Prevailing Wage Fringe Benefit Savings Calculator
When you work with DirectAdvisors, we will help you find savings opportunities that meet prevailing wage requirements for government contractors while offering valuable retirement, health and welfare fringe benefits to your employees.
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Construction Labor Scarcity Despite Record Numbers of Employment
The US Chamber of Commerce has recently released data showing 61% of contractors nationwide have experienced difficulty finding skilled workers over the last three months.
Many believe a perfect storm including record amounts of construction projects combined with a lack of interest in younger people in construction trades is creating the problem. Of particular interest is that employment in construction trades overall reached an all-time record in 2018 but demand for workers is still outpacing the supply. This is particularly true in the skilled trades that require extensive education and training including electricians, welders, and iron workers.
The imbalance between supply and demand is driving wages to all-time highs which of course translates to overall soaring construction costs. Construction was the fourth highest-paying job sector in New York City in 2017 (latest data provided by the NY Comptroller) with an average pay of $80,200.
Data from the Economic Policy Institute (EPI) shows that this problem is affecting both union employers as well as open shop employers. Although union workers on average make more than non-union workers, wages are rising steadily for both groups.
Brian Sampson, the head of the New York chapter of open shop contractor group Associated Builders and Contractors said “We definitely have a workforce issue today and a bigger one in two or three years when half the construction workforce will reach retirement age. So, if you’re an employer who’s not paying good wages and good benefits, you’re not getting workers. We’re continuing to see the hourly wage go up and the addition of benefits into the equation.”
At Direct Advisors many clients, especially those with highly skilled labor, are paying wage rates that are equal or greater than union wage rates in order to attract and keep the best workers. In addition, clients are often providing benefit programs that are far more generous and transparent than those offered by trade unions.
Donn Webber, President of Nelcorp Electrical Contracting in Endwell New York said: “We believe our benefits program structured through our partners at Direct Advisors is one of our primary competitive advantages in driving our success in retaining the workers on our team”.