According to the Home Builders Institute (HBI), the residential construction industry must make changes to how it conducts business in order to ease labor shortages that are delaying construction timelines and rising housing costs
Ed Brady, CEO of HBI, provided the institute’s case during a press conference at the International Builders' Show in Orlando, Fla.
A former chairman of the National Association of Home Builders (NAHB) and a second-generation home builder for more than 30 years, Brady noted that the current labor problem is a “long-term structural crisis."
“We need to take a look at the traditional business model of home builders and ask ourselves whether it is properly structured to attract, retain and build the next generation of the nation’s construction labor force,” Brady said. The CEO also issued a “call to action for an all-hands and industry-wide effort to increase training, compensation, diversity, and productivity.”
HBI’s most recent Construction Labor Market Report shows that to meet the nation’s housing demand, the residential construction industry will need to train and place a staggering 2.2 million new workers within the next three years.
Brady laid out the following steps the industry must take to attract more workers into home building:
- Recruit more women;
- Train and place more minority, lower-income and second-chance youths and adults;
- Provide trade skills education and training to veterans and transitioning military;
- Develop a national immigration policy that works;
- Change entrenched and misguided perceptions of careers in construction.
Brady said that a top priority for builders and their industry representatives is to reach out to educators, middle and high school students, and those who influence their decisions.
“Working together to engage with local schools, we can get hands-on, trade skills training curriculum into our educational institutions that will inspire thousands more young people to pursue post-graduation work in residential construction,” he noted.
Brady also added that home builders should be considering the behaviors that the labor market is displaying in this era of the so-called Great Resignation.
“The nature of the workforce is changing,” Brady said. “And it is not just about higher compensation, although builders will have to stay vigilant on that score to remain competitive in the labor market, while balancing the need to keep housing and homeownership affordable.”
Brady pointed to a new survey to be released this week by the Building Talent Foundation. The group’s Homebuilding Workforce Engagement Study shows that the lack of advancement, training and development exceeds even pay and benefits as the number one reason given by workers for thinking about another job.
“Today’s workers want greater respect, stability and opportunity,” he said.
The NAHB shares Brady’s views on the labor issue.
"The only way to achieve sustainable gains for residential construction wages is to realize improvements for workforce productivity,” said Robert Dietz, chief economist of the NAHB.. “This can be earned via new methods of operation, higher levels of training, and investment in capital and technology. Higher wages will then allow for additional recruitment in the sector.”
Here are some of the key skilled labor initiatives currently underway from the HBI:
Home Building Academies: In partnership with the BuildStrong Foundation, the Brees Dream Foundation, other funders and home builder associations, HBI is creating a new nationwide network of home building academies that offer a tuition-free program open to anyone 18 years or older who is interested in construction trades training. Following a model operating in Denver, HBI opened the first facility last year in Orlando. New academies are expected to open this year in New Orleans, Houston, Phoenix, Sacramento, and Charlotte.
Trades in Middle and High Schools: Working with the Home Depot Foundation, the National Housing Endowment and NAHB and its local and state associations, HBI offers students in 250 middle and high schools its industry-recognized Pre-Apprenticeship Certification Training (PACT) curriculum.
Transitioning Military Programs: HBI conducts trades training programs with the nation’s largest military installations. In a cost-free, 12-week program funded by the Home Depot Foundation, service members participate in hands-on training, earn professional certifications and receive job placement services.
Job Corps: In partnership with the U.S. Department of Labor (DOL), underserved and at-risk youth get HBI’s hands-on training each year in the building trades. Students are trained at facilities across the country and receive a pre-apprenticeship certificate using HBI’s curriculum. HBI continues to work with DOL to create innovative approaches that would serve even more students.
Justice-Involved Populations: HBI’s re-integration programs train justice-involved youth and adults. Working with state departments of corrections and juvenile justice, these programs provide students with a path to re-entry and success.
Online Learning System: HBI’s CTEtechWorks is an internet-based learning system for residential construction, especially valuable in the pandemic era. The curriculum enables continuing technical educators to expand access to trades training. The system currently has 16,000 students learning online.
Community Initiatives: HBI works with the StandTogether Trust, West Fraser, 100 Black Men of America, NAHB and other partners on initiatives that are fostering a new and more diverse generation of skilled workers.