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High Demand and Limited Supply Drive Construction Labor Costs Up

The law of supply and demand is one of the basic drivers of construction economics. It is integral to cost and profit for any construction business from materials suppliers to on site labor and contractors. Labor supply is closely tied to the demand side of the curve and the supply of skilled craftsman is fast becoming an issue that will drive the cost of labor up until a solution can be found. Today we are witnessing the long-term results from those programs that encouraged more students to go to college and discouraged students from taking those courses that lead to the building trades. A recent article in one of the Houston area community newspapers pointed out just how difficult the labor supply issue is becoming in Katy located on the west side of Houston and one of the fastest growing suburbs in the region. As the article titled, “Katy’s cost of construction” reports,  “Fewer technical students, undocumented labor play role in ongoing labor shortage.” The a...

High Demand and Limited Supply Drive Construction Labor Costs Up

The law of supply and demand is one of the basic drivers of construction economics. It is integral to cost and profit for any construction business from materials suppliers to on site labor and contractors. Labor supply is closely tied to the demand side of the curve and the supply of skilled craftsman is fast becoming an issue that will drive the cost of labor up until a solution can be found. Today we are witnessing the long-term results from those programs that encouraged more students to go to college and discouraged students from taking those courses that lead to the building trades. A recent article in one of the Houston area community newspapers pointed out just how difficult the labor supply issue is becoming in Katy located on the west side of Houston and one of the fastest growing suburbs in the region. As the article titled, " Katy's cost of construction " reports, "Fewer technical students, undocumented labor play role in ongoing labor shortage. ...

Immigrants Represent a Growing Share of the U.S. Workforce

Immigrants represent a steadily growing share of the U.S. workforce, a trend that could be affected by efforts to overhaul immigration policy in the U.S., according to Bloomberg BNA. An annual report released May 18 from the Bureau of Labor Statistics shows the number of foreign-born workers in the U.S. increased to nearly 27 million in 2016—up about 700,000 from the previous year and representing 16.9 percent of the U.S. labor force. That is the highest proportion in records going back to 1996, when immigrants accounted for just 10.8 percent of the workforce. The report defines foreign-born workers as individuals who reside in the U.S. but were born outside the country to parents who were not U.S. citizens. It doesn't distinguish between legally admitted immigrants, refugees, temporary residents and undocumented immigrants. The share of immigrants in the U.S. workforce has grown steadily during the past six years after a slight dip during the last recession when foreign-born...