Author Archives: CSLS

About CSLS

Contractors State License Service (CSLS) is the largest school in California devoted to the Construction professional. For over 23 years, CSLS has helped its students pass the exam to become licensed contractors in the State of California, licensing more students than any other school. From our main offices in Southern California, CSLS operates over 25 locations with full-service support and classrooms. We have grown to this extent by providing quality, professional services. In comparison, this provides 7 times the number of convenient locations than the second largest contractor school. Contractors State License Services is one of the only contractor schools in the state that is run by educators, not lawyers or people mostly interested in the bonding and insurance business. Contractors State License Services formerly operated under the oversight of the State of California's Bureau for Private Post Secondary and Vocational Education. As of January 1 2010, the new Bureau for Private Postsecondary Education (BPPE) came into existence replacing the BPPVE. CSLS now operates under the provisions of the California Private Postsecondary Education Act of 2009 (CPPEA), Article 4 Section 94874(f). Our Mission is simple; We can help you pass your California Contractors License Exam. Celebrating our 25th year, CSLS has helped over 120,000 students pass the California contractor licensing exam to become licensed contractors in the State of California. Additionally, we offer complete home study and online contractor’s license programs to help you pass your California contractors license exam. CSLS offers licensing classes for all types of contractor licenses, including General Engineering Contractor, General Building Contractor, Specialty Contractor, Insulation and Acoustical Contractor, Framing and Rough Carpentry Contractor, Cabinet, Millwork and Finish Carpentry Contractor, Concrete Contractor, Drywall Contractor, Electrical Contractor, Elevator Contractor, Landscaping Contractor, Warm-Air Heating, Ventilating and Air-Conditioning Contractor, and many others. For a complete list of contractor licenses, visit www.MakeMeAContractor.com and tuned for more informative posts.

Breadth or Depth: Reasons Your Contracting Business Should Consider Generalizing or Specializing

Is it better to be a master of none or a master of one? This is a question that skilled tradespeople have been trying to answer since the Middle Ages. In truth, it’s not possible for most contracting businesses to be so general they literally do any job. Most contractors will specialize to some degree, but the level of specialization can affect how you work (and how much work you can get). Here are a few reasons to consider going in either direction.

Who Gets the Best Jobs in Your Area?
If you’re already running a business, what you do with it is going to depend a lot on where the money is. On the other hand, if you haven’t started yet, it’s even better to research how people work in your field in your region. Perhaps the best jobs, the highest pay and the greatest reliability go to the people with the deepest reservoir of knowledge and experience. But it could also be true that the most reliable route in your field requires flexibility to take different jobs as they come. Your research will help you determine which path is best.

Are You Struggling to Find Consistent Work?
The big worry about going into a niche specialty is that you’ll narrow your business out of success. After all, if you can’t take the jobs that exist but you’ve got tons of experience in a style of work that no one needs, you won’t be able to earn enough income to pay the bills. And although this is a question you certainly should be asking yourself in the early years of your career, you may need to consider it again every few years. An inability to find consistent work in your field, regardless of your own personal ability and marketing structure, is a sign that you may want to diversify your services.

Can You Meet the Needs of Your Field?
On the other hand, some business owners realize that there is plenty of work in their area, but not for them. Being able to meet the needs of your area and the specific requirements of your field is a balancing act. The last thing you need is to be yet another business that lacks the skills, experience or equipment to perform the jobs that so many clients want. If you see a need in your area that isn’t getting met by yours or other businesses, this may be your time to specialize. That extra investment into your skillset could make your services indispensable.

Do You Understand Industry Standards for the Field?
Build a few years of experience in a particular field, and you’ll get to know the industry standards inside and out. If you start to think about expanding, you need to make sure that you can still meet those requirements. Failing to do so can have bigger consequences than not trying. For example, if you’re accustomed to taking contracts in the private sector, you’ll be used to a fairly different workflow than if you shift to bidding on public sector jobs. Being able to bounce back and forth requires quite a bit of specialist knowledge, especially about contracts and liability.

What Are the Risks and Rewards of Expanding Your Services?
Of course, delving into new services always requires an investment. And as a business owner, you must pay attention to the return you get from specializing or generalizing. In many cases, offering a unique set of options or expanding into a different field requires getting another license. Specializing may call for additional education that might take months or even years, depending on what you hope to do. You must also keep opportunity costs in mind. If you’re going to focus your efforts on one thing, you want it to have a higher chance of success or bigger rewards than the alternatives.

Deciding if you’re going to be a generalist or a specialist is a question you’ll ask yourself every time your business needs a change, especially at the beginning. When you’re ready to begin your construction career, visit CSLS today!

Do You Really Need a Bachelor’s Degree to Have a Good Career? Why Trade Programs May Be a Better Path

If you’re a member of Generation X, a millennial or Gen Z, you’ve probably had the importance of getting a good college education lectured at you since you were learning to walk. When getting a bachelor’s degree is no longer a guarantee of securing any job, much less a great career, it may be time to look at other options. Although college is still a good choice for a variety of reasons, recent studies show that the bachelor’s may not be the gold standard as it once was. If you’re thinking about college, here’s a few reasons that getting your associate’s degree might be the better long-term choice.

Lower Student Loans
When the average college graduate leaves a California school with about $35,000 in debt, it’s time to consider the return on your investment. It’s true that graduates with a four-year degree tend to earn more than someone who only finished high school, but there’s a wide world of opportunities between the two. By getting an associate’s degree, you not only shorten the time to graduation. You also give yourself the chance to get the work done at a community college with a good trade program, which can dramatically cut down on the total costs for your education. Shrinking your loan potential to half or a quarter of what it could be makes it easier for you to find your place in the industry, wherever that may be.

Flexibility to Add Certificate Programs
Any degree is an investment. It’s just that a bachelor’s takes more of an investment for a longer period of time. If you’re trying to work while studying, like many Californians, you need to maximize the benefits you get from the program. Lots of two-year colleges offer certificate programs along with an associate’s that you may be able to work on at the same time. And if you’re not committing for several years into the future, it may be easier for you to do just that.

More Time for Apprenticeships or Other Career Development Options
In this industry, you need time to develop your craft. You can get some of it inside the classroom, but that won’t be enough. In order to even take the contractor licensing exam, you usually need years of experience working for another licensed contractor in your field. This is true even if you get a bachelor’s degree. With a two-year degree, you’ve got more time to devote to finding the right fit, whether that means applying for and participating in apprenticeships or other options for career development. And since apprenticeships are an even more effective way to start on a great career path in the industry, this gives you a better chance of getting the job you want.

Similar Income and Growth Opportunities
Although education is a worthy pursuit in its own right, there are many reasons that you might want to consider what you’re getting from the work you put in. Higher income and greater choices for careers draw most people to college, especially the ones who finish their programs. But recent research indicates that an associate’s degree might be just as effective for long-term income growth as a bachelor’s, especially in industries like construction. Many construction jobs have flexible entry requirements. This often means that an associate’s can set you apart almost as readily as a bachelor’s, especially if you have certificates or other experience to bring to the table.

Foundation to Continue Education Later
If you decide that you ultimately want to pursue higher-ranking positions like a construction manager or executive of a larger company, you may need to add to your education. But getting your associate’s and starting your career from there isn’t going to stop you from taking other programs at a later date. In fact, by giving yourself the opportunity to apply your knowledge at first, you may make pursuing a bachelor’s or even a master’s more effective later on.

Is Lung Disease Making a Comeback in Construction? How You Can Protect Yourself.

Black Lung Disease feels like a reminder of a completely different time. And yet, lung disease caused by the repeated inhalation of a toxic substance is making a comeback in California and other states. The push for engineered stone countertops in residential and commercial construction is creating a problem that many people thought had largely been eradicated. The cutting of silica for countertops, as well as silica dust left on the jobsite, has led to several cases of silicosis. This is a permanent and serious health condition. Here’s what you need to know, and how you can protect yourself and your employees.

What Is Silicosis?
If you haven’t worked with silica personally, you’re probably at least familiar with the packets used in shelf-stable food items to help keep them fresh. Silica is a common mineral that makes up a lot of things you see all the time, like quartz, sand or even glass. When ground down to a powder, silica is surprisingly easy to inhale. But once you get it into your system, it’s practically impossible to get it out. It only takes a few weeks to start showing symptoms of silicosis, or you might not notice it for years. Common signs include:

  • regular cough
  • chest pain
  • fever
  • breathing difficulties

Since these are common symptoms of a variety of conditions, it’s sometimes hard to diagnose. Once you’ve got it, it’s a chronic lung disease you’ll have to manage for the rest of your life. Silicosis can make the side effects of smoking worse, and is associated with a higher risk of lung cancer. It can even be fatal, especially with high exposure.

Why Is Lung Disease Becoming a Problem in Construction?
Silicosis has been a concern in the mining industry for more than a century. People who are mining granite or quartz get a high level of exposure to it, which increases the likelihood that they will inhale it. It’s becoming a bigger problem in construction, due to the increased popularity of engineered stone countertops. Silica is the primary component of these countertops. At this point, experts are reporting at least 18 cases in four states including California. Although that may not seem like much, it’s possible that there are many more out there that haven’t been diagnosed yet. The seriousness of the condition indicates that people at risk should take steps to prevent it.

Which Fields Are At Risk?
People who manufacture glass or stone countertops are the ones most likely to deal with silica dust. However, anyone who works in adjacent fields or in areas where others are working with silica may also be at risk. This means that if you’re working in electrical in a new house where another contractor is cutting a quartz countertop, you could be inhaling the dust. You’re at risk, even if you’re coming in after they are done.

How Can Contracting Businesses Protect Themselves?
Proper procedures can make the difference between health and a higher risk of cancer or other long-term health problems. If you’re working with or near silica, the Occupational Safety and Health Administration recommends several prevention steps, including:

  • avoiding eating or drinking near silica dust
  • use different materials for blasting
  • washing properly after working with silica
  • relying on water or wet products for cleaning instead of compressed air

In addition, employers may want to educate themselves and their employees about the common signs and symptoms of silicosis. A faster diagnosis can help avoid the problem getting worse.

Working in construction was always a little bit risky, but there are modern trends that can make it worse. Knowing about the rise in silicosis cases in California can help you identify ways that you can run your business safely and effectively. To learn more about the best practices for a variety of construction fields and prepare to take your licensing exam, contact CSLS today!

Tracking Equipment Maintenance for Your Contracting Business

It seems like every time you start a project, something else breaks. Equipment is expensive, and whether you rent or buy, you still need to ensure that everything you have is ready for use. Equipment maintenance takes time and doesn’t bring in the big bucks, but there are plenty of good reasons to make it happen. Here are a few tips to understand why regular maintenance is important, and how you can set a reasonable schedule to track it.


Make Maintenance a Priority
When you get into the busy season, it can be difficult to imagine having spare time for equipment maintenance. You may be running almost nonstop from dawn until dusk, and you need those tools and machines sometimes on a daily basis. Paradoxically, this is why upkeep is so important. If you can’t think of giving a day toward maintenance, you definitely can’t afford to lose the machine for a week or more. If you’re running on tight margins, paying out for repairs will cut into your bottom line much more than scheduled upkeep. When you make it a priority in the first place, you can avoid the bigger issues that cut into your project timelines.

Document Your Equipment Upkeep Needs
You probably keep some kind of inventory for supplies. Your equipment needs the same level of attention. Tracking the state of your assets is a good business practice, no matter what industry you’re in. If you don’t have a lot of equipment, you might wonder what is the point of documenting the fact that you have a drill. The benefit of documentation is that you know what you have, and you can make a plan to maintain it from there. Write down:

  • all of the equipment you own for your business, including administrative tools
  • when you bought it
  • how long it should last with good care
  • frequency of upkeep
  • the last time you maintained it

This will give you a single point of reference for planning.

Research Maintenance for Rented Equipment
With such a robust market for equipment rentals, you may not have much owned equipment at all. You still have to keep track of it. Rented equipment can save you a lot of money, but only if the tools are in good shape. When you research rentals, follow up with the company to find out when the tool or machine was last maintained. If you’re keeping the equipment for a longer duration, find out if upkeep is part of the service, or if you’re on the hook to do it before you return it. If a company can’t show you how often they attend to their inventory, look elsewhere.

Balance Work and Downtime
It can be tempting to do it all at once, but you need to find a balance. Try to schedule major maintenance, upgrades or repairs for the slow season, usually winter. Otherwise, book a small amount of time each month to inspect your equipment. If you have to send something away for maintenance, mark it as unavailable in your inventory. It’s not a bad idea to build some redundancy in the system, particularly for smaller items. If you have a bunch of hand tools that run on batteries, make sure you have enough batteries to go around.  

Make Equipment Maintenance Efficient
Since asset management applies to almost any business, there are a ton of tracking programs available. If you have an app or software for your inventory, it may have classifications to help you manage your equipment as well. Many systems also let you track how you use tools. You can set up a system that uses barcodes that your employees can scan every time they pick up a piece of equipment. This will help you track which tools are getting used more often, which may indicate a need for inspection more frequently. It can also make it easier to identify when a piece of equipment is having problems, because people aren’t using it as often as they should.

Equipment maintenance is important for your business success, even if it feels like something you can put off. Making it a priority helps you finish projects and avoid expensive repairs. To start building your career in construction, contact CSLS today!

Can Your Client Afford the Project? Here’s How Your Contracting Business Can Find Out

When you put in a bid for a project, you generally expect to prove that you can actually do the work. But since you have so much riding on every project you do, you should probably be doing the same thing for your clients. Every contractor has a horror story about a client that seemed legit and then bailed on the bill at the end. If you don’t want this to happen to you, there are a few things you can do to follow up on a client’s ability to pay. Here are some things to ask for, and ways to request them without alienating prospective customers.

Set a Pay Interval You Can Manage
It’s really tempting to let clients pay you whenever it suits them. If you do this long enough, you might go out of business. Companies that have a lot of overhead may teach you that it never suits them to pay you in a timely manner. Instead of catering entirely to their preferences, find out the regional billing standards for your industry. Depending on the project, you might charge the full price upon completion, or bill with 30, 60 or 90 days to pay. Don’t let this aspect of business administration slip through the cracks. You don’t want to discover that they had the money when you did the project, but spent it by the time you billed them.

Know When You Can Ask for Financial Verification
There’s basically two times that you can ask for proof that a client has funds sufficient for the project: at the beginning, and if something happens during the construction process. The latter can create a sticky situation, so it’s better to find out about this before you start ordering materials and scheduling hours. This is also a good opportunity to ask about timelines. If the property owner’s ability to pay is contingent upon them securing a grant or other public funds, make sure they got it and will have the money ready before you start.

Get Evidence From the Start
Beyond feeling comfortable that the client will be able to meet their end of the deal, the kind of evidence you collect depends how far you intend to take it if the client doesn’t. Usually, you can ask for verification of ability to pay in the form of a loan, offer of credit or a bank statement showing sufficient funds. If the client fails to do on your initial request, it’s probably best not to do any more work until they can provide evidence. If you bill for portions of the project in stages, send invoices on time and track when they are paid. In the event that you have to pursue someone to get the rest of your money, these records will be necessary.

Avoid Project Scope Creep
Of course, there are instances when everything checked out at the beginning, until the project exploded in scope. This underscores the need to give a clear estimate before signing any contracts to provide service. If the client changes their mind about something and requests a change, clarify those changes in writing and have everyone sign a new contract. This helps avoid confusion at the end, especially if the alterations mean the total is higher.

Choose a Reliable General Contractor
At times, part of your work might involve subcontracting to another general contractor. As a general rule, the general contractor for the project is the one who has both the right and the responsibility to verify a client’s ability to pay. And typically, you’re going to wait to get paid until they do. As a result, you’ll do better to work with general contractors who have experience and the savvy to know how to follow up with clients for this information. That way, you’re less likely to be left on the hook for your expenses if the project fails.

Keeping the income flowing through your contracting business is the way you succeed. That takes clients who can pay for the services they request. For more information about starting a successful business in construction, visit CSLS today!

How Do Home Sales Affect Your Contracting Business?

Starting a career in new home construction can be easy or difficult, depending on the timing. But even if you stay out of this part of the industry, the sale of homes (and property in general) can affect the kind of business you get and how much people are willing to pay. This guide identifies the construction fields that are often affected by the strength of the housing market, as well as a few tips to keep your business’s demand steady.

Interest Rates and Construction
In order to see how the housing market can affect construction, it’s important to understand how the economy influences both. When housing prices rise largely unchecked, as they did in the middle 2000s, the Federal Reserve may raise interest rates. This makes it harder for buyers to qualify for loans, and those who can won’t be able to buy as much. That slows the market, which can cause home values to plateau or even drop. This isn’t necessarily a bad thing if it happens in small increments, unlike the huge housing crisis of 2008. As a business owner, you should keep an eye on the strength of your target market. If prices are running high or starting to drop, you need to plan for a slowdown in business.

Indoor Renovations
When it’s a seller’s market, homeowners have a lot of potential buyers for any given property. This means that they are more likely to request renovations as a way to secure a higher offer, not to get someone in the door in the first place. People don’t feel so bad paying $20,000 or $30,000 for an upgrade to the kitchen if they think it will get them $50,000 when they sell a few months later. You can make this a reasonable transaction for you by verifying that your clients have the means to pay before you start the job. This way, when you come to collect payment at various stages of the project, you’re more likely to get it.

Landscaping and Exterior Renovations
Like kitchen and bathroom renovations, roofing is a field commonly affected by changes in home sales. Since this tends to be one of the most expensive home improvement projects, especially using materials like metal, homeowners tend to save it until they absolutely must get it done. You just want to make sure that they’re ready to pay when they ask you to take it on. If you’re in a luxury market like outdoor pools or exotic landscaping, it might also be worth picking up a few lower-end specialties. When values fall and homeowners have to pay cash, they often make less-expensive choices.

New Construction
Have you ever driven by a new development with a handful of half-finished houses just sitting there? There were quite a few of these about 10-15 years ago. When the housing market corrects, it can be harder for everyone to get funding, not just homebuyers. Developers faced with the prospect of no buyers may not want to invest another dime into completion.

If you’re subcontracting for a developer, it’s worth investigating how well they know the local market and how new home sales are doing generally. If the whole thing fails after construction begins, do you still get paid? The last thing you want is to sign onto a project with a bunch of buyers that fail to get loan approval, or do work that stops halfway through from lack of funding.

Commercial Developments
All of this can spill into commercial developments, as well. A development or revitalization of a city usually involves creation or renovation of shopping, dining and entertainment outlets. If people aren’t buying homes in a newly-developed area, there will be less demand for commercial spaces in the same region. Keep track of the market in any given area, and as you would for a residential developer, make sure the person hiring you for commercial construction is likely to pay.

A strong housing market can be a great time to work in construction. Knowing what to do when it isn’t helps you stay on the path during every season. To find the licensing program that meets your career goals, visit CSLS today!

 

Is Your Contracting Business Contributing to Traffic Congestion?

Traffic in California is a problem. Even people who live out in the middle of nowhere understand this. A large population with limited housing options that are generally too expensive creates a level of sprawl with huge commutes and a heavy dependence on personal vehicles. Yet, this situation isn’t intractable. Construction business owners do have ways to cut back on consumption and traffic without having to bring all your tools and supplies on public transit. Here are a few things you can do.

Analyze Vehicle Use
In order to see how your vehicle use contributes to congestion, you first have to analyze what you’re doing. When you go to a construction site, ask these questions:

  • Do you often find a lot of parking?
  • How much of it are you taking up?
  • Are there enough spaces for other contractors needed for the project?

Next, think about the vehicles you choose. Trucks and vans are great because you can store a decent amount of materials and equipment. How many do you really need for the job? Finally, look at the time of day you go. Construction work outdoors often follows the light, which means you may get an early start, especially in the winter. If you’re waiting until rush hour to get on the road, you may be making traffic (and resulting emissions) worse.

Carpool to Construction Sites
The simplest solution is to carpool, although this isn’t always simple as it sounds. If you have five people in your business and you take five cars to every jobsite, it stands to reason that you can do fewer. Some cities in California have implemented policies that require contractors to handle employee parking, as a way to avoid taking away a limited number of free spaces for the public. This practice aims to discourage contractors from leaving this situation to chance, and encourages carpooling. If it’s an option for your business, it is worth seeing if you can make it work.

Streamline Construction Processes
The idea of having work be relatively close to your home, or live close to where you work, sometimes feels like an artifact of the last century. When millions of people live 50-75 miles away from work and that may be true in most parts of California, sometimes the answer is to rethink your processes in general. If you live a considerable distance from most of your clients, you may want to try limiting commute time. For example, you could look for subcontractors closer to the jobsite. If they don’t have to drive as far, it will help cut down on the total traffic.

If you have a warehouse or other facility where you can work near home, you might see which processes you could bring in-house instead of onsite. Modular construction and 3D printing are making it much easier to bring a nearly-finished component to the jobsite for construction. This cuts down on the length of the project and the number of days you need to be there.

Rethink Your Business Location
Some people thrive with a long commute. They say it gives them time to think and unwind from a long day. But if you’re already working 10-12 hours a day on a project, an extra hour to and from can really cut into your leisure time. If this is starting to feel like a fact of life and you hate it, it may help to explore other regions to look for clients. Depending on where you live, it may or may not include moving your home to a different place. But you might find that there is just as much work in your field in a closer place that isn’t the center of a huge metropolis.

Traffic is a big part of living in California, but it doesn’t have to be a nightmare for your business. More importantly, you can make changes to improve it. If you’re ready to discover other benefits of being a licensed contractor in California, contact CSLS today!

Are Your Contracting Business Projects Overspending the Budget? Here’s What Might Be Wrong

Budget overrun is a frequent problem for contractors. You bid on a project, your bid is accepted, and then it’s a race to try to keep your costs down. There are several things that can make you spend more than you expected, and some of them are easier to account for than others. By planning ahead, you can minimize the likelihood that you’ll need to adjust totals over time. Here’s a few areas to focus on.

1. Don’t Skip the Details
Like guessing how many candies are in a jar, rough estimates of your project costs are bound to be wrong. Sometimes, a quick back-of-the-napkin tally can be off by hundreds or even thousands of dollars. Instead, make sure that you’re giving enough time to investigate the costs you predict for each stage and line item for the project. Confirm that prices on materials or equipment rentals haven’t gone up. Double-check that you haven’t missed a digit and made an $8,000 item look like it costs $800. The more investment you make in the original estimate, the less likely you are to make a mistake.

2. Overestimate, Don’t Underestimate
When you’re trying to establish your contracting business (or get a leg up on the competition), it’s tempting to say that you can get it done quicker and cheaper. But if this requires you to skip sleeping or force your employees to work much longer days, it’s not a realistic goal. Whenever you can, overestimate how long you think the project will take. Give yourself a margin of 10-20% on materials, in case you need more or they’re harder to get. It’s always easier to show a client that it cost you less than to ask for more money.

3. Budget for Non-Project Business Costs
There are a lot of expenses you have to pay to run your business that do not fall within the confines of the project. If you’re not budgeting for them in your estimates, they will come out of your profit margins. You may have a variety of bills that are not related to the specific project, such as:

  • equipment maintenance and repair
  • training and certification
  • administrative expenses
  • insurance

Take the total costs you expect for these and other concerns, and divide them by the size of the project. For example, if you have a project that’s going to take about a month, you’ll divide the total by 12 and add it to your bid.

4. Plan for Bad Weather
Earthquakes. Wildfires. Landslides. Huge snow storms. California has a lot to contend with when it comes to weather. Depending on the season, you might need to budget extra time in case you lose a day due to one of these events. Check weather patterns by the month and keep close tabs on the forecast. Giving yourself a few extra days’ worth of labor costs on the project will help you come in under budget and on time.

5. Negotiate and Approve Budget Changes Early
Every now and then, even the most careful planning will fail to return the right numbers. A sudden loss in supplier could force you to find someone else at a higher price. An unpredicted weather-related disaster might set you back several weeks. As soon as these events become clear, you should act quickly to renegotiate. Waiting until the end of the project runs the risk that you’ll have to fight to collect the difference from an unwilling client. The earlier you get started, the more likely you are to get the go-ahead to continue with an adjusted budget.

Earning money with your contracting business starts with a budget that you can stick to over time. The more accurate you are from the beginning, the less you’ll lose profits because you went over by too much. To start building your career as a contractor, visit CSLS today!

Airbnb vs. Hotels: How the War for the Best Place to Crash Affects Your Contracting Business

There’s nothing like a little competition to get businesses working harder to build bigger and better. And the competition between hotels and short-term private rental companies like Airbnb is anything but little. Airbnb, which began as a way for owners of existing properties to rent them out for money, is now delving into construction. Hotels are streamlining and expanding to compete. Here’s how the battle could affect your contracting business.

Private Rentals Increase Demand for Renovations
Airbnb boasts more than 5 million homes available to rent in tens of thousands of cities worldwide. The business concept bursts with income potential. If homeowners have a decent living space in a high-demand area, they may be able to secure hundreds of dollars a night for the days when they aren’t occupying the house. Make a few minor upgrades, such a mid-range kitchen or bathroom upgrade, and Airbnb hosts can increase the price significantly. It’s changing the way that people conceive of the purchase and ownership of residential property, which may have long-term effects for construction as an industry.

Real Estate Investors Spur Demand for New Housing
If a person making a few renovations to their own home can make it much more likely to land a healthy income from short-term rentals, you can imagine how quickly real estate investors got involved. Across the country, investors are looking for existing homes or units to buy and fix up so they can rent for a higher price. They often have more access to capital for renovations than private homeowners, which allows them to hire contractors to do more extensive work. This increases demand for a variety of fields in construction, as well as other industries. For example, property management companies are expanding to specialize in short-term rentals through sites like Airbnb.

Hotels Attempt to Compete
The industry really feeling the pinch from such an influx of private rentals is undoubtedly hospitality. Hotels are trying to stay in the game with new buildings, specifically bigger ones with better features. Hotels now have to compete with possibly tens of thousands of private rentals within a 20-mile radius. The only way they can realistically do this is by building better and faster than they ever have before. Hotel chains are emphasizing modular construction especially as it allows them to expand and get to completion weeks or months earlier.

Cities Try to Curb Airbnb Real Estate Investors
Overcrowded and underhoused cities in California have been looking at this battle with wariness. A market that encourages investors to buy up and renovate units even in high cost-of-living regions like the Bay Area could dramatically cut down on the available housing. Some experts estimate that Airbnb alone accounts for a 10 percent increase in rent in New York City. Cities like San Francisco and Los Angeles have already set limits on the ways that people list properties on sites like Airbnb. But elsewhere in the state, the push to build housing for people to live (and to rent when they’re traveling) increases demand for new housing starts as a whole.

Both Sides Emphasize Speedy Completion of Projects
If this feels a little like an arms race, it is in a way. Everyone wants the best of the best and they’re not afraid to pay for it. For contracting businesses looking to take a piece of all this investment money, the focus must remain on efficient processes and good results, with a little extra fact-checking along the way. If you can spot an investor with a good plan, you may be able to take part in projects that open doors for you.

The battle between private rentals and the hospitality industry is only beginning to heat up, with lots of potential effects for construction. To find out how you can take advantage of increasing demand in this industry, contact CSLS today!

Building Construction’s Future: How the Industry Is Working to End the Labor Shortage

You read a lot about construction’s labor shortage and ways that the industry is trying to get around it. Although new approaches like automation and modular construction can decrease the numbers needed for a particular project, eliminating jobs isn’t sufficient. In order to survive the thousands of professionals who retire from construction each year, the industry needs plenty of skilled tradespeople ready to replace them. Here’s how the industry, with help from local governments, is trying to ensure this happens.

Education Programs
Whenever you read anything about the labor shortage, you may see an emphasis in skilled workers. After all, if you need an electrician or someone who can fix an elevator, you can’t just grab the first person who walks by. After decades of demeaning skilled trades as beneath the hallowed halls of academia, colleges are realizing that they need these programs more than ever. States like Illinois are investing millions of dollars into training and apprenticeship programs that will help interested people develop the skills and experience they need to meet the demand. Here in California, colleges pursue grant money to help them create certificate and non-certificate programs to get students involved.

Improved Working Conditions
When millions of people in construction lost their jobs with the housing crisis, the professionals who remained were left with a particularly complicated situation. Once housing and urban development began to rise again, they needed a lot of skilled workers in a big hurry. They’re still working on this. The industry has been in a period of rapid growth for nearly a decade and it’s so far behind.

By this point, the problem is not so much that people left the industry to do other jobs. It’s that a diminishing pool of new workers came to replace them. Employers are starting to seriously rethink what they need to do to get people to start in the industry in the first place. This means higher pay, better benefits, safer working conditions and a higher degree of predictability in employment.

Expansion of Modular Construction
Modular construction is one way that construction business owners have found can streamline the jobs they have into something that Millennials and Generation Z actually want to consider. Let’s face it: There are parts of California that are a positive delight year-round, but there are also plenty of places that are simply nasty in winter, summer or both. Modular construction has the benefit that so much of the work is completed offsite, in controlled settings. This allows employees to keep a schedule that works better for them, in a place not governed by weather and daylight, possibly closer to home. The use of technology to get work done faster is an added bonus.

Changes to Zoning Regulations
The thing about urban sprawl is that it affects where people live, as well as their jobs. Jobs in construction still operate mostly from the site, which means that distance plays a factor. If you knew that you would have to commute 100 miles each way to do your job, you might consider a different industry. And if you don’t live anywhere near the places where contracting businesses are thriving, you’ll either have to move or find a way to commute. As a way to combat this, cities are looking at their existing zoning regulations and trying to find ways to make different methods work. Flexibility opens up more options for housing, which can positively improve the choices you have for where you live and work.

The construction labor shortage is likely to continue for several years to come. This means that if you get into the industry now, you’ll have a lot of opportunities to grow. To get started, contact CSLS today!