Posted on: Sunday, March 28, 2004

Skilled labor shortage hampers remodeling

By Deborah Adamson
Advertiser Staff Writer

Rick Hendrix is a patient man. But the travails of waiting for a contractor to finish expanding his Punchbowl home sorely tries his sense of bonhomie.

"It's been a little over a year now and it's still not done. We're not too happy about it," said the 50-year-old Maui transplant. The remodeling is proving so stressful, he said, it has driven his wife to tears.

Hendrix and his wife hired a contractor last year to extend their house by 600 square feet for his Alzheimer's-stricken mother. But because of a plumbing mess-up, the new rooms have not had a working bathroom since December. Hendrix had to move his mother to an elder-care home.

Getting a construction company to finish a job to a homeowner's satisfaction can be filled with frustration, with many delays caused by problems that neither the contractor nor homeowner can prevent. But the wait has lengthened in recent months as the demand for construction work in Hawai'i intensifies and the dearth of skilled workers grows after an industry slump in the 1990s.

Five years ago, contractors could start immediately if the homeowner could pay, said Peter Melnyk, chairman of the Building Industry Association of Hawaii's remodeling council. Given the current backlog, getting a contractor can take at least two months, he said.

"We're swamped. I'm booked for months," said Mark Gavin, owner of custom cabinetmaker Gavin Woodworking in Kailua. "If it's a small job, I can squeeze them in. If they are big jobs, (homeowners) have to wait in line."

Increasingly, contractors can afford to say no to some jobs. Ringo Pauly, owner of Essential Cabinet Refacing in Honolulu, said that with so much work, "it's easier for us to pick and choose."

The situation likely will worsen as major federal construction projects get under way, said Michael Faye, owner of general contractor Kikiaola Construction in Waimea, Kaua'i.

More than $3 billion worth of military housing renewal projects for 16,000 homes are expected to start this year. Add to that $693 million in construction to support an Army Stryker brigade on O'ahu and the Big Island and more than $150 million earmarked for eight C-17 cargo carriers at Hickam Air Force Base.

"If you think it's bad now, wait until the military contracts come," Faye said. "It's going to be a wild ride over the next four to five years."

Then there's the boom in new-home construction occurring throughout Hawai'i, as developers attempt to satisfy a growing housing demand driven by an improving economy and attractive interest rates.

The stepped-up activity means more competition among homeowners who are tired of looking at the peeling lime-green wallpaper in their bathrooms or hoping to expand their living space.

In Hawai'i, the value of additions and alterations hit nearly $509 million in 2003, up 36 percent from 2001, according to the state Department of Business, Economic Development and Tourism.

Much of the work is seen in older communities on the Windward side and East O'ahu, according to BIA remodeling chairman Melnyk. But the need is widespread: More than 65 percent of Hawai'i housing units are at least 25 years old.

"Remodeling is on an upsurge," Melnyk said. "Compared to five years ago, there's probably been a 50 (percent) to 100 percent increase in demand."

One measure of the growing interest is attendance at the trade group's annual homebuilding and remodeling show, which attracted a record audience of more than 21,000 last month.

"People have money," said Audrey Hidano of Hidano Construction in Kalihi. "Interest rates are so low."

Douglas Fortner, principal broker at Century 21 Liberty Homes in Mililani, has an advantage over other homeowners. He would like to build a 1,500-square-foot, flagstone pool deck at his house by summer. Because he works with a number of contractors as part of his job, Fortner won't have a problem getting help.

"I have people I use all the time," he said.

The Hendrix family is less fortunate. Their contractor promised to correct the plumbing problem so Rick Hendrix's mother could move in, but during the past three weeks, the family has seen only three days' work done on it.

So why isn't the contractor working faster? "He just says he has other jobs," Hendrix said.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.