Growing Shortage of Construction Workers A Concern for Contractors

Published: Feb 25, 2014

More evidence emerges about the growing shortage of skilled workers in the construction sector. Although home construction has slowed down primarily due to bad weather conditions, some actually blame it on the increased cost of labor associated with the shortage.

The first time the shortage became apparent was in March 2013 when a NAHB/BEC survey showed that close to 50% of polled construction companies experienced “some or serious shortages of framing crews and carpenters.” The result was higher home prices, delayed projects and lost sales.

Experts thinks that the Great Recession of 2008 is mostly to blame for the shortage. Since the sector lost many jobs, a lot of the newly unemployed people moved to other industries. Yet, when home construction turned upwards again in 2012, many of the previous workers didn’t follow suit.

The full implications of the shortage are not yet clear. According to Thomas Vitlo of CoreLogic the “construction industry is either going through a fundamental change or it is self-correcting to a more sustainable level of employment.”

Read the full story at AOL.

The following two tabs change content below.
Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.