By: Michael Dey, CEO, Home Builders Association of Greenville
Hurricane Harvey directed the bulk of its punch on Texas, and Irma is headed our way. However, Approved Professional Home Builders in the Upstate may not be free of the impacts of these hurricanes. Hurricane Katrina should be a guide to the potential impacts that Harvey may have in store for the Upstate in the coming weeks.
Fuel prices and availability
The first impact is already being felt, and may continue for days or weeks: gasoline availability and price. Half of the nation's oil refineries are located in Texas and Louisiana, and they are all closed. As a result of the lack of flow, the Colonial Pipeline, the means by which gasoline is shipped to the Southeast from the Gulf Coast, has been closed also. This is the source of half of our state's fuel. Gasoline prices have already jumped, and shortages may follow.
Building materials shortages
Following Katrina, building materials, particularly lumber and plywood, were in short supply for several months as these materials were diverted to devastated areas following Katrina. Approved Professional Home Builders can expect the same with Harvey and Irma. Texas and Florida get some of their lumber from the same suppliers as South Carolina. These suppliers are in Louisiana, Alabama, and Georgia.
If you are not using an escalation clause in your contract with your customers, you should consider using one. Your attorney can help you add one to your contract. Your Home Builders Association can provide you with a sample. Simply email eo@HBAofGreenville.com.
Labor shortages
Another issue Approved Professional Home Builders experienced following Katrina was labor shortages as subcontractors traveled to hurricane-effected areas to help and in search of bigger pay days. No matter the reason, some of your labor may head to Texas and Florida to work on clean up and repair efforts there.
In a meeting yesterday with Federal Reserve officials, labor availability was front and center as the number one concern of business people in all industries. Labor availability is reaching crisis levels, and Harvey could be a catastrophe that pushes the labor problem for construction in the Upstate to a crisis situation.
Approved Professional Home Builders should plan for these contingencies, and prepare for the customers for possible delays in their projects.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Showing posts with label Labor Shortage. Show all posts
Showing posts with label Labor Shortage. Show all posts
Friday, September 1, 2017
Thursday, September 17, 2015
Why We Desperately Need To Bring Back Vocational Training In Schools
Article courtesy of Forbes.com
Written by Nicholas Wyman
Throughout most of U.S. history, American high school students were routinely taught vocational and job-ready skills along with the three Rs: reading, writing and arithmetic. Indeed readers of a certain age are likely to have fond memories of huddling over wooden workbenches learning a craft such as woodwork or maybe metal work, or any one of the hands-on projects that characterized the once-ubiquitous shop class.
But in the 1950s, a different philosophy emerged: the theory that
students should follow separate educational tracks according to ability.
The idea was that the college-bound would take traditional academic
courses (Latin, creative writing, science, math) and received no
vocational training. Those students not headed for college would take
basic academic courses, along with vocational training, or “shop.”
Ability tracking did not sit well with educators or parents, who believed students were assigned to tracks not by aptitude, but by socio-economic status and race. The result being that by the end of the 1950s, what was once a perfectly respectable, even mainstream educational path came to be viewed as a remedial track that restricted minority and working-class students.
The backlash against tracking, however, did not bring vocational education back to the academic core. Instead, the focus shifted to preparing all students for college, and college prep is still the center of the U.S. high school curriculum.
So what’s the harm in prepping kids for college? Won’t all students benefit from a high-level, four-year academic degree program? As it turns out, not really. For one thing, people have a huge and diverse range of different skills and learning styles. Not everyone is good at math, biology, history and other traditional subjects that characterize college-level work. Not everyone is fascinated by Greek mythology, or enamored with Victorian literature, or enraptured by classical music. Some students are mechanical; others are artistic. Some focus best in a lecture hall or classroom; still others learn best by doing, and would thrive in the studio, workshop or shop floor.
And not everyone goes to college. The latest figures from the U.S. Bureau of Labor Statistics (BLS) show that about 68% of high school students attend college. That means over 30% graduate with neither academic nor job skills.
But even the 68% aren’t doing so well. Almost 40% of students who begin four-year college programs don’t complete them, which translates into a whole lot of wasted time, wasted money, and burdensome student loan debt. Of those who do finish college, one-third or more will end up in jobs they could have had without a four-year degree. The BLS found that 37% of currently employed college grads are doing work for which only a high school degree is required....continue reading.
Written by Nicholas Wyman
Throughout most of U.S. history, American high school students were routinely taught vocational and job-ready skills along with the three Rs: reading, writing and arithmetic. Indeed readers of a certain age are likely to have fond memories of huddling over wooden workbenches learning a craft such as woodwork or maybe metal work, or any one of the hands-on projects that characterized the once-ubiquitous shop class.
Instructor helps a student participating in
a woodworking manufacturing training program in Chicago, Illinois, U.S.
Photographer: Tim Boyle/Bloomberg Charlie Negron
Ability tracking did not sit well with educators or parents, who believed students were assigned to tracks not by aptitude, but by socio-economic status and race. The result being that by the end of the 1950s, what was once a perfectly respectable, even mainstream educational path came to be viewed as a remedial track that restricted minority and working-class students.
The backlash against tracking, however, did not bring vocational education back to the academic core. Instead, the focus shifted to preparing all students for college, and college prep is still the center of the U.S. high school curriculum.
So what’s the harm in prepping kids for college? Won’t all students benefit from a high-level, four-year academic degree program? As it turns out, not really. For one thing, people have a huge and diverse range of different skills and learning styles. Not everyone is good at math, biology, history and other traditional subjects that characterize college-level work. Not everyone is fascinated by Greek mythology, or enamored with Victorian literature, or enraptured by classical music. Some students are mechanical; others are artistic. Some focus best in a lecture hall or classroom; still others learn best by doing, and would thrive in the studio, workshop or shop floor.
And not everyone goes to college. The latest figures from the U.S. Bureau of Labor Statistics (BLS) show that about 68% of high school students attend college. That means over 30% graduate with neither academic nor job skills.
But even the 68% aren’t doing so well. Almost 40% of students who begin four-year college programs don’t complete them, which translates into a whole lot of wasted time, wasted money, and burdensome student loan debt. Of those who do finish college, one-third or more will end up in jobs they could have had without a four-year degree. The BLS found that 37% of currently employed college grads are doing work for which only a high school degree is required....continue reading.
Tuesday, March 17, 2015
Debunking the Myth that Immigration Harms America
The National Association of Home Builders and a group of 18 other trade associations representing business leaders and millions of employers across the nation today submitted written testimony refuting the myth that immigration hurts American workers and the economy during a Senate Judiciary Committee hearing examining this topic.
Separating truth from fiction, the business coalition debunked the following falsehoods:
Myth: Lowering the number of immigrants would free up jobs for American workers.
Fact: Immigration helps create jobs for American workers
Myth: Foreign workers take one in five jobs in America.
Fact: Americans fill more than 91% of all jobs in America.
Myth: Lesser-skilled immigrants take jobs away from Americans without college degrees.
Fact: The data show that immigration does not negatively impact American workers without college degrees. In fact, lesser-skilled immigrants create jobs for Americans and grow crucial sectors of our economy.
Employment projects for 2012-2022 by the U.S. Bureau of Labor Statistics show that the construction sector is expected to grow by more than 20%, nearly double the overall national average.
“Indeed, some sectors have seen rising labor shortages, presenting significant industry challenges,” the group’s written testimony stated. “For example, the number of open construction sector jobs as of December 2014 (147,000) stands post-recession highs, and the job open rate exceeds that prior to the housing boom. Lesser-skilled immigrants help to fill labor shortages in these industries, creating jobs for Americans and helping those industries grow.”
As the debate on Capitol Hill continues, your Home Builders Association is urging lawmakers to support comprehensive immigration reform that will:
Separating truth from fiction, the business coalition debunked the following falsehoods:
Myth: Lowering the number of immigrants would free up jobs for American workers.
Fact: Immigration helps create jobs for American workers
Myth: Foreign workers take one in five jobs in America.
Fact: Americans fill more than 91% of all jobs in America.
Myth: Lesser-skilled immigrants take jobs away from Americans without college degrees.
Fact: The data show that immigration does not negatively impact American workers without college degrees. In fact, lesser-skilled immigrants create jobs for Americans and grow crucial sectors of our economy.
Employment projects for 2012-2022 by the U.S. Bureau of Labor Statistics show that the construction sector is expected to grow by more than 20%, nearly double the overall national average.
“Indeed, some sectors have seen rising labor shortages, presenting significant industry challenges,” the group’s written testimony stated. “For example, the number of open construction sector jobs as of December 2014 (147,000) stands post-recession highs, and the job open rate exceeds that prior to the housing boom. Lesser-skilled immigrants help to fill labor shortages in these industries, creating jobs for Americans and helping those industries grow.”
As the debate on Capitol Hill continues, your Home Builders Association is urging lawmakers to support comprehensive immigration reform that will:
- Safeguard our borders;
- Establish a fair employment verification system; and
- Create a market-based visa system that will allow more immigrants to legally enter the construction workforce as the housing industry gains momentum and the demand for workers increases.
Monday, November 17, 2014
This WEEK! Greenville Tech Open House Luncheon for HBA Members
This will be an opportunity for HBA members, who are interested in hiring trained employees, to learn about the programs and curriculum at Greenville Tech and meet the faculty and staff. You also will have the opportunity to meet students, your future employees. Lunch will be served.
UPDATE: The luncheon will be held in Building 106C (Carpentry/Masonry/Plumbing) of Greenville Tech's Main Campus, 506 S. Pleasantburg Drive, Greenville, SC 29607.
Please RSVP to the HBA Office by calling 864-254-0133, email info@hbaofgreenville.com, or register online by clicking here.
Wednesday, May 28, 2014
Contractors brace for labor shortage
Your HBA of Greenville has been reporting on this for months now. Take a look at the most recent article from GSA Business.
After having worked decades in construction, Waldrop Inc. President and CEO Bill Caldwell sees a labor problem that is about to get a lot worse. He said that, unlike in the past, young people who might have chosen to start construction jobs and move up through the ranks are now opting for college or training for manufacturing jobs that are less physically demanding.
“I think it’s an issue that is silent and people really don’t realize the potential impact long term on the cost of getting things done,” Caldwell said.
Many skilled construction workers changed careers during the Great Recession and have not returned, Caldwell said.
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Waldrop Inc. President and CEO Bill Caldwell said that, unlike in the past, young people who might have chosen to start construction jobs are now opting for college or training for manufacturing jobs that are less physically demanding. (Photo by Bill Poovey)
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The National Center for Construction Education and Research has predicted a nationwide shortage of 2 million skilled construction workers by 2017. On top of that, the industry is aging, with most craft professionals close to 50 years old.
“We as an industry are not doing what we need to do to make the public, the academic world and the youth aware of the opportunities that are available today,” Caldwell said.
He said companies in the Upstate and elsewhere in the Southeast “have to compete in our industry against other areas in our country that may be in a boom.” He said there are huge gas and oil projects in the Gulf Region and “people will be flocking to that work from all over the country.”
Dan Doyle — vice president of development at The Beach Co. in Charleston, a company that has announced plans for mixed-use residential projects in Greenville — said that “from the multifamily rental perspective, availability of labor to build” is a potential pitfall for the industry, along with increasing material costs.
Doyle said the labor pool is a “serious issue.”
Robert Hughes, project manager at Hughes Development Corp., said labor availability is “always a concern for anyone in the development business. With how much construction currently is in the marketplace and … it’s not just in Greenville-Spartanburg. It seems to be everywhere. Contractors can be a little pickier about what they want to do and who they want to work with,” and can price things more competitively.
Brian Gallagher, director of marketing at O’Neal Inc., said there is “growing concern” among contractors.
“There are simply not enough trained and skilled construction craftsmen to fill the construction jobs in South Carolina,” Gallagher said.
“Regional construction booms, in the Gulf Coast and other areas, are examples of the challenges facing the industry,” he said. Gallagher said demand for workers in areas where there is a boom in construction, such as the Gulf Coast, “are pulling resources from the surrounding area including South Carolina.”
He said the “result will be escalating costs for S.C. companies.”
The Center for Construction Education has developed programs used in some schools, and Caldwell has met recently with representatives of the S.C. Chamber of Commerce to discuss a strategy to head off a worsening labor shortage. Caldwell said he and others are working to “make people in public education aware there are a lot of career opportunities available in the construction industry. All we hear is manufacturing. I think our industry is getting left out.”
Caldwell said construction is hard work, the workplace may not be as comfortable outside as an indoor manufacturing facility and starting manufacturing salaries may be slightly higher. He said workers that develop construction skills — electricians, pipefitters, welders, brick masons and carpenters — can reach higher salary levels than manufacturing jobs long term.
“You can make a good living,” Caldwell said. “There are plenty of opportunities. We want to hire young kids coming out of high school and tech school.”
He said people would “rather work on an assembly line instead of in the hot and cold” but 20 years from now they can “be on a management team or own a company.”
Caldwell said there are $30 billion worth of infrastructure projects on the drawing board and “people just aren’t standing in line to be craftsmen right now. There are good, bona fide careers in the construction industry.
“There is always going to be a need to build, renovate and maintain buildings,” Caldwell said. He said Waldrop has an apprentice program “but we can’t find 18-year-old kids who want to be a part of it.”
“You have a lot more opportunity for advancement with a company like ours if you are willing to work,” he said. “In a reasonable period of time you can be a foreman or superintendent or project management.”
“We want to become a manufacturing state but say, ‘Hey, don’t forget about us.’ ” Caldwell said.
Allen Gray — a spokesman for the Carolinas chapter of Associated General Contractors, which represents 1,450 contractors and related firms in both states, said it’s “not only the baby boomers moving on but it’s the length of this recession.”
He said people who left the industry in 2008 and 2009 have gone on to other careers.
“The economy ramps back up and we’re starting to hire again,” Gray said. “We are looking to bring people back into the industry and to grow our own work force.”
He said one member company just got a contract for a job in Charlotte and is looking to hire 60 electricians. He said skilled electricians can make $25 an hour.
“First we need to focus on vocational skills in our public school system,” Gray said. “There’s a lot of money to be made in these jobs.”
S.C. Department of Commerce spokeswoman Allison Skipper said in an email that their data and other reputable sources do “not show a notion of a construction labor shortage. They mentioned that in a true shortage, the high demand would force wage rates in that sector up, which has not been the case. Plus homebuilding permits are up.”
The agency’s reports show employment in the construction industry in March had increased by 3,500 jobs in the previous 12 months.
Will Huss Jr., president and CEO at Trehel Corp., said colleges and universities are “doing a great job” delivering candidates for office and management positions. He said that during the recession many in the construction industry changed fields and the current skilled work force is aging.
“It was a huge impact on the both the architectural world, construction world and engineering world,” Huss said. What concerns me most, it’s not that there is a lack of people right now, it’s that there aren’t any new ones coming about.” He said technology has become an influence that has young people wanting to go directly into management.
“They don’t want to work their way up the old fashioned way,” Huss said. “Some of the starting positions have a higher starting wage than construction, but construction has more of an upside.”
He said the “technological industries are so attractive to young people. Construction is hard.”
Huss commended Greenville Technical College for its construction program, describing it as “incredible.”
Huss said Trehel has about 70 employees.
Greenville Tech President Keith Miller said the college’s building construction technology program has more students than last year, likely due to a partnership with the Greenville Home Builders Association.
“I don’t see a move away from that, but like any other career field when the employers start to feel the crunch” they start talking about it, Miller said.
For more information: http://www.gsabusiness.com/news/51451-contractors-brace-for-labor-shortage
Friday, March 22, 2013
Growing Labor Shortages Impeding Housing and Economic Recovery
Growing labor shortages in all facets of the residential construction sector are impeding the housing and economic recovery, according to a new survey conducted by the National Association of Home Builders (NAHB).
“The survey of our members shows that since June of 2012, residential construction firms are reporting an increasing number of shortages in all aspects of the industry – from carpenters, excavators, framers, roofers and plumbers, to bricklayers, HVAC, building maintenance managers and weatherization workers. The same holds true for subcontractors,” said NAHB Chief Economist David Crowe.
The survey also found that more than half of the builders reported that labor shortages over the past six months have caused them to pay higher wages or subcontractor bids to secure projects, and consequently, to raise home prices. Moreover, 46 percent of the builders surveyed experienced delays in completing projects on time, 15 percent had to turn down some projects and 9 percent lost or cancelled sales as a result of recent labor shortages.
Part of the reason for the labor shortages can be attributed to the fact that many skilled residential construction workers were forced to seek employment elsewhere during the recession and are no longer currently available.
“What used to be high-paying, skilled jobs vanished as builders across the nation went out of business or were forced to let workers go,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C.
The loss of tens of thousands of housing jobs mushroomed to more than 1.4 million during the peak of the downturn. During this period, many trades retrained construction workers and they are not returning to the residential construction sector.
Meanwhile, a lack of buildable lots and increased costs for materials and labor are also contributing to the problem, as the infrastructure that supports home building moves to re-establish itself following the worst housing downturn since the Great Depression, Crowe said.
To help meet the growing demand for skilled labor within the housing sector, the Home Builders Institute (HBI), in partnership with NAHB, provides career training and job placement in the building industry. HBI offers an array of portable pre-apprenticeship training programs in a variety of skilled trades that can be customized to meet the workforce needs of communities across the nation. HBI regularly places approximately 80 percent of its student graduates in jobs in the building sector.
“We are ramping up our efforts to train diverse populations and place them in jobs to meet the growing demand of the building sector,” said HBI President and CEO John Courson.
“Even in a period of relatively high unemployment, we still need to complement our job training efforts by bringing in foreign workers to meet the needs of home builders and home buyers,” added Judson.
The worker shortages are not only slowing the housing recovery, but also hurting job and economic growth.
Nationally, the construction of 1,000 single-family homes generates more than 3,000 jobs, approximately $145.4 million in wages, and more than $89 million in federal, state and local tax revenues. That doesn’t even count the increase in annual property taxes that local municipalities rely on to fund schools, police and firefighters.
As the economy mends, pent-up demand for housing will continue to grow, as roughly 2 million household formations were delayed as a result of the Great Recession. In normal economic times, demand for new homes should be about 1.7 million annually.
NAHB is anticipating total housing starts of 970,000 this year and 1.18 million in 2014 as the market continues its gradual rebound.
“We need to look holistically at the home building infrastructure to meet growing and future demand,” said Judson. “To avoid a run-up in prices in hot markets due to labor issues, we need to complement our current training programs with a market-based visa system that would allow more immigrants to legally enter the construction workforce each year when there is a dearth of workers to fill the jobs that are needed.”
“The survey of our members shows that since June of 2012, residential construction firms are reporting an increasing number of shortages in all aspects of the industry – from carpenters, excavators, framers, roofers and plumbers, to bricklayers, HVAC, building maintenance managers and weatherization workers. The same holds true for subcontractors,” said NAHB Chief Economist David Crowe.
The survey also found that more than half of the builders reported that labor shortages over the past six months have caused them to pay higher wages or subcontractor bids to secure projects, and consequently, to raise home prices. Moreover, 46 percent of the builders surveyed experienced delays in completing projects on time, 15 percent had to turn down some projects and 9 percent lost or cancelled sales as a result of recent labor shortages.
Part of the reason for the labor shortages can be attributed to the fact that many skilled residential construction workers were forced to seek employment elsewhere during the recession and are no longer currently available.
“What used to be high-paying, skilled jobs vanished as builders across the nation went out of business or were forced to let workers go,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C.
The loss of tens of thousands of housing jobs mushroomed to more than 1.4 million during the peak of the downturn. During this period, many trades retrained construction workers and they are not returning to the residential construction sector.
Meanwhile, a lack of buildable lots and increased costs for materials and labor are also contributing to the problem, as the infrastructure that supports home building moves to re-establish itself following the worst housing downturn since the Great Depression, Crowe said.
To help meet the growing demand for skilled labor within the housing sector, the Home Builders Institute (HBI), in partnership with NAHB, provides career training and job placement in the building industry. HBI offers an array of portable pre-apprenticeship training programs in a variety of skilled trades that can be customized to meet the workforce needs of communities across the nation. HBI regularly places approximately 80 percent of its student graduates in jobs in the building sector.
“We are ramping up our efforts to train diverse populations and place them in jobs to meet the growing demand of the building sector,” said HBI President and CEO John Courson.
“Even in a period of relatively high unemployment, we still need to complement our job training efforts by bringing in foreign workers to meet the needs of home builders and home buyers,” added Judson.
The worker shortages are not only slowing the housing recovery, but also hurting job and economic growth.
Nationally, the construction of 1,000 single-family homes generates more than 3,000 jobs, approximately $145.4 million in wages, and more than $89 million in federal, state and local tax revenues. That doesn’t even count the increase in annual property taxes that local municipalities rely on to fund schools, police and firefighters.
As the economy mends, pent-up demand for housing will continue to grow, as roughly 2 million household formations were delayed as a result of the Great Recession. In normal economic times, demand for new homes should be about 1.7 million annually.
NAHB is anticipating total housing starts of 970,000 this year and 1.18 million in 2014 as the market continues its gradual rebound.
“We need to look holistically at the home building infrastructure to meet growing and future demand,” said Judson. “To avoid a run-up in prices in hot markets due to labor issues, we need to complement our current training programs with a market-based visa system that would allow more immigrants to legally enter the construction workforce each year when there is a dearth of workers to fill the jobs that are needed.”
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