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Indiana Construction Industry Union Statistics

Of the 175,000 construction workers in Indiana 22% belong to a union. Therefore, almost 78 out of every 100 construction workers in Indiana do not belong to a labor union.

Of the 17,355 contractors in the State of Indiana 11%(1,930) are union contractors.

Of the 1,956 contractors in Marion County 14.5% (285) are union contractors.

Union workers and contractors whose numbers are in the minority of the industry should not receive set asides, corporate welfare or a monopoly that PLA's provide. All Hoosiers deserve the opportunity to compete on public projects of which they pay taxes.


Economic Impact in Indiana

Studies consistently show that PLA's drive up costs.

Costs are typically higher with a PLA:

1. By reducing competition, costs increase. Studies show that on average 30% fewer contractors bid on PLA's.  Reports on the Lucas Oil Stadium had some contracts with only one bidder requiring approval from the legislature.
2. When the bid list is short, less likely the need to "sharpen your bidding pencil".  Cost overruns are more likely because of less accountability from competition.
3.  Compared to the same project in the competitively bid private sector studies show cost differences of 10-30% higher for public projects.
4. Even when union wage rates are adopted, costs can be more competitive including merit shops because merit shops use more efficient methods of cross training, flexible worker classifications, and flexible work hours.

  • Indianapolis Public Library-$50 million over budget and over two years late.
  • Lucas Oil Stadium-$50 million contingency amount used and $75 million over budget.
  • Conseco Fieldhouse-$8 million over budget.
  • Total volume of PLA's in Indianapolis including the above three plus the Indianapolis Airport, Indianapolis Schools=$2.5 billion.

Conservatively, taking 10% of $2.5 billion dollars=$250,000,000.