The leading association for the construction industry is the Associated Contractors of America (AGC) It boasts of 26,000 firms, that includes over 6,000 leading contractors in America, around 9,000 specialty contracting firms, and close to 11,000 service providers and suppliers associated with the association through the network of chapters they have across the country. You can check out their website at www.agc.org
There was a workforce development plan that was developed towards the end of last year that shows the factors that caused the shortage of labor in the industry. Some of the factors pointed out were a series of policy, demographics, education, and economic factors that have affected the training of new construction workers.
Included in those factors are the many changes that took place after the housing crisis like vocational and technical programs being dismantled and emphasis on college prep.
Many people working in the construction industry were not sure about the nature of the work, and consider looking for other jobs or even retiring.
The biggest shortfall in labor in the construction industry were the hourly craft workers such as electricians, carpenters, plumbers, roofers, and concrete workers.
Many firms said they had to make changes when it came to compensation of their employees and the ways they operate. Firms look for ways they can be able to do more with a limited number of craft workers by increasing their hours, opting for labor-saving technology and finding ways to improve the efficiency of the construction process.
Those reporting raising pays were not even half, only 48% did so.
ACG have said that there have been increased cases of safety incidents because there is a lack of qualified workers. Many workers worked longer hours and their efficiency may have reduced over time.
Apart from the safety cases reported, it has also had a bigger impact with fewer commercial buildings, homes, and infrastructure projects being started. The slow rate of new buildings has driven the prices of homes higher, locking out many potential buyers.
In Springfield, new constructions continue at a steady pace. Even better, home sales and home prices continue to trend upward as we near the end of 2016. The challenge is that lot value has also increased, making new home construction harder to accomplish.
Because of that, more and more people are renovating old homes and flipping them or turning them into rental property. These lower cost housing options require constant upkeep which must be factored into their price, especially considering that they often rent or sell for slightly lower values than brand new construction.
If you are a homeowner, now is the time to consider selling. Interest rates are expected to rise at the end of the year and may put a slight damper on the sale of homes. If you need to get your house in tip-top shape, you will want to check out 417 Handyman of Springfield. They pay their guys right and while keeping costs low. They also offer awnings installation which can offer an instant boost to your home’s value.
The construction skills gap has gotten so bad, we are now calling the time from 2007 to 2017 the “lost decade”. During that time, many construction workers left the field. Meanwhile, the younger workforce is not as attracted to hard labor fields when so many tech and finance jobs are available.