Rising Costs in the Construction Industry Part 1
Although inflation is a concern for every type of business, the construction sector has recently experienced more rising costs than any other industry. As material and labor costs continue to surge at record rates, business owners need to be wary of their spending habits. In this four-part article, our Sarasota construction attorneys will discuss several of the primary concerns pertaining to surging prices in the construction industry.
In this section, we will discuss increasing labor costs. In the second section, we will discuss the concerning trend of rising material costs. In the third and the fourth sections, we will discuss ways that contractors can combat these rising cost issues by saving money on projects. For assistance with any of your construction needs, our Sarasota construction lawyers are here to help you.
Labor Costs Rising
The labor shortage problem continues to be a growing concern in the construction industry. Whether it’s recruiting prospective workers or retaining skilled workers, unfortunately, the majority of construction business owners cannot hire enough experienced workers to take on all of their upcoming projects. With labor shortage problems, projects experience delays. In some cases, companies miss out on opportunities altogether because of a lack of skilled workers. Of course, with fewer skilled workers, this can lead to other problems as well.
Quit Ratio Increasing
With less skilled workers to employ, recruiting has become highly contentious. The best workers have more leverage and are in higher demand. Naturally, these experienced workers will desire more competitive salaries with better benefits and more scheduling flexibility. Although the national employment rate is currently lower than its been in a very long time, the construction “quits ratio” is only continuing to increase every month. With a high level of demand for experienced workers, more construction professionals are willing to quit their current job feeling confident that they can easily make a transition to a better paying job in the near future.
If you would like to speak with a Sarasota construction attorney, please contact us today.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.