Construction jobs are being created in the Spokane area, while national jobs are decreasing

Despite the challenges associated with the pandemic, job closings, and now higher lumber prices, the Spokane metro area increased construction jobs last year, while employment in 236 metro areas across the country in construction declined.

Based on an analysis by Associated General Contractors of America, which represents commercial builders, the number of construction jobs declined across the country from February 2020 to February 2021. Much of these job losses have been attributed to project cancellations, rising material prices, and supply chain problems.

“Relatively few places have recovered from the pandemic impact on the construction industry,” said Ken Simonson, AGC’s chief economist, in a recent press release. “Project cancellations, rising material prices and significant challenges in the supply chain make it difficult for most companies to create new construction jobs compared to last year.”

The Woodlands, Sugar Land, Texas subway area was one of several in Texas to lose thousands of jobs. It lost 37,600 construction jobs. New York City cut 26,700 jobs. They were among the 236 subway areas where construction jobs were lost.

Spokane was among the 83 subway areas where jobs were created. According to AGC analysis, 2,800 jobs were created in the Seattle area and 2,700 jobs in Boise were created in construction.

The Spokane metropolitan area created 200 jobs during that period, representing a 1% increase in construction jobs, said Cheryl Stewart, executive director of the local chapter of associated general contractors.

“I would say we would have had more growth without COVID,” said Stewart.

While lumber prices have skyrocketed, the forced shutdowns associated with COVID-19 and the change in subcontracting schedules have caused more chaos, according to Stewart.

“If you have a subcontractor, that throws off your entire schedule,” she said. “These slowdowns are affecting employment. But I don’t know I can argue that it’s still prices. “

Joel White, executive director of the Spokane Home Builders Association, agreed. He said contractors were struggling to find enough skilled workers before the pandemic, and those problems persist as the economy tries to claw its way out of the pandemic.

“There is a serious shortage of people to hire when talking to our members,” said White. “Our subcontractors cannot find employees. The pandemic has gotten worse. “

He found that Spokane County approved about 1,500 single-family home permits over the past year. During construction in 2005, just before the Great Recession, Spokane County had approximately 2,600 residential building permits, he said.

“And so we could have done it if we had enough workers,” said White. “We could probably have built another 1,000 houses.”

These additional homes could have brought some relief to the incandescent local property market, which is experiencing a severe shortage of available homes which could lead to higher property prices.

White noted that home builders compete with commercial builders for the same workers. He said his organization will sponsor an event at Mead High School in May to attract more students to the craft.

“Traditionally it was the one you knew. The boss asked: “Who do you know who wants to come to work?” “he said.” The entire industry is now targeting high schools and veterans to attract potential employees. “

Stewart, whose organization represents all builders except those who build houses, said the lack of available help has stagnated the local commercial building somewhat.

“To be completely honest, it was sometimes more profitable to sit at home and not work,” she said, referring to state and federal unemployment benefits during the pandemic.

Add to this the rising cost of materials, and Spokane residents could soon experience a variety of effects, she said.

“I know our economist doesn’t see any relief on this side anytime soon,” Stewart said of material prices. “We will see that owners don’t build projects that they would otherwise have due to increased costs.”

These higher costs are passed on to companies or individuals who want to start new projects.

“On the public side, this could mean fewer projects,” she said. “If the government has a certain amount of money to spend on road construction, projects can be lost. With the price increases and problems in the supply chain, you will see delays in the projects. “