Engine for employment: Road projects bustle as other jobs remain scarce

Foreman Steven Risner, second from right, confers with masonry crew members Mark Maddy, left, Steve Williams, and Donny Williams as the work on replacing the deck on the State Rt. 24 bridge over I-475 in Maumee. THE BLADE/DAVE ZAPOTOSKY Enlarge | Photo Reprints

Widening and reconstruction of I-475 in West Toledo, which is to take about three years, currently has about 100 workers, and more are to be added. THE BLADE/LISA DUTTON Enlarge | Photo Reprints

Russell Castillo, operating a backhoe at the State Rt. 24 project, says 2002 was his last year of good income, but work has picked up this season. THE BLADE/DAVE ZAPOTOSKY Enlarge | Photo Reprints

Foreman Steven Risner, left, and Eric Miller prepare a concrete-pouring machine at the Maumee project. THE BLADE/DAVE ZAPOTOSKY Enlarge | Photo Reprints

After working in West Virginia, Steve Williams and five co-workers got started last week on a masonry job on the State Rt. 24 bridge over I-475 in Maumee.

The team from Oglesby Construction Inc. of Norwalk moves from one roadwork site to another, getting in hours and paychecks before winter sets in.

The employees for a subcontractor of Vernon Nagel Inc. of Napoleon, which is in charge of the $2.4 million project to replace the bridge deck, are expected to be done with their portion this week.

“It's been busy,” said Mr. Williams of Otway, Ohio, about 75 miles southeast of Cincinnati. He is a member of Laborers' International Union Local 809.

“The first of the year started out kind of slow, but in the spring it usually is until the contractors can get things together,” he added. “This year's bound to be better than last year was, that's for sure.”

Unemployment remains high both locally and nationwide, but one industry this Labor Day weekend is plugging along and by some measures is gaining momentum: road construction.

And the workers generally are paid well — typically $25 to $30 an hour, plus benefits.

As part of the American Recovery and Reinvestment Act of 2009, the U.S. Department of Transportation is spending $38 billion on 14,626 projects nationwide. That includes $1.1 billion for 473 projects in Ohio and $1 billion for 797 projects in Michigan, according to the federal department.

In July, 9,476 construction workers on stimulus-funded jobs in Ohio were paid more than $13.4 million, compared with just 1,478 construction workers paid about $1.9 million a year earlier, according to the latest information from the Ohio Department of Transportation.

The Ohio transportation agency, meanwhile, is investing more than $2 billion — record amounts — in construction projects for each of the 2010 and 2011 fiscal years. This season, Lucas County has 15 projects worth about $340 million, including four with stimulus funding, according to the state transportation department.

Some contractors and workers agree additional roadwork construction — and more jobs involving higher-dollar projects and more labor-intensive work — would keep more tradesmen employed.

“It's not really as busy at it appears,” said John Wagner, vice president of E.S. Wagner Co. of Oregon. “There's a lot of projects that are small-dollar projects.”

It's hard to say whether stimulus funding has helped the 500-employee Oregon firm that does work in Ohio, Indiana, North Carolina, and South Carolina, Mr. Wagner said.

E.S. Wagner is the contractor for the $63.9 million I-475 widening and reconstruction project in West Toledo, but no stimulus funds are involved, he said.

The I-475 project, which will take about three years, currently has about 100 E.S. Wagner and subcontractor employees on site, Mr. Wagner said. More workers will be added as the project ramps up, he said.

What really would help the road construction industry nationwide is passage of a new six-year federal transportation bill, which would allow states and others to plan long-range projects, Mr. Wagner said.

Russell Castillo, a member of International Union of Operating Engineers Local 18 who has worked four months for the Nagel firm, said 2002 was the last year in which his earnings were really good.

Overtime was bountiful then, which helped build a financial cushion for the inevitable winter lay off, but work did pick up this season, said the Toledoan, who was operating a backhoe last week on the State Rt. 24 bridge project.

“I've been working more steady,” Mr. Castillo said. “Since I've been with Nagel, it's been good.”

Indeed, seasonal employment at Nagel has increased from about 40 workers a few years ago to more than 60, said Scott Nagel, company vice president.

“They're really, really happy to be employed right now,” he said. “It looks good for next year, too, actually.”

Between 60 percent and 70 percent of Nagel's business once involved excavation for projects such as subdivisions and stand-alone buildings. This year, however, such work has made up less than 10 percent of business. The firm, he said, has filled the gap with more road construction jobs.

“Obviously, the private stuff kind of dried up — there's not a whole lot in the works,” Mr. Nagel said.

“There's been quite a bit of work there for us,” he added of stimulus projects. “It's really helped us out tremendously.”

Nagel is involved with various bridge and road projects, Mr. Nagel said.

About 20 employees a day have been working on the State Rt. 24 bridge project, which began in mid-May and is expected to wrap up in mid-September. Besides laborers and machine operators, carpenters, ironworkers, painters, and others are on the job, said Tim Gerken, Nagel's site supervisor.

“A job like this employs a lot of people, when you think about it,” he said.

Laborers Local 500 typically has 1,500 members working on road and building construction projects, but that number stands at about 1,150 now. Stimulus funding has helped get members working again on road projects, and more work is coming, said Phillip Copeland, business manager.

“That's what saved us,” said Mr. Copeland, adding some members had run out of unemployment benefits before starting work again.

Mr. Williams, the Oglesby Construction employee on the State Rt. 24 project, and others said one drawback to road construction is the traveling that can be involved. The team he is on covers several states.

“You've got to travel these days to make a living,” said Steven Risner of Norwalk, foreman for Oglesby Construction who heads the six-man team.

Jobs are seasonal, too, so workers need to save up to help augment unemployment benefits while laid off in winter.

But, road workers agreed, they have jobs while others are unemployed, in part because of federal stimulus funding.

“That's what keeping all of these road jobs open,” Mr. Williams said.

Contact Julie M. McKinnon at:

jmckinnon@theblade.com

or 419-724-6087.