Contractors building work force from within.

• Position: Steve Gennett interviewed - Brief Article - Interview

Steve Gennett is executive vice president and CEO of Carolinas Associated General Contractors, a trade association of contractors, subcontractors and building suppliers. Its 3,400 members perform 80% of nonresidential construction in the Carolinas, Gennett discussed industry trends.

BNC: What's the construction outlook for the rest of the year?

Gennett: School construction continues to develop. Charlotte says it's going to need in the neighborhood of 25 education buildings the next several years. I just went to a meeting in Greensboro with the superintendent there on a $200 million program for new structures. Plus, there's the bond issue for the UNC system -- $3.1 billion there. This all bodes well for the economy.

What about the current downturn?

It's perhaps just the calm before the storm. Some of the people who look at data in our construction barometer feel that's the case. Contractors have been working at such a frenetic pace, a chance to get our breath and reassess where we are and realign ourselves for additional work is helpful. By the first of the year, we're going to be back in a pretty healthy economic environment for construction, and that should remain strong three or four years.

How have contractors dealt with tight labor?

The industry, prior to this time, did not have a real serious commitment to an individual firm's obligation to grow and expand its work force and develop construction craftsmen. Now we see firms employing human-resource-development directors to recruit and train employees, define a career path and create opportunity for people as they enter our industry.

Are you talking about on-the-job training?

We spend a lot of time trying to orient our children to go to college, and we forget there are a lot of opportunities -- superintendent, foreman, estimator -- that pay as much as some college professions. That's the first level, where those people come out of high school and they've had some basic orientation to a particular trade. Then we connect those young people with a contractor. That employee would start in a trade and then get related training and move toward some kind of designation as a fully trained or journeyman carpenter or electrician. We use the community-college system to do that.

What hurdles do you face in recruiting?

Many people perceive this as an unsafe industry. We had a booth with construction-trade information at a shopping mall, and we saw parents go up and yank kids away and tell them...