Labor shortage? Utah construction businesses concerned about availability of workers, report finds

SALT LAKE CITY — A large majority of surveyed Utah development companies say they’ve problem filling positions as a consequence of a shortage of obtainable labor, based on findings launched Wednesday by a nationwide commerce group.

In-state responses match intently with nationwide outcomes obtained by the Associated Common Contractors of America, as eighty one % of Utah development companies stated they have been “having a tough time filling some or all positions” which are paid hourly, in comparison with eighty % of such businesses in the USA.

Greater than 2,500 enterprise replied to the survey from Associated Common Contractors of America, together with 33 in Utah.

Forty-six % of all respondents and 58 % of Utah businesses stated a shortage of obtainable development labor led to tasks taking longer than anticipated.

Mark Knold, senior economist with the Utah Division of Workforce Providers, stated the construction business has outpaced the overall state financial system in including jobs for several years. That included from March 2017 to March 2018, when the number of Utah jobs grew by 3.three %, but development jobs increased by eight.6 %.

“Solely inside the final yr or two has the entire financial system type of been gelling fairly good to the point where … it is robust to seek out the employees that they need in the development business,” Knold informed the Deseret News. “It doesn’t suggest they are not discovering them — it in all probability means they’re just having a hard time doing it.”

The report stated seventy one % of Utah respondents indicated they’ve increased pay charges for hourly staff, and 39 % stated they improved profit packages for these staff as ways to deal with shortages within the labor pool.

Twenty-seven % of Utah companies stated they modified their requirements for hiring development staff with regard to “schooling, training, employment or arrest report,” and fifty five % “initiated or increased in-house training.”

Forty-eight % of Utah respondents anticipated it might develop into more durable to hire hourly staff within the next 12 months, though 81 % of them nonetheless anticipated making hires in that time-frame.

Knold stated the numbers indicate that “right now it is a seller’s market” in the development business, with staff because the sellers of their providers and businesses because the consumers. With that being the case, corporations are “having to be more aggressive getting the labor they want by doing it with greenback bills,” he stated.

“It’s a tight labor pool and the employers need to purchase that labor they usually need to bid for it and the costs are going up for the labor,” Knold stated.

But he reiterated that whereas financial knowledge suggests development corporations at present “really need to work onerous to seek out the labor,” it is nonetheless the case that “the growth rates are suggesting they’re getting it.”

Dennis Cigana, government vice chairman of pre-development for Salt Lake-headquartered Jacobsen Development, stated…

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