Builders will argue that the rising cost of construction materials is making it harder for them to raise wages, not to mention that they are still competing with large supplies of cheaper, distressed properties, many of which are relatively new construction.
“Here locally, we’ve measured that the average price of a house has gone up 1.7 percent from last year, which is not nearly enough to cover the 9 percent increase in costs that has occurred since 1st of the year, so it’s coming right out of the margin,” says Stephen Brooks, CEO of Dallas-based Grand Homes.
The argument quickly turns to immigration policies, given that so many construction workers are not U.S. citizens, but it is also a matter of investment in the work force, which we see in so many sectors, like the auto industry, as reported by CNBC’s Phil LeBeautoday. Apparently their aren’t enough skilled engineers to do the necessary work on cars. (Help Wanted: Engineers)
Says another blogger: “I’m thinking these folks need to rescrew on their heads on what it will take to grow their businesses, like maybe invest some resources to bring new folks on board and work with them to make sure they have those skills they want long term.”
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