Shortage of Trades

Flash in the pan Joined: 09 Dec 2009 Posts: 37

Are any of the other builders out there experiencing a shortage of trades? I have frames sitting on slabs for two weeks, homes with brick on the ground and no workers, and days go by with no workers on my homes.

I'm in a new neighborhood and my builders are telling me there are material shortages and manpower shortages.

I just want to be sure I'm not being fed a line by sub-par supers. Any feedback would be appreciated.

Dud? Joined: 02 Jul 2009 Posts: 13 Location: Houston

The shortage is real. Framers and foundation makeup crews are in short supply. I have one community with 8-9 slabs waiting for framers. We dropped a frame last Thursday and one crew after another has flaked out on us, while we watch the frame pack slowly disappear one stud at a time.

I've heard that the sheetrockers and painters are starting to get behind as well, but it's not as bad for them...yet.

Flash in the pan Joined: 09 Dec 2009 Posts: 37

It still continues, I have a home that has been bricking for 3 weeks. A couple of guys show up, then they leave. I assume to go somewhere else. Frames still sitting. Homes are not moving right now and it's frustrating.

Posted: Sat Jul 14, 2012 5:58 pm

In the past six months I've had a few trades tell me they cannot work for the pay the production builders are offering.

It's not a good situation. Home builders are still competing with the "new" v. "resale" price differential. To be competitive the builders have to make the most of every dollar. Purchasing Managers are required to find materials at lower costs. Const. Mgrs. are required to find trades that will perform their work faster and at lower costs.

It's not a new dilemma. It is what builders must due in times when resale pricing is significantly lower than new home pricing.

Fortunately, the pendulum is always in motion.

Dud? Joined: 02 Jul 2009 Posts: 13 Location: Houston

At least in my situation, the framer shortage is starting to improve. In my case, I dragged a framer and his crew out of retirement. He had moved on to another line of work, and I told him to name his price to pick up his nail gun and start popping lines. He named it, and I paid it.

It was that or start losing buyers. I had buyers lined up 10 deep to complain about their houses sitting still...as if we had some motivation to let the houses sit while we paid on the construction note.

Besides the contractors and vendors being in short supply and squeezing us, we're now getting it from the developers. Land is in short supply, and it's a seller's market.

Somehow, the realtors and buyers act bewildered when we tell them that we raised prices yesterday or that more price increases are coming. It's not 2010 anymore. The buyer's market is long gone. Buy now or pay more later, because my costs are shooting through the roof...and I'm done taking the hit in my margins.