The Construction Business is Changing
This Isn’t Your Dad’s Job – The Construction Business is Changing
When the housing market started to dry up in the early 2000’s, thousands of construction workers were left jobless, looking for work in other sectors. The National Association of Homebuilders estimates that nearly 30% of the national labor force in the construction industry changed careers when new developments and work opportunities became scarce around 2007. Across the country, the industry lost manpower in droves, with states like Arizona, California, Georgia, and Missouri feeling the pressure of losing over 20% of their labor force.
However as 2016 comes to a close, the construction industry has rebounded in a major way – now builders and managers joke that they couldn’t buy enough skilled workers to get the job done. According to a 2016 Department of Labor study, the ratio of construction job openings to overall hires is at its highest level since 2007. As the housing market swings in the opposite direction, new sub developments are on the rise thanks to empowered first time home buyers. Remodels and additions also represent a huge market opportunity for contractors in areas where land isn’t readily available. Compared to 2007, the average construction cost of building a new small family home is 13.7% higher now, spurred by an increasing demand for newly constructed homes with modern features and materials. In a short amount of time, the industry fought an uphill battle but emerged victorious – now it is leaner, more agile, more connected, more focused…this isn’t your dad’s old construction business.
Guaranteed Work…but no workers?
Large-scale homebuilders and private construction companies of all sizes are having an incredibly difficult time attracting and retaining laborers in the construction industry right now. As the demand for labor increases, the availability of quality labor supply decreases – contractors and project managers are offering cash bonuses to skilled laborers on the spot in an effort to retain them. Without enough labor, residential construction output trails behind the demand for new homes, which hurts not only the industry itself, but also the greater economy as well. You don’t have to be a seasoned economist to see there’s a huge opportunity for smart growth and longevity here as a licensed contractor.
Short-staffed crews mean builders and construction companies are desperate to hire contractors and workers with licenses and work experience, paying them higher wages than ever before. Reputable carpenters, electricians, and other skilled tradesmen are in high demand – yet our country has experienced a critical shift in the way we view the trades. Many young adults choose the college path, figuring a grand investment into higher education guarantees them a career, while ignoring the real-world potential of vocational work. Despite what you’ve heard, construction journeymen receive very comfortable pay rates, build different skillsets through on-the-job training, and have the opportunity down the road to command 6-figure incomes once licensed and trusted in their field – all without incurring any traditional student debt.
Making a Manual Job More Digital
Construction work, long demonized for being an archaic use of one’s hands, is finally surging from the realm of analog, outdated methods to join the digital ranks of the 21st century. Construction management software has paved the way for increased productivity and the advent of real-time, measureable results tracked on a daily basis. Tricky logistics operations, detailed installation schedules, and long materials requisition sheets have now been streamlined and simplified thanks to a tablet or smartphone in every employee’s hands – less waste, downtime, and fewer communication breakdowns mean more profit.
When it comes to these software implementations and digital directives, young adults have a distinct advantage – they’ve grown up around and accustomed to the breadth and power of the internet and its connected devices. New construction laborers and contractors have the computing skillsets and technical mindsets to not only make sense of new technologies in construction, but also optimize them to drive efficiency and greater productivity. Work faster and smarter than your competition – beat them to the punch with a knockout yourself.
About CSLS:
CSLS is the largest contractor licensing school in California with over 25 locations throughout the state. We have the highest success rate of any school – 99% of our students pass their exam on the first try, and that’s guaranteed or your money back.
Our teaching process prepares you in a step by step manner for everything you need to know to pass the law, business and trade portion of your exam. Our programs are designed for convenience. We have online programs, home study, crash-course and in-school options, making it easy and affordable for you to become a licensed contractor.
