It is evident that the construction industry is one of the economic drivers that created the highest number of new jobs in July, as compared to the previous months. The same period last year, the industry had added a total of 18,000 new jobs. Therefore, the 6,000 additional jobs created in July 2017 was only a third of the jobs created in July 2016. This drop in the number of jobs created in this sector can be attributed to last year’s government transition period and thus, due to the many economic uncertainties of the political change, many home builders and property developers were in a slow period in terms of work.
Many construction companies, such as Aloha Construction and many others were not as busy immediately after the elections but an upward trend has been noted especially because at least every month, through this year, there has been additional construction jobs, which signify that the companies are busier in terms of work. However, economists consider this employment growth rate to be very slow and indicate that the industry will take a long period of time to attain the optimum employment rate.
The highest contributor to the 6,000 additional jobs was the residential sector, which added 5,100 jobs. This is an indicator that in the month of July, either more people were engaged in owning their own homes or the real estate companies had developed more homes to rent and sell to people, increasing the number of homeowners. This growth rate has a major ripple effect on the economy, as it means that many other sectors of the economy have been affected one way or the other. To begin with, manufacturing companies that produce the raw materials for the construction had a good month in business. As a result, the activities in the banking and credit sector also increased immensely. The property constructed needed financing, mostly, which is debt. After completion of the constructions, people approach the banks and creditors for credit facilities to acquire these properties. This growing trend of jobs in the construction industry is expected to continue for the remainder of the year. The non-residential sector of the industry witnessed a slower growth rate, majorly because it is becoming more expensive to invest in the sector due to the reduction in demand for the product. Office space in most cities around the country is becoming cheaper and cheaper by day, due to the excess supply of the product and also due to the reducing need to work from an office by most people.
The construction industry has many companies, most of which have specialized in a given niche of the industry. For instance, the Aloha Construction Company located in Lake Zurich Illinois has specialized in roofing part of the construction process. Specialization makes the company stand out and develop itself more into becoming a master in the roofing art. Aloha Construction offers services in roofing, siding and gutter works. When it comes to roofing, they have contractors who can do all types of roofs be it, steep, asphalt, metal and any other type of roof to suit the client’s need. Due to their prowess on the job, Aloha Construction has been contracted many times to do roofing, even when the contractor working on the rest of the property could still do the job.
They are also experts in the different types of siding. Most of the construction companies tend to ignore this very important part of the whole construction process and this is what Aloha Construction has capitalized on. They do vinyl, wood, Hardee board and aluminum siding. Aloha’s final product is gutter works. This is a very important feature of the roof as well, as it protects the building from wear and tear, especially from rainwater. Different clients require different designs for the gutters, all which are well catered for and to the client’s satisfaction.
Aloha’s Lake Zurich site which serves the people of Illinois and the wider Southern Wisconsin region has completed more than 17,000 roofing contracts. This shows that the company has the perfect technical capacity and experience to handle all roofing needs whatsoever. The good thing is that they do both repair and actual construction of the roofs. Aloha Construction under the leadership of Mr. Dave Farbaky, who is the president of the company, operates at the highest level of professionalism to ensure that the client’s interests always come first.
The industry continues to face the problem of unskilled labor, as it has over the years. Most of the people employed do not have the required technical expertise to carry out the job as required by the law and this continues to be a big blow to many construction companies. Other than the engineering part of the job, most of the other jobs in the industry are assumed to be lowly jobs and hence, many young people shun from gaining the relevant skills for the job. The proposed $1 trillion boost to the industry by President Trump’s government that is expected sometime next year should change the shape of the construction industry for good. We believe that when this is done, the industry will generate more revenue and also attract more young people.
The problems in the industry don’t stop there; the issue of raising prices of the materials is becoming a major concern to the builders. With these high prices, the cost of construction rises and as a result, the price of the property rises, reducing the demand for the end product. This cycle hits the construction industry harder as there will be less work for them. As a result, many builders are operating at low-profit levels and on high amounts of debt to ensure that they keep on as going concerns, regardless of these predicaments. Many of these companies are hiring experienced financial advisors and economists to help in these times and those who cannot afford, are slowly being pushed out of business. We, however, remain optimistic that the industry will regain its place in the economy and contractors, builders and the industry as a whole will have something to smile about in the near future.