Housing Labor Shortage Drives up Cost and Delays

[deadshank 24653]

6 minutes ago, Bevo said:

If that is the point of this thread, then maybe I am missing it. I'm a professional and subject to numerous stresses every day from running a small business to dealing with life and death situations daily, to the average person thinking that we make too much money and thinking they don't need to pay for their services.

I was a Chem E and Mol. Bio major in undergrad and do most of my housework from plumbing to electrical to masonry (which I am not good at). I recently got bids for installing a gas line and electrical lines for a pool construction. The electrical bids were in line while the gas line bids were ridiculous. I installed a PVC sleeve, purchased the MDPE gas line, had the utility increase the pressure to 2PSI and install a new meter, and dug the trench to 18 inches so all the plumber needed to do was run the line through the PVC and install 2 regulators (1 for the house to bring the pressure back down and 1 for the pool heater to bring the pressure back down). The cost was over $3000 and it was hard to find someone to do it. I could have done it myself in about 1 hour and $300 but my city required a licensed master plumber for permitting.

If anyone thinks that those type of jobs are below them then they are complete idiots. No job is easy and it requires hard work to make money. Only people who are given too much for too little effort would think those jobs are below them. And I think for those people, the school of hard knocks, will get them to realize that they are dead ass wrong. You stated, "In a perfect world Americans in need of jobs would fill the void but it's not happening". While this may be true, the fallacy is that it would not happen. These things take time. Parents may think it is too hard to change their ways. Their children however should see that these jobs are good and profitable, especially when the alternatives are limited.

I hope it changes, too. Not everyone’s going to be a rich, rock star.  Trade labor is quite noble and Way under appreciated.   

 

[MissingInAction 25330]

The state is renovating a lot of buildings these days and all these guys climbing ladders, running cable, plumbng, look like they are in their late 50s early 60s. 

I used to do low voltage work and that is a young mans job. Hard on your spine, joints, etc. Im only 44 and cant imagine doing that shit 40-50 hours a week.

[Incredulity 11732]

By 44 you should be running crews.

Everything in the trades is a young mans game.

[MissingInAction 25330]

I still get tapped to inspect/approve work for payment, so i keep my certs up to date. 

[HOOKEM4 5075]

I am 100% behind steering my kids towards the trades. I am not a master anything but I love building shit (to code). I am going to make it my lifes work training my children to appreciate and embrace it. If they dont want to join a trade, fine, but imo they will be better served than going to college and getting a degree that wont pay off the loans in 15 years. I am in a field where I train college grads and it is comical how much they make versus owe. With the right financial backing and absolute dedication my children will be much better off working in a trade than getting a degree in underwater fire prevention.

[Steamboat1874 4183]

On 9/9/2018 at 5:36 AM, MaybeACoordinator said:

That's just not true. I can remember a time, and it wasn't that long ago, when most Texas construction workers were rednecks. In fact, one of my aunts married one who actually went by Bubba. 

I also don't think it's safe to assume that kids can't or won't do these jobs. The opportunities aren't there these days. Hell, in big Texas cities, it's hard to help your kid set up a lawnmowing business or back of the house restaurant work because they are competing with Chuy and Julio, who are really good at their jobs and established with their employers.That was not the case when I was a kid / young man. 

 

Gee I wonder why Chuy and Julio are taking the jobs away from the white kids........ 

Maybe you should look at the real reason there are so many people coming into this country and getting these jobs.

[BottleRocket 650]

Generally speaking, a major factor in the availability of skilled construction labor in Texas is the health of O&G.  When O&G is down, skilled construction labor is available.  When O&G is up, skilled construction labor is scarce.   Other factors mentioned above are also in play.

[tbone_ 14299]

Construction cost inflation is insane right now.

I develop apartment complexes. I just priced a new deal similar to the first one we did in 2013 at the beginning of the cycle for $92.50/sf. Today’s price: $183/sf.

Double in 5 years.

[RollLeft 5053]

On 9/9/2018 at 5:36 AM, MaybeACoordinator said:

I also don't think it's safe to assume that kids can't or won't do these jobs. The opportunities aren't there these days. Hell, in big Texas cities, it's hard to help your kid set up a lawnmowing business or back of the house restaurant work because they are competing with Chuy and Julio, who are really good at their jobs and established with their employers.That was not the case when I was a kid / young man. 

 

I can only speak to my experience.  I helped run a good sized commercial and residential subcontractor here in Houston for a few years.  I tried my hardest to hire local kids of all colors straight out of high school, community college and even smaller four year schools.  Over and over they chose not to stay or had baggage that caught up with them.  Often I paid them more than they were worth.  I talked to them about their opportunity to fast track due to having naturally better communication skills and customer service ability.  Again, it was rare that they wanted to continue and just as often simply couldn't cut it.  I cant tell you how many quit after one day.  Good kids like fit former athletes with a good head on their shoulders.  Imo, there is plenty of opportunity for our local boys.  Until they decide to pursue it, or we as a community help educate them, the foreign labor out there will continue to do it right faster and for less.     

[workswithseed 2139]

On 9/8/2018 at 8:17 PM, Aqua Buddha said:

What do you think happens when we restrict immigration?

It means that my trade will be paying me more than what it was when I started. Fewer welders mean I can demand more. Win win for me

[Upgrayedd 5829]

6 hours ago, tbone_ said:

Construction cost inflation is insane right now.

I develop apartment complexes. I just priced a new deal similar to the first one we did in 2013 at the beginning of the cycle for $92.50/sf. Today’s price: $183/sf.

Double in 5 years.

It is starting to kill deals. 

[tbone_ 14299]

I haven’t seen anyone drop anything yet.

[Incredulity 11732]

You both are right.

 

[High Plains Drifter 11085]

On 9/9/2018 at 2:22 PM, MissingInAction said:

The state is renovating a lot of buildings these days and all these guys climbing ladders, running cable, plumbng, look like they are in their late 50s early 60s. 

I used to do low voltage work and that is a young mans job. Hard on your spine, joints, etc. Im only 44 and cant imagine doing that shit 40-50 hours a week.

I told my dad I wasn't planning on going back to college after my freshman year. He got me a job on a roofing crew (shingle) in Austin. After one summer of that, my ass was back in school with a quickness. That job almost killed a 19 yr me. I can't imagine doing it 40+ hours a week now.

I did make some pretty good money working 50+ hour weeks, and brushed up on my Spanish.

[Jkwellborn 6897]

I roofed for about a year around the same age. I enjoyed it. It’s work though.

I roofed a porch that was about 130sq feet a couple of years ago. Thought I was gonna die.

[deadshank 24653]

50 minutes ago, Jkwellborn said:

I roofed for about a year around the same age. I enjoyed it. It’s work though.

I roofed a porch that was about 130sq feet a couple of years ago. Thought I was gonna die.

Do you have an eligibility left? 

[Stunns38 3713]

I haven’t seen anyone drop anything yet.

Rising Interest rates will do that though.

[tbone_ 14299]

Only if they move cap rates which hasn’t happened so far.

 

Actually they are continuing to drift south.