2018 was a mixed bag when it came to construction. We finally saw a slow climb in the housing market due to millennial homeownership, which was quickly contrasted by newly imposed trade tariffs and an ongoing skilled labor shortage. In 2019, the labor shortage remains, and the tariffs will begin to impact product pricing across the industry — but there’s still good news for multi-family builders! Read on to find out what builders and contractors should expect this year.
1) The skilled labor shortage continues in 2019
As the number of retirees in the skilled labor industry rises, the number of new, qualified workforce entrants falls, maintaining the labor shortage that affected builders and contractors across the nation this past year. Looking for ways to withstand the skilled labor shortage for your business?
2) Rising interests and mortgage rates impact homebuyers
As home loan interest rates continue to climb, single-family construction projects will be affected or abandoned due to the lack of affordability on the homeowners end. And, while that may seem like a negative trend, there is one major upside:
3) The demand for multi-family construction is on the rise
Homeowners are now more likely than ever to rent rather than buy, adding an increased demand for multi-family construction. Many builders and contractors will find plenty of job opportunities in the multi-family arena this year — and beyond. Educational, healthcare, recreation, and manufacturing building projects are all expected to grow significantly over the next two years.
4) Tariffs will impact product pricing — but not everywhere
A rising materials cost as a result of the trade tariffs causes an even bigger concern for some contractors than a lack of skilled labor. The 2018 tariffs on steel and aluminum will lead to price increases in 2019 — but not at Pioneer. Pioneer, Olympia, and Central Brass products are not impacted by the tariffs and, as a result, will be holding their current pricing through December of next year, meaning you can take advantage of our wide selection of great value, high-quality faucets for even longer.
Take advantage of this price hold today. Contact us now for a price comparison.