The Impact of the Skilled Labor Shortage

For more than a decade, the skilled labor shortage has been one of the biggest challenges facing the construction industry. The COVID-19 pandemic put even more pressure on an already understaffed workforce and struggling industry.

According to the 2020 Construction Outlook Survey published by the Associated General Contractors of America (AGC), 81 percent of construction firms have been unable to find workers to fill open positions, despite the steady growth in the construction industry. Nearly 75 percent of firms surveyed anticipate labor shortages to be the biggest hurdle in the coming year. Additionally, the National Association of Homebuilders estimates nearly 200,000 jobs will go unfilled largely due to retirement, workers adapting their skill sets to other industries, or leaving the construction field altogether. 

 

So, what does the labor shortage mean for your upcoming project? 

Increased Costs

The most obvious way the labor shortage is affecting the construction industry is increased costs. According to a recent economic analysis of the industry, labor costs are the primary cause for increased costs nationwide, with a 23.6 percent price increase since 2004. The AGC estimates that 70 percent of firms struggle to find workers, and some have increased wages to entice workers. The labor storage impacts the industry in multiple areas, and it is more pronounced when increased building and materials costs and labor costs translate into higher costs for the consumer. 


Outsourcing

With the skilled labor shortage a continued global issue, the available talent pool has diminished. And of the vocational school graduates entering the workforce, some need additional training to meet industry standards. As a result, construction firms are starting to outsource building materials - thus eliminating tasks otherwise completed by skilled laborers. Outsourcing helps to reduce material waste, create more consistency and productivity, and keep overhead costs down.


Longer Timelines

The labor shortage results in construction projects - even the most routine ones - take longer than usual. The 2020 AGC Survey found that 40 percent of firms state that all projects are taking longer than anticipated because they can’t employ enough workers on the job site to complete the project. While economists predict a boom, prolonged project timelines affect delivery dates, material availability, and real estate development. 


At The Window Depot, we take pride in our workmanship. As proof of our confidence, ALL of our labor and workmanship are covered by a lifetime guarantee. We only offer top-quality products, and most of our products also come with lifetime manufacturer guarantees. To schedule an appointment or learn more about our products and services, call us at (813) 901-5555 or fill out our contact form. You can also visit our showroom in Palm Harbor to view our windows firsthand.



Sources

https://www.forbes.com/sites/sarahchamberlain/2019/08/21/addressing-the-skilled-labor-shortage-in-america/?sh=3d72615f181d 

https://www.businesswire.com/news/home/20210318005265/en/U.S.-Skilled-Trades-Labor-Shortage-Heightens-as-In-Demand-Jobs-Remain-Unfilled-the-Longest 

https://skillwork.com/why-is-there-a-shortage-of-skilled-workers/ 
Location: 4154 Corporate Ct, Palm Harbor, FL 34683, USA

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