lifted and then re-imposed due to resurgent outbreaks, cost increases and service disruptions are more prominently noted. Tis on-off-on operating condition is giving rise to a series of new “interim normal” environments.
Tis causes more
construction delays, higher costs, and setbacks in the supply and labor chains as they create more uncertainty in an already unstable marketplace.
Having started with the global per- spective, let us now look at how this has affected us locally in California.
Te construction industry has been fiscally impacted by material short- ages, labor challenges, and juris- dictional hurdles in 2020.
Tese
challenges present higher prices and longer scheduling durations, thereby extending the life of a proj- ect. We in the HOA industry are also presented with more hands-on boards and hyper-critical residents as individuals have been home for long periods, with more availabil- ity and time to devote to scrutiniz- ing community affairs. In 2021 it should be expected that this will all continue. Homeowners will con- tinue to work at home by necessity costs will increase, and labor chal- lenges will extend project durations while companies try to adhere to public safety requirements, state mandates, and manage the input from zealous homeowners.
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Material shortages have occurred due to two major challenges. Te first challenge is lack of production of materials due to the shelter in place restrictions which have led to a supply chain interruption in all areas of construction from the ear- ly onset of the Pandemic. Many facility workers in the supply chain were directed to shelter in place until companies could understand what industries were classified as essential services. Businesses were analyzing their risks and liabilities to employees and clients, and later in the Pandemic, individuals were becoming infected with the virus resulting in quarantine periods. Imposed quarantines caused work- place labor shortages or even shut- downs, in turn further contribut- ing to material shortages.
Te second material challenge is seen in the homeowner/consumer segment. With sheltering in place now becoming for many a more permanent “work from home” sce- nario, homeowners have become bored and more cost conscious -- deciding to take on individual projects like fence reconstruction, bathroom remodels, deck con- struction, and other home DIY projects. We can thank HGTV and other networks for this “in- spiration” as well. Tis presents a dual shortage effect on both mate- rials as well as on demand, given basic supply versus demand eco- nomic principles.
Labor issues have become unpre- dictable due to personnel chal- lenges, workforce virus exposure, and economic necessity. Tere are many individuals within the con- struction labor force that live and congregate in multi-generational pods, as well as multi-family living conditions. Te current, highly di- verse, labor force takes great pride in family, family gatherings, and cultural experiences. Tese fam- ily and friends social gatherings increase the risk of contracting the virus, amplifying the likelihood of many workers simultaneously contributing to the county health departments’ definition of an “out- break” – four or more people with within a specific workplace/site. Tese outbreaks force construction labor delays due to the need for quarantine, isolation, and return to work protocols. Often those in- dividuals who have contracted the virus or have tested positive come in waves, due in part to the tight communal interactions. Many individuals within the labor force also care for young children and/or ageing relatives. Many young chil- dren are now being schooled from home further challenging the fam- ily labor pool by forcing a parent to remain in the home and provide educational support.
Due to the high cost of living in California, many individuals are in multi-generational households
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