CRE guy here. A lot of this "productivity loss" is also due to government related staffing issues and bureaucracy. Most people are describing more complex building codes, so I'll add something new. I had a project that was delayed by over a year during Covid because the city approved incorrect plans, came back and requested revisions, and then lost the physical plans (without us knowing until we checked in asking wha…
The strange and awful path of productivity in the US construction sector
251–260 of 426 posts
Re: The strange and awful path of productivity in the US construction sector
#252Earlier quoted context omitted.
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I grew up in Southern California in the 1970s, and a non-trival percentage of the daily conversations I had with normal people had to be in Spanish, because their English was much worse than my Spanish, which was fair. "Southern California" was/is a very, very big area. I grew up southeast of downtown. Can you share where/when you grew up? Just curious. As far as 'replacement': I can't dismiss such opinions out of ha…
Re: The strange and awful path of productivity in the US construction sector
#253Earlier quoted context omitted.
I mean, if you're illegally hiring someone, you're not gonna pay them on the book.
It's on the books, under "toilets" or something. That money has to go somewhere. Also, undocumented workers still have to pay income taxes.
Undocumented workers are sometimes paid in cash.
Re: The strange and awful path of productivity in the US construction sector
#254Earlier quoted context omitted.
I believe this is why we're seeing some of the industry starting to experiment with pre-fabbed homes that are modular but can be constructed using the automation we see in car manufacturing. The weak link in creating ever more complex homes, with ever more stringent building codes, at faster rates, is to remove the "humans with nail guns and drills" from the construction process. At some point, us meat sacks are the…
Back in 2003-2007, I worked for a home builder who vertically integrated and went for maximized modularity. In '05 we expanded our truss yard to 2 large presses and 4 automated saws, and added a wall-framing yard what worked the same way as the truss yard. Add in that they bought a concrete company to do the slabs, and a 2-story house could go from pour to sheeting in 35 days. Plumbing, electrical, and finishing jobs…
There was a recent HN post on a shortage of electricians that got me to thinking why studs, which already come pre-cut to exactly 92 5/8", don't also come pre-drilled for wiring at outlet and switch height (at least I've never seen that in wood studs).
Re: The strange and awful path of productivity in the US construction sector
#255CRE guy here. A lot of this "productivity loss" is also due to government related staffing issues and bureaucracy. Most people are describing more complex building codes, so I'll add something new. I had a project that was delayed by over a year during Covid because the city approved incorrect plans, came back and requested revisions, and then lost the physical plans (without us knowing until we checked in asking wha…
> made the required rent higher If, all along, you could have rented it out for more money ... why were you planning to rent it out for less money? I get that you wouldn't have to, but it appears that the "market rate rent" was higher than you initially anticipated. As a corollary, assuming that you had initially planned on the highest rent that the market would bear...it seems that after a year of unexpected delays…
Re: The strange and awful path of productivity in the US construction sector
#256The article defines productivity as "value add per unit of input".
The only measurement of "value add" that makes sense it the sale price. Given how high are those prices are, I don't see how "productivity" could not be super high.
Re: The strange and awful path of productivity in the US construction sector
#257CRE guy here. A lot of this "productivity loss" is also due to government related staffing issues and bureaucracy. Most people are describing more complex building codes, so I'll add something new. I had a project that was delayed by over a year during Covid because the city approved incorrect plans, came back and requested revisions, and then lost the physical plans (without us knowing until we checked in asking wha…
> made the required rent higher If, all along, you could have rented it out for more money ... why were you planning to rent it out for less money? I get that you wouldn't have to, but it appears that the "market rate rent" was higher than you initially anticipated. As a corollary, assuming that you had initially planned on the highest rent that the market would bear...it seems that after a year of unexpected delays…
"It also made the required rent higher to recoup those costs and try to be profitable (that deal will lose money)."
required rent =/= planned rent =/= actual rent
Higher costs than expected can easily cause a project that would be profitable to be a loss.
Re: The strange and awful path of productivity in the US construction sector
#258CRE guy here. A lot of this "productivity loss" is also due to government related staffing issues and bureaucracy. Most people are describing more complex building codes, so I'll add something new. I had a project that was delayed by over a year during Covid because the city approved incorrect plans, came back and requested revisions, and then lost the physical plans (without us knowing until we checked in asking wha…
Of course the pay's shit, you're subject to all kinds of quality-of-work-life destroying whims of politicians at the top, the bureaucracy is as abusive and ineffective as stereotypes about bureaucracies would lead one to expect, and if you have an effective union shielding you from some of that, about half the politicians are constantly trying to weaken or eliminate that, plus trying to mess with your pension which is practically the only attractive thing about those jobs... so, no fucking wonder, really. Recent wage inflation has made all this stuff worse by making unresponsive government pay scales far less attractive than market-driven wages elsewhere, so systems and offices that were teetering before are now falling over.
Re: The strange and awful path of productivity in the US construction sector
#259Earlier quoted context omitted.
Very true. That said, to be fair, the average poor undocumented immigrant demands far less space (simply because that's what they can get under the circumstances). Living multiple unrelated people to a room is not unusual, ie, even more cramped than college students, NYC 20 something year olds, etc.
If I am an unprincipled landlord then it may be in my best interest to change from renting to families to renting to sharers. Four working adults may be able to pay more in total than two parents supporting two children can.
Re: The strange and awful path of productivity in the US construction sector
#260Earlier quoted context omitted.
When you have to re-anchor your safety harness to move 5 feet it's kind of difficult to maintain efficiency.
When you have to close the site and scrape someone's brains up it's really difficult to maintain efficiency.