Although industrial construction seems to have grown rapidly throughout the pandemic (referencing public and government data), the local “small”, privately owned construction seemed to be on a historic “low availability” level. Couple this with seasonal “swings” and we face a huge shortage in the construction market at the beginning of 2023 when most companies and private investors dedicate time to plan their year out while waiting to see further market shifts. The uncertainty in the Real Estate market is making industry experts unaligned in predictions and nobody really knows what a short-term sentiment is.
Diving deeper into the local, Memphis, TN market, specifically in the Residential renovations business, we are noticing severe shortages of qualified Special Trades, such as Electricians, Plumbers, HVAC Techs, Concrete providers, and Remediation companies while the availability of other trades such as Tree Removal companies, Roofers, Granite and Landscaping seems to be plentiful. Memphis market, specifically in the private sector seems to be very strong and follows national statistics with 78% of total industry spending being in this sector. Few of the main reasons why we see availability shortages are in the obvious metrics, such as substantial price increases in building material, gas, and specialized equipment, such as HVAC, appliances, etc. Let’s not forget about workforce shortages which are diminishing with the lack of trade skills in younger generations, as the previous generation is slowly but surely aging into retirement.
Efecto Group, LLC is a young but experienced general contracting company specializing in Project Management, Full Home Renovations, Insurance Remediations, and many Specialized Services. We are dealing with skilled labor shortages ourselves, but we are always striving to be ahead of the demand and have the capacity to take on more projects. Our management team makes sure to provide a Client with professional on-site inspections, detailed Estimates, Scheduling through the best Software in the US market, easy payment options, and excellent communication. Couple all of this with our offerings from sister companies such as RentalCity Property Management, serving Landlords and Residents in the wide West TN area (Memphis, TN. Dyersburg, TN, and Jackson, TN), Paradigm21 Realty serving Home Buyers and Sellers in the same area, and P21 Marketing, a marketing agency headquartered in Memphis, TN but serving clients throughout the nation and beyond.
Emerging trends are indicating that over 45% of licensed construction companies are turning down projects (or overbidding) because of skill labor shortages. 19% was the projected cost increase on home improvement projects In 2021 alone, with trends indicating that number to be significantly higher in 2022, although official data is not yet in. If you’re a homeowner looking for a reliable partner in home improvement and renovation services in Memphis, TN, we at Efecto Group will be glad to talk to you about your needs. Our Business Development Manager Rick Lackey can be reached directly at Rick@EfectoGroup.com or 901-292-5080, or feel free to contact the company directly at Support@EfectoGroup.com or 901-676-7096.
Building A Future, one project at a time.
Tomo Oblak
CVO of Efecto Group, LLC
Office: 901-676-7096
Email: Support@EfectoGroup.com
