Bidding War for Employees
On November 15, 2021, President Biden signed a $1 trillion infrastructure package, including $550 billion more federal spending on roads, bridges, and expanded broadband.
To allure workers, contractors offer signing bonuses and housing allowances.
The money's there to spend, but Labor Shortage Stymies Construction Work.
Associated General Contractors of America, which represents more than 27,000 construction companies, said publicly funded transportation projects are routinely coming in at least 20% higher than government officials anticipated because of added labor costs, as well as inflationary factors such as higher prices for fuel and raw materials.
“The severity of the labor shortage means you’re paying workers more and your construction schedules are longer, both of which are big drivers in overall cost,” said Brian Turmail, the industry group’s vice president of public affairs and strategic initiatives.
Administration officials are working to address the workforce shortages, including hosting a “talent pipeline challenge” last week to develop workforce training programs for jobs in construction as well as broadband and electric-vehicle charging infrastructure.
Individual companies stealing talent from each other through bidding wars doesn’t advance Mr. Biden’s overall goal of tackling America’s longstanding infrastructure needs, said Ananth Prasad, president of the Florida Transportation Builders’ Association.
Nor does it lend any credibility to Biden's persistent message "This is Putin's Inflation."
Free Money, Not Enough Workers
“A lot of my lifetime, the big constraint on infrastructure work has been just a lack of funding and a failure to invest,” Transportation Secretary Pete Buttigieg said. “We got the funding. Now we have got to make sure that we have the raw materials, the technical capacity and the workforce to actually get it done.”
We just need more raw materials, the technical capacity and the workforce to actually get things done.
That should be no problem now that Biden is hosting a “talent pipeline challenge”.
Here's the Best Combined Explanation for Surging Inflation: Cascading Idiocy
In case you missed it, Here's the Best Combined Explanation for Surging Inflation: Cascading Idiocy
This post originated at MishTalk.Com.
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