In this issue
- Shifting workforce – workers reevaluate priorities
- NAHB Contracts on demand
- What inflation means for interest rates
- Construction costs raise Home Insurance rates
- Chattanooga updates zoning to allow density
- Get paid back, HBA Member rebate reminders
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Construction Workforce Opportunity:
“Great resignation” wave coming for companies
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(Axios) – Companies that made it through the pandemic in one piece now have a major new problem: more than a quarter of their employees may leave.
What’s happening: Workers have had more than a year to reconsider work-life balance or career paths, and as the world opens back up, many of them will give their two weeks’ notice and make those changes they’ve been dreaming about.
“The great resignation” is what economists are dubbing it.
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Surveys show anywhere from 25% to upwards of 40% of workers are thinking about quitting their jobs.
A number of colliding trends are driving the resignation boom, experts say.
- Economist Betsey Stevenson, “People have had a little more space to ask themselves, ‘Is this really what I want to be doing?'” So some are deciding they want to work fewer hours or with more flexibility to create more time for family or hobbies.
Others are considering switching careers entirely.
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A cruise ship staffer trained and pivoted to work in a data center because the pandemic showed her the volatility of her industry.
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An insurance broker and her restaurant manager husband both left their jobs to start a landscaping company because they realized during the pandemic that they wanted to spend more time outside.
- “A lot of people who want to go back are finding that the office that they come back to is not the office they left behind,” Klotz says.
There’s not much firms can do to hold onto employees who want to switch fields. But human resources may be able to retain some workers by offering as much flexibility as possible, says Cathy Moy, chief people officer at BDO USA.
But, but, but: The big churn could ultimately be good for workers and employers.
- There are now a record 9.3 million open jobs in America. And unemployed workers are holding out, right not they’re not desperate enough to nab the first job offer that comes along.
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“Hopefully we’ll see a lot more people in 2022 employed and stable because they’re in jobs they actually like,” Moy says.
**This is an Opportunity for the Construction Industry
Many unemployed workers will not return to their previous occupations. The construction industry has a great opportunity to attract and recruit talented people, who are purpose driven and inspired by creating a tangible product. Joining a construction career has long-term value. Years from now the workers we recruit will be able to drive through their community and show their children and grandchildren the houses they helped create.
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2 interesting articles in NAHB’s recent publication.
Scott Sedam offers a 12-point program to ease the pressure
The ProBuilder survey reveals the styles and materials that will dominate the market
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NAHB Contracts on-demand
Protect yourself from unpredictable prices and material shortages.
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NAHB Contracts offers a variety of residential construction contracts, exclusively for home builders and remodelers. You will save hours of work — which means saving hundreds of dollars — with every contract.
Each contract product is delivered as a downloadable Word document. Choose the product and pricing option(s) that best meet your needs. View options.
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Here’s a simple way to understand the recent rise in inflation: As the pandemic is receding in the U.S., demand for goods and services is rebounding more quickly than the supply of those same goods and services. And when demand outpaces supply, prices rise. (The Home Building Industry has been living with this for over a year.)
The demand part of the story is fairly obvious. More Americans are shopping in stores, eating in restaurants and planning vacations. They are spending some of the savings that they accumulated during the pandemic, including money from government stimulus checks. As my colleague Neil Irwin says, “Demand is not just back but more than back, given the fiscal surge and pent-up savings.”
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With Inflation Rising Federal Reserve Sees Earlier Time Frame for Interest Rate Hikes
(AP) — The Federal Reserve signaled Wednesday that it may act sooner than previously planned to start dialing back the low-interest-rate policies that have helped fuel a swift rebound from the pandemic recession but have also coincided with rising inflation.
The Fed’s policymakers forecast that they would raise their benchmark short-term rate — which affects many consumer and business loans, including mortgages and credit cards — twice by late 2023. They had previously estimated that no rate hike would occur before 2024.
Taken as a whole, the Fed’s latest policy statement reflected its recognition that the economy — and inflation pressures — have gained momentum in the wake of the recession much faster than expected. Read the article.
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Home Insurance Prices Up Due to Building Material Costs
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( WTVF-Nashville) — Home insurance prices are increasing in conjunction with build material costs. According to the Greater Nashville Realtors insurance costs this year are up 25-percent. Insurance companies are adjusting their prices to match home building costs in the event a home is destroyed. The cause of the increase started in March of 2020. According to Charles Schneider of the Homebuilders Association of Tennessee, costs for common materials went high once lumber mills slowed operations due to the pandemic. “Currently, lumber is one of the things that’s gone up most dramatically,” said Schneider. “We are also facing a shortage of Appliances, windows, doors, they’re all delayed.”
Schneider said farming lumber is still 300-percent more expensive than they were a year and a half ago.
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Chattanooga Developers Push for Creative Zoning Solutions & Increased Density
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(WTVC-Chattanooga) — Help could be on the way to fight what some developers call a housing crisis in Hamilton County. Local leaders are considering changing zoning requirements for single family homes. It would allow crews to build more houses in the same amount of space.
The HBA of Greater Chattanooga says these changes are long overdue, with nearby cities like Atlanta and Charlotte implementing similar changes years ago. Developers say the new regulations could be the key to addressing the rising costs of homes and lack of inventory.
Chattanooga-Hamilton County’s Regional Planning Commission agreed, okaying the regulation changes Monday. After 40 years of no change to single family zoning, John Bridger, the director of the planning commission staff, explained it was time for an update.
“We all agree that the housing of the 1980s and 1990s is not the housing of 2020, and so the question is how do we go about doing it,” said Bridger.
After a lengthy discussion, the planning commission ultimately approved regulation changes. “We all know that we are battling a major housing shortage in our county and in our city which has had a tough affect on affordability and home prices. I think this is an opportunity to take a step and correcting some of those issues,” said Chris Mabee, a member of the Chattanooga-Hamilton County Regional Planning Commission.
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Get Paid Back with Rebates Available to HBA Members
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Home Builders preach the benefits of doing business with a member. We want you to do business with like-minded people who support our industry. We also encourage you to take advantage of savings by participating in Rebate Programs.
Builders and Remodelers, if you’re not participating in this rebate program, you’re leaving money on the table. Register and claim your rebates www.HBATrebates.com
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One of the great benefits of your HBA membership is access to multiple savings programs on products you already purchase. We encourage all members to use these programs. New participants are often surprised they save 2x-4x the amount of their annual dues.
Need new work trucks? Click on any of the images below for more information.
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GM’s Limited-Time Incentives
- 2020 Silverado MD: Bonus Cash of $500-$2,000 (varies based on trim). Ends 06/30/2021.
- Low Cab Forward receives $500-$4,000 (varies based on trim and delivery type). Ends 06/30/2021.
Take a look at a list of NAHB incentives on eligible GM vehicles
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NAHB has Additional Savings Programs for Business Savvy Members
Whether it’s a discount on a product or service or a more efficient way to operate, the smart business person is always looking at ways to cut costs and maximize returns.
Through agreements with more than 20 national companies, NAHB offers exclusive discounts on a variety of products and services that can benefit your business, employees and family.
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