addressing challenges in today ’ s construction industry
Brian Turmail , Vice President of Public Affairs and Strategic Initiatives at Associated General Contractors of America , said that it ’ s a worker ’ s market and that construction jobs typically pay better than 80 % of the average non-farm jobs in the U . S .
Unfortunately , the construction career path is not particularly appealing to young people and college grads . Turmail said , “ Mom doesn ’ t want her babies to grow up to be construction workers . For the last 40 years we ’ ve been preaching a message nationally that the only path to success in life lies through a four-year college degree .” 3
But the construction industry is finding new ways to address the endemic problem of labor shortages by building relationships with high schools , through pre-apprenticeship programs , and by shifting the demographics of the workforce to include more women and boosting work visa programs .
Pay may be another factor contributing to a workforce shortage . The construction worker salary in California averages just above $ 22 an hour . In San Francisco , however , the typical construction worker salary is 39 % greater than the state average . Entry-level construction workers in the City are paid an average hourly wage of just over $ 31 an hour , or annually , more than $ 64,000 . 4
Fluctuating and rising materials costs due to supply chain disruptions , trade tariffs and increased demand , also put pressure on construction budgets and timelines .
Construction materials remain substantially higher compared to the prepandemic period , according to a report from Oxford Economics . More than 82 % of construction materials have seen cost increases since 2020 , with costs surging by 19 % 5 . Other data shows that :
Steel prices have increased by 22 %
Concrete and masonry have risen by 15 %
The cost of electrical conduit has climbed by 12 %
Brick and tile prices have increased by 9 % over the past year
The cost of copper wire and cable has gone up by a whopping 40 % over the past four years
Several factors are responsible for these rising costs , including raw material prices , labor shortages , and market demand .
But there is good news as well : new technology such as Building Information Modeling and prefabrication techniques are expected to improve project efficiency and reduce waste , lowering construction costs at some point . Value Engineering , which optimizes design , materials , and
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