Home Pros Report Improvements in Labor Availability
Labor shortages have eased in Q2 2023 but continue to impact the home renovation industry, a Houzz survey shows
The availability of carpenters, electricians, cabinetmakers and other subcontractors has improved compared with a year ago, according to the just-released Q2 2023 U.S. Houzz Renovation Barometer. However, shortages in skilled labor continue to impact project costs and timelines, and shortages of products and materials persist as well. Below, we look at those challenges in detail and share how some home pros are responding.
That said, this change may reflect a decline in business activity levels, as new committed projects reported at the start of the year have decreased 5 points relative to Q3 2022.
In Q2 2023, 42% of industry pros reported moderate to severe shortages of carpenters; 28% reported the same about electricians and 26% about cabinetmakers.
Compared with the same period a year ago, at least 30% fewer remodeling and design pros are reporting shortages of these subcontractors.
In Q2 2023, 42% of industry pros reported moderate to severe shortages of carpenters; 28% reported the same about electricians and 26% about cabinetmakers.
Compared with the same period a year ago, at least 30% fewer remodeling and design pros are reporting shortages of these subcontractors.
Impact. While shortages appear to be improving, businesses in both the remodeling and design sectors report that labor shortages continue to drive up home building and renovation project costs and lengths.
Due to shortages in skilled labor, 81% of renovation and design pros report an increase in project costs, 72% report an increase in subcontractor compensation and 71% report an increase in project length.
Due to shortages in skilled labor, 81% of renovation and design pros report an increase in project costs, 72% report an increase in subcontractor compensation and 71% report an increase in project length.
Responses. In an effort to mitigate those cost increases and project delays, firms are taking action.
More than half (54%) are offering on-the-job training for recent hires, and 42% are leveraging social media to spread awareness of job opportunities.
More than half (54%) are offering on-the-job training for recent hires, and 42% are leveraging social media to spread awareness of job opportunities.
Product and Material Shortages and Delays
Skilled labor isn’t the only thing in short supply. Nearly half (49%) of surveyed businesses report moderate to severe shortages of products and materials.
Shortages of copper or brass are the most common (47% of businesses report shortages), followed by lumber or plywood (46%), drywall (40%) and aluminum (40%).
More than three-fifths (63%) of businesses report moderate to severe delays in shipment of those materials once purchased.
Skilled labor isn’t the only thing in short supply. Nearly half (49%) of surveyed businesses report moderate to severe shortages of products and materials.
Shortages of copper or brass are the most common (47% of businesses report shortages), followed by lumber or plywood (46%), drywall (40%) and aluminum (40%).
More than three-fifths (63%) of businesses report moderate to severe delays in shipment of those materials once purchased.
As they plan their projects, pros must take into account delays in the arrival of their products.
Cabinetry presents the biggest challenge (96% report delays), followed by indoor furniture (95%), windows (94%), outdoor and indoor doors (94% and 93%, respectively) and lighting fixtures (92%).
Cabinetry presents the biggest challenge (96% report delays), followed by indoor furniture (95%), windows (94%), outdoor and indoor doors (94% and 93%, respectively) and lighting fixtures (92%).
The Houzz Renovation Barometer tracks residential renovation market expectations, project backlogs and recent business activity among firms in the construction and the architectural and design services sectors.
The Q2 2023 Barometer, fielded March 3 through March 24, 2023, focused on labor shortages as well as product and material shortages and delays. It garnered responses from more than 1,547 home improvement firms on Houzz.
Recent and expected business indicators, as well as backlog data, will be included in the Q3 2023 Houzz Renovation Barometer, set to be released in July 2023.
See how Houzz Pro can help you find customers, manage projects and grow your business
The Q2 2023 Barometer, fielded March 3 through March 24, 2023, focused on labor shortages as well as product and material shortages and delays. It garnered responses from more than 1,547 home improvement firms on Houzz.
Recent and expected business indicators, as well as backlog data, will be included in the Q3 2023 Houzz Renovation Barometer, set to be released in July 2023.
See how Houzz Pro can help you find customers, manage projects and grow your business
Supply and demand. The availability of skilled labor has improved since this time last year, according to the pros surveyed. In the second quarter of 2023, 79% of construction and design businesses surveyed by Houzz reported experiencing moderate to severe labor shortages. In Q2 2022, that share was 91%.