Hurricane Recovery Work Hits Already Tight Labor Market

Existing labor shortages may be exacerbated by the impact of hurricanes Harvey, Irma and Maria.

“Prior to the hurricanes making landfall in the U.S., if you look at the macroeconomics of areas like Texas and Florida, there has been a shortage of skilled labor, particularly in construction,” said an executive from an insurance and broking firm.

Since the storms, demand is greater.

Moody Investors Service said recently that the hurricanes, plus the California wildfires, could drive up construction prices nationwide.

The disasters also have brought attention to the challenges of material management. Industry experts are encouraging contractors to understand their subcontractors’ supply chain and assure materials are verified and inspected.

Source: Business Insurance