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December 2021
Q: The labor shortage we’re hearing about, especially in construction, isn’t a universal problem for everyone, is it?
A: It would be disingenuous if I were to say we’re experiencing a lot of labor issues—we’re not. But we’re different in how we attract talent. Our agreement with the carpenters has helped through that situation, and we treat our laborers very, very well. So we haven’t had a huge issue finding labor.
Q: Does that mean you’ve been able to do more than just hold the line with staffing?
A: We added probably 100 people in 2021, so I don’t feel like we have an issue finding labor, whether that’s on the hourly end of spectrum or through to project management and project engineering. And we’ve added some senior executives as we’ve grown the business. I’m not saying we are unique, but I am saying our culture is important to us. We have excellent benefits, we’re flexible in how we manage working hours, all those things make us attractive as an employer in a tough market.
Q: How does that play out at the subcontractor level?
A: The subs? They are having challenges. I think a couple of things are going on. Construction has always been difficult to attract people to because of some negative connotations that come with that. The industry has been trying hard to change that, but COVID, the rise in hourly wages—those have been hurting the industry.
Q: How significant have those rising compensation levels been?
A: Labor two or three years ago could come into the industry and make double the minimum wage. Now, forget minimum; because of shortages, some fast-food places are paying $15 an hour. That’s comparable to what a laborer was making, so why choose hard work in the cold or sun when you can make decent benefits and get a signing bonus? That is hurting to some extent.
Q: Any other factors at work?
A: Closing the gap with the unions, too—that gap between the union wage and what the average wage is, that’s now closing. So the attraction for the unions is not as great as it was before. People are choosing other professions. And with COVID workforce development, you can’t train virtually, you have to do in person. There’s a bit of that going on too across the nation. As a result of all that, the numbers of trained individuals available has decreased dramatically.
