Forecasting Construction Labor Availability and Hourly Wages

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Forecasting Construction Labor Availability and Hourly Wages


FORECASTING CONSTRUCTION
LABOR AVAILABILITY AND HOURLY WAGES

“This presentation demonstrates how a slight increase in construction hourly wages can significantly increase the amount of qualified laborer available to fill job vacancies,” said Dr. Bouhou. “This presentation brings to light potential solutions that can alleviate and tackle labor shortages in the industry such as in- and out-of-state labor sourcing, cross training, and improving workers benefit packages.”

Are you interested in learning how to predict fluctuations in hourly construction wages? Have you ever asked yourself how you could differentiate your organization to attract more laborers? Do you wonder how union memberships are impacting the availability of labor in your area?

Anthony Gonzales, Managing Principal, and Dr. Nour Bouhou, Consultant, presented at the Construction Financial Management Association (CFMA) Central Texas chapter’s monthly meeting in late April. The presentation titled Identifying and Forecasting Labor Availability and Impact to Wages provided construction finance professionals with an understanding of how hourly wages are expected to increase in the next two to three years. While national averages show that labor is available across all trades, Texas, particularly Austin, Houston, Dallas, San Antonio, Beaumont-Port Arthur and Waco, seems to be experiencing a shortage condition given the increased demand for hourly laborers. The presentation explained theoretical and economic definitions of labor shortages and provided attendees with a practical metric to identify and quantify labor availability in the construction industry.

“This presentation demonstrates how a slight increase in construction hourly wages can significantly increase the amount of qualified laborer available to fill job vacancies,” said Dr. Bouhou. “This presentation brings to light potential solutions that can alleviate and tackle labor shortages in the industry such as in- and out-of-state labor sourcing, cross training, and improving workers benefit packages.”

This presentation was an opportunity for attendees, including CPAs, CFOs, and surety bond producers from the Central Texas area, to learn more about the current labor shortage effects and share ideas to resolve the problem.

Michael Simpson, Spire’s Director of Operations, was also in attendance. He currently serves as the Co-chair of the Education Committee for the CFMA Central Texas Chapter, a group which exists to bring together construction financial professionals for networking, sharing ideas, and accessing educational opportunities specific to the construction industry. To find out more about CFMA Central Texas Chapter, please click here.

Spire assists clients across all industries to ensure their projects are delivered on time and within budget. Spire’s construction management experts know how to help clients set realistic project goals, gauge risk, and develop mitigation strategies that will ultimately save time and money.