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NW
49534 Grand Rapids, MI
November 18, 2014
Dave and Todd Sturrus
2500 3 Mile Road
49504 Grand Rapids, MI
Dear Mr. Dave and Todd Sturrus:
The attached report analyzes the aging work force of your company, Grand Valley Concrete Products.
Through much research and observation, I have noticed that Grand Valley Concrete Products has an
aging work force. An aging workforce can mean many different things for a company. In the report, I
included what I believe an aging workforce means for your company and the steps that I suggest you
should take to address the situation.
In my research and observation of your company, I found three issues that are directly linked to your
aging labor force. The three issues that I discovered were that there is a large difference in the age of
your employees. You have a lot of older workers, but only a few younger ones. This could cause issues
for you down the road. Another issue that I noticed was that your employees seem to be particularly
unhealthy. Many of your employees are suffering from chronic pain as well as sustaining injuries. This is
costing your company money by having to pay for health care and you are losing productivity because
your employees are working much slower. Finally, I noticed that you have a lack of young employees.
When your older employees begin to retire, this will create a void leaving you with a lack of qualified
employees.
After uncovering the issues dealing with your aging work force, I recommend you install a mentor
program to educate your younger employees, you would hold more frequent, more detailed safety
meetings, and finally you would reward younger workers for returning back for another summer of
work.
I appreciate you taking time out of your busy schedules to review the report, and my suggestions to help
improve Grand Valley Concrete Products as a whole. I look forward to hearing back from you soon, and
would be more than happy to discuss the contents of the report.
Sincerely,
Bradley Sturrus
Attatchment
Prepared for:
Dave Sturrus and Todd Sturrus,
Owners of Grand Valley Concrete Products
Prepared by:
Bradley Sturrus
Table of Contents
Conclusion ...............................................................................................................................Pg. 7
Fact Sheet ................................................................................................................................Pg. 8
Works Cited ..........................................................................................................................Pg. 10
Executive Summary
The purpose of this report is to note the possibility of issues that could occur in the future at
Grand Valley Concrete Products because of the companys aging labor force. Through my research and
observations of the company, I came up with three problems that are arising because of the companys
aging labor force, positives and negatives of having an aging labor force, and a suggested course of
action to address the issue.
There were three issues I noticed with Grand Valley Concrete Products aging workforce. First,
there is a major gap forming in the ages of the companys employees. The average employee age at
Grand Valley is 45 years old. However, out of the 28 total employees, there are only six individuals under
the age of thirty five, but there are 15 employees over the age of 45. Considering the average retirement
age at Grand Valley is approximately 57, this creates a huge age gap issue. When the older employees
begin to retire, it is possible it leaves the company shorthanded and unable to effectively fill the gaps
that are opening. Second, the employees at Grand Valley Concrete are experiencing health issues at an
alarming rate. This causes three things: early retirement age, lessened production from each employee,
and extra health care costs for the company. The final issue I noticed was a lack of young workers in the
labor force.
There are both positives and negatives in having an aging labor force. One of the positives are
that in an aging work force, your employees are typically experienced, and possess many skills that have
been acquired over the years. Another positive of having an aging work force is that employees tend to
be loyal to the company and committed to the job. They typically are dependable, and you can count on
them being to work on time, every day. Some of the drawbacks to having an aging labor force however
is that their productivity will not be as high as a younger workers might be, and there may be more
costs involved in employing an older worker.
Finally, I will give my suggested course of action to address this potential issue. To begin this
course of action, I suggest that Grand Valley Concrete installs a mentor program. This way, the younger
employees will have a chance to learn from the seasoned veterans. If the younger workers can learn
from the people who have been around for a while, it will help bridge the age gap. This way, when
employees begin to retire, it shouldnt be a detriment to your company. Next, I would begin to hold
more frequent, more in depth, safety meetings. If employees can learn simple things like proper lifting
technique, and proper posture, you can potentially lower the injury rate at Grand Valley Concrete
Products. If the injury rate is reduced it will mean less health care costs for the company and longer
tenures for employees. The final step I would recommend you to take in order to minimize the potential
issue would be to reward young employees for coming back for a second or third summer. If you begin
to do this, I believe your turn over rate for summer employees will be much lower. If you can interest
young workers in your company by bringing them back for multiple summers, I believe that you will find
a greater number of these young workers may seek full time employment from you after they graduate
from high school, rather than pursuing other options.
In completion of my research and observation, I truly believe that the implementation of my
suggested course of action will help eliminate any potential issue that could form from an aging work
force.
Introduction
This report highlights the importance of a strong, healthy labor force at Grand Valley Concrete
Products and documents the issue of its aging labor force and the many effects it could have on the
company. The purpose of this report is to provide the owners of Grand Valley Concrete Products with
the facts and information concerning its aging labor force. Along with these facts, a suggested course of
action will be given for your consideration.
Background
As you know, Grand Valley Concrete Products has been a family owned and operated company
since 1936. Since then, you have established yourselves as a leader in the precast concrete industry
through a continued focus on quality, service, and customer-centered values. To be able to accomplish
these things throughout the years, Grand Valley Concrete Products has depended on, and been blessed
with, a loyal, dependable labor force. For many years, the same loyal employees have been willing to
work hard day in and day out. This labor force is very talented and has the ability to create top-quality
products in a minimal amount of time.
However, Grand Valley Concrete is facing an issue. The work force as a whole at Grand Valley is
getting older at an alarming rate. As current employees are getting older, very few people have joined
on at Grand Valley. What this means for you as a company is that you have an age gap forming in your
labor force. Once your older group of employees reaches the age where they need to retire, you will be
left with a small group of employees, who have a dearth of knowledge and training.
This problem is not limited to Grand Valley Concrete though. The construction industry as a
whole is being affected by it. The reason for the lack of young workers in the construction industry is the
push from high schools to attend college. According to the Bureau of Labor Statistics, about 66% of high
school seniors in 2013 went on to attend college. As colleges tend to push students away from manual
labor such as the construction industry, it effectively narrows down the eligible workforce to one-third
of high school graduates. This age gap that is forming in the construction industry is what I hope to
address in this report, and hopefully give some viable options to help combat the growing issue as a
company.
Problems
Employee Age
At Grand Valley Concrete Products, the average employee age is increasing. Currently, according
to your employee records, the average employee is 45 years old. This average age of employees does
not paint an accurate picture of the current situation at Grand Valley though.
If you reference the chart shown, you will notice that there is a noticeable lack of younger
employees. With only 6 employees age 34 and under, 10 years from now you are facing a major
dilemma as the older workers retire, leaving their skills and knowledge with only a few qualified
individuals.
Number of Employees
55+
54-45
11
44-35
34-25
24-18
Knowing Grand Valley on a personal level, I know that you like to operate on a more low key
level. With this in mind, I believe that the best route for you would not be a full blown mentoring
program, but rather to assign each young worker that starts at Grand Valley to one of your better
employees, for example Gearald, Saul, Jorge, or Luke. Have these guys take the younger workers under
their wing and teach them everything they know.
Conclusion
Heavy research of the topic, and observation of Grand Valley Concretes labor force, has lead me
to the following conclusions. Grand Valley Concrete Products has an aging labor force, and a growing
age gap between older workers and younger workers. In the future, this issue could cause major
productivity problems for the company as older employees retire and create a void or a lack of good
employees that will be very difficult to fill.
In my observations and research, I believe I have found three steps that should be taken in order
to combat this issue. First of all, I believe that some sort of mentoring program needs to be put into
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place at Grand Valley so that older employees can share their traits, skills, and knowledge with the
younger employees. This way, when the older employees retire, they will leave behind all the
experience and knowledge they have gained over the years. Next, I believe that more frequent, more
rigorous Health and Safety meetings should be held. With this change, I believe that Grand Valley
Concrete Products will have healthier employees, who cost the company less, and are able to work to an
older age. Finally, I believe that you as a company should reward young workers for coming back each
summer. I believe this will save the company money in the long run, and will you gain more, young, full
time employees.
Fact Sheet
Grand Valley Concrete Products Aging Work Force
Grand Valley Concrete Products (GVCP) has a work force with many members nearing the age where
they could retire.
Note: Due to the nature of the work for most at GVCP, many employees do retire before the
retirement age of 62 or 67. A more realistic age to plan for is 57 (Average age of retirement for shop
workers at GVCP)
To give reference to the aging workforce issue, here is a list of employees, and their ages who are within
10 years of possible retirement.
Gerald: 50
Marcos: 47
Jorge: 44
Gordon: 51
Tim: 53
Chris: 48
Saul: 45
Ramon: 66
John: 44
Art: 57
Construction workers suffer from health issues at a greater rate than white collar workers of the
same age. They are 1.54 times more likely to have back problems, they are 2.18 times more
likely to not be able to reach/ extend arms up, and they are 1.67 times more likely unable to lift
10 or more lbs.
-These reported issues are likely related to the physically demanding tasks of the
construction industry.
As construction workers age they become more susceptible to injury, and become less
productive to injury. For example, demanding physical activity may be difficult for older workers
as they have a decreased cardiac output and a reduced tolerance for physical activity. Older
workers are susceptible to losing muscle mass and subsequently decreasing strength. Older
workers are more susceptible to chronic inflammatory disorders, like arthritis, causing limited
joint range of motion and function. Overall, the aging process can involve significant physical
changes that challenge a workers ability to perform physically demanding tasks, such as those
in construction, without incurring injury.
The construction industry is expected to need 25% more workers by the year 2022, and with
more and more students choosing to get a college degree, this means there will be a large
shortage of skilled labor in the construction industry in the next decade.
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Within the next 5 years, 31% of all construction companies estimate they will have a shortage of
tradesman, and laborers. 54% of constriction companies estimate they will experience these
shortages. In 15 years, the estimated number jumps up to almost 73% of all construction
companies.
According to the Bureau of Labor Statistics, from the year 2000 to the year 2010, college
enrollment increased 37%. From the years 2012-2023 college enrollment is expected to raise
another 14%.
Number of Employees
55+
54-45
11
44-35
34-25
24-18
Works Cited
Bureau of Labor Statistics. United States Department of Labor, 8 Jan. 2014. Web. 13 Nov. 2014.
Gonzales, Don. "Workforce trends in the construction industry ." http://www.zurichna.com/. N.p., n.d.
Web. 9 Nov. 2014.
Hanah, David. Personal interview. 11 Nov. 2014.
Schwatka, Natalie V., Lesley M. Butler, and John R. Rosecrance. "An Aging Workforce and Injury in the
Construction Industry." Oxford Journals 34.1 (2011): 156-67. Web. 9 Nov. 2014.
Welch, Laura. "The Aging Worker in the U.S. Construction Industry." Occupational Health and Safety.
N.p., 1 Mar. 2010. Web. 9 Nov. 2014.
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