Homebuilders have slowed their hiring pace, even as buyers are clamoring for properties to purchase. Analysts and economists say the slowdown is a reflection of the exceptional challenges construction firms are facing in sourcing building materials.
Analysts and economists say the slowdown is a reflection of the exceptional challenges construction firms are facing in sourcing building materials.
The situation “is creating a problem getting necessary building materials out of the factories and onto the job sites,” said Carl Reichardt, Jr., a managing director and home-building analyst at investment bank BTIG. Homebuilders also employ salespeople to handle the customer-facing side of the business. There, too, builders have remained hesitant to ramp up hiring. “The large public builders have a tremendous order backlog right now,” Reichardt said.
Prior to the pandemic, builders faced a shortfall of workers The situation playing out in the construction sector is a major shift from before the pandemic. In an industry survey conducted in February 2020, more than 4 out of 5 builders said they expected to face serious challenges related to the cost and availability of labor, the National Association of Home Builders reported.
“Only 3% of construction occupation — that is people swinging hammers and working on construction sites — are women,” Dietz said. “There a lot of work to be done in terms of recruitment efforts.”
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