According to recent Modcoach newsletter polls, the labor shortage is the biggest problem facing the offsite construction industry. Yes, material shortages and rising costs are also huge problems but without labor to build the homes and affordable housing projects, they pale in comparison.
Not all the workers who left their jobs during the COVID-19 recession have returned as the economy has improved. This situation has left many businesses short of help.
One of the reasons for the shortage is that many workers have moved on to other jobs that pay better. So, there’s not only been a labor shortage, but also a labor reallocation.
A perfect example of this is my own son.
Adam is in his fifties and was a heavy equipment operator for 15 years. He loved it and the pay was adequate. Then the company he worked for lost two operators and new hires would only work for a few days before not showing up which forced him into mandatory overtime working a minimum of 6 days a week, 10 hours a day.
When he was in his early thirties, he was an automotive phone and stereo system installer. 3 months ago he put his name into one of the online employment agencies where his resume mentioned he did stereo installs. The next morning he was interviewed and took a test for becoming an installer. He aced the test and was hired the following day.
He now works in a brand new automotive bay doing car stereo, alarm, backup camera, and remote starts for Amazon. He loves it and is making $5 an hour more than being a heavy equipment operator.
Economists agree the reallocation of workers will continue in the future, and likely at a faster pace. The reason is the fast development of new technology impacting how work tasks are accomplished.
The big questions are, how will this technology change the labor market, what kinds of jobs will expand, and what kinds will shrink, and does the offsite construction industry have the training programs ready to facilitate the shift in jobs?
Technology has been changing the labor market for decades. Today, technology is rapidly expanding. Any task that is done over and over, in the same way, can be accomplished by a machine. But the scope of what machines can do is growing. “Artificial intelligence” – which is based on replicating human decision-making – is allowing machines to do tasks never before contemplated, like driving, cleaning, and reading data and charts.
Futurists expect the emerging technologies will replace many jobs in manufacturing. At the same time, there will be growth in jobs in sectors like information technology, and the sciences – particularly engineering, computers, and life sciences.
Workers entering the labor force will obviously want to be aware of both increasing jobs and decreasing jobs. Perhaps more importantly, we want to make sure there are retraining programs ready for those existing workers who need to change occupations.
Existing workers who are older and have families to support don’t have two to four years to learn new skills. My son wasn’t technology savvy when he started working for Amazon but their training program was tailored just for the areas he needed to learn and not his installation strengths which were determined with the initial Zoom test he took.
The offsite industry needs educational programs available to rapidly re-skill existing workers, programs that take months to finish rather than years. We need apprenticeship programs, where an individual learns new skills on-the-job.
Economies constantly change over time, as new inventions and innovations occur. In most cases, these changes improve our lives, but there can be problems for some workers in changing from outdated jobs to new jobs.
These changes will continue in the future, but probably at a faster pace. It’s time for the offsite construction industry to have systems and programs in place so everyone benefits and no one is left behind? You decide.
Related Articles:
Training Resources Continue To Be Limited In The Modular Housing Industry
Factory Starts Their Own Training Program For “New To Modular” Builders
Oh, Brother! Where Art Thou Construction Training?
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder. Email at [email protected]
To learn more about the Offsite Construction Industry, visit: Offsite Builder, the Construction Magazine for Builders and Developers
