Winter 2024 progress on Valle Verde, a multifamily apartment building under construction in Napa, by Burbank Housing. [Photo courtesy Jocelyn Lin]
Rendering of The Cannery in Santa Rosa, a residential project of Midstate Construction that is currently underway. [Image courtesy Midstate Construction]
increased to $16 per hour. The 50-cent increase since 2023 makes it harder for general contractors to turn a profit. In addition, a survey of approximately 65 members of the Associated General Contractors of America who build in California said factors relating to labor are significant concerns. The top issues for 2024 include rising direct labor costs like pay and benefits (for 52% of respondents); an insufficient supply of workers and subcontractors (for 49% of respondents); worker quality (43% of respondents); and inadequate construction career education and training (22% of respondents). Lack of training typically leads to losses. An employer
must choose between training workers while paying them or completing fewer projects. Simmons says the COVID-19 pandemic helped general contractors become more flexible. “When many people in the company had to work remotely, it showed us we could be effective by mixing things up,” says Simmons. The changes led to companies becoming more resilient. This has helped firms cope with inflation. Still, the U.S. construction industry will only meet demand this year if it attracts 501,000 more workers on top of normal hiring. The estimate comes from a model from Associated Builders and
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22 NorthBaybiz
April 2024
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