1. Safe, Skilled, Trained, Viable, Participating Citizen Workforce
Workforce Panel Presentation
Safe, Skilled, Trained, Viable, Participating Citizen Workforce
Frank Yancey
Kellogg Brown & Root
CII Annual Conference 2001

2. Workforce 2000 Reality check . . . Record low unemployment
Low inflation
Labor demand – blue collar
Steady to strong growth in heavy industry construction
4.5% unemployment rate
Inflation is under control
Steady, strong demand for blue collar labor
Sources: U.S. Department of Labor (DOL)
Bureau of Labor Statistics (BLS)

3. Workforce 2000 Reality check . . . Labor shortages Demographic shifts
Industry reputation and perceptions
Investment in training
Wages past and present
Felt by all general contractors
Fewer year olds entering our industry
Influenced by our history and their perceptions
Slashed training budgets
The abandonment of our workforce
Sources: U.S. Department of Labor (DOL)
Bureau of Labor Statistics (BLS)

4. Workforce 2000 Percent of Labor Force by Age Group
16-24 years - first increase in 25 years Albeit negligible
Continue “graying” workforce . . .
45-54 and 55+ are increasing their numbers percent of workforce
Sources: U.S. Department of Labor (DOL)
Bureau of Labor Statistics (BLS)

5. Workforce 2000 Industries with the Largest Employment Growth 1998 - 2008
Avg. annual Jobs (000s) rate of Industry Description Change change
Computer/DP services 1, , ,
Health services 1, ,
Residential care ,
Management and 1, , public relations
Nursing and personal 1, , care facilities
Hospitals 3, ,
Construction 5, ,
No surprises . . .
Computer and data processing is fastest and greatest mover
Construction severely lagging
Source: Monthly Labor Review
Bureau of Labor Statistics (BLS)

6. Workforce 2000 Image Problem
Job Title Rank
Roustabout 246
Cowboy 247
Construction Laborer 248
Dancer 249
Lumber Jack 250
Out of 250 different job titles, Construction Laborer was ranked 248 !
Factors considered for ranking
Income
Stress
Physical demands
Potential growth
Job security
Work environment
We must present a new image that represents the career opportunities of our industry!
Source: “Job Ranking Almanac,” Les Krantz

7. Workforce 2000 Average Trainee
27 years old
Minority
Will stay less than two years
Not a high school graduate
Non-skilled
Below poverty level
Typical entrant to our industry is
Above average age you would expect and hope for
Unskilled and non-high school graduate
Living at or below poverty level
Source: Process Safety Center

8. Wage Rate Data Source: American Compensation Association Salary Survey
Actual rate is KBR historical top craft rates
% increase is KBR % increase realized
Actual w/4% is where top craft rates would be today had they received approximate industry average
Actual Rate
Actual % Increase (11.0)
Actual w/4%
Exempt Salaried % Increases
Source: American Compensation Association Salary Survey

9. Income Model for Typical Craftsperson
Assumptions
Journeyman earning $17.00/hr. on a standard 40 hour work week. Employee is married with two children, claims two dependents during the tax year and has two vehicles, one paid for and the other financed

10. Income Model for Typical Craftsperson
Gross Annual Pay (2080 X $17.00) $35,360
Less Tax Obligations
Federal Income Tax $2,964
Social Security $1,971
Medicare Tax $ 460
TOTAL TAX OBLIGATION $5,395
NET ANNUAL PAY $29,965
TOTAL TYPICAL EXPENSES $28,476
NET DISPOSABLE INCOME $1,489
PER YEAR

11. Income Model for Typical Craftsperson
Typical Expenses
Expense Month Year
Rent/Mortgage $500 $6,000
Utilities $300 $3,600
Vehicle Note $250 $3,000
Vehicles Insurance & Liability $125 $1,500
Fuel, Oil, Grease $200 $2,400
Misc. Charge Cards $100 $1,200
Grocery/Dining $600 $7,200
Health Care Insurance $298 $3,576
TOTAL EXPENSES $28,476

12. Income Model for Typical Craftsperson
Note: The $1,489 Disposable Income spread over the 52 week period allows the employee an average of $28.63/week for miscellaneous expenses. Please note that NO allowance was taken for the employee to apply towards retirement and savings.

13. Income Model for Typical Entry-Level Helper
Assumptions
Helper/apprentice earning $10.00/hr. on a standard 40 hour work week. Employee is married with two children, claims two dependents during the tax year and has two vehicles, one paid for and the other financed.

14. Income Model for Typical Entry-Level Helper
Gross Annual Pay (2080 X $10.00) $20,800
Less Tax Obligations
Federal Income Tax $ 780
Social Security $1,068
Medicare Tax $ 250
TOTAL TAX OBLIGATION $2,098
NET ANNUAL PAY $18,702
TOTAL TYPICAL EXPENSES $28,476
NET DISPOSABLE INCOME $ (9,774)
PER YEAR

15. Income Model for Typical Entry-Level Helper
Typical Expenses
Expense Month Year
Rent/Mortgage $500 $6,000
Utilities $300 $3,600
Vehicle Note $250 $3,000
Vehicles Insurance & Liability $125 $1,500
Fuel, Oil, Grease $200 $2,400
Misc. Charge Cards $100 $1,200
Grocery/Dining $600 $7,200
Health Care Insurance $298 $3,576
TOTAL EXPENSES $28,476

16. Income Model for Typical Entry-Level Helper
Note: The $(9,774) shortfall in Disposable Income spread over the 52 week period allows the employee an average deficit of $(187.96)/week for miscellaneous expenses. Please note that NO allowance was taken for the employee to apply towards retirement and savings.

17. San Francisco, California
CII Annual Conference 2001
San Francisco, California