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News June 20, 2019

Labor shortage issue expected to worsen after recent tornados

Construction companies and builders faced a shortage of skilled tradespeople even before 15 tornadoes hit western Ohio May 27, according to www.whio.com. And with a need to rebuild in coming weeks and months, builders in the area are aware the labor shortage could worsen.

“Now we have this huge massive rebuilding we have to do, and there are only so many contractors in Dayton,” says area homebuilder Charlie Simms. “So I think it makes sense. If there’s a strong potential for a slowdown, it will affect new construction and remodeling.”

Although some contractors are not currently seeing delays in projects, they see potential for future issues. Eric Farrell, president of the Homebuilders Association of Dayton says a strained workforce pipeline, robust housing market, strong economy and low mortgage rates will conspire to continue to stretch the industry thin.

“It’s nothing new to our industry, nothing new to the residential side of things,” Farrell says.

An August 2017 survey by the Associated General Contractors of America found 70 percent of construction firms report they have a tough time filling hourly craft positions that represent much of the construction workforce.

“It’s a fair statement to say that the tragic storms are going to affect availability of skilled tradesmen for 12 to 18 months,” says Patrick Williams, operating partner of the COHatch development in Springfield, Ohio. “I mean, there is going to be a challenge.”

Mike Dungan of JM Dungan Custom Homes said he doesn’t anticipate a shortage of subcontractors because his company has a network of subcontractors on which it can depend. However, it is difficult to know what to expect after the extensive damage from the tornados.

“The rebuild hasn’t even started,” Dungan says. “Six months from now, who knows?”

Dona Niswonger, president of the HBA of Dayton, says the shortage has led to people coming to the area pretending to be licensed contractors.

“Our biggest concern is the fact that we have so many people coming in from across the United States wanting to do work,” Niswonger says. “And that’s scary, because you don’t know what you’re getting.”

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