The current labor shortage has been an unfortunate ongoing issue. This is even more apparent with the arrival of COVID. With the arrival of COVID-19, the home improvement industry has witnessed many obstacles, one of which is the cost of leads.
Even if your home improvement company has sufficient workers on the payroll, you will likely feel the labor shortage impact in other ways. One notable change is how these shortages are affecting the cost of leads.
You cannot change the shifts that are happening in the industry. But you can adjust your approach to ensure your contracting business is adapting to these changing conditions. The first step is to learn about current trends so you can plan a new strategy for your company. Here is what you can do to combat the labor shortage.
The Labor Shortage in 2021
Businesses of all sizes and industries are feeling the effects of the labor shortage. For example, according to recent findings from the Home Improvement Research Institute, the skilled labor shortage impacts 72 percent of home contractors and remodeling companies.
At the same time, other challenges are making it difficult to complete home improvement projects. For example, the lumber shortage is affecting the work of existing employees. Additionally, prices are going up because of tariffs, gas prices, transportation costs, and labor shortages.
If there are no supplies, then there is no money coming from the sale of materials. No sales mean no money to pay employees. As a result, there are fewer workers in the industry.
The current conditions are continuing to put pressure on the industry. Considering that prices of materials are rising, labor shortages are a significant problem, and business owners find it more challenging than ever to keep up with industry demand.
Labor Shortages are Affecting All Remodeling Contractors
Regardless of the type of contracting services you offer, every subindustry is experiencing the impacts of the current labor shortages. The current unemployment rate is 3.7 percent, which is too low to meet business needs. As a result, there are more unfilled jobs in the US than workers available to fill these openings.
The truth is that the construction industry has been facing a labor shortage for years. However, these conditions are worsening because of the COVID-19 pandemic and changing needs. Now, other industries are starting to experience the same labor concerns as the construction industry.
How Labor Shortages are Affecting the Cost of Leads
Businesses are continuing to adapt to the labor shortages in these ways:
- Adopting labor-saving technology
- Starting apprenticeship programs
- Improvement in the scheduling of materials delivery
Without a skilled crew to provide necessary services, home contractors must rethink their offerings and schedule availability. As a result, demand is increasing, and the industry continues to feel the ongoing pressure.
Since the jobless rates are low, the demand for rentals and real estate is increasing. People have money to invest in their homes, which puts more burden on home improvement contractors.
As prices continue to rise, it has a ripple effect on many other aspects of the business. As a result, competition is fierce, and contractors must invest more in marketing to stay competitive.
Affordable Lead Generation with Modernize
At Modernize, we have proven systems to connect homeowners to the home improvement contractors they need. Our team is working hard to stay ahead of the never-ending industry changes. If you need help finding a steady stream of leads, we invite you to contact us for more information about available services.