If Demand Surges for New Homes, Who will Build them??

lunch box thermos ebayA survey by the Associated General Contractors of America (AGCA) found last year that 83 percent of construction firms had difficulty filling carpenter, laborer and equipment operator positions, according to wsj. Nearly 2.3 million construction jobs disappeared between April 2006 and January 2011, 40 percent of that particular workforce. As of May, 2015 that sector remained 1.3 million workers short of its bubble-era peak.

The nearly five-year gulf of jobs being wiped out was too much for many to withstand and too deep to attract new workers. Ken Simonson chief economist at AGCA thinks many left for the energy exploration fields, went back to school or to other industries, or simply left the workforce, perhaps retired.

The combination of having had this massive long exodus, a late pickup in hiring and now this greatly diminished pool of workers, that’s what has contractors scrambling,Mr. Simonson said.

The Census Bureau is processing data on job-to-job transitions but the study is not complete yet.

David Crowe, chief economist at the National Association of Home Builders (NAHB), says he heard many construction workers left to drive trucks. He says, in order to attract workers back, contractors will have to pay more, and that puts a squeeze on costs. It’s going to take training. It’s going to take attracting younger, newer job entrants into the job field. And it’s going to take higher compensation.

MHProNews understands that any sudden surge in demand for new homes will likely be met with delays because of the lack of available construction workers. ##

(Photo credit: ebay)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

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