What an Amazing Industry
What an amazing industry we are a part of! Not only is the housing industry a main component of our nation’s economy but we get to help build people’s homes & dreams! The places they raise a family. Including, the places they raise a family and the shelter that protects them and all that they own. We help create most individuals’ largest asset and the pride that people show in their homes starts with those like us who play some role in the construction process. We take great pride in knowing our team is a small part of this dream, for most Americans, and we are working hard every day to make it better.
Housing Demand
Statistically, the United States needs 1.5 million new homes built each year to maintain the yearly new housing demand. This need for new housing does not touch the backlog the United States currently estimates 5.5 million homes are needed to fulfill the current housing shortage. Some statistics say the shortage is in the low to mid 3 million unit range but either way, we can all agree there is a sizable housing shortage.
In 2021 economic data shows that the industry built just over 1.6 million total units surpassing the yearly new demand thus slightly cutting into the nationwide backlog for the first time since 2006. At this pace, there will still be a deficit for many years to come whether the shortage is 3 or 5 million homes. Many discussions are around what is the right number of homes beyond the yearly 1.5 million needed that we should target to build. We feel that the sweet spot is around 1.75 to 2 million homes per year. At this rate, we will keep up with the added yearly demand and also begin to cut into the deficit at a substantial but moderate rate. We also have to take into account population growth, which will increase the new yearly demand beyond 1.5 million starts every year going forward. The number of starts beyond the yearly demand is a delicate balancing act for our industry even when we do not have supply chain and labor issues. The fact is there are only so many homes that can be built each year as our industry constructs homes today. Some factors such as supply and labor availability drastically affect how our industry can perform. As an industry, we have to find better & more efficient ways to build. We have to develop and train labor. As well as incorporate technologies to advance the building process. We have to look at better structural designs and simplify the products we build.
Expansion to Meet Demand
At ICG we are looking to the future and attempting to aid in this delicate balance by expanding our facility in Green Cove Springs FL. By adding over 100 new employees in the last year. By developing and investing in training platforms so that when we find talented & passionate people they are well trained and confident in the role they are in. By expanding our footprint and adding new plants as we have recently done in Florence, SC where we began running trusses just in the last two weeks after waiting many months for the electrical equipment needed to fully power the plant. By using technologies not used by many in the U.S. currently. By fabricating floor systems that can cut field build time to less than an hour for a 2,000 sq foot floor system. By installing other components such as windows in the plant. All of these steps forward and innovation are in an effort to increase capacity and build a more consistent, quality home at a faster pace in the field while attempting to control cost volatility as best we can.
We also believe that our people are the most important asset to our company. We believe if our employees come first, enjoy where they work, and take pride in a day’s work they will in turn make the customer experience for our clients a priority. We are looking for new team members every day so if you know of someone who is looking and wants to join a team at the forefront of the construction industry please send them our way.
2022 is going to be an exciting year for ICG and we greatly appreciate all of our employees and clients. We simply want to once again say thank you for your role in working with us to build the American Dream!
Chris Pisano
Director of Business Development
