There are a number of reasons why modular buildings are up to 20% less costly than conventionally built structures. In this installment we examine the fourth reason behind the cost savings associated with modular buildings: skilled labor shortage.
Repercussions from the great recession of 2008 are still being felt in the construction industry. While indicators like construction starts, investment and the AIA’s architectural billing index are approaching pre-recession levels there is a labor shortage slowing the recovery.
Census Bureau data indicates that about one-third of construction workers affected by the recession switched to employment in other industries. The exodus of construction workers leaves the recovering industry short staffed during a time of potential growth. The labor shortage is delaying projects, raising construction prices and forcing companies to turn down work. Many builders are currently running 20-30% behind schedule as they wait for the limited pool of carpenters, roofers and other skilled trade workers.
The consistent manufacturing plant employment model the modular construction industry is built around has allowed Palomar to avoid the workforce attrition that has assailed conventional construction companies. Palomar maintains a highly skilled workforce made up of trades people that prefer the climate controlled work environment and consistent employment that our modular construction method provides.