Contractor Update

Report from MarketWatch on new home construction jobless claims: "Residential construction jobs have fallen by 84,000 in the past year. And economists say the layoffs will soar this year as the production pipeline dries up. Home builders have slowed the pace of groundbreaking, but there are plenty of homes still under construction that were started months ago. As many as a half a million construction jobs could be lost, according to Citigroup economist Steven Wieting."

Labels: Construction Hiring, Construction Industr, Construction News

From the Colorado Gazette - "What a difference a year makes. In 2005, home construction in Colorado Springs and El Paso County soared to a second straight record-setting year. In 2006, the pace of home building fell to its lowest level in more than a decade."

"The 2006 slowdown delivered a blow to the construction industry, which employs thousands of carpenters, framers, painters and other workers. Several builders, from local firms Vantage and Classic Cos. to national companies such as Pulte, said they laid off workers when production sagged. The slowdown also was felt among plumbers, electricians and other subcontractors."

"Heidi and Greg Smith, who own Affordable Plumbing and Heat Inc. in Colorado Springs, said they were hit by a one-two punch in 2006. First, prices for copper and other materials skyrocketed. When the company hoped to offset those higher costs by doing more work, home builders cut back on construction. The result: Affordable Plumbing laid off 26 of 47 employees."

"'Instead of the subs being able to recoup the losses, building is down by 25 percent,' Heidi Smith said. 'So now it's a fight to get the work, and you have to bid as low as you possibly can to undercut everybody else to get the work.'"

Labels: Construction Hiring, construction jobs, Construction News, Small Business Advice

Labels: Construction Hiring, construction jobs, Construction News

From USA Today:"Dozens of sawmills around the country are laying off workers, shutting down temporarily or trimming hours, as a steep drop in home building hits demand and prices. 'In lumber, basic economic rules apply: supply and demand. The demand dropped off quickly, and so did the price,' says Joe Kusar, VP of Tolleson Lumber, the largest lumber maker in Georgia."

"In Northern California, Pacific Lumber said Dec. 1 that it was laying off 90 people, or 19% of workers. 'A (price) decline of this magnitude is virtually unprecedented in the last 20 years,' says Pacific Lumber spokeswoman Andrea Arnot."

"Tim Cochran of an independent newsletter specializing in softwood lumber, calls the current downturn the longest bear market since 1990. '(Prices) went up so high with the housing boom … and so when they go up hard they just go down that much harder,' Cochran says."

The Chicago Sun Times: "Executives of several of the largest home builders predicted that inventories would decline, and prices and home starts would rise, in the latter half of 2007, as they spoke at the 10th annual Homebuilding Conference."

"Toll Brothers Inc. CFO Joel Rassman declined to predict when the market would hit bottom. 'Nobody can know when the bottom is,' Rassman said. 'I think there's a reason to believe that when the big builders control 50 percent to 60 percent of a market, they'll probably have to eat each other,' he said."

The Pasadena Star: "A housing slowdown affects construction, loan agents, landscapers and many other related businesses, said Michael Carney, executive director of the Real Estate Research Council of Southern California. 'Concern for the housing market as a whole may spill over into consumer spending,' Carney said."

"Builders are reacting to sales declines by not getting permits to build new homes. California's total units in permits is expected to decline 16 percent in 2006, and that number could be closer to 26 percent, Carney said. 'Developers are clearly adjusting as fast as they can,' Carney said."

Labels: Construction Hiring, construction jobs

Service companies in the construction industry are constantly changing, expanding, and evolving. Bringing in new workers to handle those adjustments is a key component to any successful business. Here are some tips on how to make sure you avoid mistakes when you're hiring new full-time, part-time or contract employees:

1. Screen your Applicants - Make sure you investigate potential employees by doing background checks to look for past problems. Check for accuracy on their resumes or applications. Look for any criminal records. You might even consider drug testing and, if they're going to be handling money, credit checks. Spending a little time and money at the beginning could save you a lot of time and money down the road.

2. Interview your Applicants - Even if the potential employee is a strong referral, you want to make sure you ask questions and evaluate the person. You need to know how well that person communicates, how they handle situations, and if they can do what they say they can do on their resume. Interviewing is more than just asking where they see themselves in 5 years. Make sure you ask questions that put them in difficult situations to find out how they would react. Look for answers that offer multiple alternatives or options to see how creative they can be. Ask questions that give you an idea of how well their personality will match with yours.

3. Hire the Right Person - Sounds simple, but it's not. You may have two top candidates for a position. One has superior qualifications but you know your two styles will clash. You may need to go with the less qualified person, knowing that you'll be able to work together and bring that person up to speed. There will be a greater chance that this employee will stay become part of your team. The more qualified applicant could end up being a cancer to your other employees, your clients, and you.

4. Be Prepared - Know everything you can about the job you're hiring this person for. He or she is going to ask a lot of questions and you'll need to know the short and long range plan for the position, the salary range, potential for growth within the company, and skill requirements for the job. You should know what is needed from the position more than the potential employee. If you are not prepared, you may find out too late that you don't have the right person for the job.

5. Be Realistic - Don't promise the world to a potential employee if you cannot deliver it. And do not expect a potential employee to be able to deliver the world to you. No applicant is perfect. It's not a good idea to set up or expect unrealistic performances - you will both be disappointed and the relationship will not last.

6. Get it in Writing - Whatever promises you make to each other, put down all the details in a written contract or offer. It can avoid problems that might come up later. By listing how long the employee or subcontractor will be engaged, how much will be paid, what benefits are included, and what the job requirements are, you can prevent arguments and even lawsuits. Be as detailed as possible with any offer or contract you make and you'll be starting out your new relationship on the right foot.

Labels: Construction Hiring, construction jobs