4 ms·
The article says that companies are avoiding capital-intensive building techniques to avoid getting burned in a recession. Labor costs are faster to reduce.
by beckingz 5y ago
The article says that companies are avoiding capital-intensive building techniques to avoid getting burned in a recession. Labor costs are faster to reduce.
- tonyedgecombe 5y agoInterestingly we are shifting toward pre-fabricated houses in the the UK: https://www.theguardian.com/business/2017/dec/31/uk-housebuilders-factories-prefabricating-homes https://www.theguardian.com/business/2017/dec/31/uk-housebui... This is largely because of staff shortages.
- beerandt 5y agoAnd since Dodd Frank, financing is much harder to come by. Most residential contractors who used to be able to build the same spec houses a few dozen times each, are now in a position where they largely survive off of client financing, which means even spec house plans become client dictated custom homes. It's much easier to build a dozen of something when you don't have to deal with 12 different clients/owners.
- viburnum 5y agoThis is a good example of how fiscal and monetary policy that allow slumps to persist have impeded investments in new technology.