We’ve written many times in this blog about how severe the shortage of skilled construction labor has become in the U.S. One figure released this month sums up the pain construction firms are feeling: 91% of contractors rate their trouble finding skilled labor as either “moderate” (36%) or “difficult” (55%), according to the USG and U.S. Chamber of Commerce Commercial Construction Index – 2018 Q2. One anonymous survey respondent puts a human face on this struggle: “My single most important concern about my business in the next 12 months is manpower – huge labor shortages – all trades are suffering.”
At the same time they’re experiencing labor shortages and new residential and commercial buildings could be delayed, this means that the first time buyers for houses could be impacted, as well as new business owners looking for business facilities or office space leading them to research for landlord services to aid them on finding business property for lease or sale. 96% of contractor report moderate or high confidence that the market will provide sufficient new business opportunities over the next 12 months. In more good news, 80% of contractors believe access to working capital financing will remain the same or get easier.
These three figures – 91%, 96%, and 80% present a conundrum: firms have a lot of opportunities to secure new business and to finance it, but face severe labor constraints in their ability to deliver on that business. That is unless they change the way they do business.
Savvy contractors are pivoting to alternate building methods that help them streamline construction and reduce the need for skilled construction labor. We’re seeing this first hand, as more developers and contractors contact us to learn how modular construction can shave months off their construction schedule, and deliver high-quality projects on time (or early) and on budget.
To start the conversation on how modular construction can help improve the way you build, contact us at: [email protected].