Site builders could be building more homes but they are
being crippled by a shortage of skilled labor.
This shortage is hitting their bottom lines.
With low interest rates and relatively low new home costs,
buyers are hungry to move into their new home before the interest rates start
to climb up from the lowest they’ve ever seen.
Now the cost of new housing is beginning to go up fast and
one of the biggest reasons is the cycle time it takes to build a new home. Site builders could have a house up and ready
for occupancy in 6 months just a few years ago but that time frame has increased
to 9 months in many areas including the Northeast and South. Labor prices have
increased about 10% this year.
The housing industry has lost over half of its production
builders along with the subcontractors that supported them. It’s not like these guys are waiting by the
phone as its been 6 years and they have moved on and found other work.
Many former
construction workers moved on to facilities maintenance work or remodeling or
whatever they could find. Now site
builders are finding it difficult to replace them because today’s market
demands highly skilled workers and there is simply no available labor
base. In the past builders would hire
unskilled labor and train them in the field but they can’t afford that luxury
today. Nearly 50% of all new construction will be green by 2014.
Modular home factories should see this an opportunity to
market modular home construction to both custom and production site builders
and begin doing it now!
Modular factories offer:
- Skilled labor force
- Good wages for production people
- Design and engineering people on staff
- Clean and dry building environment
- Knowledge of latest green and energy building techniques
- Fixed costs
- Shorter cycle times
- Greater customization than ever
Going modular also allows the site builder to book more
houses because up to 80% of the house is complete in the factory along with the
elimination of certain inspections that are performed in the factory and not
required in the field.
Here is the best reason for site builders to go modular – – – – TIME
SAVED!
