Is Offsite Construction the Answer to the Labor Shortage in 2018? Part 1
For every five retiring baby boomers, only one new worker enters the construction workforce. With this ratio, we can see why the construction industry is struggling. The typical construction-related news headline focuses on the troubling labor shortage statistics and what construction professionals are doing about it. Doing nothing or slowly embracing innovative ways to stay ahead of the labor shortage will only contribute to increased construction costs and a growing skills gap within the workforce.
There is one option that an increasing number of companies are looking to—offsite construction. In this three-part article, our Orlando construction lawyers will discuss why interest in offsite construction has piqued. In part two, we will review the different terms that fall under the offsite umbrella. In part three, we will dispel some myths and talk about factors that drive offsite construction.
Looking to Industry Trends to Increase Efficiency
According to industry news, the labor shortage is not letting up. When there are not enough workers on jobsites, inefficiency becomes a problem. This has forced construction professionals to find quick solutions to their efficiency problems. Companies have had to reevaluate their hiring practices, develop trade education programs to reach middle and high school students to create a construction industry labor pipeline, and find ways to keep their current workers satisfied and engaged.
Additionally, to make up for the short supply of workers, more are considering alternative methods of construction. Offsite construction, which consists of prefabrication and modular, is gaining in popularity in spite of its lackluster reception a few years ago.
Why the Renewed Interest in Offsite Construction?
It is no shock that many industry professionals, especially those who are seasoned are slow to embrace change within the industry. The construction industry is known as an industry that is slow to change. Take technology for example. Back in 2016, a Global Construction Survey revealed that despite the increasing complexity and risks of projects, many of the surveyed senior executives (i.e., project owners, engineers) were slow to embrace technology. According to the survey, those who are deemed to be more “cutting edge” are more likely to embrace technology as a means “to improve, perform and bring standardization” to the industry.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.