Currently Reading

Construction Sector Hiring Slows as Builders Face Material Shortages

Advertisement
Construction

Construction Sector Hiring Slows as Builders Face Material Shortages


May 11, 2021
Roofer
Photo: saravut | stock.adobe.com

The construction sector gained more new workers than other industries, yet material shortages are causing bottlenecks for builders, limiting their ability to hire additional labor. In March, 19,000 residential specialty contractors were hired, according to MarketWatch. In April, that dropped to 4,400. While the construction sector has hired more than 45,000 employees from February 2020 to April 2021, other industries’ slow hiring are affecting the construction sector’s ability to hire. Logging, for example, lost employees in April, marking the third consecutive month of losses. Steel and appliances are also posting long lead times, but MarketWatch notes these are typically imported from other countries.

The material shortages are driving up the price of new homes, pushing the cost some $35,000 higher, according to research from the National Association of Home Builders. More than that, it’s dragging out the duration of construction projects. “They’re laying down a foundation, but they’re not proceeding to frame the home,” Dietz said.

With less work to do as builders wait for supplies to arrive, many have opted to hold off on taking many more new sales, or hiring more workers on the off-chance they aren’t able to do the work.

Homebuilders also employ salespeople to handle the customer-facing side of the business. There, too, builders have remained hesitant to ramp up hiring. “The large public builders have a tremendous order backlog right now,” Reichardt said.

The bottlenecking caused by the supply shortage means that many companies are already at capacity, so boosting sales volumes isn’t a concern. Consequently, builders aren’t looking to increase their workforce of salespeople.

Read More
 

Related Stories

Housing Markets

Where are Single-Family and Multifamily Permits Rising?

All 50 states experienced an increase in single-family permits in April compared to one year prior, but multifamily permits were much less stable…

Building Materials

Lumber Falls to Lowest Price Since March

Lumber prices dropped 5% on Friday to the lowest price since March and 37% since prices hit a peak in May. Lumber futures decreased for the eighth…

Multifamily

Multifamily Construction Posts Strong Suburban Growth

Single-family construction continues to ramp up in low-density, more affordable markets to meet demand, but the National Association of Home…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.