Homeowners who are looking for construction workers and managers to build a home, complete renovations or make repairs are finding it increasingly difficult to find qualified workers. While Southern California does have a few construction companies that specialize in luxury properties, the Associated General Contractors of America reports that more than 80 percent of construction companies are having a difficult time finding qualified workers. Given the exceptionally high standards placed on those who work within the luxury real estate market, the number of qualified workers is even smaller.
Examining Construction Shortages
Reportedly, construction companies are having a difficult time finding qualified laborers who can perform tasks such as carpentry, sheet metal installation and concrete work. In many ways, this isn’t much of a surprise because economists have been expressing concerns about labor shortages for many years as high school students increasingly head off to college instead of into the workforce. Interestingly, construction companies are also having difficulty finding qualified individuals to fill salaried positions such as project managers, engineers and estimators, despite the fact that these individuals tend to earn a relatively high salary. Construction managers, for example, earn an average of $94,500 per year.
Unfortunately, the issue extends all the way through the contracting industry, with subcontractors also having difficulty with finding qualified workers. As a result, some subcontractors are bidding on fewer jobs because they simply do not have the manpower to take on more work.
Due to the shortage of qualified laborers and salaried workers within the construction field, you can expect to see prices climb even higher as construction companies increase pay and benefits packages in an effort to attract the most qualified workers. Costs are also going up as contractors and subcontractors are left with no option but to work their employees overtime while paying overtime wages.
The Future of the Construction Industry
In an effort to cultivate a stronger construction industry for the future, the Associated General Contractors of America is recommending an increase in funding for career and technical education and the establishment if construction academy charter schools. This is mean to help expose more students to construction careers while also providing them with the basic skills necessary to prepare for a career in the construction field. The organization is also recommending antitrust exemptions so non-union contractors can joining fund training programs as well as expanding partnerships between community colleges and apprenticeship programs.
Getting younger people interested in the construction field is essential, as 40 percent of those in the workforce were 45-years-old or older in 2013. This means 3.7 million construction workers will be reaching retirement age within the next 10 years, thereby making the shortage significantly worse.
If you are interested in building a home in one of Southern California’s most exclusive neighborhoods such as Los Angeles or surrounding regions, or if you are looking for the perfect home that is ready for move-in, contact our team of luxury real estate experts. We specialize in helping the most discriminating individuals find the right home to suit their budget and lifestyle.
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(all data current as of 11/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.