Construction industry leads area job growth

Last year, Clark County builder Jon Girod had a backlog of just six new home projects on the books. This year he has 30.

Girod, who does business as Quail Homes, said the housing turnaround in the area during the past 12 months has meant adding staff at all levels of his organization.

“I’ve literally doubled the people working for me ... designers, drafters, office personnel and construction people,” Girod said. “Externally, some of our subs and venders were not geared up for the market change. It’s been a struggle out there (finding people).”

With offices in Minnehaha and a model home at Camellia Estates in Battle Ground, Girod is not alone in adding workers.

Clark County’s construction industry – both residential and commercial – has been a highlight of the county’s improving job market this year. The sector created 800 new jobs through October for an 8.4 percent annual growth rate. That’s nearly three-times the county’s year-over-year increase of 3.1 percent, said Scott Bailey, labor analyst for the Washington Department of Employment Security. In his most recent report, Bailey describes the local construction industry as “hot” with the outlook for continued strong growth.

Turnaround year

Clark County saw a big turnaround in its jobs picture in 2013 after four years of decline and struggle. The year-long job growth rate, now trending at about 2.7 percent, is the best since October 2007, Bailey said. But even with the recovery in county employment at 134,800 it is still below the peak of 136,200 set in early 2008.

Finally, the county is generating jobs at a decent rate, Bailey said.

Contributing to the economic improvement is an uptick in local per capita income and in retail sales at department stores, restaurants and small businesses throughout the county.

The improving-economic picture helped the homebuilding industry. Permits for home construction jumped in 2013 for both single-family and multi-family residential projects. Permits had peaked in 2005 at about 2,300 then plummeted to less than 500 for all of 2009. Total permits filed this year will reach about 1,250.

Home prices also turned around with an average increase this year of about 12 percent to $160,000, according to the Case Shiller Home Price Index.

For builder Girod, that’s all good news.

“We’ve seen a steady increase in business this year,” Girod said. “It’s a big change from 2008 when we went for nine months without a single sale. Everyone is now feeling that business is expanding.”

Most active homebuilding areas: Camas, Felida-Salmon Creek, Brush Prairie and Hockinson, Girod said.

Other sectors

Construction wasn’t alone in adding jobs this year. Manufacturing, which saw strong expansion in 2012, added another 400 new jobs in the 12 months through October. Strongest area of manufacturing job growth was in durable goods, which includes businesses that make such items as electrical equipment, primary metals, furniture and building materials (glass, bricks and concrete).

Other areas of growth included retail-wholesale trade, transportation and utilities, up 1,100 jobs or 4.5 percent; financial services, up 300 jobs or 4.6 percent and leisure and hospitality, up 600 jobs or 4.8 percent.

Local government, which includes K-12 schools and other local government, added 700 jobs through October. Of those, 500 new jobs were related to schools. State government employment in the county dropped 200 jobs, as did federal employment, down 100 jobs.

Overall Clark County employers added 4,100 new jobs through October for a monthly 3.1 percent increase, the best job performance since 2007, Bailey said.

Clark County 2013 Employment Profile:

Job Sector    Total jobs    Annual increase    Growth Rate

Construction    10,000    800    8.7%

Trade (retail/wholesale)    25,800    1,100    4.5%

Leisure-hospitality    13,000    600    4.8%

Manufacturing    13,400    400    3.1%

Government    24,200    400    1.7%

County Total    136,800    4,100    3.1%