when the shortage of workers stop, then what?

[look 171]

Will it ever go back to normal? When people are feeling the pinch in their bank accounts. I was pissed when my floor company told me that sanding and finishing a floor was 8.20 a square foot (a little over 1100' that over 9k). That's sanding and finishing an old floor. I bent over and took it. Last time we did one was only 4.25 a couple years ago. Everyone is gouging it seems. This guy has a tax ID number, and is a legit business. My floor man that I have used for over 15 years, runs a small business by himself still only charges 5 bucks per sq' but he has no company, pays his taxes. I can no longer 1099 him because I must make him an employee due to the lack of tax ID. Anyway, what happens when things go back to normal, people starts to go back to work and the competition will start all over again. Will pricing drop a bit? Are they still able to name their price because they are so use to doing it for the past couple years.

Had lunch with a friend and were talking the very same subject. He has properties out of state and he is frustrated because his management company hires anyone that will work. Paid 1300 bucks to have an water heater changed, that's labor only, takes two hours. This is in Uath and that labor should be much lower then CA due to less in insurance and the cost of running a business. Management company claims they can't get any plumber to perform the task and that was the only guy on town that will do it. What a crock of BS?

[gregpark]

Wow, 8.20 a foot is robbery. I still charge 5. If there's furniture to move, 6.
I don't understand about the guy you've been using for 15 years. He's a licensed contractor? Even if he's a sole proprietor his SS number works as his tax ID right? If his license is currently valid I don't see why you have to pay him as an employee

[look 171]

Originally Posted by gregpark

Wow, 8.20 a foot is robbery. I still charge 5. If there's furniture to move, 6.
I don't understand about the guy you've been using for 15 years. He's a licensed contractor? Even if he's a sole proprietor his SS number works as his tax ID right? If his license is currently valid I don't see why you have to pay him as an employee

Its been that way for a long time. Now they are cracking down on all 1099 cases. My friend pays their "contractors", physical therapist, 1099s and they were hit hard, fine and such, going through books. Sole proprietors must have a business lic, and file as such, not an individual even though many of them still do and are legal doing so on their end, but on our end as contractors, we have to make sure they have a tax id or a business that files as a corp. not individual. If so we must make them employees and pay and fooking pay.

I talk with a couple of people they are all complaining about floor installers over charging. Most are at over 7.50 those claims that have a "Company". All are too busy to even have a look. My guy were good enough to schedule me in because we have a history of using his service. He also has a flooring retail place but still so we are billed through the flooring retail instead of an individual.

This kind of crap is going to chase many of us who are legit out of business.

[wilnj]

In Oct 2020 I bought a steel job, 950 tons with union labor for $2900/ton. Last month I bought another, 800 tons with non-union labor for $4900/ton.

Granted, the second job was significantly more challenging than the first but the premium should have only been about $500/ton which would also be the offset for union vs non-union.

[Rot 911]

I think the labor shortage is going to go on for quite some time. Covid really increased the rate of us boomers retiring. And more and more boomers are retiring every day. Not enough people to fill those labor vacancies.

[LWJ]

Yes. This is a weird economic time.

FYI. I hired (yesterday) to have my floors refinished and sanded for $4.xx a foot. And, she is a pro.

[Paul T]

Originally Posted by Rot 911

I think the labor shortage is going to go on for quite some time. Covid really increased the rate of us boomers retiring. And more and more boomers are retiring every day. Not enough people to fill those labor vacancies.

Agreed, demographics are a big part of the issue. There was a decent % of the workforce that was "marginal", i.e. those thinking about retirement soon anyway, semi-retired and working out of boredom, etc. Covid took a lot of those people out, and they aren't coming back. In addition, the young, smart and mobile portion of the workforce realized they are now in the drivers seat and are demanding more comp, flex schedules, hybrid work, etc. All that is driving up pressure on wages. A lot of people also realized they don't want to pay big $$ for a tiny apt in NYC when they can work remote from Austin or SW Fla or elsewhere - there is a great migration of sorts going on in many parts of the country as people reassess their lives and what is most important to them - frankly, I think this is the one silver lining in all of this - people having the courage to make life changing moves they might otherwise not have.

This would dovetail nicely into an inflation (and wage inflation) discussion, but I'm not even going to go there because it'll probably get PARF'd up in 2 seconds.

[911 Rod]

I had a drywall guy do a wall and some holes in the ceiling from running wire. He made 4 trips from 5 minutes away and charged me $800. Total 5 hours of work. Drywallers make $160/hr.?
Came back to do my laundry room. 4 trips again. 20 minutes each. $500. $500/hr?

A plumber is changing a NG water tank and he says $95/hr and should take 2 hours.

When did drywall guys charge more than plumbers?

[stomachmonkey]

Originally Posted by Rot 911

I think the labor shortage is going to go on for quite some time. Covid really increased the rate of us boomers retiring. And more and more boomers are retiring every day. Not enough people to fill those labor vacancies.

This as well as many people were basically left to their own devices. No income from a job and the subsidies were barely a bandaid.

I think they did what we always tell them to do, pull yourselves up by your bootstraps. They found ways to generate income where they were not reliant on a boss or business, they created their own job.

The other thing we tell them, make do with less. I think they listened there as well. They figured out they can get by on a single income vs dual and we now have one parent staying home.

Could be a case of "careful what you ask for, you just may get it"

[Jims5543]

I used to have a 15+ employee company.

In 2008 when the housing crash hit I had to downsize over the next 2 years to no one. Just me sitting in my office watching movies in 2010 waiting for someone to order something.

My wife helped me... the stories I can tell.... it was very invigorating for our sex life....

Then my older son was old enough to help and he jumped in to carry me through 2012.

I decided then I would NEVER be a larger company.

In 2015 I saw a surge in business (I call that the light at the end of the tunnel) then BOOM!! everything exploded in 2017 , I could not keep up. I was not going to hire, I was done with employees.

I hired on a receptionist (my niece) and a helper for my son who is in charge of all residential work.

I do all the construction work.

I purchased all GPS and robotic equipment. We do more work now than when I had 10 employees.

I have 3 employees.

I can actually cut back one employee now (field helper for my sons crew) and turn even more profit, with this tech, we really do not need him, we keep him but hope he will move on.

[908/930]

Hey 911 Rod let me know if you are building a house and I will bid on the drywall, LOL. I am OK with $140 hr.

The shortage of workers has been around for a while out here, prob 8 years anyways, right when I started building, I think many of the older people in the trades retired, still some younger people at it but most do not want to work too hard. It didn't take long for me to give up trying to get quotes. Pretty sure it is going to get harder to find people to work in the trades, all want to play video games for a living.

[fintstone]

My heat pump went out. Called the local HVAC business (about 3-4 miles away. They were not even answering the phone. Leave a message. They called me back at the end of the day. Could get me in a little over a week from now. I was pretty surprised it was not the same or next day. I guess everyone has more work than people.

[look 171]

Where do/did these people go? I had my Duramax in for service turbo replacement and a couple of wear items ahead of time. I use this shop often. They had my truck for over a month. I got talking to the owner and was told that 3 our of his 6 mechanics quit. One moved to another state but he had no idea about the others. He tells me they are paid about 85-90k a year working there.

I want to stay small and also looking to retire in a few more years. 55 now, but still having a lot of fun working. In a city this size, How can we have a shortage of workforce? They can't all be sitting on their porch smoking pot? Restaurants are hurting because of the lack of waiting staff. 18 bucks an hour maybe more, plus tips get them over 25-30 bucks an hour. Where are these folks going to earn that kind of money with little skills? How are they making ends meet if they aren't working, both the skill and the none skill?

I was at McDonalds this morning waiting for a cup of coffee before my bike ride. The manager informs me that no one is at the register, so I have to buy at the electronic ordering device. They were swamped with one at the drive thru and her packing the foods for the drivethru and two in the kitchen. On my way out, (without coffee) I saw a sign at the door "help wanted, 19 bucks an hour". WTF, 20 bucks to take orders at Micky Dees and no one wants to do it?

[cabmandone]

If you do a search, there are more job openings than there are unemployed people. I don't see how the labor shortage gets fixed.
My son got a job at a factory nearby two months ago. The plant is mandating overtime. Sometimes it 4 hours after, sometimes it's 4 hours before your shift. Why? At a plant meeting they explained that the plant is operating at slightly less than 50% of what would be considered "fully staffed". Wages are decent starting at $18 but benefits are just okay. Rather than give incentives for being able to exceed quota, they'll raise quota if you exceed quota. Gee, I wonder why they can't get more parts out with the current workforce???

[KNS]

Originally Posted by look 171

I was at McDonalds this morning waiting for a cup of coffee before my bike ride. The manager informs me that no one is at the register, so I have to buy at the electronic ordering device. They were swamped with one at the drive thru and her packing the foods for the drivethru and two in the kitchen. On my way out, (without coffee) I saw a sign at the door "help wanted, 19 bucks an hour". WTF, 20 bucks to take orders at Micky Dees and no one wants to do it?

This baffles me too... They want the corner office with a window and 100K salary. Never mind that they have nothing to contribute in the way of skills or experience.

We have a nationwide staff shortage in my organization. Our own office, while understaffed, is better staffed than many around the country. Just found out yesterday that we have been tasked with picking up some of the work from the other offices on top of our own workload. We've already been doing this to an extent and they're adding more.

[URY914]

Employees have the upper hand these days. Employers have to tread lightly or people will just quit and find work else where. We do so many feel good activities, give awards for everything, form social groups just to retain people. It's crazy.

I heard that the lower birth rate has something to do with it. There is actually a shortage of 18-22 year olds to work.

[911 Rod]

After reading everyone's comments, I have come to the realization that wages in the US are much higher than Canada. Much higher.

[3rd_gear_Ted]

Average Studio Apt. is $2000 per month in L.A.
Average health care policy $500 per month.
21% tax on $20 per hr @ 160 hrs per month = $672
$28 left for gas & food

[2.7RS]

Well......

Are they going to open borders?

Many immigrants willing to work.

It has been done like this since the foundation of our country.

And yes I get it. You can't have uncontrolled immigration.

But who is going to get the job done? If there are no available workers willing to work

[stomachmonkey]

Originally Posted by 2.7RS

Well......

Are they going to open borders?

Many immigrants willing to work.

It has been done like this since the foundation of our country.

And yes I get it. You can't have uncontrolled immigration.

But who is going to get the job done? If there are no available workers willing to work

Talk to Greg who is currently f'ng transportation at the borders looking for undocumented immigrants who he is afraid will be stealing all the jobs that apparently no one wants and hurting an already injured supply chain which only causes more pain for small local businesses.

And that shouldn't parf this up. If it does I apologize, let me now and I'll delete my post.