The construction industry’s labor shortage shows no sign of easing as new construction needs outpace the number of available workers. The National Association of Home Builders (NAHB) recently reported that the number of
unfilled positions in the construction industry is reaching peak levels this year, a 34 percent increase since August 2016, and can be expected to further increase given recent natural disasters affecting U.S. cities.
NAHB chairman Granger MacDonald said in a statement: “[October’s] report shows that home builders are rebounding from the initial shock of the hurricanes. However, builders need to be mindful of long-term repercussions from the storms, such as intensifed material price increases and labor shortages.”
Though the effects of the recent California wildfires on local housing markets aren’t yet quantifiable, Zillow’s chief economist Svenja Gudell wrote that prior to the fires, housing inventory was already down by more than 10 percent, and in some cases more than 20 percent year-over-year in August for many areas.
In addition, the housing shortage and growing consumer need for remodeling, replacement housing, or both in the wake of natural disasters is worsening the issue.
Autodesk and the Associated General Contractors of America’s recent survey shows that 70 percent of construction rms are experiencing difficulty filling hourly craft positions, and 43 percent anticipate it will continue to be difficult over the next 12 months. Brian Binke, founder and CEO of construction industry recruiter The Birmingham Group recently stated on his weblog, “The movement of Millennials into the industry is helping to solve the labor crisis in construction, and it’s changing the industry as a whole at the same time.”