How the Utah housing crisis is impacting engineers

The Utah housing market continues to have recording-breaking houses prices with a record-shattering 27% increase in 2021, according to KSL. Those prices are even higher to start 2022 with a predicted 10-12% increase and interest rates at around 5%.

Not only has the current state of the housing market been difficult to navigate, but it also has impacted several industries that keep the Beehive State moving, including the engineering industry. It’s important that our members stay on top of the latest industry news and understand how economic changes influence their current and future career paths.

Supply chain shortages

Supply chain shortages have plagued our country since the onset of the COVID-19 pandemic, according to this article from Duke University. The first is the pandemic precaution creating a shortage of workers, manufacturing and logistics problems, and distortions in demand for products. Plus, we’re feeling the crippling effects of inflation since supply disruptions lead to direct price increases.

Supply chain shortages are not predicted to leave us in 2022 as the nation is still on the path toward economic recovery. It’s still difficult to get supplies for building homes in a reasonable amount of time, which is bad news for a state that’s growing and building more homes than ever. However, it’s likely that will see progress in stabilization as time goes on.

Stolen supplies

Unfortunately, there have been several reports in Utah of construction supplies stolen by unidentified individuals straight off of lots.

In one report from ABC4, a local construction company B. Hansen Construction reported $500,000 worth of equipment being stolen. The equipment ranged from trucks, saws and generators. In another report from St George Utah, it was reported that nearly $400,000 worth of equipment was stolen from six construction sites across St. George and Washington City.

If you are an engineer working on a construction site or are planning to in the near future, be sure to keep an eye out and warn your team of the threat of theft.

Staff shortages

Although many companies are doing the best they can to fill seats again and bring employees back from furlough, the industry is still feeling the impacts of staff shortages.

The skills shortage due to the COVD-19 pandemic has found that the manufacturing and engineering industry is hit the hardest with 85% of companies impacted. As a result of this shortage, 40% of managers have reported working longer hours and looking over a disengaged workforce.

For more information about ACEC Utah and our membership opportunities, visit our website.