Courtesy Hilltop Construction Co.
By Thomas Albrecht
Its hard to talk about exciting and important topics like the boom in construction or consumer confidence, or what the Baby Boomers and Millennials want, when the demand for skilled construction related jobs are at an all-time high.
If you look back at the last five years, I have mentioned the coming of a crises. Well, here we are 2020, and secured construction projects are outpacing the number of employees currently in construction and those entering the trades.
NAHB (National Association Home Builders) Chief Economist Robert Dietz noted in his blog that the open positions rate dipped 4 percent in October, after reaching a cycle high of 5.5 percent in April. Furthermore, Dietz said the overall trend for opening construction jobs has been increasing since the end of the Great Recession, matching NAHB and other survey data showing access to skilled labor remains a top business challenge for home builders.
Introducing and retaining potential workers to the trades has become a challenge for many but there is progress being made with the chambers of commerce, the builders associations and the schools. We are seeing more and more work discovery or career-related workshops across the area, a reaction to the tremendous need.
High schools must connect with the business community for placement and or the introduction to the students to the trades and the workforce that is needed. There is progress being made, as we see the pay scale for the trades at an all-time high, as builders try to retain the employees they have, as well as additional perks and benefits.
Employees want to be valued and appreciated so it is essential to make it known what your history is, where do you see them and what does there future look like, so they have a sense of security.
Builder confidence is at a 20-year high, while we are seeing positive market conditions with a 50-year low for the unemployment rate and increased wage growth. But we are still underbuilding due to supply-side constraints like labor and land availability.
As confidence remains healthy there are some things that Baby Boomers and Millennials are looking for in a new home. Baby Boomers want maximum efficiency (Energy-Star) with windows, doors, heating and the insulation at a high standard. They want essentials on the first floor, such as storage, a full bath, a walk-in pantry and other bells and whistles. Likely they would not consider things like an elevator or wine cellar. Only 3 percent of the Boomers have interest in an elevator.
The Millennials have slightly different interest such as a laundry room on the first floor and a front porch. But they are not looking for a large home and will wait to purchase so they can afford quality, high-efficiency products.
Moving into 2020, we have high hopes we can meet the needs of our clients and to meet the challenges facing the building industry.