Thursday, July 18, 2013

Homebuilding Plagued by Shortages ... Where have all the builders gone?


Great Article and Food for Thought.

As you read this article posted in the Daily Real Estate News put out by the National Association of Realtors. Read between the lines. What they are also telling us is that there is a shortage of men and women coming into the construction trade. The numbers for the next generation of builders / contractors are dwindling. Skilled labor seems to be falling by the wayside as the newer generation is looking for careers in different fields. Could be great opportunities for anyone willing to do the work.


Homebuilding Plagued by Shortages

Despite a big rise in orders for new homes in the past year, a shortage of building supplies and skilled labor is causing construction to lag demand.
“A wider housing market recovery has yet to filter down to regional building products makers—the companies that supply the roofing, walls and interior fittings needed to build these new homes,” Reuters reports.
Tight credit is also limiting suppliers' ability to raise their production to meet demand. Since the financial crisis, big banks are more reluctant to lend to small suppliers.
"Until you know unequivocally that the housing market has returned, you are going to be more reticent if you are a bank," Scott Simpson, BlueTarp chief executive, told Reuters. "Big banks are not going to lead the field in lending."
Homebuilders also are still operating at low workforces, following cutbacks during the housing crash in 2007.
"Construction is not proceeding as fast as it might have, had there been an ample supply of labor," says Chad Crow, chief financial officer at Builders FirstSource Inc. "I think that will probably be the trend over the next year or two."


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