Harvey Aftermath: Dramatic Affect on Building Trades Is Expected
Even after the waters recede and the ground dries, problems with insurance and labor shortages will hinder the recovery.
As the people of the Houston area begin the tremendous task of rebuilding after a category 4 hurricane, recovery experts are starting to look at the implications for the building trades industry. The job of cleaning up and rebuilding is going to be a huge one, and Wall Street has already taken notice of the economic impact. In a CNBC report, Home improvement shares jump after Hurricane Harvey deluge, Thomas Franck reports:
Investors had been expecting U.S. home improvement shares to gain because of Hurricane Harvey, which has lead to catastrophic flooding in the Houston and Galveston areas. Homeowners face damaged property and the likelihood of rebuilding efforts, driving up demand for home improvement equipment and materials as well as for temporary electricity generators as the deluge gradually ends.
One big question mark: Will there be enough construction workers to complete all the work? Andrea Riquier of MarketWatch says that labor shortages and the new U.S. tough stance on immigration has already hurt the industry.
Home builders have been grappling with severe labor shortages ever since the end of the recession, while tough talk on immigration since the 2016 campaign is taking its own toll on work crews.
Read other accounts from Slate and CBS for more detail on this issue:
Regardless of the labor situation, savvy builders — especially those with ongoing projects — need to know the ins and outs of the insurance issues encountered after a flood. Check out these two articles, one from the Fine Homebuilding archives, and a new article from FHB sister site GreenBuildingAdvisor.com:
Photo credit, with thanks: Texas National Guard, posted to Flickr.