The construction industry is struggling to rebuild its worker base after the recession hit in 2008. Skilled workers to adequately complete jobs are harder than ever to discover, hindering the industry’s growth. As more qualified workers are recruited, NJ Contractor Liability on its projects is at risk.
While industrial construction has escalated rapidly in recent months, home building has staggered. Even though newly constructed home sales are up 21.2 percent this year, skilled construction workers have hampered home construction, according to The Wall Street Journal.
John Finch, chief executive of PBG Builders Inc. said in a media conference call “We are finding a greater failure rate of subcontractors in the industry because they are not able to hire the skilled workers that they need. That’s resulting in some budget issues and work that has to be redone.”
When experts were asked which type of workers were the most difficult to find and hire, the overwhelming consensus was carpenters (73%), sheet-metal installers (65%), concrete workers (63%), and electricians (60%), according to research conducted by Associated General Contractors. The shortage of these workers has contributed to the delay in project completion, as well. On average, jobs are taking 2 to 4 months longer from start to finish.
During the economic downturn of 2008, the construction industry lost an estimated 2.3 million workers to other industries and retirement. While there isn’t much information available as to where these professionals went, it is assumed that most left the industry altogether or went to work for oil fields as the salaries are double what the construction industry pays.
While these skilled workers are in high demand, there are other aspects of the building process that are suffering, as well. “It’s not just boots on the ground building our houses,” stated Sheryl Palmer, CEO of Taylor Morrison Home Corp. She continued, “It’s all the way through the supply chain, from planning to architects, to pulling building permits and inspections. That infrastructure was decimated.”
While the industry attempts to make a full recovery, Tri-State Insurance Agency is here to protect your business and your employees from further financial distress. With over 75 years of experience, we are experts in understanding your business and tailoring coverages to suit your industry’s needs. For more information, contact us today at (888) 990-0526.