Optimistic Outlook

Construction Firms See High Demand Amidst Labor Shortages

BY MICHELLE LEACH

With an industry as nuanced as construction, it can be difficult to isolate general themes. But, it is fair to say that Midlands firms are largely expressing more optimism than around this time last year.

Furthermore, materials and supplies shortages have taken more of a backseat to concerns over the availability of labor – concerns that industry and professional organizations and firms alike are actively addressing.

Associated General Contractors of America - Nebraska Chapter aims to ease the hiring struggle for its members with workforce development efforts – from Equipment Days, which allows students to try out equipment simulators, to its “The Road Rebellion” career marketing campaign.

Communications Specialist Carly Smith emphasized the need to focus on labor.

“There has been a material shortage over the past few years, but the material suppliers have been working hard to meet the demands,” she said. “Labor is probably the biggest concern, with more work coming down the pipe, we need people now more than ever.”

Smith referred to how the Infrastructure Investment and Jobs Act (IIJA) will bring in funds for roads, bridges, and other projects to “put a dent in the needs of the state over the next five to seven years.”

The Metro Omaha Builders Association aims to promote and protect the homebuilding industry; Executive Director Jaylene Eilenstine referred to its signature Parade of Homes and Street of Dreams, as well as its scholarship to assist women in obtaining a construction-related associate’s degree (courtesy of its Professional Women’s Council). Additionally, its involvement with the Builders of the Future program helps identify, support and educate “nextgeneration” construction professionals.

“While the construction industry is booming, we need more skilled trades in construction … these programs were developed to combat the shortage of skilled labor in our industry,” she said.

Matt Kronaizl, MOBA president and owner of Sierra Homes, said other materials shortages are not “back to normal,” but are “improving every day.”

“ … window and garage door timelines are getting better, certain high-end appliances can still be 12- to 18-month lead times, and various floorings are in short supply or being discontinued every day, still,” he stated.

Interest rates, too, have affected move-up buyers, as Kronaizl said it’s harder for them to swallow a higher interest rate as their payments change drastically.

“We are still seeing very strong demand in the remodel and higherend buyers, and the sales for the mid-range seems to still be strong and steadily improving from last fall,” he said. Homeowners are reportedly desiring more advanced and creative features at all price levels – from smart lights and automation to more utilitarian flow with drop-zone, mud room, laundry, etc.

Kronaizl added that social media sites such as Pinterest and Houzz have helped homeowners hone their style before the design phase.

Activity on the Upswing

McGill Restoration is experiencing backlogs of weeks or months, notably from spring through fall.

“The construction industry in general is busy,” said Tim McGill, president. “McGill Restoration has the largest backlog of work that we have had in our history. Part of that is because we are growing, and the other part of that is there has been a lot of opportunity in the marketplace … We’ve seen more growth limitations relating to less available craftsmen than a reduction in leads.”

Over the last 12 months, McGill said they have had several “fast-track” projects to put valuable infrastructure back into service