Labor Shortages a Challenge for Commercial Construction
Schedules will increase says Construction DesignWorks
KANSAS CITY, Missouri – As you plan your new office or retail location and are negotiating your leases, it is important to have realistic expectations on the overall schedule of your construction project. “Tenant finish projects that took 12 weeks to complete in 2014 may need an additional 2 weeks in the third and forth quarter of 2015,” said Scott Hamele, President of Construction DesignWorks. “2016 doesn’t look any better. This is due to the skilled labor shortage throughout the country. After the economy dried up in 2008, so did the construction projects and ultimately the labor. Now that the economy is seemingly making a comeback in most construction sectors, the number of available skilled workers have not kept up pace.”
National Association of Homes Builders (NAHB)
The relationship between the residential and commercial construction industries are very similar in evaluating current available direct hire and subcontractor hire skilled labor. In June 2015, The National Association of Home Builders (NAHB) recently published the results of a survey that concluded that every one of the types of skilled labor had significant increases in shortages in labor.
Rough Carpentry Subcontractors reported that 27% of those asked in June 2012 showed ‘some shortages’ in their labor pool. That number is now up to 58%.
Rough Carpentry Subcontractors reported that 4% of those asked in June 2012 showed ‘serious shortages’ in their labor pool. That number is now up to 16%.
For more detailed information on these results, please click here.
“What does this mean for you? As you can probably guess, it means it will take longer for your construction project to be completed. Simple supply and demand would also tell you that hourly rates will most likely increase. So a word of caution as you are inking your commercial leases or designing that next great restaurant; expect some delays along the way and possibly higher construction costs, Hamele said.”
Construction DesignWorks, Inc. (CDW) provides creative design-build general contracting services for commercial clients in the Kansas City area.
For more information about how these labor shortages will affect you, please call 913-745-4727 or visit https://constructiondesignworks.com