The Island construction industry has fallen off sharply in recent months, most indicators show, with a growing number of carpenters and tradesmen out of work.
Although contractors are reluctant to speak publicly about the problem, by most accounts the construction trades on the Island, which form a key segment of the Vineyard economy, are seeing the immediate effects of a deepening national recession.
Lumberyards report business is down and there are many reports of carpenters who are looking for work — with no success.
During the height of the construction boom four years ago, most Island contractors and carpenters simply went from one job to another, never having to worry about finding work or bidding on projects.
Now that has all changed and some builders say new construction has dropped to its lowest rate in 20 years.
“Considering what is happening with the economy, I’m almost surprised things aren’t worse here on the Vineyard,” said one West Tisbury contractor who did not want to be named. “If someone has to decide whether to put an addition on their second home on the Vineyard or pay their gas bill, it’s pretty clear how they will choose.”
Statistics show a downward trend.
Edgartown building inspector Leonard Jason Jr. said the number of permits pulled for single family homes and commercial properties has dropped by more then half since last year. Oak Bluffs zoning administrator Adam Wilson said his office has seen only a few applications for new building permits.
Mike Hebert, manager of the West Tisbury branch of E.C. Cottle’s lumberyard, confirmed that the demand for lumber has dropped sharply in recent months. “It used to take us a few days to fill an order. Now we can fill almost all our orders that same day. The drop [in sales] has been dramatic,” he said.
The news is not all bad — Bradford Egan, executive vice president at Martha’s Vineyard Savings Bank, said borrowing for new construction and the number of new mortgages are holding steady. But he said that can be misleading.
“Anecdotally, I hear things are slowing down. But surprisingly we are still seeing a fair number of applications. But that might be because of a lag time between when new construction starts [and change in the economy]. We anticipate there could be a slow-down this winter,” he said.
Mr. Egan noted a downturn in speculative construction. One general contractor said last week he has taken smaller jobs just to pay the bills. He said he planned to stop advertising in Island newspapers and cancelled his regular phone line, choosing to use only a cell phone.
“Everyone having work done is putting the job out to bid, and there are plenty of people to bid on those jobs,” the contractor said. “We’re all fighting for the few jobs left.”
The two Island newspapers are carrying scant help wanted ads for carpenters or tradesmen these days. One longtime contractor said he responded to an advertisement in one of the papers a month ago seeking a carpenter. He said the person who answered the phone reported no shortage of interested respondents.
“The guy practically hung up on me. He said he was getting 10 calls a day,” the contractor said.
Roger Wey, an Oak Bluffs selectman and former contractor, said he routinely talks to tradesman struggling to find work. “Look around the Island — there’s almost no new construction going on. It’s not like it was five years ago. Most people are just holding on and hoping things get better . . . but hoping doesn’t pay the bills,” he said.
Kristen Reimann, an Island landscape architect, said the lack of new building has a trickle-down effect on related trades. She confirmed a wait-and-see approach by many potential clients.
“People I talk to [in the industry] say their clients aren’t cancelling any projects outright, they are just putting them on hold for a while. . . we’re all sort of waiting to see what happens,” she said.
One well-established contractor said he has not been able to find work since early July.
“Traditionally the Island has been a place where deals get done with handshakes. But now a lot of those handshake deals are falling apart,” the contractor said. “Even people who can afford a new home or do work on their homes are scared to spend their money. They watch the news and see things getting worse and worse every day.”
The same contractor said the construction industry has been growing more competitive for many years — largely because so many people wanted to get in when business was good. “Bottom line — there’s less work now and ten times as many [builders] . . . something had to give,” he said.
A comprehensive economic study recently conducted by economist John R. Ryan for the Martha’s Vineyard Commission found that while construction accounts for about five per cent of total wages in Massachusetts, it accounts for 13 per cent on the Vineyard.
Through the first week of October, a total of 96 permits for construction of all types — new houses, additions, sheds — were issued on the Island, with a total estimated cost of $13.5 million.
In the same period last year, 119 permits were issued, worth $22 million.
The Ryan report suggests that new construction on the Vineyard may continue to decline, not because of national economic trends or a lack of confidence in speculative building, but because the Island’s year-round population growth has slowed dramatically.
And there has been a shift toward fewer young people and more elderly people living here, who are less likely to build new homes.
By 2020, more than 22 per cent of residents will be 65 or older, and will be the fastest-growing demographic group, the report found. The largest growth in personal expenditures over the next 20 years, the report says, will be for health care and the associated costs of aging.
Meanwhile, around the Island there are signs that the once-thriving construction industry is struggling.
In Oak Bluffs, a 26-home equestrian-themed subdivision planned by developer Corey Kupersmith remains unbuilt with no interested buyers. In Edgartown planned renovations for the Harbor View Hotel have been postponed until next fall.
“It’s scary,” said one Edgartown-based general contractor. “One guy called me last week looking for work. I told him I didn’t have anything. But even if I knew about something, I don’t know if I would have told him. I might need that job.”
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