(Disclosure: Rose Law Group represents Lennar.)
By Sarah Zimmerman | Construction Dive
Dive Brief:
- Lennar Co-CEO Jon Jaffe said Monday the entire homebuilding industry is facing labor constraints and shortages — particularly of “engineered wood, windows, garage doors, paint and vinyl siding” — that were limiting the company’s ability to keep up with real estate demand.
- “They [shortages] are intermittent, and they are not over yet,” Jaffe said on an earnings call. “In many ways, it’s truly a game of whack-a-mole, creating a traffic jam. Like cars, the construction process is backed up, creating a chain reaction of delays that cascades from one trade to the next.”
- Lennar, which is the nation’s second-largest homebuilder, has increased lead times by as much as 7 times in some cases to give manufacturers additional flexibility, said Jaffe. Still, it expects constraints will continue “into the fourth quarter and beyond,” especially as builders face a growing backlog of orders.
