of construction activities, at times through other construction supervisors. They oversee the delivery and use of materials, tools, and equipment; and the quality of construction, worker productivity, and safety. They are responsible for obtaining all necessary permits and licenses and, depending upon the contractual arrangements, direct or monitor compliance with building and safety codes and other regulations. They may have several subordinates, such as assistant managers or superintendents, field engineers, or crew supervisors, reporting to them.

Construction Management as a College Major (Part 2 - Positions)

The variety of the available positions and job duties of new Construction Management graduates are tremendous although most graduates start off in a few standard positions. These positions are usually basic entry level field or office positions entitled something like Project Engineer, Assistant Project Manager, Assistant Superintendent, Office Engineer, Estimator, Cost Engineer, or Scheduler. Although an employee performing a position at one company, may have a different job description performing the same position title at another company. Construction Management majors get hired by all segments of the construction industry. This includes but is not limited to commercial construction, highway construction, marine construction, residential construction, industrial construction, hospital construction, mechanical construction, and electrical construction. Other employment can be in many subcontracting fields, suppliers, environmental firms, rental equipment, software representatives, working for owners of companies that build many of their own facilities, safety managers, and a host of others. Why is a Construction Management graduate so flexible and in such a demand. The Construction Management of America Association defines Construction Management as a professional service that applies effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost and quality. Construction Management is a discipline and management system specifically created to promote the successful execution of capital projects for owners. These projects can be highly complex. Few owners maintain the staff resources necessary to pay close, continuing attention to every detail--yet these details can "make or break" a project.With this type of background, any segment of the construction industry and other employers that hire Construction Management graduates have seen success in students applying their management skills across the industry regardless of the segment. Couple that with the U.S. Department of Labor – Bureau of Labor Statistic that within the next 10 years 58.4% of jobs in US will be construction related, it seems obvious why there is a current and future demand for Construction Management graduates across the industry.The U.S. Department of Labor currently notes that Construction Managers who work in the construction industry, such as general managers, project engineers, and others, increasingly are called constructors. Through education and past work experience, this broad group of managers manages, coordinates, and supervises the construction process from the conceptual development stage through final construction on a timely and economical basis. Given designs for buildings, roads, bridges, or other projects, constructors oversee the organization, scheduling, and implementation of the project to execute those designs. They are responsible for coordinating and managing people, materials, and equipment; budgets, schedules, and contracts; and safety of employees and the general public.In the Construction Management degree programs across the nation, Constructor is a common term students learn to call themselves. There is a national certification test offered twice a year for these newly minted Constructors. Level one called an Associate Constructor can be taken before graduation and then Level two called Certified Professional Constructor that can be taken some years later after attaining the required experience as a manager in the construction industry.

Construction Management as a College Major (Part 1 – Job Market)

There are about 60 Construction Management majors accredited by the American Council for Construction Education around the United States. Some programs are called Construction Science, Construction Technology, Building Construction Management, Building Construction Technology or something similar. Don’t let that fool you. As long as the program is Accredited by the American Council for Construction Education, it must meet a set of strict standards developed both the construction industry and by faculty of these programs.While the oldest program was started in 1935 at the University of Florida, most have proliferated across the nation since the 1970’s. Until the earlier 1990’s, most programs saw slow growth but most all graduates were employed either before graduation or shortly thereafter. During the 1990’s, the construction industry was impacted not only with a tremendous shortage in the craft’s performing the work but in the management end as well. Construction Management majors under go four-years of training in courses such as legal contracts, finance, estimating, scheduling, employee management, basic structural engineering, materials, and methods of construction. Thus preparing students to graduate and be productive for their employer the day they start work. With this background and the shortage in the industry, the demand for these graduates starting ten years ago has been tremendous. With the current U.S. Department of Labor – Bureau of Labor Statistics labor projections there is no end in sight for these graduates. Through the year 2012, the U.S. Department of Labor predicts that Construction is the only goods-producing sector in which employment is projected to grow and their will be an additional 197,000 construction management positions open.A recent article by CNN/Money called “Most Lucrative College Degrees” list the average starting salary for Construction Science gradates at $41,232 per year. This is higher then majors such as Civil Engineering, Business Management, Nursing, and Marketing to name a few.The word is getting out. Construction Management programs across the United States have seen enrollment growth doubling or tripling the size of their programs in the last five years. Some universities have limited growth of these programs, but a few who have not are pushing 700-800 majors.In order to attract these majors, the construction industry has responded with many efforts. Many companies offer students internships during any semester paying an average of $12.00 per hour with some moving expense. Companies come to campuses to recruit at job fairs just for the construction management majors. Many companies have included specific links on their websites for students to apply directly for internships and new graduate positions.Next time in part two, a description of the typical positions and job duties of new Construction Management graduates.