Emily Stover DeRocco Speech, Employment & Training Administration (ETA)

ROOFTOPS MAKE GREAT FOUNDATIONS
San Diego, California
February 24

Thank you very much for inviting me to be with you today. I hope you get a chance to see the Hotel del Coronado while you're here-it has got to be every roofers dream. For me, it is good to have a reason to leave Washington, D.C., in February for San Diego. It's even better to have a chance to share with you, if you'll forgive the expression, the view from America's rooftops-a view that is beginning to look quite good.

Simply put, the economy is strong, and it looks like it is going to get a lot stronger. The job outlook, especially in the construction and roofing sectors, is very encouraging. Yes, there are challenges ahead - but they are challenges we can meet and overcome. Let me start with the big picture. Production and new orders are up for industrial firms. The Institute of Supply Management's index of new orders in manufacturing is at 77.6, the highest level since 1950-simply put, the best in over half a century.

Here's some more good news. Productivity is growing at the fastest pace in 40 years. Our productivity rate is simply astounding. It rose 5 percent in 2003, about double the average rate from 1995-2000. The fact is that America is the most productive economy in the world. Each U.S. worker produces an average of $71,600 in output. In contrast, Japanese workers produce only $51,600 and Korean workers just $34,600.

Retail sales (excluding autos) grew at an average 9.1 percent annual rate over the last half of 2003. That means that Americans are not only making money, they are spending it. Consumer confidence is at its highest level in 18 months. And I'm sure you will agree that confident consumers are a roofer's best friend.

I'm not breaking news here by announcing that many of you have been up to your chins in new projects. Housing construction in 2003 was at its highest level in 25 years. Home ownership is at an all time high of 68 percent.

That's not all. Interest rates remain near their historic low, which means the construction industry is going to stay strong, and probably get stronger. That means new jobs, and lots of them. The Bureau of Labor Statistics estimates that total employment in the construction industry will increase from 6.7 million jobs in 2002 to 7.7 million jobs in 2012. That's an increase of over 1 million jobs.

What is the place for roofers in this job expansion? The Bureau of Labor Statistics projects that total employment for roofers will rise from 166,000 in 2002 to 197,000 in 2012, an increase of over 30,000 jobs. And another 40,000 jobs will be available through turnover and attrition, for a total of 70,000 jobs.

You know these are good jobs. They will reward workers and their families with good pay, allowing them to put a secure roof over their own heads. Our challenge is to make sure we have the workers-and the right workers-to fill those jobs.

That is our challenge. It is not a problem. And I know we can come together to meet this challenge. In fact, that process has already begun.

This fall and winter, representatives from industry associations (including the National Roofing Contractors Association) met with the BRG to highlight the challenge before us. Here are some of the conclusions.

We know that the industry faces a significant shortage of workers.
We know that it is difficult to recruit women into the construction workforce and even more difficult to retain them.
We also recognize that immigrants - who comprise a significant percentage of the industry's workforce - often lack language skills, which can cause safety issues and affect progress along the career-ladder.

We recognize these challenges. And we know that together we can find solutions.

On the industry side, trade associations, employers, and labor management organizations are heavily involved in apprenticeship programs, including "boot camps" to teach new skills, and get people on the job as quickly as possible.

We're also seeing an expanding willingness to provide child-care on the job site, especially valuable in attracting women to the industry, and keeping them.

Another way to retain good workers is by recognizing the outstanding contributions they make to your industry. Your Most Valuable Player awards are part of that, acknowledging the hard work and commitment that individuals make to the roofing industry.

This administration is also fully dedicated to meeting this challenge. The President has established the High-Growth Job Training Initiative, which will focus on several areas of the economy, including the construction sector. Our goal is clear. We hope to ensure that every available worker has the education, training, and skills to fill the jobs that the economy creates, including the 70,000 that will open up in the roofing industry. We are dedicated to seeing that no worker is left behind and that growing industries have the skilled workforce they need to thrive.

And we are going to educate and use the $15 billion public Workforce Investment System anchored by local One-Stop Career Centers. The President has charged us with ensuring this system works for you. The One Stop Career centers are overseen by local boards made up of business representatives and educators. These boards know the local economy. They know where the job growth is, and where the growth will be in the future. They know what types of training and education are needed now, and what will be needed in the years ahead. They also can access the best workers for these jobs.

These one-stop centers are working with people just coming out of school; with workers displaced from another industry; and with those simply interested in taking up a new challenge.

The roofing industry, like every other industry, is in serious competition for the best workers. This brings me to the softer issue of image. We need to make sure that workers - and especially young workers who are just beginning to think about long-term careers - realize what the roofing industry has to offer. We have to educate them so that those who might never have thought about this sector of the economy say to themselves - the roofing industry could be for me.

Many workers, and especially young people, are simply unaware of the vast array of opportunities this industry and others in the skilled trades have to offer. Soon, the Administration, the construction industry and the trade unions will partner on a new Skilled Trades Initiative.

It is vitally important to convince Americans that joining the skilled trades workforce is a good career choice. We need to convince workers that this is the path to a good income, satisfying work and personal independence.

We need to raise this industry's profile. We need to tell the good news. We need to raise the roof.

As I said earlier, President Bush is committed to the working men and women of America and recognizes the construction industry as a pillar of our economy.

In his Labor Day address, President Bush expressed his optimism in America's future - an optimism he says stems from what he has seen of the American spirit - "the willingness to work hard, the willingness to place family above self, and the willingness to serve something greater than yourself." These aspects of the American spirit have fostered the creativity, the ideas, the innovations and inventions that have historically made our economy prosperous and our jobs secure. If we invest wisely in America's workforce, we'll be prepared for every opportunity to build the next rung on the ladder of economic growth, job creation, and national strength.

We do have challenges before us. But we know that we can meet these challenges. And as we succeed together, we are not only making the roofing industry stronger, we are making the economy stronger, and the lives of workers and their families stronger. As it turns out, rooftops make great foundations.

Thank you very much.