U.S. Building Industry Still Struggling with Labor Shortage

By MB Technology

The labor shortage is contributing to rising construction costs.

The commercial construction industry employs 4.2 million Americans, a number that continues to grow, yet employers still struggle to find qualified labor. This shortage of labor is driving up the cost of construction in many parts of the country, according to The Wall Street Journal.

"Ever since we came out of the great recession, many folks in our industry have been saying: it's coming, it's coming, it's coming," George Nash Jr., director of preconstruction for Branch and Associates, a Roanoke, Virginia, contractor, told the Journal. "Today the problem is there."

According to the Journal, average construction costs have been rising at rates higher than inflation – as much as five percent a year. The Associated Builders and Contractors estimates that the industry is a half a million workers short of where it should be.

As recent as two years ago, it was common for commercial building projects to have multiple bidders but increasingly, single-bid projects are becoming the norm. This is likely due to workers being in short supply. An Indiana electrician told The Journal that even though he added 70 people over the last two months, he still has 200 open positions.

Testing the Infrastructure Plan The situation is likely to get worse as President Donald Trump’s federal budget proposal contains a $1 trillion infrastructure spending package. If that passes, the Associated Builders and Contractors estimates an additional 600,000 workers will be needed.

To deal with the shortage, The Journal reported that many companies are stepping up their recruiting efforts. One company in Lincoln, Nebraska hired a full-time staff member to canvas high schools, trade schools, military bases and other locations to encourage graduates to consider the trade.

The labor shortage in the construction industry is a continuing issue, but not an insurmountable one.

Note: This article first appeared on MB Technology’s blog. The full post can be accessed here.

MBTechnology was founded in 1983 and specializes in manufacturing SBS-modified asphalt (bitumen) roofing membranes for residential and commercial application. To learn more about MB Technology, visit www.mbtechnology.com.