Construction will grow in Hawaii over the next few years, fueled by major federal and state projects. That will help to counterbalance a “downshift” in the economy this year resulting from inflation, depletion of federal COVID-19 pandemic recovery funds and wavering tourist numbers, as well as strains on public coffers related to the Lahaina disaster, the University of Hawaii Economic Research Organization (UHERO) projects.

“Growth will increasingly come from local sources, including a robust construction sector bolstered by the rebuilding of Lahaina,” UHERO reports.

The dynamics make for a critical point in the state’s trajectory — and with careful management and leadership, could present a “glass half full” scenario: a timely, crucial opportunity to shore up Hawaii’s workforce by expanding skills training opportunities and nurturing Hawaii-based professionals able to manage contemporary projects. There’s no time to waste in establishing workforce supports, including training programs and local-hire rules.

With well-planned efforts to grow the skilled labor force and to provide expanded workforce housing, Hawaii’s economy can be strengthened and made more resilient. Current patterns of population outflow can be — and must be — halted.

Construction can fuel Hawaii’s economic growth. But as UHERO notes in its latest economic projection, if construction workers must be imported into Hawaii, the benefits of construction spending are exported when they leave the state.

“The key, really, is to be able to hire as many local workers as possible and to retrain people into these fields. These are areas where we are going to need workers for a very long period of time,” said UHERO Executive Director Carl Bonham.

Construction advocacy group Pacific Resource Partnership (PRP) projects that construction activity in Hawaii will reach a 30-year high in coming years. Recovery needs associated with the Lahaina fire disaster will add billions of dollars for building projects. The state is poised to greenlight work on the New Aloha Stadium Entertainment District (NASED), with a public contribution of at least $400 million and a total estimated public/private investment of $2 billion. And construction industry experts estimate that at least 2,000 additional skilled labor jobs will be created in the next two years alone.

The construction industry cannot capitalize on these opportunities, however, without enough skilled employees. Industry-funded programs are underway, and as they benefit the state as a whole, it’s appropriate for the state to support tailored, effective training programs providing Hawaii residents access to this well-paid work.

A shortage of local skilled labor and project management personnel can slow or even halt impending projects within the islands, even with willingness to import workers, because federal infrastructure funding channeled to states by the Biden administration is creating competition for workers nationwide.

The Hawaii Carpenters Apprenticeship and Training Fund, supported by a coalition of industry and labor groups, is already in place, and may provide potential for expansion. This five-week “pre-apprenticeship program” provides 40 hours of preparatory training and 160 hours of paid on-the-job training that gives potential future carpenters a jump-start toward apprenticeship.

The cost of inaction is high: A screeching halt to employment opportunities imposed by the COVID-19 pandemic, along with a fitful recovery, have contributed to an overall loss of nearly 37,000 Hawaii residents over the past three years. The state Department of Taxation estimates this has cost Hawaii an average of nearly $62 million in each of those years.

One promising development emerged Feb. 16, with the signing of a project labor agreement by Gov. Josh Green. This streamlines labor contracts for state projects such as the NASED buildout — and requires out-of-state contractors to use all local workers available before importing labor from the mainland. Similar labor agreements must be insisted upon for Lahaina disaster-related projects — and federal funding, which supports Lahaina recovery efforts, should also be sought to support training for Hawaii workers on these efforts.

Finally, a consensus is building that the drain on the state’s population and labor force won’t stop until the housing crisis is addressed. Green’s legislative package proposes eliminating a cap on general excise tax exemptions and looser rules allowing additional outside financing for developers who build affordable housing.

To keep Hawaii’s workers in the state and boost the economy will take a multipronged effort. Policies to require local hiring, funding for skilled training and workforce housing can make a difference, with legislative support. Once carefully vetted for cost and effectiveness, let’s put Hawaii on the job.