Labor Shortage Stunts Seattle Construction Growth
Over the last several years, Seattle had ranked number one in the nation for the greatest number of cranes in the city skyline. This year, Seattle tied with Lost Angeles with the most cranes. However, this construction boom has hit a roadblock. The construction labor force is dwindling in Washington State, and our contractors are trying hard to catch up.
According to the Associated General Contractors of America survey, the shortage of the labor force is causing projects to take longer and raising overall costs. Unfortunately, many of the previous labor force left during the recession and did not return. The nation lost about 600,000 construction related jobs. With the loss of many jobs and the latest generation opting out of the industry, contractors feel the pain daily. Shortage of labor means contractors must wait for subcontractors to become available and paying higher wages. A recent study shows this as the reason why construction costs rose nearly 6% last year.
There were over 400,000 construction jobs available during April of 2019. This is a cause for concern, especially now as Seattle has millions of square feet in office space currently in the works for the next few years. Contractors are anticipating that hiring will continue to be rough over the next 12 months. Even finding crane operators is becoming more difficult.
The latest workforce, as mentioned, is opting out of the industry. With more and more jobs available in other industries, the labor force is choosing other jobs. The younger generation has a perception of the construction industry as dirty and dangerous. The construction industry needs to do a better job of recruitment and retainment. Providing mentorship programs and other internships would allow the younger generation to see and understand the culture behind the construction industry.
The future of the construction industry, coincidentally enough, is technology. Using artificial intelligence and automated machinery can help with the lack of labor, therefore cut down of labor costs. Use of technology will also help with accuracy, which assists with the overall project.