By admin 
MESA, AZ (AZFamily) — Inflation and worker shortages are affecting the construction industry, making it harder for new home developments and creating a tougher market for Valley home buyers.
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New home construction has struggled this summer. Federal government statistics show it is similar to 2020 pandemic-level lows. Commercial construction is performing differently, but both sectors face a common problem: worker shortages.
The commercial construction industry is strong in Arizona. A large crowd at the Arizona Construction Expo at the Mesa Convention Center on Thursday reflected that strength. There is high demand for projects like data centers, semiconductor factories and entertainment spaces.
“For a long time, construction wasn’t a sexy career choice for people, but it can be very lucrative,” said Kimberly Davids, president and CEO of the Arizona Builders Alliance.
There is less excitement in home construction right now. According to the U.S. Census Bureau and the U.S. Department of Housing & Urban Development, housing starts dropped nearly 12.5% in July. Industry experts point to several factors: the cost of materials, rising gas prices and a labor shortage.
“The biggest issue right now is workforce and getting quality people,” Davids said.
The labor shortage is also affecting the commercial side. Davids said people are retiring, and not enough workers are joining the trades to keep up.
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According to Associated Builders and Contractors, a national group, the industry needs nearly 350,000 new workers this year to meet demand, and more than 450,000 next year.
Construction work is also physically and mentally demanding.
“Mental health in construction is a challenge. The suicide rate is higher than just about every other industry,” said Sidney Hawkins, director of apprenticeship for the Arizona Builders Alliance.
Davids said construction crews are building the data centers that make artificial intelligence possible. She does not foresee a near future where people trust robots to build buildings more than humans.
“It’s definitely stability for families,” Davids said.
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