CHANGING JOBS:
Frederick's Employment Future (2 of 3)
Population boom feeds construction
By JOSEPH M. DELEON News-Post Staff
jdeleon @ fredericknewspost . com
FREDERICK — Construction and real estate are among the best employment prospects in Frederick County, with the county's growing population driving expansion in both areas. These industries reflect a mix of skill levels, some of which can be learned on the job, said Lisa Coblentz, spokeswoman for the staffing agency Manpower.
The growth from these businesses also brings spending that trickles into the economy.
“As our population grows and our wealth increases, there will also be more demand for entry-level service jobs,” Ms. Coblentz said.
Those jobs will likely be in the hotel, restaurant and retail industries, which continue to provide stable employment to people with lower-level skills, she said.
Housing and jobs
For Billy Shreve, a commercial and residential real estate agent, the biggest question in his industry is whether jobs or housing come to an area first.
“The question is as timeless as the chicken or the egg,” he joked.
Regardless of whether the job market drives the housing market, housing prices in Frederick County have surged, making it difficult for people who want to live and work in the same place.
When Mr. Shreve started in 1994, new single homes in Frederick County sold for an average of $140,000. Today, they commonly sell for more than $500,000.
“It's the responsibility of the government to assure affordable and adequate housing for the basic workforce of Frederick, otherwise we will turn into an elitist community with no room for restaurant and office workers,” said Mr. Shreve, who is running for county commissioner.
Mr. Shreve lobbies county officials to reduce fees associated with building permits and infrastructure, such as sewer hookup. Cheaper fees could reduce the cost of a $140,000 home by more than $30,000.
More jobs have been created in Frederick than houses built, which created an imbalance that will take years for the housing industry to satisfy, said Bryan Patchan, executive officer of the Frederick County Builders Association.
The problem could get worse. Rising interest rates and cautious spending by consumers are slowing the pace at which houses are being built compared to the past few years, Mr. Patchan said.
Mr. Shreve and Mr. Patchan agree that the construction industry is the perfect example of trickle down economics.
“The construction industry supplies more than 15 percent of the workforce in Frederick County, and they send their money right here,” Mr. Shreve said.
An average of 24 contractors participate in the construction of a new home.
“The ripple effect through the economy from buying a new home to remodeling is more substantial than people think,” Mr. Patchan said.
Nationwide, about 4.4 million construction workers and mechanics spent more than $187 billion in 2004, according to the Bureau of Labor statistics.
Commercial vs. residential
Michael Mock, vice president of business development for commercial builder Morgan-Keller, Inc. said retail and commercial construction often follows a housing boom.
“Many new housing developments are often 10 miles away from the nearest shopping center,” he said. “Those developments need a plethora of services, so retailers and more jobs are quick to follow.”
Mr. Mock said residential and commercial developments often follow different cycles. When residential developments slow, commercial developments bloom.
Mr. Mock said one recent change in residential development that contributes to employment comes from baby boomers. People have long downsized their homes shortly after retirement.
“Where people used to leave their 4,000- and 5,000 square-foot house for a 1,000 square-foot home, now they are going to something like 2,500 square feet,” he said.
Mr. Mock explained baby boomers are used to amenities such as a two car garage and a place for grandchildren to stay during visits.
“Making those bigger houses employs more people for a longer period of time,” he said.