In recent years, the city of Atlanta has made significant progress within the nation’s construction market. Since Atlanta’s ten-year slump in the early 2000s, its construction industry has grown steadily, and various market research reports say the city will continue to gain momentum well into 2020. The home-building industry, specifically, has been majorly responsible for fueling the area’s surge in construction employment, with the number of jobs providing regional proof that the local economy is improving significantly.
According to the Georgia Department of Labor in 2014, the unemployment rate across Metro Atlanta dropped from 7.1 percent to 6.1 percent at the beginning of the year, and reached 5.4 percent in March of 2016. Atlanta’s flourishing construction market is heavily responsible for this economic push, with more than 100,000 jobs provided to Atlanta residents last year.
Labor Shortage Amid Construction Surge
Economists anticipate Atlanta will gain even more jobs in the coming months, but because of the steady surge of construction projects, the market is starting to worry about a potential labor shortage. According to an executive from the Greater Atlanta Home Builders Association, home sales are increasing, but labor is struggling to keep up with the demand.
According to a survey conducted in 2015 by Sterling Risk Advisors, a risk and management insurance company, sufficient staffing remains the main uncertainty facing Atlanta’s construction industry. With higher margins, increased contingencies, and neutral risk profiles, contractors have been in their best shape over the past few years. To meet the sales demands, well-established companies are bolstering their workforce and services, and new construction firms are emerging as well.
A Construction-Based Economy
Atlanta’s construction industry suffered immensely during the global recession. A poor economy and minimized retirement plans chased away a large number of crane operators, and forced construction workers to shift to home improvement, truck-driving, and warehousing jobs.
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In contrast, during the height of Atlanta’s prosperity, builders in the city applied for approximately 60,000 single-family home permits per year. According to real estate firm Smart Numbers, these builders sought one-tenth of that number during the recession.
A senior analyst from Smart Numbers stated that resolving the housing issue would greatly improve job growth in Atlanta, given the construction-based nature of its economy. The more houses were built, the more engaged small and medium enterprises became, which meant people were returning to work.
Atlanta’s Construction Industry Today
Of course, construction is more than home building – skyscrapers require crane operators; pipelines require bulldozers and backhoes. Factory builders need engineers, welders, and pipefitters, among others.
At the moment, the Atlanta construction market has been slammed with a wide variety of projects, including cell phone towers, power lines, environmental work in power plants, and a few skyscrapers. These diverse jobs are expected to keep locals working within the city, and draw money back into the city’s economy, which should keep current residents happy. In addition, more companies are preparing for an even greater uptick in the construction industry by hiring more workers. The rise in employment has also resulted in better working conditions for existing workers, as hours are now shorter and productivity is higher.
In this age of surging construction, crane services will be in increasing demand. If you’re in need of an expert crane provider for your construction needs, contact Larry Collier Crane Parts and Service and request a quote today.