Bermuda's construction industry seems set for a boom -- but workers will have to be far more skilled than they were when the industry was at its peak before the last recession.

Buildings are being erected from North Street to East Broadway, Flatts and Prospect and with the newly returned Base lands set to be redeveloped, the possibilities seem endless.

But industry experts predict that with changes in construction and the advent of so-called "intelligent buildings'' more specialised workers will be needed on construction sites -- and they may have to be come in from abroad.

Paul Lowry of the Construction Alliance, a network of architects, engineers, interior designers, construction companies and surveyors, predicted that at least 100 foreign workers will be needed by year's end.

And he said local workers must take advantage of the training and retraining initiatives Government is currently offering so that they can be competitive.

He said the demand for people who can construct elevator shafts, install drywall and do fair-face block work (block work that is unplastered but still looks good) will continue to increase over the next seven years as commercial properties are built.

"We have some good drywall installers, but we simply don't have enough,'' he said. "In commercial work where you have elevator shafts you have very fine tolerances.

"Today's office complexes are known as intelligent buildings. Computers turn air conditioning, security systems and lights on and off. The skills required to put an intelligent building together are not the types of skills Bermudians have in large numbers.

"Sites such as the American International Building, the Bermuda Underwater Exploration Institute and the hospital extension are three very good examples of this trend.'' Despite the positive and upward trends in the industry generally, those closest to it -- the workers and construction company owners -- are concerned because of the perennial boom-bust cycle of the business.

Al Wharton, president of the Construction Association -- a group of 32 medium to large firms and subcontractors -- said jobs are one area that both Government and his association is watching closely.

"With the number of jobs that are projected to come on line in the next year or so, it will put a strain on the existing manpower,'' Mr. Wharton explained.

"We need to assess what kind of manpower is required and see whether any will be needed from overseas.'' Mr. Wharton said it will be difficult to maintain the upward trend that is developing in the industry currently and ultimately, he said, he expects it to peak out in a few years and a decline will set in.

"Our biggest challenge, and this is very hard to do, is for us to keep a level graph free of peaks and valleys,'' he said. "What we need to get away from is a situation where we have so much to do that we are overwhelmed and then have those other periods where there is nothing to do.'' Meanwhile, Mr. Lowry said that while it does appear that the industry is booming, he estimated that it will never reach the employment levels of the mid-1980s where more than 3,500 people were employed compared to 1,700 now.

According to the Government's employment survey in 1995, the local construction industry employed 1,706 people.

The average age was 38 years and the median hours worked per week were 37.

Statistics for the the last quarter of 1995 (which is the last period for which statistics are available) $25.8 million worth of projects were started.

Overall, $33 million in new work was started last year with nearly twice as many projects coming from the private sector as from Government.

"Generally we see a severe upturn in the industry which will require importing labour from overseas,'' said Mr. Lowry. "Everyone is aware of that.

"The hospital and the American International Building are some of the major jobs on at the moment and there are more to start.'' Other major projects due to start soon include work planned for Atlas House in Hamilton, major upgrades of the buildings which will house the new Government middle schools and improvements to the Island's Police stations.

"My worry is that all the people who are employable will have found jobs by the end of the year,'' Mr. Lowry said.

"Government has recognised that we will have a shortfall of building workers and they have formed a new department to train and retrain workers but these classes are not being used.'' Government vocational officer Andre Wilkin said his department has run a successful pilot programme for masons and carpenters and they were well received.

And they were now collating the information received and plan to use it for further programmes for construction workers.

"With Bermuda it is a matter of ensuring that the labour force is trained, motivated and qualified to do the jobs,'' he said.

Despite the promising outlook, some workers are apprehensive.

One eight-year veteran worker said: "The work will last until the (new senior) school is finished and the National Stadium. After the next election there will be no more work.

"That's how our Government is. You've got to make it while you can. When that time comes I will retire. It's not about how much you make it's how much you spend.'' Works Minister Leonard Gibbons, whose Ministry is overseeing schools construction, is similarly cautious.

"I certainly share the view that (the construction industry) has come out of the recession,'' he said. "But I am even more concerned that we do not overheat and get too much work.

"If that happens, firms will want to bring in outside labour. This is a bust or boom situation and we've got to make sure that doesn't happen.'' Zane DeSilva, president of Island Construction, which employs 60 people, is cautious, says work on smaller projects has dominated the sector recently and will continue to do so.

"There are not a lot of large jobs around, although there are a lot of people doing renovations and little additions, which is certainly better than four or five years ago,'' he said. "The recession hit everybody hard but the construction industry really felt it. I think we are out of it.

"What it has done, however, is to teach us all to be a little more cost conscious. There was a time when people would buy equipment at the drop of a hat.'' In order to continue the upward swing, he said Government must plan its projects so that they are carefully spaced over periods of time, he said.

"The booms are nice but the problem with booms is that they don't last. In the early to mid-80s was our last big one.

"But a steady progression without excessive peaks and valleys is better for everyone because construction workers make up a large portion of our work force in general.'' Andre Curtis, owner of First Choice construction with a crew of 50, has found his five years at the helm a productive period.

Until two years ago, he had as many as 90 workers with a payroll of more than $50,000 a week, but he has scaled it back to 50 people because he said it is more manageable.

"When it's big like that, you cannot succeed unless you have a competent management team around you,'' he said. "(Otherwise) you lose control of the entire operation.'' BAN IN BUSINESS -- Construction workers at the Bermuda Underwater Exploration Institute site are silhouetted against the afternoon sky.