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528 sats \ 6 replies \ @kepford 11h \ on: 3 ways to fix construction productivity growth and the reason why it’s lagging. econ
Great topic btw:
Companies are doing this and have been for a long time. I once worked in such a program that offered apprenticeships in the skilled trades. Take a look at the work Mike Roe has been doing for the last 30 years I think...
We have a cultural problem where people have been programmed to look down on skilled trade work like plumbing, electricians, and carpenters. Its stupid and I do think its changing slowly. The government has favored college education focused on so called white collar work over practical skills.
Why no mention of the state's role in the problem.
- Zoning restrictions
- High taxes
- Environment impact requirements (which can be absurdly difficult)
- License requirements which creates a barrier to entry into jobs
- Inflation (fiat)
- Energy costs
- Supply chain issues (from the global shutdown, yeah that is still a factor for some things)
In my not so humble opinion the issues in construction are nearly entirely on the government.
Yeah these are fantastic points but even with all that stuff out the way you still need the labor. Skilled labor!
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One thing you have to understand about large construction companies and industry trade magazines. They all have government contracts and speaking frankly and directly about the problems with government puts those deals and relationships at risk. If you talk to people in the industry as I have over the years they would agree with almost every point I gave but you aren't gonna see a company CEO come out and say this stuff.
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If you want to see a case study in the problems in construction look at the high speed rail project in California. Just the permitting for it has taken many years.
Now, granted its a massive project but its also one being pushed by the state government with massive amounts of money from the Feds and the state. The state's own restrictions are making it very difficult to do.
When you compare that to China... well of course they are gonna be faster. While they are Communist they don't restrict their own actions. Just the actions of their slaves/subjects.
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Yeah but sometimes I think these are legal money laundering schemes. I understand some studies taking some time but the overall delay is flat out ridiculous
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I know some people who's company has done work on it... its insane.
Also know a dude that works at a company that does highway construction. There has to be some shady stuff but also think most of the waste is just what you get with central planning something the private sector would never even attempt.
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