Concrete Masonry Group Lauds Financial Incentives to Solve Skilled Workforce Needs.

WASHINGTON--(BUSINESS WIRE)--May 14, 1999--

United States Congressman Jim Talent (R-MO), chairman of the House Committee on Small Business, introduced legislation today that would establish a special tax credit for small employers.

The Skilled Workforce Enhancement Act of 1999 would affect small employers who provide full-time training to apprentices in certain highly skilled trades, including masonry. The credit would be $15,000 per employee per training year, up to four years.

The National Concrete Masonry Association (NCMA) prevailed upon Rep. Talent to include the masonry trades in the skills targeted for preferential treatment. The tax credit would provide a strong financial incentive for small business employers to initiate or expand job-site training in the targeted trades.

"The U.S. construction economy will face troubling times ahead if we don't take swift, effective steps to address growing national shortages in critical skilled trades. Introduction of this bill marks the federal government's first step in solving this problem and reversing current trends," says Randall Pence, government relations representative for NCMA.

"We need to remember that certain basic industries have a ripple effect throughout the economy," said Pence. "Industries build upon other industries. In addition, it takes several years to train masons to build the homes, schools, office buildings and other structures where we live and work. The nation has a huge interest in making sure the supply of qualified skilled workers, which cannot be grown overnight, will meet the demands of the 21st century."

NCMA and other groups have told Rep. Talent that America's aging workforce, demographic trends, the impact of higher education programs and the draw of emerging high-tech employment opportunities are combining to create a growing shortage of highly skilled workers in key industries in the U.S. economy.

In many cases, these are basic industries that provide the foundation for economic growth throughout the economy. Workforce shortages in such foundation industries would have an important limiting impact on the economy at the local, state and federal levels.

Workforce shortages in these industries could also have a deleterious inflationary impact that would affect all customers for these skills, both public and private sector.

NCMA has noted that the national trends among new masons are disturbing. Studies indicate that the average age of masons is increasing sharply, as is the average age of apprentices. Consequently, mason training is the leading concern of the masonry industries in the view of company executives across the country.

"Learning a skilled trade is often a life-long career decision, and it requires a costly training period several years in length, risky for both the employer and the apprentice," NCMA President Mark Hogan added. "It is important to get mason training to those high-quality entry-level employees coming out of high schools and post-secondary schools."

While industry leaders agree on the significance of the training dilemma, they have been largely unable to stem the tide. The Talent bill would leap beyond the problem with a national tax incentive approach to reinvigorate employer-based apprenticeships.

The bill has been referred to the House Ways and Means Committee for consideration. Pence expects similar legislation to be introduced soon in the U.S. Senate. Pence said that he would be pushing hard in Congress to add Talent provisions to a larger tax bill that may wind its way through Congress later this summer.

NCMA is the national association representing the manufacturers and suppliers of concrete masonry products and services. The association carries out a wide range of activities including marketing, engineering, technical research and government relations on behalf of its members.