Daily Management Review

The US construction industry is suffering from labor shortage


08/21/2017


Shortage of labor and subcontractors in the US construction industry has increased over the past year, according to the housing market index of the National Association of Home Builders / Wells Fargo Housing Market.



pexels
pexels
A survey of builders about the shortage of workers in 15 professions was conducted in July. To varying degrees, the shortage of workers is observed in each of the 15 professions: from the managers of the building services (43%) to the carpenters (about 75%).

Meanwhile, the lack of subcontractors is even more common. According to the results of the July survey, the level of deficit of subcontractors was higher than that of workers directly hired by builders in each of the 15 professions. So, 77% of builders reported a shortage of carpenters, builders of frame houses, while 85% of builders reported a shortage of subcontractors in this area.

According to the National Association of Home Builders (NAHB), this was not always the case: the average indicators of labor shortages and subcontractors since 1996 were quite close to each other. However, from 2013 there is a constant gap: the deficit of subcontractors in 9 positions is 5-7 percentage points higher.

One possible reason for the deficit is that some employees who were laid off and began to work independently for hire during a downturn in the housing market have returned to work in large companies, according to the NAHB. This slightly increased availability of workers directly hired by builders, while at the same time reducing the pool of firms available for subcontracting.

The average deficit in 9 professions increased from 21% in 2012 to 56% in 2016, and in 2017 it was 63%.

The average labor shortage in 9 occupations is now at its peak since 2000. The current shortage of labor seems particularly serious, given the construction of new homes, which only partially recovered from the recession seen after 2006.

"The historical trend has been fairly stable in the construction professions," the NAHB noted. "The shortage of workers in the majority of the profession is now more common than at any time since 2000. The exception is the deficit figures that have been at their peak since 1996, when the NAHB began interviewing. Among the workers directly employed, the shortage of painters is now at a historic high, and among the subcontractors, in addition to the painters, the deficit of carpenters and electricians also reached a record. "

But the most alarming signal is that, despite this "record" shortage of labor, wages in both the construction sector and the entire labor market are still refusing to show significant growth.

source: reuters.com






Science & Technology

With China Set To Dominate, 1 Billion Could Be Using 5G By 2023

Deutsche Telekom unveils next gen 5G mobile antennas in Europe

Diamonds are now the new gold

Expert Body Says Driving In A Driverless Car In An Inebriated Condition Or On Drugs Should Be Legalized

SEC’s EDGAR database vulnerable to cyber threats

Research Says The Risk Of Severe Turbulence On Planes Will Increase Due To Climate Change

Barclays and CLS Group aim to replace SWIFT with blockchain

Designing Of Cars Being Done With Hologram Goggles At Ford

The Already Surging Cyber Attacks Are Set To Rise Even Further, Says A Study

Chinese to equip smartphones with OLED displays

World Politics

World & Politics

Scholar Says Political Appointees Not As Important As Financial Ones In China For The Economy

An Expected Change In Brussels Could Be Crucial For The Euro Zone

Destroying People Who Wouldn't Help One Of His Bankrupt Businesses Was All Trump Talked About When He Met Him In 1990s: Branson

Russia Is Worried About America’s Unpredictability

No oil contracts with Iraqi Kurdistan: Iraq’s oil ministry

Donald Trump lost $ 600 million during his presidency

Britain puts its weight behind Europe in the battle between Boeing and Bombardier

EU hopes to keep the Iran nuclear deal afloat