Kitchen & Bath Business - January 2019 - 25

Associations, teachers and parents all need to
come together to recruit the next generation. A
college degree isn't always a viable option for every
student, and high schools should offer programs
that channel them into other directions. A positive
is that the wages for skilled tradespeople are rising,
and there is no shortage of jobs for those wanting
to enter the workforce right out of high school.
RANDY FISER

Hon. FASID & CEO of the
American Society of Interior
Designers (ASID)

MANUEL GUTIERREZ

Consulting Economist for
the NKBA

"The labor shortage is across the
board - it is the number-one
challenge in our industry. We
are not an entity that can solve
this on our own, everyone
needs to do their part."
Bill Darcy

INDUSTRY SOLUTIONS

DAVID PEKEL

National President
and Interim CEO of the
National Association of the
Remodeling Industry (NARI)

The Home Builders Institute (HBI) offers its program participants, which include at-risk youth,
veterans, transitioning military members, high
school students, justice-involved youth and adults
and displaced workers, career training in the form
of certification programs, pre-apprenticeships and
job-placement services in the building industry.
"A big part of our solution is connecting people
with opportunities,"said Ed Brady, president and
CEO of HBI."There has been a miscommunication over the last 10-20 years to our young people
and their parents. The right message is that fouryear degrees are not for everyone. Getting a skill
in the construction industry can lead to a good life
to provide for a family and a career. Schools need
to promote alternatives to a four-year college. We
need to re-educate the population."
Builders are also going to job fairs in search of
employees and to promote the industry as part
of the NAHB's National Housing Endowment,
a non-profit organization that aims to help the
housing industry develop and enhance education and training for future generations. Apprenticeships are on the rise in several organizations,

and online tools such as careersbuildingcommunities.org help point people in the right career
path direction.
The NKBA is in charge of the Skilled Labor
Fund, an initiative it formed with NARI and the
NAHB. Some of the initiatives include bringing high school students to the Kitchen & Bath
Industry Show and hosting pilot programs with
local high schools to connect them with NKBA
chapters to foster more industry awareness.
"The labor shortage doesn't just affect those
who turn the wrench, it also affects designers and
support services like estimating and project management," said Pekel. "We need to approach this
as an industry and focus on our messaging and
marketing to future candidates and those people
who influence them."
PLACING TARIFFS &
INCREASED MATERIAL COSTS

The industry seems to be at an impasse as to
whether the tariff increases are a pro or a con.The
disadvantage is obviously having to pay more taxes
for materials, the cost of which the industry may
have to eventually pass on to clients. According to
Darcy, those larger businesses that have the ability
to adapt are not worried in the short term, but the
medium and smaller companies are not nimble
enough not to be affected.
"The immediate result of the tariffs that the
U.S. has imposed on goods imported from China
has been to raise their prices,"said Gutierrez."The
suppliers, i.e., importers will probably absorb some
of the price increase and pass on part to the consumers or buyers. As those price increases are
passed through to the cost of homes, consumers
may opt for a reduction in house size or elimination of some house amenities."
According to Darcy, some of the tariffs will have
a huge impact on our industry, but there are still
a lot of unknowns. He says projects that are close
to completion will not be affected because the
materials have already been purchased; it's those
moving forward that will feel it most.
"The slippery slope is what happens with pricing between when the job is sold and the job can
begin," said Pekel. "Our members were not planning on tariffs and pricing those into their jobs,
and there is only so much they can assume before
it has a negative effect on their bottom line."
According to Dietz, it is critical for the industry
to manage the cost of building materials to be affordable for the consumer; setting higher tariffs
moves us in the opposite direction.

Kitchen & Bath Business - January 2019

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