What’s Happening in the Northeast Building Industry?
At TZR we place candidates from all over the country, and we know that in our industry and the industries we serve, that what happens in one part of the country, has an impact everywhere.
We’ve been observing the winter weather in the Northeast and have a few takeaways to keep you in the know on what may have an impact on your business and recruiting potential.
“Temperatures were below average from the Midwest and Tennessee Valley to the Northeast in January, according to the National Centers for Environmental Information.”
Winter weather impacts accessibility to job sites and ability for workers to travel, not to mention interruptions in transport and delivery – but that’s not the whole picture.
As has been the case throughout most of the pandemic, even when workers can access a worksite, the long delays in receiving necessary building components paired with rising costs for materials contributes to an already challenging environment.
On top of all of this, we continue to face a labor shortage that makes it difficult for some projects to continue on a normal timeline simply because there aren’t enough people to get the job done efficiently.
Is it Just a Supply Chain Issue?
“The National Association of Homebuilders said that building material production bottlenecks were raising construction costs and delaying projects.”
‘Supply chain issues’ has become yet another unexpected household phrase since mid-2020 and that was just as the boom in construction and home improvement projects took hold.
More has gone awry since then resulting in delays and cost increases that may have been impossible to fathom in past years.
Throw in sub-zero temps and heavy snowfall throughout the northeast and it’s no surprise the building industry is taking a few hits.
Is that a Light at the end of the Tunnel?
Permits for future homebuilding in January rose 0.7% to a rate of 1.899 million units, the highest since 2006.”
People have their eye on Spring weather and are ready to pick up where they left off in late 2020.
Supply chain, cost and labor issues are still going to exist but many have made it work these past two years despite that and the weather.
Proceed with Caution
However, there’s a reason to be cautious… “Mortgage rates are rising as the Federal Reserve is expected to start hiking interest rates next month to tame high inflation.”
How can TZ help? The current lull seems to be temporary with the surge in permits reported. That means that while it’s quiet now, demand will return and with it, jobs. Avoid getting stuck behind the continuing labor shortage as the weather turns and start preparing now. It’s never too early to start identifying and engaging job seekers so that you can deliver on your clients’ needs immediately.