Across the nation, a shortage of skilled construction labor has been a growing issue in the construction and development industries. After the Great Recession led to the layoffs of 1.5 million construction workers, many of these experienced construction workers never returned to the construction workforce. In the following years, the construction industry has not been able to recruit new workers to fill the workforce gap left behind by the Great Recession.
One of the primary effects of the skilled labor shortage is increased construction costs, which can result in reduced economic growth when proposed development projects no longer pencil. In San Francisco, the rise in construction costs have contributed to the continuing dearth of new housing supply, which had already been constrained by drawn-out entitlement processes and restrictive zoning laws.
With education currently undergoing significant change during the pandemic, perhaps we can re-envision a future where trade schools are positioned as strong career options for high school students.
How can industry and the government attract new workers to join the construction trades for a long-term career?
The U.S. construction industry and policy makers must endorse, encourage, and support the industrialization of the construction industry.
In the United States, we currently have
1. A shortage of skilled construction labor
2. A shortage of decent, affordable housing inventory
3. A vastly under-utilized manufacturing base/infrastructure
4. A need for more stable, predictable jobs
The modular industry can offer more predictable work locations and hours, less labor-intensive work, a higher degree of technology integration, and much safer working conditions – all of which should attract new workers.
Many countries are embracing industrialization in part due to difficulty in finding labor, but also due to the high demand for more affordable housing inventory. The construction industry can serve as a catalyst for the major rebirth of the US manufacturing base, creating thousands of new jobs while addressing our own massive infrastructure needs.