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Builders Outlook 2013 Issue 3

Builders Outlook 2013 Issue 3

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Published by TedEscobedo
The official publication of the El Paso Association of Builders
The official publication of the El Paso Association of Builders

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Published by: TedEscobedo on Mar 28, 2013
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03/28/2013

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Builders utlook
www.elpasobuilders.com www.epbuilders.org
2013issue 3
Editor’s note: The recent Rally Day in Austin contained the same message to Texas legislators as what is occurring in much of the country. See the Rally Day story to get more information on the approach the El Paso Association of Builders is asking for from the Texas delegation.
NAHB, Washington, DC
-Growing labor shortages in allfacets of the residentialconstruction sector are impedingthe housing and economicrecovery, according to a newsurvey conducted by the NationalAssociation of Home Builders(NAHB).“The survey of our membersshows that since June of 2012,residential construction firms arereporting an increasing number ofshortages in all aspects of theindustry – from carpenters,excavators, framers, roofers andplumbers, to bricklayers, HVAC,building maintenance managersand weatherization workers. Thesame holds true forsubcontractors,” said NAHB ChiefEconomist David Crowe.The survey also found that morethan half of the builders reportedthat labor shortages over the pastsix months have caused them topay higher wages or subcontractorbids to secure projects, andconsequently, to raise homeprices. Moreover, 46 percent ofthe builders surveyed experienceddelays in completing projects ontime, 15 percent had to turn downsome projects and 9 percent lostor cancelled sales as a result ofrecent labor shortages.Part of the reason for the laborshortages can be attributed to thefact that many skilled residentialconstruction workers were forcedto seek employment elsewhereduring the recession and are nolonger currently available.“What used to be high-paying,skilled jobs vanished as buildersacross the nation went out ofbusiness or were forced to letworkers go,” said NAHB ChairmanRick Judson, a home builder fromCharlotte, N.C.The loss of tens of thousands ofhousing jobs mushroomed tomore than 1.4 million during thepeak of the downturn. During thisperiod, many trades retrainedconstruction workers and they arenot returning to the residentialconstruction sector.Meanwhile, a lack of buildablelots and increased costs formaterials and labor are alsocontributing to the problem, as theinfrastructure that supports homebuilding moves to re-establishitself following the worst housingdownturn since the GreatDepression, Crowe said.To help meet the growingdemand for skilled labor within thehousing sector, the Home BuildersInstitute (HBI), in partnership withNAHB, provides career trainingand job placement in the buildingindustry. HBI offers an array ofportable pre-apprenticeshiptraining programs in a variety ofskilled trades that can becustomized to meet the workforceneeds of communities across thenation. HBI regularly placesapproximately 80 percent of itsstudent graduates in jobs in thebuilding sector.“We are ramping up our effortsto train diverse populations andplace them in jobs to meet thegrowing demand of the buildingsector,” said HBI President andCEO John Courson.“Even in a period of relativelyhigh unemployment, we still needto complement our job trainingefforts by bringing in foreignworkers to meet the needs ofhome builders and home buyers,”added Judson.The worker shortages are notonly slowing the housing recovery,but also hurting job and economicgrowth.Nationally, the construction of1,000 single-family homesgenerates more than 3,000 jobs,approximately $145.4 million inwages, and more than $89 millionin federal, state and local taxrevenues. That doesn’t even countthe increase in annual propertytaxes that local municipalities relyon to fund schools, police andfirefighters.As the economy mends, pent-updemand for housing will continueto grow, as roughly 2 millionhousehold formations weredelayed as a result of the GreatRecession. In normal economictimes, demand for new homesshould be about 1.7 millionannually.NAHB is anticipating totalhousing starts of 970,000 this yearand 1.18 million in 2014 as themarket continues its gradualrebound.“We need to look holistically atthe home building infrastructure tomeet growing and future demand,”said Judson. “To avoid a run-up inprices in hot markets due to laborissues, we need to complementour current training programs witha market-based visa system thatwould allow more immigrants tolegally enter the constructionworkforce each year when there isa dearth of workers to fill the jobsthat are needed.”
Growing Labor ShortagesImpede Housing andEconomic Recovery
 
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Builders Outlook 2013 issue 3
 
The year is moving along at a brisk pace and our agenda’s keep us verybusy at the Association. It is a little startling to see that one third of my termas president has already gone by and that soon we will be making plans toinduct Frank Torres into the spot. But first we have a little bit more work to dothis year and get the Association in a better position. As the chairman for theExecutive Committee I have great partnerships with Frank Torres, EdgarMontiel, Sam Shallenberger, Frank Arroyos and Greg Bowling. It is amazinghow much work we are entrusted to do. As we come off the highly successfulRally Day event in Austin I can announce that we came away as the winner ofthe percentage over goal for Build PAC. A few of your members really workhard to get that done and I’d like to thank Greg Bowling, Randy Bowling andDoug Schwartz for leading the way. They understand that when you contributeto Build PAC at the Texas Association of Builders we get the ability to have ourpresence at the Capitol. Our lobby team there does a great job for all of themembers and a huge value is made with each contribution made. We get tohang another trophy on the wall for the effort and contributions made by a few,and I can only imagine what it would be like to get just half of our members onboard with a PAC contribution of $100 or more. As soon as the May cityelections are done we will set up a local Rally Day and remind the newly andremaining representatives how much you mean to El Paso’s economy and taxbase.Speaking of elections remember to carefully look at each candidate that isrunning, and in the case of the city district representatives make sure that theyunderstand the value of home building in El Paso. I am proud to say that oneof our own members, Gus Haddad of Haddad Mortgage, is running for Mayor.Our history of involvement in city, county and state government is long andstoried. So learn the facts about the candidates and then go vote and takefamily, friends, workers, and associates out to vote. This election is trulyimportant to the City and to our industry.Let’s have some fun at the upcoming Golf by the Rio. I’d like to thank Rayand Margaret for the work they’ve done selling the event out, and to Sam forhis belief and work with them. Now, go out and do well.
President’s Message |
El Paso Disposal
772-7495
3
2013 issue 3 Builders Outlook
 
EdmundoDena
President,El Paso Associationof Builders
 Showroom:
2131
Missouri
915
533
6045 fax
533
6096
Thomas R. Brown, Owner 

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