Contractors, laborers head out of town for work
New construction in San Benito County is nearly non-existent,
local construction workers agree. To stay in business, San Benito
County construction workers must bid on jobs in the San Jose and
East Bay that are becoming increasingly competitive.
Contractors, laborers head out of town for work
New construction in San Benito County is nearly non-existent, local construction workers agree. To stay in business, San Benito County construction workers must bid on jobs in the San Jose and East Bay that are becoming increasingly competitive.
Anthony Silva, co-owner of AJS Construction in Hollister, is a general contractor. He has worked in the construction industry for 30 years.
Business is tougher now than it was during previous housing slumps, Silva said.
“It’s not going worth a darn,” Silva said. “I’ve been though a few slumps, but nothing like this. Even through the past slumps, we’ve always stayed busy.”
Silva is working on one job, but it is almost complete.
“I’m bidding on a bunch of things, but there is so much competition out there because everybody is so hungry right now,” Silva said.
Silva had planned to retire in a year, but that might not happen.
“It just depends on how the economy goes and what I’m going to need to get to that point,” Silva said. “Even though my thoughts are there, I’ll probably be doing some work.”
Silva is not worried about his own business. AJS Construction is very well established, Silva said. He is worried about all the young contractors.
When construction is slow, it can start a chain effect, Silva said.
“If this doesn’t pick up,” Silva said, “then the suppliers that we buy from, they’re going to start hurting and it’s going to get even worse. Then the layoffs start.”
Most of the available work is in the public sector, said Pat Christensen, owner of Christensen Construction in Hollister.
“Residential is dead,” Christensen said.
Christensen is a general engineering contractor. He has been in business since 1982.
“I build roadways, pipelines,” Christensen said. “I don’t do buildings.”
Public construction jobs, work on schools or for the state or federal government, are more competitive than in the past, Christensen said.
“It’s getting a lot of attention from people who did the residential,” Christensen said. “It’s going to be crummy for anyone.”
A lot of construction workers in the county are out of work, Christensen said.
“The 831 area code is the worst right now,” Christensen said. “There’s just hundreds and hundreds of people out of work. There just isn’t any.”
Hardest hit are laborers, Christensen said.
The non-professionals are being weeded out, Christensen said.
The housing crisis is compounded in San Benito County by the sewer moratorium. There has been no new residential construction in Hollister for six years.
New home sales have slowed down since the peak of the housing market in 2005. In 2006, 497 single family residences were sold.
In 2007, 286 single family residences were sold.
The number of building permits has slowed down recently, said Art Henriques, planning director for San Benito County.
A few years ago Ignacio Velazquez, owner of American Electric, employed between 200 and 250 people. Today, he has 100.
“It’s been gradual,” Velazquez said. “It’s been happening for the last couple of years, basically.”
McKinnon Lumber Co., Inc. is the oldest business in Hollister, said John Barrett, the owner.
“Like everything else with everybody else, it’s on the slower side,” Barrett said. “There’s not much activity.”
People are not remodeling or upgrading their homes, Barrett said. Some lost their jobs. Others are facing foreclosure.
“Why do home improvements when you might be facing something down the road?” Barrett asked. “They’re just sitting tight just to see what’s going on, I think.”
The International Brotherhood of Electrical Workers, local union 234, represents electricians in Monterey, Santa Cruz and San Benito counties.
“San Benito has always been a little tough because the water and the sewer has not kept up with the times,” said Ken Scherpinski, business manager and head of local union 234.
With the sewer moratorium winding down, there is potential for growth in the county, Scherpinki said.
Business will improve in 2009, according to consultants from the McGraw-Hill Companies, Scherpinki said.
“My projections for my tri-county area do show negative construction growth for ’08,” Scherpinki said, “but those projections also show a 14 to 20 percent increase in construction for ’09.”
