Residential construction is booming. However, many builders and developers are having a hard time finding qualified talent to fill current subcontracting needs and, as a result, are struggling to keep up with the heightened demand. In fact, according to the National Association of Home Builders (NAHB), there were 410,000 unfilled construction jobs in October of 2021. That is the highest measurement the NAHB has seen since it started collecting the data in late 2000.
Although there is a talent shortage nationally, builders can take the steps necessary to prevent that shortage from impacting their company by becoming a builder of choice. Builders who make the commitment to invest in building mutually beneficial partnerships, cultivate trust and focus on communication will reap the benefits of having a committed trade subcontractor base willing to work for them when given a choice of which projects to take on. Here are some ways builders can do just that:
Streamline Operations with Automation
According to ECI’s 2021 State of SMB Digital Transformation Report, more than half (65%) of home builders identified contractor management/communication as an invaluable feature included in their enterprise resource planning (ERP) system. With more projects than trades to work on them, there are not enough people to hire to fill the trade gaps that need to be filled. As a result, builders and their trade contractors need to leverage technology, not only to become more efficient, but to create better internal workflows and improve operational efficiencies.
Subcontractor management tools can help streamline work orders, consolidate scheduling, improve visibility with payments and other documentation. By leveraging automation within subcontractor management tools, builders are able to remove inefficiencies in the process – leaving room for trades to spend their valuable time elsewhere and reduce the time spent on administrative tasks.
Improve Communication and Collaboration
Once under contract, subcontractors are no longer independent. They are responsible for doing their part to build a quality home for the end customer, so treating them as team members and stressing interdependence will be key for builders. Builders should aim to foster a motivational environment that promotes positive work and transparent communication. To achieve this, it’s important to, from time-to-time, connect directly with trade subcontractors to discuss what’s working and what’s not. From there, builders can make adjustments to correct the working environment so that it works for both parties and keeps trades satisfied.
Over the past year or two, builders may have deemphasized this notion of teambuilding. This may be because of COVID restrictions or due to increased demand and tight resources. However, technology can help offer real-time communication and collaboration solutions for subcontractors and builders to touch base on and off the jobsite. This can help with eliminating disparate lines of communications and ensuring all parties are collaborating effectively. Investing in tools like this will also help attract a younger generation of trade partners who are looking to work with companies that utilize modern technologies.
Prioritize Training
While hiring and finding trades is a big hurdle to overcome, the effort behind building a strong trade base cannot stop there. In a scenario where there is more work to be done than workers to do it–like what we’re currently experiencing in the residential construction industry–adaptability is key. One way to build an adaptable workforce is to invest in training. With proper trainings, subcontractors can increase their efficiency and become more versatile which translates to being able to eventually take on more work.
Taking the time to properly train trades on existing technology is also an important step. Once they understand the requirements and how to use your systems, trade partners are often able to streamline their own processes, ultimately saving time and money.
Considering how the scarcity of labor is causing construction delays and, as a result, creating further costs, it’s not surprising that we’re seeing both housing supply and affordability be negatively impacted. However, builders who lean on technology to improve processes and communication, while putting in the work to train their trades, will be in a much better place to accomplish their projects with fewer resources.
