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L 2 .3 m o^4 ► Dayton & Montgomery Co. Public Library J U L 2 7 1964 document collection J labor and materi requirements for private one-family hou construction Bulletin No. 1404 UNITED STATES DEPARTMENT OF LABOR W. Willard Wirtz, Secretary BUREAU OF LABOR STA TISTIC S Ewan Clague, Commissioner labor and material requirements U N I T E D S T A T E S D E P A R T M E N T OF LABOR W . W illa r d W i r t z , Secretary BUREAU OF LABOR STA TISTIC S Ewan Clague, Commissioner http://fraser.stlouisfed.org/ For sale by the Superintendent Federal Reserve Bank of St. Louis o f Documents, U .S . Government Printing Office, W ashington, D.C., 2 0 4 0 2 - Price 3 0 cents Preface This study of total labor and material requirements for the construc tion of private, nonfarm, one-family houses is one of a series of such studies for various types of construction that might be affected by governmental action. Previous studies have been made of labor requirements for schools, highways, Federal office buildings, hospitals, civil works activities of the Army Corps of Engineers, and public housing. Currently in various stages of preparation are studies of college student housing and sewage disposal works. The studies are being conducted in the Bureau's Division of Produc tivity Measurement under the general direction of Leon Greenberg, Assistant Commissioner for Productivity and Technological Developments. This bul letin was prepared by Herman J. Rothberg, who also directed the collection and tabulation of the statistical data, under the supervision of James F. Walker. The Bureau is indebted to the Federal Housing Administration, a con stituent of the Housing and Home Finance Agency, and its personnel in the various regional offices throughout the United States, for the generous coop eration and invaluable assistance given the Bureau's field representatives in the selection of specific sample projects and the furnishing of some of the basic data. The Bureau also appreciates the cooperation of the many builders and construction contractors who supplied the on-site man-hour and wage rate data and the materials information on which the estimates for indirect re quirements are based. 111 CONTENTS Page Introduction............................................................................................................... Nature of s t u d y .................................................................................................. General survey findings andc h a r a c t e r is t ic s .............................................. Characteristics of thehouses surveyed...................................................... Structural features............................................................................................. Costs: Total and square f o o t ....................................................................... On-site man-hour requirem ents....................................................................... Regional group c o m p a r is o n s ....................................................................... Requirements by occupation........................................................................... Builder or general and special trade contractors’ s h a r e .................. Construction t i m e .................................................................. The cost of direct w a g e s ................................... . ....................................... Off-site em ploym ent............................................................................................. Builders' off-site employment....................................................................... Employment in transportation, trade, and service............................... "L ast manufacturing stage" em p loym en t................................................. Employment in secondary a c t iv it ie s .......................................................... Materials u s e d ...................................................................................................... 1 2 4 6 10 11 13 13 18 20 22 22 25 26 27 27 27 28 Appendix A. Scope and method of survey..................................................... Characteristics of the universe and selection of the sample . . . . Man-hour e s t im a t e s ......................................................................................... On-site m an-hours............................................................................................. Off-site m a n - h o u r s ......................................................................................... Primary distribution industries e m p lo y m e n t........................................ Primary manufacturing em ploym ent.......................................................... Secondary employment in all i n d u s t r i e s ................................................. Total man-hour requirem ents....................................................................... 33 33 34 35 35 35 36 36 36 Tables: 1. 2. 3. 4. Number and construction price of surveyed private one-family houses, by selected characteristics and region, 1962 . . . On-site man-hour requirements per $ 1,000 of construction price for surveyed private one-family houses, by selected characteristics and region, 1962 ..................................................... On-site man-hour requirements per $ 1,000 of construction price of surveyed private one-family houses, by proportion of lower skilled labor'employed and region, 1962 Distribution of surveyed private one-family houses, by number of on-site man-hours required for each $ 1,000 of construction price, by region, 1962 v 8 14 17 17 CONTENTS - - C ontinued Tables - - Continued: 5. 6. 7. 8. 9. 10. Page On-site man-hour requirements per $ 1,000 of construction price for surveyed private one-family houses, by occu pation and region, 1962 ...................................................................... Percent of total on-site man-hour requirements for surveyed private one-family houses, by type of contractor and region, 1962 Average number of contractors per private one-family house, by cost group and region, 1962 ...................................................... Average number of weeks required for construction of surveyed private one-family houses, by cost group and region, 1962 Average on-site straight-time hourly earnings and wages as a percent of construction price on surveyed private one-family houses, by region and metropolitan or nonmetropolitan location, 1962 ................................................. Cost of material components for each $ 1,000 of construction price of surveyed private one-family houses, by region, 1 9 6 2 ...................................................................................................................... 19 21 23 23 29 Charts: 1. 2. Distribution of man-hours for each $ 1,000 of one-family house construction price, 1962 Percent distribution of on-site wages, materials, and other costs, used for each $ 1,000 of one-family house construc tion price, 1962 ..................................................................................... vi 5 7 LABOR AND MATERIAL REQUIREMENTS FOR PRIVATE ONE-FAMILY HOUSE CONSTRUCTION Introduction New construction is a major component of the Nation*s output of goods and services and an important source of employment. Jobs are created not only at construction sites but also in the many manufacturing, trade, and transportation industries which make, sell, and deliver materials required in construction processes. Because of its far-reaching impact, a vigorous construction industry is regarded as a significant stimulus to employment and sometimes as an aid in countering cyclical unemployment. To measure the labor requirements of various types of construction, the Bureau of Labor Statistics has undertaken a series of studies. This study of the labor requirements for private, nonfarm, new, one-family house construction is the first in the series in which the construction is financed entirely with private funds; in the preceding studies, all or part of the construction was either financed directly with Federal funds or federally assisted through loans or grants. However, the Federal Government has played an important role in fostering private home construction. The significance of private, new, one-family house construction is evident from the following: Annual expenditures for the construction of such houses exceed those of any other type of construction; homebuilding activity exerts an important influence on many other kinds of construction, partic ularly as suburban areas mushroom and create the need for schools, hos pitals, and other public and private facilities; new home purchases engender considerable activity in the industries manufacturing and selling home fur nishings and appliances; the need for housing is a continuing one and is ex pected to become greater in the last few years of the 1960*s and through the 1970fs as the young adults of the World War II ’’baby crop" create an in creased demand for new housing. In 1962, expenditures for the construction of private, nonfarm, new, one-family houses amounted to approximately $14 billion, and accounted for about 75 percent of all private nonfarm new housing construction and 23 per cent of all construction.1 About two-thirds of the 1.43 million private, non farm, new dwelling units started for the year were one-family dwelling units. Although these one-family houses are financed entirely with private funds, the Federal Government, through some of its programs, has had a profound effect upon the homebuilding industry since the passage of the first 1U.S. Department of Commerce, Construction Review, June 1963. z National Housing Act (1934). This act provided for government home loan insurance and established the Federal Housing Administration (FHA) to administer the program. It was enacted to awaken a depressed industry, to provide construction workers with jobs, to enable more people to become homeowners, and to stimulate the economy generally. Subsequent amendments and other legislation resulted in the exten sion of the home mortgage insurance principle to veterans housing under the Veterans Administration (VA). FHA insured mortgage loans and VA guar anteed mortgage loans were involved in the private financing of approximately 25 percent of the private nonfarm new one-family houses started in 1962. While neither agency makes loans or builds houses, they have had a signifi cant impact on home purchases and, therefore, on homebuilding. In order to make home buying easier as economic conditions have varied, the FHA has liberalized downpayment requirements, raised maximum insurable mortgage amounts, and extended mortgagfe maturities. Nature of Study This report is based on a survey of selected private, new, one-family houses constructed in various localities of the United States, exclusive of Alaska and Hawaii. Data were collected for 101 houses chosen as a repre sentative sample of new one-family houses constructed between the latter part of 1961 and the first quarter of 1963. Most of the construction, how ever, occurred during 1962. The effective sample is actually larger than indicated, as some of the reports for individual houses represented the average man-hours and expenditures for many similar homes within a large housing development. The sample, stratified by price, broad geographical area, and degree of urbanization, is considered adequate for measuring labor requirements and other information, on the average, which was the objective of this survey. However, the sampling error is larger for specific types of houses, methods of construction, or material requirements, particu larly subgroups of materials components. Selection of the specific sample houses studied was made through the use of the facilities of FHA regional offices. As a result, the sample houses, with few exceptions, were either FHA appraised or mortgage insured. Rea sons for the use of FHA sources are indicated in appendix A. 2 The survey was designed primarily to determine the number of man hours utilized for each $1 ,000 of one-family house construction. For this study, the $1 ,0 0 0 or other dollar volume figures refer to "construction pricen- - i . e . , the construction cost to the purchaser. This was determined 2For a more detailed description of method and for a list of States included in each region, see appendix A. 3 to be the FHA estimated replacement cost of the property or the actual (or asking) sales price, whichever was lower, less the FHA estimated market price or value of the improved lot on which the house was built. Man-hours as defined by the survey, include both on-site construc tion employment and the off-site employment required to produce and deliver materials used in the construction and to sell the house. Data for on-site labor include total man-hours for the supervisory, engineering, clerical, and custodial employees at the site, as well as those for workers in each construction trade. Data for off-site labor include employment in the off site (e.g. , office and warehousing) activities of builders and construction contractors; in the activities resulting from expenditures for builders' or contractors' overhead for such items as real estate commissions and other sales expense, rent, bonds, insurance and financing, utilities and business services, legal and professional services, repair services, and office sup plies; in building materials and equipment manufacture and distribution (including household appliances and furnishings covered by the construction price); and, finally, employment in all the other industries which are affected directly or indirectly by the production and distribution of home building m a terials from raw material to the final manufacturing stage.3 Certain types of employment are not covered by the survey. Excluded from the man-hour requirements estimates is the labor time involved in in spection by government employees during construction, in the installations by public utility employees, as well as any site preparation, landscaping, and street work not covered by the construction price as defined. Also excluded is the labor generated by the money expended by builders or contractors for taxes (including payroll taxes) and welfare payments. These payments are believed to generate relatively little direct employment. Employment created by the respending of wages and profits of the workers and their em ployers-the multiplier effect--w as not considered within the scope of the study. 4 G e n e ra l Su rvey F indings and C h a r a c t e r is t ic s F o r e v e r y $ 1 ,0 0 0 o f co n s tr u ctio n p r ic e co n c e r n e d with the building o f p riv a te o n e -fa m ily h o u se s in 1962, 204 m a n -h o u rs o f em p loy m en t w e r e c r e a te d . O f th e s e , 72 w e r e f o r em p loy m en t at the c o n s tr u ctio n site and 132 w e r e r e q u ir e d fo r v a rio u s o f f - s it e a c t iv it ie s . (See ch a rt 1 .) The la tte r in clu d ed a ll la b o r needed to p ro d u ce and d e liv e r m a te r ia ls and equipm ent u sed by the o n -s ite w o r k e r s ; em p loy m en t by the co n s tr u ctio n b u ild e rs and c o n t r a c t o r s in a d m in istra tiv e , w a re h o u sin g , and oth er o f f - s it e o p e ra tio n s ; and m a n -h o u rs g e n e ra te d by hom e se llin g and the oth er b u ild e r -c o n t r a c t o r o v e rh e a d c o s ts noted p r e v io u s ly . T ota l m a n -h o u rs w e r e a llo ca te d as fo llo w s : M a n -h o u rs p e r $ 1 ,0 0 0 o f c o n s tr u ctio n p r ic e T ota l m a n - h o u r s ................................. C on stru ction : O n - s i t e ...................................................... O ff-s it e ................................................... M anu facturing ............................................ T ra n s p o rta tio n , tra d e , and s e r v ic e s O ther in d u stry em p loy m en t . . . . . . . . Numbe r P ercen t 204 100 72 12 58 49 13 35 6 29 24 6 In 1962, a p p ro x im a te ly $ 1 4 b illio n w as spent f o r the c o n s tr u ctio n o f o n e -fa m ily h o u s e s . On the b a sis o f the a v e ra g e o n -s it e and o f f - s it e h ou rs re q u ir e d p e r $ 1 ,0 0 0 o f c o n s tr u ctio n p r ic e f o r the 101 sam ple h ou ses stu d ied , this w ou ld in d ica te that o n e -fa m ily hou se c o n s tr u ctio n w as re s p o n s ib le f o r about 1 .5 m illio n jo b s that y e a r --a p p r o x im a t e ly 575 thousand o n -s ite and 925 thousand o f f - s i t e . 4 The s u rv e y d is c lo s e d w ide ra n ges o f m a n -h o u r and m a te ria l r e q u ir e m en ts am ong individual house p r o je c t s , r e fle c tin g am ong oth er f a c t o r s , d if fe r e n c e s in co n s tr u ctio n p r ic e and s iz e , g e o g ra p h ica l lo c a tio n , annual b u ild e r s 1 v o lu m e , and lo c a l p r e fe r e n c e s and p r a c t ic e s . T h e re w e re a lso m a rk e d v a ria tio n s in such re la te d m a tte rs as a v e ra g e h o u rly pay ra tes and site w ages as p e rce n ta g e s of co n s tr u ctio n p r i c e . On the a v e r a g e , h o w e v e r , 48 cen ts of 4The annual em p loy m en t estim a te o f c o n s tr u c tio n w o r k e r s is b a se d on 50 tim e s the 1962 a v e ra g e w ork w eek in g e n e ra l and s p e c ia l tra d e s co n tra ct building c o n s tr u ctio n w o rk of 35. 6 and 36. 3 h o u rs a w e e k , r e s p e c t iv e ly , as re p o r te d in the Bureau*s E arn in gs and H ours s e r i e s . F o r oth er than c o n s tru c tio n w o r k e r s , 2 ,0 0 0 h ou rs w e r e c o n s id e r e d a yea r*s e m p loy m en t. Chart 1. Distribution of Man-Hours for Each $1,000 of One-Family House Construction Price, 1962 v P3 On-site Construction t Off-site Construction PRIMARY M AN-HOURS Transportation, Tr ade and Services (inc. Real Estate) I Last Manufacturing Stage > k, \ >■ Oth er Manufacturing ,] All Othei Tr ad e and Services Industries I SECONDARY 13 Transportation, s M AN -HOU RS / 6 the c o n s tr u ctio n d o lla r w as spent f o r the p u rch a se of m a te r ia ls , su p p lie s, and equipm ent and 22 cents fo r w a g es to o n -s ite w o r k e r s . (See ch art 2 .) The d iffe r e n c e betw een the total co n s tr u ctio n p r ic e and the sum o f the m a te r ia ls and w a g e s , i . e . , 30 p e r c e n t, r e p re s e n ts o v e rh e a d c o s ts such as a d m in is tra tiv e o f f- s it e s a la r ie s , ce n tra l o ffic e and y a rd o p e ra tio n e x p e n s e s , sa les e x p e n s e s , in su ra n ce and ta x e s , plus oth er o v e rh e a d and p r o fit . An e stim a te o f the v a rio u s o v e rh e a d c o s ts w as m ade to com pute the o f f - s it e m a n -h o u rs a ttribu table to such c o s t s . T h is study o f la b o r re q u ire m e n ts a ls o p ro v id e d s e v e r a l types o f in f o r m a tion rela tin g to the kinds o f m a te r ia l u se d , the types o f em p loy m en t g e n e ra te d , and the sh are o f total em p loy m en t u sed by the v a rio u s s p e c ia l tra d e s c o n t r a c t o r s . T h ese a re d is c u s s e d in la te r s e ctio n s o f this r e p o r t. C h a r a c t e r is t ic s o f the H ou ses Su rveyed The s iz e and c o s t of the 101 h ou ses su rv e y e d a v e ra g e d as fo llo w s : F lo o r sp a ce (ca lcu la te d a r e a 5) .......................................... C ost p e r squ are f o o t ............................................................... M ark et value (including land6) ............................................. C o n stru ctio n p r i c e ................................................ .................. 1 ,2 4 0 squ are fe e t $11.76 $17,712 $ 14, 585 The siz e and c o s t (m arket value and co n s tru ctio n ) o f individual h o u s e s , o f c o u r s e , v a r ie d c o n s id e r a b ly and r e fle c t re g io n a l and lo c a l a re a p r e fe r e n c e s and needs in d esig n and type of stru ctu ra l m a te r ia ls u se d . (See table 1. ) H o w e v e r, d esp ite the d iffe r e n c e s in c o s t s and hou se plans and m a te r ia ls , th ere w as a " t y p ic a l11 hou se w hich p re d o m in a te d . It w as a d eta ch ed , o n e s to r y hou se with th ree b e d r o o m s and at le a st one and o n e -h a lf b a th ro o m s. It w as w ood f r a m e d ,7 had a d r y -w a ll in t e r io r , w as w a r m -a ir h ea ted, and had a g a ra ge o r c a r p o r t. 5C a lcu la ted a re a is the a re a o f livin g sp a ce s in the m ain building above the b a sem en t o r fou n d a tion s, m e a s u re d at the ou tsid e s u r fa c e s o f e x t e r io r w a lls . G arage s p a c e , fin ish e d sp a ce s in a ttics w hen le s s than 50 p e rce n t of the groun d flo o r a r e a , and a re a s with ce ilin g h eigh ts o f le s s than 5 fe e t a re e x clu d e d . 6M arket value w as eith er the actual o r p r o p o s e d se llin g p r ic e of the house o r the FH A estim a te of re p la ce m e n t c o s t o f the p r o p e r ty , w h ich e v e r w as le s s . C o n s t r u c t e d with a supporting fr a m e w o r k of w ood en stu d s, u su a lly con n ected by an ou ter sheathing o f w ood en b o a r d s , p ly w ood o r oth er m a te r ia l, w h ich s e r v e s as a b ra cin g to the stru ctu re and p r o v id e s a s o lid su rfa ce to w h ich one o r m o r e o f a v a r ie ty o f ou ter fa cin g m a te r ia ls can be attach ed. Chart 2. Percent Distribution of On-Site Wages, Materials, and Other Costs, Used for Each $1,000 of One-Family House Construction Price, 1962 T a b ic 1. N u m b e r a n d C o n s t r u c t io n P r i c e o f S u rv e y e d P r iv a te Num ber C onstruction price p e r-Square foot House Num ber b y S e le c te d C h a r a c t e r is t i c s a n d R e g io n , C onstruction price p er- - Number Square foot House 1962 W est S o u th North C e n tral N ortheast U n it e d S t a t e s C haracteristic O n e - F a m ily H o u s e s , C onstruction price p e r-- Num ber Square fo o t House C onstruction price p e r-Square foo t House Number C onstru ction price p e r-Square foot House A l l h o u s e s ............................................ 101 $ 11.76 $ 1 4,585 18 $ 12. 54 $ 16, 143 24 $ 12. 63 $ 1 5 , 004 34 $ 11.24 $ 13,565 25 $11 .1 2 $ 14,449 In m e t r o p o l i t a n a r e a s .......................... In n o n m e t r o p o l i t a n a r e a s .................. 81 20 $11.61 12.45 $ 14,656 14,296 15 3 $ 12. 51 -- $ 16,511 -- 19 5 $ 12. 29 14. 15 $ 15, 102 1 4,630 26 8 $ 11.08 11.79 $ 13,597 13,461 21 4 $ 10.99 $ 14, 240 C o n s tr u c tio n p r ic e group: $ 18, 000 a n d o v e r ............................. $ 1 5 , 0 0 0 - $ 1 7 , 9 9 9 ............................. $ 1 2 , 0 0 0 - $ 1 4 , 9 9 9 ............................. U n d e r $ 12, 000 .................................... 14 26 32 29 12. 7 6 . 12. 23 11.64 10.54 21,949 16,328 13, 537 10,623 3 7 5 3 12. 94 13. 00 -- 16,407 13,612 -- 4 5 9 6 14. 03 11. 67 11. 30 16,419 13, 514 10,578 4 8 8 14 11. 36 11.53 10.48 15,919 13,557 10,336 3 6 10 6 11.44 11.11 9. 60 16,706 13, 505 10,808 A v e ra g e w age rate paid (on-site): $ 3 . 5 0 a n d o v e r .................................. $ 2 . 5 0 - $ 3 . 4 9 ....................................... U n d e r $ 2. 5 0 .......................................... 39 38 24 11. 50 12.60 10.90 14,765 15,274 13, 200 5 12 1 11.64 12. 86 -- 15, 249 16,689 -- 12 11 1 12.45 13. 20 -- 15,049 15,068 -- 11.88 10.89 14,351 13,136 22 3 10. 99 --- 14,501 12 22 N u m b e r of s q u a r e f e e t : 1 , 4 0 0 a n d o v e r .................................. 1 , 2 0 0 - 1 , 3 9 9 .......................................... 1 , 0 0 0 - 1 , 1 9 9 .......................................... U n d e r 1 , 0 0 0 .......................................... 25 17 37 22 11. 19 11.74 12.47 11.59 18,895 15, 156 13, 554 10,980 5 2 8 3 11.49 20,921 14,353 -- 5 2 9 8 1 1 .92 13. 34 14. 07 12. 0 2 20,348 -15,388 11,178 7 6 12 9 10.53 12.05 11.97 10.41 17,975 15,209 12, 86 2 9, 976 8 7 8 2 11.11 11. 26 10. 56 17, 524 1 4,619 11,731 -- On e s t o r y .................................................... T w o s t o r i e s ............................................... S p l i t l e v e l .................................................... 85 4 12 11.53 -14.08 13, 807 13 2 3 13. 08 --- 1 5,035 18 11.57 13, 290 23 10. 90 -- 14,077 -- 6 15. 55 31 2 1 11. 39 -- 13,464 -19,621 2 b e d r o o m s ................................................. 3 b e d r o o m s .................................................. 4 b e d r o o m s ................................................. 2 82 17 -- 12. 06 10.78 13, 917 18,118 14 4 12. 97 -- 14,984 -- 21 3 1 3. 04 -- 14,617 -- 1 29 4 11.41 -2, 88 2 1 18 6 -11. 31 10. 61 -13, 938 16, 357 1 b a t h r o o m .................................................... 1 - 1 / 2 b a t h r o o m s .................................... 2 b a t h r o o m s ............................................... 2 - 1 / 2 b a t h r o o m s .................................... 34 24 34 9 11.96 12. 77 11.04 11.74 11,992 14,963 15,436 20,160 8 4 1 5 13.12 13, 852 11,655 15,178 --- 12 8 12 2 11.21 12.51 10.77 -- 5 1 18 1 11. 37 11. 10 1 1,599 -15,066 18,769 12. 20 12. 97 --- 11,167 14,062 15, 271 11.15 9 11 3 1 B ase m en t or p artial basem en t . . . No b a s e m e n t ............................................... 47 54 12. 96 10. 75 15,792 13, 534 16 2 12. 87 -- 16,160 -- 17 7 13. 23 11. 28 13, 229 14,238 9 25 12. 81 10.65 15,956 12, 704 5 20 1 2. 73 10. 73 15, 929 1 4,079 18, 944 2 T a b le 1. N u m b e r and C o n s tru c tio n P r ic e of Surve ye d P riv a te Northeast Un it ed S t a t e s C haracteristic Number O n e - F a m ily H o u se s, C onstruction price p er-Square foot H o u se Number by S e le c te d C h a r a c t e r i s t i c s Num ber Square foot House $ 12.66 $ 16,790 1 9 6 2 - - C o n tin u e d W est So u th North C e n tral C onstruction price p e r-- and R e g io n , C onstruction price p e r-- Num ber C onstruction p rice p e r - Square foo t House 13, 370 16 12 6 $ 10.89 11.02 12. 52 $ 13,523 12, 371 16,067 Square fo ot House $ 12. 30 $ 1 5 , 999 12.64 Number Construction p rice p er- Square foot House 21 3 1 $11.18 $ 14,642 14,642 G a r a g e ............................................................ C a r p o r t ......................................................... N either g a r a g e nor c a r p o r t . . . . . . 64 16 21 $ 11.67 11. 35 12.40 $ 15,108 13, 103 14,122 14 4 -- -- 13 1 10 Type of fram in g: Wo o d ......................................................... M a s o n r y 1 ................................................. 87 14 11.88 11.02 14,713 13, 792 17 1 12.48 ““ 15,533 -- 24 -- 12. 63 -- 15,004 -- 25 9 11.41 10.73 13, 935 12, 539 21 4 11. 18 -- E x te r io r w all m a te ria l: M a s o n r y .................................................... W o o d ............................................................ S t u c c o ......................................................... O t h e r 2 ......................................................... 33 17 14 37 11.70 11.98 11.15 11.98 14,777 12, 786 14,940 15,106 2 6 -13. 34 -13,735 7 3 12. 38 17,647 11. 38 13,478 10 11.90 16,465 14 1 3. 35 14,472 20 4 4 6 10.72 13, 7 6 2 4 4 10 7 11.06 10.96 14,593 15,585 In terior w all m a te ria l: D r y w a l l .................................................... P l a s t e r ....................................................... 82 19 11.63 12. 28 14,099 16,682 13 5 11.98 14. 08 15,746 17,172 22 2 1 2. 25 14,133 -- 24 10 11.38 10.93 13,259 14,301 23 2 11.11 -- 14,012 -- T y p e of heating sy ste m : W a r m a i r ................................................. Ho t w a t e r ................................................. E l e c t r i c .................................................... 85 13 3 11.60 12. 74 -- 14,363 16, 702 -- 9 9 -- 12.48 12. 60 — 1 6,447 15,838 -- 21 2 1 12. 68 14,814 13, 350 25 11. 12 14,449 -- 30 2 2 11.02 -- T y p e of f l o o r s : W o o d ............................................................ R e s i l i e n t t i l e .......................................... O t h e r 3 ......................................................... 67 25 9 12. 36 10.55 10.75 15, 244 13, 342 1 3, 131 18 12. 54 16,142 - - 17 6 1 13. 25 11. 23 15,301 14, 924 18 9 7 11.82 10.05 11.10 14,744 11,246 13,514 14 10 1 11.82 10. 53 14,662 14,280 -- -- - - -- - - - - " " -- i n c l u d e s 1 co m b in atio n wood and m a s o n r y f r a m e d house. i n c l u d e s 8 h o u s e s w it h e x t e r i o r w a l l s of a s b e s t o s , 5 w ith a l u m i n u m , a n d 24 wi th a c o m b i n a t i o n o f m a t e r i a l s , i n c l u d e s 7 f l o o r s c o v e r e d w ith t e r r a z z o a n d 2 u n c o v e r e d s l a b f l o o r s . N o t e s : D a t a n o t sh o w n w h e r e l e s s th an 5 p r o j e c t s a r e i n d i c a t e d . D i f f e r e n c e s in a v e r a g e p r i c e s b y t y p e o r c h a r a c t e r i s t i c a r e a l s o in f l u e n c e d by the p r e s e n c e o f o t h e r f a c t o r s d e t e r m i n i n g c o s t ; c o n s e q u e n t l y , the d a t a shown ca n no t be u t i l i z e d to a s s e s s the p r e c i s e in f l u e n c e on a v e r a g e p r i c e p e r s q u a r e fo o t of a g i v e n c h a r a c t e r i s t i c . 10 S tru ctu ra l F e a tu re s E x ce p t fo r v a ria tio n s in the types o f e x t e r io r w a ll m a te r ia ls u sed , th ere w as c o n s id e r a b le u n ifo rm ity in m o s t o f the h ou se plans and c o n s t r u c tion fe a tu re s o f the o n e -fa m ily h o u se s studied, as e v id e n ce d by the nt y p ic a ln hou se d e s c r ib e d a b o v e . With re g a rd to hou se plan and la you t, 84 p e rce n t o f the h o u se s w e r e o n e -s t o r ie d , 12 p e rce n t w e r e s p lit -le v e l type. E ig h ty -tw o p e r c e n t o f the h ou ses had th ree b e d r o o m s and tw o -th ird s had one and o n e -h a lf o r m o r e b a th ro o m s. E ighty p e rce n t had e ith e r a g a ra g e o r c a r p o r t . B a s e m e n tle ss h ou ses c o m p r is e d 53 p e rce n t o f th ose su rv e y e d . T h ey w e r e p red om in an t in the South and W est. Sixty p e rce n t o f the o n e - s t o r y h o u se s w e r e without b a sem en ts and m o st s p lit -le v e l h o m e s had p a r tia l b a se m e n ts. E ig h t y -s ix p e rce n t o f the h ou ses w e r e fra m e d w ith w o o d . The r e m a in d er w e r e m a s o n r y fr a m e d . The fr a m e s w e r e fa c e d w ith a n u m ber o f d iffe re n t e x t e r io r w a ll m a te r ia ls . O n e -th ird o f the h o u se s had m a s o n ry e x t e r io r s w ith about fo u r -fift h s o f th ese using b r ic k (v e n e e r, m a in ly ). A p p ro x im a te ly 24 p e rce n t o f the h ou ses w e r e fa c e d with two o r m o r e types o f e x t e r io r co n s tr u c tio n m a te r ia ls , ea ch o f w h ich c o v e r e d substantial p o r tion s o f the ou tsid e w a ll a r e a s . F o r the m o s t p a r t, th ese in v o lv e d the use o f b r ic k v e n e e r in con ju n ction with w ood (sh in g le s, siding o r p a n e ls ), a s b e s to s sh in g le s, o r s tu c c o . A bout 17 p e r c e n t w e r e c o v e r e d with w ood in v a rio u s f o r m s . S tu cco w as the e x t e r io r w a ll fo r about 14 p e rce n t o f the h ou ses and th ese w e r e con fin ed to the W est and the South. In the W est, the stu cco w as a p p lied to w ir e m e sh on w ood fr a m e s . In the South, sth cc o c o v e r e d c o n c r e te b lo c k fr a m e s . A s b e s to s sh in gles o r alum inum siding c o v e r e d the w a lls of the r e s t o f the h o u s e s . In te rio r w a lls w e r e of d r y -w a ll c o n s tr u ctio n in o v e r fo u r -fift h s o f the h o u s e s . The b a la n ce w e re o f p la s te r . W a r m -a ir heating sy ste m s w e re u sed in about 84 p e rce n t o f the h o u s e s . W ood f lo o r s on jo is t s w e r e p re se n t in a ll o f the h o u se s w ith b a s e m ents and about 16 p e rce n t of th ose without b a s e m e n ts . The rem a in in g h ou ses without b a se m e n ts, about 40 p e rce n t o f the h o u se s studied, had c o n c r e t e slab flo o r s w h ich w e r e c o v e r e d m a in ly with r e s ilie n t tile (asphalt o r vin yl) o r t e r r a z o . A ll o f the h o u se s had r o o fs with w ood b a se s (p lyw ood , g e n e r a lly ). A bout 80 p e rce n t o f the r o o fs w e r e c o v e r e d with asphalt sh in g le s. A p p ro x im a te ly 11 p e rce n t o f a ll the h o u se s su rv e y e d w e r e su b sta n tia lly fa c t o r y p ro d u ce d " p r e fa b r ic a t e d o r p a c k a g e " h o m e s . A ll but two o f th ese h ou ses w e r e lo ca te d in the N orth C en tra l re g io n . "S h e ll" h o u se s w e r e not in clu d ed in the su rv e y . 11 C osts: T o ta l and Square F o o t H ou ses built in m e tro p o lita n a r e a s --a b o u t 80 p e rce n t o f the h o u se s s t u d ie d --v a r ie d r e la t iv e ly little in total co n s tr u ctio n p r ic e and g en era l d e sign fr o m th ose e r e c t e d in n on m etrop olita n lo c a t io n s . H o w e v e r, b a sem en ts w e r e fe a tu re d to a g re a te r extent in the h o u se s built in the n on m etrop olita n a re a s and th eir square fo o t flo o r a re a w as not in clu d ed in the ca lcu la te d a re a o f the h ou ses studied. A s a re s u lt, the co n s tr u ctio n p r ic e p e r square fo o t w as h igh er in the n on m etrop olita n a re a s than in the m o r e u rb a n ize d a r e a s . On the other hand, h ou ses in m e tro p o lita n a re a s w e re g e n e ra lly la r g e r in siz e in te r m s o f ca lcu la te d a re a , a v e ra g in g 1, 262 square fe e t, as c o m p a r e d with h o u se s in n on m etrop olita n a r e a s , w h ich a v e ra g e d 1, 149 square fe e t. C on sequ en tly, although the h o u se s in m e tro p o lita n a re a s had a lo w e r co n s tru ctio n p r ic e p e r square foot, the a v e ra g e total co n s tr u ctio n p r ic e fo r h ou ses in m e tr o p o lita n a re a s w as slig h tly h igh er than in the le s s populated a reas. The e x c lu s io n o f b a sem en ts fr o m the ca lcu la te d a re a p r o v id e s an explan ation fo r other s e e m in g ly in con g ru ou s p er sq u a re fo o t c o s t data. F o r ex a m p le, in table 1, h o u se s in the study w ithout g a ra g e s o r c a r p o r t s a re shown as having a h igh er a v e ra g e p e r square fo o t c o s t than th ose w ith such fa c ilit ie s . When this house c h a r a c t e r is tic is exa m in ed in re la tio n to the p r e s e n c e or a b se n ce o f b a se m e n ts, the fo llo w in g is r e v e a le d : H ou ses with fu ll o r p a rtia l b a sem en ts G a ra ge .......................................... C a rp o rt ........................................ N eith er c a r p o r t n o r garage . N um ber C o st p e r square fo o t 26 4 17 $ 1 2 .9 3 (i/) 12. 63 H ou ses without b a sem en ts N um ber 38 12 4 C o st p e r square foot $ 1 0 .8 3 10. 28 (I/) in s u ffic ie n t c o v e r a g e W ithout e x ce p tio n , exam in ation o f a stru ctu ra l fea tu re o r c h a r a c t e r is t ic o f the h ou ses in re la tio n to the e x iste n ce o r n o n e x iste n ce o f b a sem en ts in d ica ted that th ose h o u se s with b a sem en ts had a h ig h er p er square fo o t c o s t . T h is r e f le c t s , m a in ly , the in clu sio n o f c o s t s in v e ste d in the co n s tr u ctio n o f a b a sem en t without a com p en sa tin g a llow a n ce fo r its square fo o t a re a . T h u s, w h ile th ere w as u n ifo rm ity in m any stru ctu ra l fe a tu re s o f the h ou ses studied, a n a ly sis o f the square fo o t c o s t data m u st be m ade w ith an 12 a w a re n e s s o f the m any p o s s ib le co m b in a tio n s o f fe a tu re s w h ich m a y a ffe c t this c o s t , in addition to re g io n a l in flu e n ce s. F o r t y -tw o p e rce n t o f the h o u se s studied w e r e built by b u ild e rs with an annual building volu m e o f 100 o r m o r e h o m e s . The nu m ber o f h o u se s studied, the a v e ra g e p er squ are fo o t c o s t and c o n s tr u c tio n p r ic e , by annual b u ild er v o lu m e , w as as fo llo w s : Annual volu m e o f b u ild er 200 and o v e r ............................... 100 to 199 ................................... 50 to 99 ........................................ Under 50 ...................................... N um ber o f h ou ses C o st p e r squ are fo o t C ost p e r hou se 19 23 16 43 $ 1 1 .0 9 11. 28 1 1 .8 3 12. 28 $ 1 3 ,4 8 7 13, 647 1 5 ,3 0 9 15, 302 A s n oted p r e v io u s ly , the e stim a te s o f c o s t (and m an-•hours re q u ire d ) a re r e la te d to the co n s tr u ctio n p r ic e o f the h o u s e - - i . e . , the m a rk e t value le s s the im p r o v e d land o r lo t v a lu e. F o r a ll the h o u se s studied, the a v e ra g e m a rk e t value and im p r o v e d lo t value as a p e r c e n t o f m a rk e t va lu e, by d e g r e e o f u rb a n iza tion , w e r e as fo llo w s : A v e r a g e m a rk e t value A ll h o u s e s .......................................... In m e tr o p o lita n a r e a s ................... In n on m etrop olita n a r e a s ............ $ 1 7 ,7 1 2 17, 923 1 6 ,8 6 0 P e r c e n t lo t value 1 7 .7 1 8 .2 1 5 .2 R ea l estate c o m m is s io n s and oth er sa le s ex p en se in co n n e ctio n with sale o f the h ou ses a v e ra g e d about 3. 5 p e rce n t o f the m a rk e t value and 4 .5 p e rce n t o f the co n s tr u ctio n p r ic e . 13 O n -S ite M a n -H ou r R eq u irem en ts M a n -h o u rs at the co n s tr u ctio n site, obtain ed by d ividin g total m a n h ou rs by tota l co n s tr u ctio n p r ic e , a v e ra g e d 7 2 p er $ 1 ,0 0 0 o f co n s tr u ctio n p r ic e , fo r a ll the h o u se s studied. A lm o s t h a lf o f the individual h ou ses ra n ged fr o m 60 to 80 m a n -h o u r s . H ow ev er, the o v e r a ll range w as m u ch w id e r, r e fle c t in g s p e c ia l c ir c u m s ta n c e s a s s o c ia t e d with the h ou ses w hich tended to d e c r e a s e o r in c r e a s e th eir unit la b o r re q u ir e m e n ts . The su rv e y d is c lo s e d the e x is te n ce o f m a rk e d d if f e r e n ce s in group a v e ra g e s when the data w e r e a n a ly zed by v a rio u s c r it e r ia such as co n s tr u ctio n p r ic e , lo ca tio n , annual b u ild e r s 1 v olu m e, and c o n s t r u c tion c h a r a c t e r is t ic s . (See table 2 .) C o m p a riso n s a re a ffe cte d by d iffe r e n c e s in d esig n , m a te r ia ls and re la tiv e c o s t s , p a r tic u la r ly betw een r e g io n s . O n -s ite m a n -h o u r re q u ire m e n ts p e r $ 1,0 0 0 o f co n s tr u ctio n p r ic e in c r e a s e d as the co n s tr u ctio n p r ic e o f the h ou ses in c r e a s e d . T h is r e f le c t s , in p art, the in clu sio n at each s u c c e s s iv e ly h igh er co n s tr u ctio n p r ic e le v e l, a d d i tion a l, m o r e ex p e n siv e , cu s to m -b u ilt lu xu ry fe a tu re s w h ich the m o r e affluent h om eb u y er s e e k s . G e n e ra lly , the in c lu s io n o f th ese fe a tu re s r e q u ir e s m o r e ex a ctin g cra ftsm a n sh ip , a h igh er d e g re e o f quality c o n tr o l, and, con seq u en tly , m o r e o n -s ite tim e p e r $ 1, 000 o f co n s tr u ctio n p r ic e . H om es built in m e tro p o lita n a re a s re q u ir e d 70 m a n -h o u rs p e r $ 1, 000 o f co n s tr u ctio n p r ic e and th ose in n on m e tro p o lita n a r e a s , 81. The h igh er m a n -h o u rs r e q u ir e d fo r the h o u se s built in the la tte r a r e a appear to r e fle c t s e v e r a l fa c t o r s . T h e se in v o lv e d som e d iffe r e n c e s in stru ctu ra l fe a tu re s and som e re g io n a l in flu e n ce s . S tru ctu ra lly , the p r e s e n c e o f a la r g e r p ro p o r tio n o f h ou ses in the n on m e tro p o lita n a re a s w ith m a s o n r y fa cin g and with b a s e m en ts con trib u te d to the in c r e a s e d re q u ire m e n ts fo r th ese a r e a s . F o r t y -fiv e p e rce n t o f the h o u se s in the le s s u rb a n ize d a re a s w e r e fa c e d w ith m a s o n ry . Only 30 p e r c e n t o f the m e tro p o lita n a re a h o m e s had such e x t e r io r s . A n a ly sis o f the m a n -h o u rs by type o f e x t e r io r w a ll r e v e a le d that h ou ses w ith m a s o n r y ou ter w a lls had the h ig h est m a n -h o u r re q u ire m e n ts p e r $ 1 ,0 0 0 . Sixty p e r cent o f the n on m e tro p o lita n a rea h o u se s had b a se m e n ts w h ile on ly 43 p e rce n t o f th ose in m e tr o p o lita n a re a w e r e built with this fe a tu re . B a sem en ts in v olv e ex ca v a tin g and flo o r and w a ll fin ish in g . G e n e ra lly , fo r m o s t h o u se s su rv e y e d , lo w e r m a n -h o u r re q u ire m e n ts w e r e a s s o c ia t e d w ith g re a te r than a v e ra g e u se o f sk ille d cr a fts m e n . H igher p ro p o r tio n s o f la b o r e r s and h e lp e r s w e re u su a lly r e la te d to h igh er m a n -h o u r re q u ire m e n ts p er $ 1 , 0 0 0 o f c o n s tr u ctio n p r ic e (table 3). R egion a l G rou p C o m p a riso n s O n -s ite m a n -h o u r re q u ire m e n ts p er $ 1, 000 v a r ie d by re g io n . (See table 4 .) C om p a re d with the a v e ra g e fo r all the h o u se s studied, they w e r e T a b le 2. O n -S ite M a n -H ou r R e q u ire m e n ts p er $ 1 ,0 0 0 o f C o n stru ctio n P r ic e fo r S u rv e y e d P r iv a te O n e -F a m ily H ou ses, b y S e le c te d C h a r a c t e r is t ic s and R e g io n , 1962 United States N orth ea st North C en tra l South W est 72. 1 7 3 .5 6 1 .4 9 1 .4 56. 8 In m e t r o p o lit a n a r e a s .......................... In n o n m e tr o p o lita n a r e a s ................... 70. 0 80. 6 74. 5 59. 8 6 8 .0 87. 7 103. 6 55. 2 0/) C o n s t r u c tio n p r i c e g rou p s: $ 18, 000 and o v e r ............................ $ 15, 0 0 0 - $ 17, 999 ............................ $ 12, 0 0 0 - $ 14, 999 ............................ Under $ 1 2 , 0 0 0 ................................... 77. 7 72. 8 7 0 .0 6 8 .4 ( 1 /) 74. 8 7 2 .0 07) 63. 5 55. 6 57. 9 0/) ( 1 /) 8E. 9 106. 8 80. 7 (1 /) 6 0 .0 52. 5 5 4 .0 Annual v o lu m e o f b u ild e r: 200 and o v e r ........................................ 1 0 0-1 9 9 .................................................. 5 0 -9 9 ...................................................... Under 5 0 ............................................... 55. 67. 67. 82. 7 7 6 2 (1 /) 07) 68. 5 73. 9 5 4 .0 5 1 .4 ( 1 /) 75. 5 0/) 5 1 .4 55. 5 5 9 .0 64. 8 C o n s t r u c tio n p r i c e p e r square foot: $ 1 3 . 0 0 and o v e r ............................... $ 12. 0 0 - $ 12. 99 ................................. $ 1 1 . 0 0 - $ 1 1 .9 9 ................................. $ 1 0 . 0 0 - $ 1 0 .9 9 ................................. Under $ 1 0 . 0 0 ...................................... 72. 83. 65. 67. 72. 9 5 7 0 1 74. 5 ( 1 /) 59. 1 68. 1 ( 1 /) A v e r a g e w a g e rate p aid ( o n -s it e ): $ 3 . 5 0 and o v e r ................................. $ 2. 50 - $ 3. 49 ...................................... Under- $ 2 . 5 0 ........................................ 5 5 .9 73. 3 99. 2 C h a r a c t e r is t ic A l l h o u s e s ............................................ See footn ote at end o f table. (1/) 07) 07) (I/) (I/) 5 7 .8 7 7 .4 5 5 .0 68. 2 07) 07) 8 7 .6 0/) 9 3 .9 ( 1 /) 115.7 8 9 .8 76. 6 8 8 .0 o/) 0/) 07) 52. 8 5 1 .9 56. 8 55. 9 7 5 .9 1 0 0 .6 07) T a b le 2. O n -S ite M an -H ou r R e q u ire m e n ts p er $ 1 ,0 0 0 o f C o n stru ctio n P r ic e fo r S u rv eyed P r iv a te O n e -F a m ily H o u se s, by S e le c te d C h a r a c t e r is t ic s and R e g io n , 1 9 6 2 - - C ontinued C h a r a c t e r is t ic United States N orth ea st North C entral South W est N u m b er o f sq u a re feet: 1 ,4 0 0 and o v e r ................................... 1 , 2 0 0 - 1 , 3 9 9 ........................................ 1 , 0 0 0 - 1 , 9 9 9 ........................................ Under 1 ,0 0 0 . . . ................................. 73. 63. 77. 67. 3 6 5 5 79. 5 ( 1 /) 72. 3 ( 1 /) 64. 8 (1 /) 64. 3 5 6 .9 8 9 .7 7 8 .0 106. 1 82. 3 5 9 .9 53. 5 56. 3 One s t o r y .................................................... T w o s t o r i e s ............................................... Split le v e l ................................................. 69. 9 a /) 77. 9 6 9 .9 ( 1 /) (I/) 56. 3 8 9 .4 ( 1 /) 55. 2 2 b e d r o o m s ............................................... 3 b e d r o o m s ............................................... 4 b e d r o o m s ............................................... ( 1 /) 73. 2 66. 9 74. 6 (I/) 62. 8 (1 /) 9 1 .9 (I/) 5 7 .0 5 5 .0 1 b a t h r o o m ............................................... 1 - 1 / 2 b a th r o o m s ................................... 2 b a th r o o m s ............................................ 2-1 / 2 b a th r o o m s ................................... 70. 8 76. 8 67. 1 8 0 .0 7 4 .4 ( 1 /) ( 1 /) 77. 6 6 0 .0 6 0 .4 ( 1 /) (I/) 82. 2 1 1 0 .6 8 4 .4 57. 3 (1 /) 57. 1 B a s e m e n t o r p a rtia l b a sem en t . . . . No b a s e m e n t ............................................ 7 5 .4 68. 7 72. 3 ( 1 /) 62. 8 57. 8 108. 2 83. 8 67. 0 53. 9 G a r a g e ........................................................ C a r p o r t ...................................................... N eith er g a ra ge n or c a r p o r t .............. 66. 8 86. 0 79. 3 74. 1 80. 3 92. 5 114. 6 55. 9 ( 1 /) ( 1 /) 6 0 .7 ( 1 /) 58. 9 T y p e o f fra m in g : W o o d ........................................................ M a s o n r y 2 ............................................... 7 2 .0 72. 6 73. 3 ( 1 /) 6 1 .4 -- 96. 1 76. 9 55. 9 See fo o tn o te s at end of table. ____ 7 1 .9 — — an an an an - - an an an an an T a b le 2. O n -S ite M a n -H ou r R e q u ire m e n ts p er $ 1 ,0 0 0 o f C o n stru ctio n P r ic e fo r S u rv ey ed P r iv a te O n e -F a m ily H o u se s, by S e le c te d C h a r a c t e r is t ic s and R e g io n , 1 9 6 2 --C on tin u ed C h a ra cteristic United State s N orth ea st N orth C entral South W est (I/) 9 6 .7 ( 1 /) ( 1 /) E x t e r i o r w a ll m a t e r ia l: M a s o n r y ............................................... W o o d ...................................................... S tu cc o .................................................... O t h e r 3...................................................... 82. 7 70. 9 5 9 .9 67. 8 73. 1 6 1 .6 88. 6 I n t e r io r w a ll m a t e r i a l : D r y w a l l ............................................. .. . P l a s t e r .................................................. 6 8 .7 84. 3 7 0 .8 8 0 .0 5 9 .6 8 7 .6 9 9 .9 5 7 .5 7 1 .5 74. 6 7 5 .4 7 1 .6 63. 1 ( 1 /) 8 9 .9 56. 8 62. 8 5 9 .4 ( 1 /) 1 0 5 .0 7 1 .4 74. 8 6 1 .4 49. 8 T y p e o f heating s y s t e m : W a r m a ir ............................................. Hot w a te r ............................................. E l e c t r i c .................................................. Type of flo o rs: W o o d ...................................................... R e s ilie n t t ile ...................................... O ther4 .................................................... ( 1 /) 7 1 .9 (I/) do (I/) 76. 5 5 9 .0 70. 6 6 1 .3 7 3 .5 -“ 07) 0/) do 07) 53. 7 5 5 .4 07) 07) i n s u f f i c i e n t c o v e r a g e to w arran t p re se n ta tio n , i n c l u d e s 1 co m b in a tio n w o o d and m a s o n r y f r a m e d h o u se . i n c l u d e s h o u s e s with e x t e r io r w a lls of a s b e s t o s shingles o r alum inum siding and h o u s e s w h e r e a c o m b in a tio n o f m a t e r ia ls w e r e u sed . 4T e r r a z z o and u n c o v e r e d slab. 17 T a b le 3. O n -Site M a n -H ou r R eq u ire m e n ts p er $ 1,000 of C on stru ction P r i c e o f S u rv e y e d P r iv a t e O n e - F a m ily H ou se s , by P r o p o r t io n o f L o w e r Sk illed L a b o r E m p loy ed 1 and R egion , 1962 M a n -h o u rs p er $ 1,000 of c o n s tr u c tio n p r ic e P e r c e n t lo w e r sk ille d w o r k e r s o f total United States N ortheast N orth C entral South W est A ll w o r k e r s . . . . 72. 1 73. 5 6 1 .4 9 1 .4 56. 8 6 4 .0 82. 8 70. 7 76. 0 62. 7 6 1 .4 87. 2 9 2 .4 56. 1 6 1 .7 2 0 .0 and under . . . 20. 1 and o v e r . . . . *For p u r p o s e s o f this c o m p a r is o n , l a b o r e r s , h e lp e r s , and ten d ers w e r e c o n s id e r e d lo w e r sk illed . T a b le 4. D istrib u tion o f S u rv ey ed P r iv a t e O n e - F a m i l y H ou ses, by N um ber of O n -Site M a n -H o u r s R e q u ir e d fo r E ach $ 1,0 0 0 o f C on stru ction P r i c e , by R egion , 1962 P e rce n t of m a n -h ou rs r e q u ir e d United States N orth ea st N orth C entral South W est A v e r a g e m a n - h o u r s fo r all p r o j e c t s ..................... 72. 1 73. 5 6 1 .4 9 1 .4 56. 8 5 .9 1 1 .8 26. 5 14. 7 5 .9 35. 3 60. 0 2 8 .0 12.0 M a n -h o u r range Under 6 0 . 0 .......................... 6 0 . 0 - 6 9 . 9 ............................ 7 0 . 0 - 7 9 . 9 ............................ 8 0 . 0 - 8 9 . 9 ............................ 9 0 . 0 - 9 9 . 9 ............................ 100.0 and o v e r ................. Note: P e r c e n t o f p r o je c t s 32. 7 19. 8 21. 8 9 .9 3 .0 12. 9 16. 22. 38. 11. 5. 5. 7 2 9 1 6 6 54. 20. 12. 12. 2 8 5 5 -- B e ca u s e o f rounding, sums of individual ite m s m a y not add to 100. -- 18 som ew hat h ig h er in the N orth ea st and su b sta n tia lly h igh er in the South; they w e r e c o n s id e r a b ly lo w e r in both the W est and N orth C en tra l r e g io n s . The higher m a n -h o u r s p er $ 1, 000 o f co n s tr u c tio n p r i c e in the South r e f le c t e d so m e of the fo llow in g in flu e n ce s. A lm o s t 60 p e r c e n t o f the h ou ses in that r e g io n had e x t e r io r w a lls of m a s o n r y . The s t u c c o - w a lle d h ou ses in the re g io n , g e n e r a lly lo w e r in m a n -h o u r r e q u ir e m e n ts , had c o n c r e t e b lo c k f r a m e s . M o r e o v e r , there was a m o r e frequent use o f l a b o r e r s and h e lp e r s , contribu tin g to a h igher m a n -h o u r u sa g e. In the N orth ea st, a higher than a v e ra g e c o n s tr u c t io n p r i c e , a g re a te r adm ixtu re o f d ifferen t types o f e x t e r io r w a lls , freq u en tly in co m b in a tion with b r ic k , and the p r e s e n c e of b a sem en ts in c l o s e to 90 p e r c e n t of the h o u s e s , s e e m to have con trib u ted to the higher m a n - h o u r s . In the W est, the re g io n with the lo w e s t m a n -h o u r r e q u ir e m e n ts , 40 p e r c e n t o f the h o u se s w e r e built with s tu cc o e x t e r io r s app lied to w ir e m e s h o v e r w o o d f r a m e s . Eighty p e rce n t o f the h o u se s w e r e without b a s e m e n ts . F o r t y p e r c e n t w e r e built by b u ild e r s with a h om eb u ild in g v olu m e o f 200 o r m o r e h o u se s y e a r ly . T h e s e b u ild e rs r e p r e s e n t e d a lm o s t half o f all the 200o r - m o r e v olu m e h o m e b u ild e r s in the study. In the N orth C entral re g io n , the m o s t im porta n t fa c t o r contribu tin g to its lo w e r m a n -h o u r r e q u ir e m e n ts w as the p r e s e n c e of o v e r 80 p e r c e n t o f the substantially ’ ’p r e f a b r ic a t e d o r p a c k a g e ” h ou ses in the s a m p le . In these h o m e s , a c o n s id e r a b le amount o f the tim e which w ou ld u su a lly have been d e v oted to o n - s i t e a ctiv ity w ou ld o b v io u s ly have been p e r f o r m e d o f f - s i t e . T his r e g io n w as s e co n d to the W est in the nu m ber of h o m e b u ild e r s with an annual volu m e o f 200 o r m o r e h o u s e s - - a l m o s t a th ird o f all such b u ild e rs studied. R e q u ire m e n ts by O ccu p ation W o r k e r s in the sk illed tra d es a cco u n te d fo r 73 p e r c e n t of the total o n - s i t e m a n - h o u r s . S e m is k ille d and u n sk illed w o r k e r s a cco u n te d fo r 24 p e r cent o f the h ou rs and n on prod uction e m p lo y e e s ( s u p e r v i s o r s , e n g in e e r s , c l e r k s ) , 3 p e r c e n t (table 5). Within the sk ille d tr a d e s , the w o r k e r s in four p redom in an t c r a f t s - c a r p e n t e r s , p a in ters, b r ic k la y e r s (and m a s o n s ), and p l u m b e r s - - a c c o u n t e d f o r 75 p e rce n t o f all the sk illed m a n - h o u r s . C a rp en ters w e r e by far the la r g e s t group o f s k ille d w o r k e r s e m p lo y e d at the site. T h e y w e r e r e s p o n sib le fo r 47 p e r c e n t o f the sk illed h ou rs and 35 p e r c e n t o f total o n - s i t e h o u rs, e x c e e d in g the c o m b in e d hou rs of w o r k o f the s e m is k ille d and u n sk illed w o r k e r s . P a in te rs w e r e next in occu p a tion a l im p o r ta n c e with 13 p e r c e n t o f the s k ille d h o u rs; b r i c k l a y e r s and p lu m b e rs follow ed , each w ork in g about the sam e amount o f t i m e - - sligh tly o v e r 7 p e rce n t. Although th ere w e r e v a ria tio n s am ong p r o j e cts in the p r o p o r t io n o f h ou rs w o r k e d by ea ch o f these c r a f t s , as w e ll as the o th e rs , th ere w e r e r e la t iv e ly few e x cep tion s in the o r d e r o f sk illed c ra ft im p o r ta n c e . T a b l e 5. O n - S i t e M a n - H o u r R e q u i r e m e n t s p e r $ 1 , 0 0 0 o f C o n s t r u c t i o n P r i c e f o r S u r v e y e d P r i v a t e O n e - F a m i l y H o u s e s , b y O c c u p a t i o n an d R e g i o n , 1962 United State s O ccupation M an-hours w orked P ercent N ortheast M an-hours worked North Central P ercent M an-hour s worked W e st South Percent M an-hour s worked M an-hours worked Percent 10 0.0 91 .4 100.0 56. 8 1 0 0 .0 P ercent A l l o c c u p a t i o n s ............................ 72. 1 1 0 0 .0 73 .5 100.0 61 .4 Supervisory, p rofession a l, t e c h n i c a l , and c l e r i c a l ............. 2. 1 3.0 1.7 2. 3 1. 3 2. 1 3. 1 3.4 2. 1 3. 8 C a r p e n t e r s ........................................... P a i n t e r s ................................................ B r i c k l a y e r s ......................................... P l u m b e r s .............................................. C e m e n t f i n i s h e r s .............................. E l e c t r i c i a n s ......................................... P l a s t e r e r s ........................................... S h e e t - m e t a l w o r k e r s ....................... R o o f e r s ................................................... O p e r a t i n g e n g i n e e r s ....................... T i l e s e t t e r s ......................................... S o ft f l o o r l a y e r s .............................. A ll other skilled w o r k e r s 1 , . . . . L a b o r e r s .............................................. H e l p e r s an d t e n d e r s ....................... T r u c k d r i v e r s an d w a t c h m e n . . . 24. 9 6. 9 3. 9 3. 8 2. 8 2.0 1.4 1. 3 1.0 1.0 .7 .6 2.4 10. 7 6. 1 . 3 34 .6 9.5 5.5 5. 2 3 .9 2. 8 2.0 1.8 1.4 1.4 1 .0 .8 3. 3 14. 8 8 .5 .5 22. 9 7 .4 4 .5 4 .4 3 .4 2.0 1.4 1. 2 1. 3 1.5 .9 .5 1.5 11 .2 7. 3 . 3 3 1 .2 10. 1 6. 2 6 .0 4 .6 2.7 1.9 1.6 1.8 2. 1 1. 3 .7 2. 1 15. 2 1 0 .0 .4 24. 7 4. 9 3 .4 4. 0 3. 9 2.0 .4 2.0 .7 1. 2 .5 .6 2.4 7 .0 2. 2 . 2 40. 2 8. 0 5.6 6. 5 6. 3 3. 3 .7 3. 2 1. 2 1 .9 .8 1.0 3. 9 11 .3 3. 6 .4 29. 1 8. 6 5 .4 3. 3 2 .4 2. 1 2. 2 .9 .8 .8 .8 .5 Z. 9 17.0 11. 3 . 2 3 1 .8 9.4 6. 0 3. 6 2. 6 2. 3 2.4 1 .0 .8 .8 .9 .5 3. 1 18. 6 12 .4 . 3 21. 3 6, 2 2. 0 3. 6 1. 8 1.9 1.4 1. 3 1.5 .8 .6 .8 2. 3 6. 0 2.4 .6 37 .6 1 1 .0 3. 6 6. 3 3. 2 3.4 2.5 2.4 2. 6 1.4 1 .0 1.4 4. 1 10.6 4. 2 1. 1 H n clu des la th e rs, t e r r a z z o w o r k e r s , Note: B e c a u s e of rounding, sh e e t r o c k i n s t a l l e r s and f i n i s h e r s , i n s u l a t o r s , s u m s o f in d iv id u a l i t e m s m a y no t ad d to t o t a l s . glaziers, and i r o n w o r k e r s . 20 W ith w ood u se d so e x te n s iv e ly to fr a m e , c o v e r (w h ole o r in p a rt), f lo o r , and tr im o n e -fa m ily h o u se s, it is not d ifficu lt to a p p re cia te the re a s o n fo r the im p o rta n ce o f c a r p e n t e r s . M o r e o v e r , c a r p e n te r s a re u se d in m an y a r e a s to in sta ll d ry w a ll in t e r io r s and to p e r fo r m oth er ta s k s . W ith the u se o f paint in d ica te d on so m e p art o r a ll o f the e x t e r io r s and in t e r io r s fo r a ll the sa m p le h o u s e s , the im p o rta n ce o f the p a in te rs is a ls o r e a d ily u n d e rsto o d . V a ria tio n s fr o m r e g io n to r e g io n in r a tio s o f m a n -h o u rs w o rk e d by d iffe re n t tra d e s r e f le c t d iffe r e n c e s in re g io n a l d esig n and co n s tr u c tio n n eed s as w e ll as w o r k p r a c t ic e s . T h e p r o p o r tio n o f b r ic k la y e r s u se d in ea ch o f the r e g io n s a p p ea rs to r e f le c t the p r e v io u s ly n oted su b sta n tia lly g re a te r u se o f m a s o n r y e x t e r io r s in the South and the N orth ea st, as co m p a r e d with the W e st, and, to a le s s e r d e g r e e , the N orth C en tral r e g io n . The c o n s id e r a b ly lo w e r p r o p o r tio n o f p la s t e r e r s in the N orth C en tra l r e g io n than in the oth er re g io n s a p p ea rs to be re la te d to the m o r e e x te n siv e u se o f su b sta n tia lly p r e fa b r ic a te d o r package h o m e s in that r e g io n . T h is w ou ld a ls o a ccou n t fo r the h igh er p e r cen ta ge o f c a r p e n t e r s ' h o u rs in the sam e r e g io n , r e fle c t in g an in c r e a s e d u se o f th ese jo u r n e y m e n in a s s e m b lin g such h o m e s . The h igh er p r o p o r tio n o f p la s t e r e r s u se d in the W e st and South than in eith er the N orth ea st o r N orth C en tra l r e g io n s r e f le c t s the p r e s e n c e o f the stu cco h o u se s in the fo r m e r . The ex ten siv e u se o f d ry w a ll in t e r io r s o b v io u s ly had its im p a ct on the extent o f p la s te r e r m a n -h o u rs u se d in a ll the r e g io n s . In the m a tte r o f w o r k p r a c t ic e s , a nu m ber o f fa c t o r s a ffe c t the r e gional d istrib u tio n by o ccu p a tio n , a part fr o m the co n s tr u c tio n re q u ir e m e n ts . F o r e x a m p le , o rg a n iz a tio n of w o r k c r e w s and jo b c la s s ific a t io n m a y be a ffe c te d by the r e la tiv e p a rticip a tio n o f lo c a l u n ion s. F o c a l cu sto m m a y in flu en ce the opportu n ity o f union m e m b e rs h ip and jo u rn e y m a n jo b s fo r m in o r ity g ro u p s. F in a lly , lo c a l a v a ila b ility o f lo w e r paid la b o r m a y a ffe c t the extent to w h ich la b o r savin g co n s tr u ctio n m eth od s o r equipm ent a re e m p lo y e d . T h e s e fa c t o r s p a r tic u la r ly in flu en ce the d iv is io n betw een s k ille d and u n sk illed w o r k e r s . In the South, u n sk ille d and s e m is k ille d e m p lo y e e s a c cou n ted fo r 31 p e r c e n t o f the m a n -h o u r s , c o m p a r e d with 16 p e rce n t in the W est; the p e rce n ta g e s fo r s k ille d tra d e s w e r e 65 and 81 p e r c e n t, r e s p e c t iv e ly . B u ild er o r G e n e ra l and S p e cia l T ra d e C o n tr a c to r s ' Share E m p lo y e e s o f the b u ild e r (o r d e v e lo p e r o r g e n e ra l c o n tra cto r) and fou r s p e c ia l tra d e c o n t r a c t o r s , C a rp e n try , P lu m b in g and H ea tin g, P a in tin g , and M a s o n r y , a cco u n te d fo r 76 p e rce n t o f the to ta l m a n -h o u rs re q u ir e d fo r the co n s tr u c tio n o f a ll the h ou ses su rv e y e d . (See ta ble 6 .) The b u ild e r s ' sh a re, a v e ra g in g 46 p e rce n t o f a ll the p r o je c t s , w as h ig h est in the South (53 p e r c e n t). In the South, the b u ild e rs a ssu m e d a la rg e sh are o f the c o n stru ctio n d u ties, th e re b y lim itin g the su b co n tra ctin g n e e d . W ith o v e r 80 p e r cen t o f the p r e fa b r ic a te d o r package h o u se s stu d ied lo c a te d in the N orth C en tr a l r e g io n , the 5 0 .6 p e rce n t o n -s it e m a n -h o u r sh are o f the b u ild e rs r e fle c t s a l e s s e r d epen d en ce on su b co n tra ctin g due to the am ount o f w o r k p e r fo r m e d o f f - s it e b y the m a n u fa ctu re rs o f such h o u s e s . In the N o rth e a st and W e st, the 21 T a b le 6. P e r c e n t o f T o ta l O n -S ite M a n -H ou r R e q u ire m e n ts fo r S u rv eyed P riv a te O n e -F a m ily H o u se s, by T ype o f C o n tra cto r and R e g io n , 1962 T y p e o f c o n tr a c to r U nited States N orth ea st A ll t y p e s ............................ 100.0 10 0.0 G e n e r a l ................................... C a r p e n t r y ............................... P lu m b in g and heating . . . . P a in t in g ................................... M a s o n r y ................................. C o n cre te w o r k ..................... E le c t r ic a l ............................... P la s t e r in g and lathing . . . R o o fin g and sh eetm etal . . T ile and t e r r a z z b w o r k . . E x c a v a t i o n ............................ W ood f l o o r i n g ....................... O ther f l o o r i n g ..................... A ll oth er t y p e s ..................... 4 5 .6 9 .4 8 .6 6 .6 5 .6 4. 2 2 .8 2. 6 2 .0 1 .6 1 .6 1 .2 .8 7 .5 3 2 .4 15. 8 8. 5 7 .4 5. 7 5 .0 2. 8 3. 5 3. 2 1. 3 3. 2 1 .9 .5 8. 8 N ote: N orth C en tral South W est 100.0 100.0 10 0.0 5 3 .0 9 .5 7 .5 5 .5 5. 2 2 .4 2 .4 2. 8 1 .5 2. 3 .4 .9 .5 6 .0 38. 6 9 .0 9 .4 7. 7 5. 1 6. 1 3. 3 2. 7 2 .8 1 .8 1 .4 1. 3 1. 3 9 .6 5 0 .6 3 .5 10. 1 6 .6 6. 7 5. 1 3. 3 1. 1 .9 .7 2 .4 .9 1.0 7 .0 B e ca u se o f rounding, sum s o f individual ite m s m a y not add to 100. 22 b u ild e rs u se d m o r e s p e c ia l tra d e s c o n t r a c t o r s . T h u s, o n -s ite m a n -h o u r p e rce n ta g e s fo r ea ch o f the c o n tr a c to r c a t e g o r ie s , by re g io n , a re a ffe cte d by the extent to w h ich the b u ild er p e r fo r m e d any o f the o p e ra tio n s o r p u r ch a se d p r e fa b r ic a te d com p on en ts w hich su b sta n tia lly le s s e n e d the n eed fo r the o n -s it e p e r fo r m a n c e of such o p e ra tio n s. The a v e ra g e nu m ber o f c o n t r a c t o r s fo r ea ch h ou se studied w as 14. (See table 7 .) C o n stru ctio n T im e A v e r a g e c o n s tr u ctio n tim e r e q u ir e d fo r the o n e -fa m ily h o u se s s u r v e y e d w as about 15 w e e k s. (See table 8 .) One su b sta n tia lly p r e fa b r ic a te d hom e took 1 w eek to build and be m ade rea d y fo r the p r o s p e c t iv e b u y e r. A n oth er h o u se , w h ich en co u n te re d a num ber o f co n s tr u ctio n d e la y s took 31 w eek s to bu ild. F o r m o s t o f the h o u s e s , h o w e v e r, c o n s tr u ctio n tim e ra n ged fr o m 10 to 20 w e e k s, and this is r e fle c t e d in the re la tiv e c lo s e n e s s o f the a v e ra g e s by r e g io n . The a v e ra g e fo r the N orth C en tra l re g io n , the lo w e s t at 13 w eek s o f co n s tr u ctio n tim e , in d ica te s the in flu en ce of the p r e fa b r ic a te d h ou ses in that r e g io n . The C ost o f D ir e c t W a g e s8 W age p aym ents to o n -s ite la b o r a v e ra g e d 22. 1 p e rce n t o f the total c o n s tr u ctio n p r ic e . (See table 9 .) The p e rce n ta g e r e fle c t s the co m b in e d e ffe c t o f m a n -h o u r re q u ire m e n ts and w age ra te s fo r individual h o u se s. F o r the individual h o u s e s , the p e rce n ta g e ra n ged fr o m 14. 3 to 32. 5. G e n e ra lly , w hen c o n s id e r e d by c o s t c la s s , the p e rce n ta g e r o s e as the co n s tr u ctio n p r ic e o f the h o u se s r o s e . T h e r e w as substantial v a ria tio n am ong the h o u se s studied, in the ra tio o f o n -s it e w a g es to total co n s tr u ctio n p r ic e . The range o f w a g es as a p e rce n t o f co n s tr u ctio n p r ic e and the a v e ra g e w age ra te , by ra n g e, fo r a ll the h o u se s studied w as as fo llo w s : P e r c e n t o n -s ite w a ges w e r e o f co n s tr u ctio n p r ic e 1 5 .0 and under 15. 1 to 2 0 .0 20. 1 to 2 5 .0 . , 25. 1 to 3 0 .0 . , 30. 1 and o v e r , A verage w age ra te $ 2 .5 2 3 .0 5 3 .0 3 3. 22 3 .0 8 P ercen t of h o u se s studied 3 .0 3 1 .7 4 5 .5 1 6 .8 3 .0 8F o r this study, ,ld ir e c t w a g e s ” w e r e com p u ted by m u ltip ly in g the h ou rs w o rk e d by the h o u rly w age ra te . T h is w as n e c e s s a r y in o r d e r to obtain in fo rm a tio n fo r the s p e c ific sam ple h o u se s studied. E x clu d ed a re v a ca tion and h o lid a y pay or other la b o r c o s t s such as e m p lo y e r con trib u tion s to s o c ia l s e c u r ity , u n em p loym en t in s u ra n ce , w o r k m e n 's co m p e n sa tio n , and n on gov ern m en ta l e m p lo y e e w e lfa re and p en sion funds. 23 T a b le 7. A v e r a g e N um ber o f C o n tra cto rs p er P riv a te O n e -F a m ily H ouse, by C ost G roup and R e g io n , 1962 United States N orth ea st N orth C en tra l South W est A ll g r o u p s ................... 14 16 11 12 19 $ 18, 000 and o v e r ............ $ 1 5 ,0 0 0 - $ 17, 999 ............ $ 1 2 , 0 0 0 -$ 14, 999 ............ Under $ 1 2 , 000 ................ 15 15 15 12 17 17 17 14 12 13 10 9 13 12 12 11 19 21 20 17 C ost group T a b le 8. A v e r a g e N um ber of W eeks R e q u ire d fo r C o n stru ctio n of S u rveyed P riv a te O n e -F a m ily H ou ses, by C ost G roup and R e g io n , 1962 United States N orth ea st N orth C en tral South W est A ll g r o u p s ................... 15 15 13 16 17 $ 18, 000 and o v e r ............ $ 1 5 , 0 0 0 -$ 17, 999 ............ $ 1 2 ,0 0 0 -$ 14, 999 ............ Under $ 1 2 ,0 0 0 ................. 16 16 15 14 17 16 16 11 13 18 10 12 17 13 20 14 16 20 15 19 C o st group T a b le 9. A v e r a g e O n -S ite S t r a ig h t -T im e H o u r ly E a r n in g s and W a g e s a s a P e r c e n t o f C o n s t r u c t io n P r i c e on S u r v e y e d P r iv a t e O n e -F a m ily H o u s e s , by R e g io n and M e tr o p o lita n o r N o n m e tr o p o lita n L o c a t io n , 1962 U n ited S ta te s A rea A ll h o u s e s . . . . In a m e t r o p o l i t a n a r e a ......................... In a n o n m e t r o p o litan a r e a . . . A verage h o u rly w age N orth east W ages as A verage p e r c e n t of h o u rly co n stru c wage tio n p r ic e W ages a s A verage p e rc e n t of h o urly co n stru c w age tio n p r i c e W ages a s p e rc e n t of co n stru c tio n p r i c e W est South N orth C e n tral A verage h o u rly w age W ages a s p e rc e n t of co n stru c tio n p r i c e A verage h o u rly w age W ages a s p e rc e n t of co n stru e tio n p r i c e $ 3 .0 7 22. 1 $ 3 . 21 23 . 6 $ 3 .4 2 2 1 .0 $ 2 . 35 2 1 .5 $ 4 .0 5 2 3 .0 $ 3 . 14 2 2 .0 $ 3 . 22 2 4 .0 $ 3 . 54 21. 1 $ 2 . 37 20. 8 $ 4 .0 6 22. 5 2. 85 2 2 .9 3. 11 ? 1 .0 3. 00 2 0 .4 2. 30 23. 9 3 .9 9 25 . 7 25 O ff-S ite E m p loym en t F o r ea ch m a n -h o u r o f em p loy m en t p e r fo r m e d on the co n s tr u ctio n s ite s , an addition al 1 .8 m a n -h o u rs w e re r e q u ir e d to p ro d u ce and d istrib u te the n e c e s s a r y co n s tr u ctio n m a te r ia ls , su p p lie s, and equipm ent u se d in c o n stru ction and to p e r fo r m th ose fu n ction s a s s o c ia t e d w ith the se llin g c o s t s o f o n e -fa m ily h o u s e s . T h e se p r o je c t s , thus, gave r is e to 132 m a n -h o u rs o f such o f f - s it e em p loy m en t p er $ 1 ,0 0 0 o f co n s tr u ctio n p r ic e , co m p a r e d with 7 2 h ou rs o n -s it e . O ff-s it e em p loy m en t is g en era ted in m any p la c e s , but can be c l a s s i fie d in the fo llo w in g c a t e g o r ie s : 1. C on stru ction in d u s t r y - - o f f - s it e : w a reh ou sin g fu n ction s. A d m in is tr a tiv e , estim a tin g , and 2. M anu facturing a ctiv itie s p ro d u cin g raw m a te r ia ls , fa b rica te d m a te r ia ls , and equipm ent. 3. T ra n s p o rta tio n , w a reh ou sin g, and d istrib u tio n o f fa b rica te d and raw m a te r ia ls and equipm ent and a ll oth er re la te d s e r v ic e in d u strie s, in clu din g r e a l esta te. 4 . A ll other in d u strie s d ir e c t ly o r in d ir e c tly a ffe cte d by the p r o d u c tion o f fa b r ic a te d and raw m a te r ia ls . V a rio u s in te rin d u stry tra n sa ctio n s even tu ally a ffe c t a ll additional in d u strie s such as a g r ic u ltu r e , fo r e s t r y , and m in in g. T h e re a r e , o f c o u r s e , other p eop le a ffe cte d in types o f em ploym en t w hich this study did not attem pt to c o v e r . Som e o f th ese a re m en tion ed on page 3. O f the w o r k e r s om itted , the m o s t n u m e r ic a lly im p orta n t grou p s, who w ou ld be d ir e c t ly a ffe c te d by co n s tru ctio n o f o n e -fa m ily h o u se s, w e re e m p lo y e e s in u tility co m p a n ie s and lo c a l g o v e rn m e n ts. T h e se e m p lo y e e s and th eir fu n ction s w e r e ex clu d e d fr o m the m a n -h o u r e s tim a te s . A la rg e a rea o f em p loy m en t a ls o e x clu d e d fr o m the ca lcu la tio n s o f m a n -h o u r e ffe c t s , as m en tion ed e a r lie r , is that c r e a te d by the re sp e n d in g and in vestin g o f w a ges and p r o fits a r is in g in v a rio u s a re a s o f e c o n o m ic a ctiv ity as a re su lt o f co n s tr u ctio n e x p en d itu res. A lthough the ra tio o f o n -s ite to o f f - s it e em p loy m en t re q u ire m e n ts is co m m o n ly u se d in a n alyzin g em p loy m en t re q u ire m e n ts in the co n s tr u ctio n in d u stry, another type o f d istin ctio n b a sed upon the e c o n o m ic re la tio n s o f the la b o r g en eratin g a re a s is a ls o u se fu l. T h e r e fo r e , em p loy m en t r e q u ir e m ents have a ls o been d iv id ed into p r im a r y and s e co n d a ry m a n -h o u r n e e d s. A s shown in the fo llo w in g tabulation and ch a rt 1, the p r im a r y m a n -h o u r r e q u ire m e n ts, e stim a te d at 157, a r is e in the a c tiv itie s at the site and th ose m o s t d ir e c t ly re la te d to the co n s tr u ctio n a ctiv ity . In clu ded in th e se , in 26 addition to o n -s ite e m p loy m en t, a re o f f - s it e co n s tr u ctio n em p loy m en t, e m p lo y e e s o f m an u fa ctu rin g in d u strie s re p r e s e n te d at the l,la st stage o f m a n u fa ctu rin g ” fo r m a te r ia ls p r io r to shipm ent to the site, e m p lo y e e s in tra n sp o rta tio n , tra d e , and s e r v ic e o rg a n iz a tio n s d ealin g in m a te r ia ls u se d at the s ite , and e m p lo y e e s in oth er re la te d s e r v ic e in d u s trie s . S e co n d a ry m a n -h o u r re q u ire m e n ts have been d efin ed as th ose a s s o cia te d w ith a ll oth er re q u ire m e n ts in d ir e c tly re la te d to the n eed s at the site . Such a c tiv itie s tota lin g 47 h o u rs o r 23 p e r c e n t o f tota l m a n -h o u r r e q u ir e m en ts a ffe c t a ll p a rts o f the e co n o m y as the im p a ct o f p r im a r y a ctiv ity is r e fle c t e d in dem and fo r b a sic m a te r ia ls and r e la te d tra n sp o rta tio n , tra d e , and s e r v ic e s . The fo llo w in g tabulation show s m a n -h o u rs o f em p loy m en t a s s o c ia t e d w ith $ 1,0 0 0 o f o n e -fa m ily hou se co n s tr u ctio n . A ll in d u stry g r o u p s ................................... C o n s t r u c t i o n ...................................................... O n - s i t e ............................................................... O ff-s it e ............................................................. M a n u fa c t u r in g ................................................... T ra n s p o rta tio n , tra d e , and s e r v ic e . . . . O ther ...................................................................... T otal P r im a r y a c tiv itie s S e co n d a ry a c tiv itie s 204 84 72 12 58 49 13 157 84 72 12 38 35 -- 47 — 20 14 13 S om e in d u strie s a re re p r e s e n te d in both the p r im a r y and se co n d a ry s e c t o r s . F o r ex a m p le , the fla t g la ss in d u stry fu rn ish e s m a te r ia l d ir e c t ly to the c o n s tr u ctio n in d u stry and a ls o to the m e ta l o r w o o d w indow fra m e and sash in d u strie s w h ich in turn s e ll p r e g la z e d w indow fr a m e s to the c o n s t r u c tion in d u stry . B u ild e r s 1 O ff-S ite E m p loy m en t An ex a ct study o f o f f - s it e em p loy m en t o f c o n t r a c t o r s w as not attem pted, sin ce it w as im p o s s ib le to re la te a c c u r a te ly such em p loy m en t to the h o u se s b ein g studied. B u ild e r s 1 o f f - s it e em p loy m en t w as o c c u p ie d not on ly with the p r o je c t s studied but a ls o with other cu r re n t o r future p r o je c t s o f the b u ild e r s . The estim a te o f 12 m a n -h o u rs o f such w o r k fo r ea ch $ 1 ,0 0 0 o f c o n stru ction p r ic e is b a se d on the d iffe r e n c e betw een co n s tr u ctio n w o r k e r e m p loy m en t and tota l em p loy m en t in the co n tr a c t co n s tr u ctio n in d u s t r y .9 A d m in is t r a t iv e , e n g in e e rin g , e stim a tin g , and c le r ic a l w o r k e r s a c cou n ted fo r about 14 p e rce n t o f total em p loy m en t in the co n s tr u ctio n in d u stry . A bou t o n e -fo u r th o f this em p loy m en t w as in v o lv e d at the site . 27 C om bin in g this em p loym en t with o n -s ite em p loy m en t re s u lts in an estim a te o f 84 h ou rs of em ploym en t in the co n s tru ctio n in d u stry fo r each $ 1 ,0 0 0 o f o n e -fa m ily hou se co n s tru ctio n . E m p loy m en t in T ra n s p o rta tio n , T ra d e , and S e r v ic e D istrib u tio n o f co n s tr u ctio n m a te ria ls fr o m the p rod u cin g in d u strie s r e q u ir e s em p loy m en t o f w o r k e r s in the tra n sp o rta tio n , w a reh ou sin g , tra d e , and s e r v ic e in d u strie s. The estim a te o f 35 h ou rs o f p r im a r y em p loym en t p er $ 1 ,0 0 0 o f co n s tr u ctio n p r ic e in clu d es la b o r tim e b a se d on the d iffe r e n c e betw een p r o d u c e r 's value and d e liv e r e d value o f m a te r ia ls u se d at the site . T h is c o v e r s the d istrib u tio n o f m a te r ia ls fr o m the p r o d u c e r s to co n s tr u ctio n site but d oes not include the d istrib u tion o f m a te r ia ls am ong in d u strie s p r io r to shipm ent o f the c o m p le te d p ro d u cts. In addition, the estim a te in clu d es la b o r g en era ted by se llin g and other o v e rh e a d c o s t s . "E a s t M anu facturing S tage" E m p loym en t The s e c t o r o f the e co n o m y m o st a ffe cte d by o n e -fa m ily house co n s tru ctio n , oth er than the co n s tr u ctio n in d u stry, is m a n u fa ctu rin g. An e stim a ted 38 m a n -h o u rs w e r e r e q u ir e d fo r each $ 1 ,000 o f co n s tr u ctio n p r ic e fo r p rod u ctio n o f co n s tr u ctio n m a te ria ls u se d in the building o f o n e fa m ily h o u s e s . T h is e stim a te in clu d es the em p loy m en t r e q u ir e d in the la st m a n u factu rin g p r o c e s s o f the m a te r ia ls and that cr e a te d by expen ditu res fo r ov erh ea d c o s t . 0 E m p loy m en t gen erate^ by th ese a c tiv itie s is d istrib u te d in m any in d u strie s d ir e c t ly a ffe cte d by co n s tr u ctio n w o r k . F o r e x a m p le , it in clu d es sa w m ills cutting rough lu m b er fo r fo r m s , and esta b lish m e n ts m a k ing m illw o r k ite m s fr o m lu m b e r, but d oes not include em p loy m en t in sa w m ills p rod u cin g lu m b e r fo r m illw o r k p ro d u cts. The la tte r is in clu d ed in the estim a te o f se co n d a ry em p loy m en t d is c u s s e d b elow . E m p loy m en t in S e co n d a ry A c tiv itie s In addition to the 38 m a n -h o u rs p re v io u s ly noted fo r p r im a r y e m p lo y m ent fo r ea ch $ 1 ,0 0 0 o f co n s tru ctio n p r ic e , an additional 20 h ou rs w e re re q u ir e d in s e co n d a ry m a n u factu rin g a c tiv itie s . T ra n s p o rta tio n , tra d e , and s e r v ic e in d u strie s as a group re q u ir e d 14 h ou rs o f em p loy m en t fo r ea ch $ 1 ,0 0 0 o f o n e -fa m ily h ou se co n s tr u ctio n p r ic e to m e e t the need s o f s e co n d a ry b u sin e ss a ctiv ity . O ther a c tiv it ie s , p r im a r ily a g ricu ltu re , f o r e s t r y , and m inin g a ccou n ted fo r the rem a in in g 13 h ou rs o f se co n d a ry m an pow er re q u ir e m e n ts . 10In clu d ed in the b ill o f m a te r ia ls w e re the su p p lies and the expended value o f the equipm ent u se d by b u ild e rs and oth er co n s tr u ctio n c o n t r a c t o r s . 28 M a te ria ls U sed C osts o f m a te r ia ls re p r e s e n te d 48. 2 p e rce n t o f the total c o n s tr u ctio n p r ic e o f a ll the h o u se s su rv e y e d . T h is in clu d es d e p re c ia tio n ch a rg e s o r ren tal c o s t s fo r c o n s tr u ctio n equipm ent u se d and the sm a ll am ounts o f su p p lie s con su m ed , in addition to the m a te r ia ls in c o r p o r a te d in the h o u s e s . It a ls o in clu d es d istrib u tio n c o s t s and r e p r e s e n ts m a te r ia ls c o s t d e liv e r e d to the site . The m a jo r it y o f the h ou ses w e r e w ithin 5 p e rce n t o f the o v e r a ll a v e ra g e fo r m a te r ia ls c o s t s : P e r c e n t m a te r ia ls c o s t o f tota l co n s tr u ctio n p r ic e P e r c e n t o f h o u se s U nder 4 0 ........................................................................................... 40 to 4 4 ............................................................................................. 45 to 4 9 ............................................................................................. 50 to 5 4 ............................................................................................. 55 to 5 9 ............................................................................................. 60 and o v e r ...................................................................................... 9 22 33 22 8 6 T a b le 10 p re s e n ts the c o s t s o f m a jo r m a te r ia ls and grou p s o f m a te r ia ls u se d in ea ch $ 1 ,0 0 0 o f co n s tr u ctio n p r ic e fo r a ll the h o u se s studied, by r e g io n . T he grou p s and the ite m s w ithin the grou p s a re ranked by am ounts spent fo r the p ro d u cts , on a ll the h o u s e s . A lthough the table p re s e n ts the c o s t s o f m a te r ia ls in te r m s o f th eir d o lla r v a lu e, the in dividual ite m s m a y r e a d ily be re d u ce d to the fa m ilia r m agn itu des o f p e r c e n ta g e s . T h u s, the sum o f $ 1 1 5 . 30 shown fo r the U nited States under ston e, cla y , and g la ss p ro d u cts w ou ld be 11. 5 p e rce n t o f the co n s tr u ctio n p r ic e . T he m o s t im p orta n t b ro a d m a te r ia ls c a te g o r y , lu m b e r and lu m b er p ro d u cts , a cco u n te d fo r about 19 p e rce n t o f the total c o n s tr u ctio n p r ic e o f a ll the h ou ses s t u d ie d .11 W ithin the c a te g o r y , rou gh and d r e s s e d lu m b er r e p r e s e n te d 40 p e rce n t, m illw o r k , 27 p e rce n t, and p r e fa b r ic a te d o r p ackage h o u se s, 17 p e r c e n t. T he la r g e s t sin gle ite m am ong ston e, c la y , and g la ss p ro d u cts , the next m o s t im p orta n t b ro a d m a te r ia ls group, w as r e a d y -m ix e d c o n c r e t e , w h ich c o m p r is e d o n e -th ir d o f the group. u E ach p e rce n t o f the tota l c o n s tr u ctio n p r ic e r e p r e s e n ts about $ 140 m illio n o f annual ex p en d itu res at the cu rre n t (1962) annual rate o f new p riv a te n on fa rm o n e -fa m ily h ou se co n s tr u ctio n (e . g. , $ 2. 7 b illio n o f lu m b er p r o d u c ts , in clu d in g p r e fa b r ic a te d o r package h o u se s is r e p r e s e n te d by the 19. 3 p e rce n t). T a b l e 10. C o s t o f M a t e r i a l C o m p o n e n t s f o r E a c h $ 1 ,0 0 0 o f C o n s t r u c t i o n P r i c e o f S u r v e y e d P r i v a t e O n e - F a m i l y H o u s e s , b y R e g i o n , U n it e d S ta tes S e l e c t e d p r o d u c t s an d p r o d u c t g r o u p s Cost Percent o f un its reporting A l l p r o d u c t s 1 .............................................................. $ 4 8 2 . 20 L u m b e r and l u m b e r p r o d u c t s ................................ R o u g h a n d d r e s s e d l u m b e r ...................... .. M i l l w o r k ......................................................................... P r e f a b r i c a t e d o r p a c k a g e h o u s e s .................... P l y w o o d .......................................................................... F l o o r i n g ........................................................................... F a b rica te d lam in ates, r o o f tru sse s . . . . . . . W o o d s h i n g l e s ............................................................ N ortheast C ost P ercent o f un its reporting 100 $ 5 01.6 0 $ 20 6.00 85. 30 6 7 .50 14. 80 16.00 15.50 2. 70 4 . 30 100 100 100 6 89 100 11 28 100 100 100 96 51 99 41 64 10 1 20. 20 78 . 90 38 .00 19 .00 8. 50 5 .4 0 6. 60 . 80 . 50 19.70 12. 20 5.6 0 1.9 0 98 73 83 61 19. 30 3.8 0 3.50 3.5 0 2. 30 1.40 1.40 1.2 0 .90 . 80 100 93 85 61 56 32 19 32 21 10 W est Cost Cost P ercent o f units reporting 100 $ 4 9 6 . 10 100 $4 27.8 0 100 $ 255.30 52. 30 4 0 . 70 112. 60 8. 30 7.0 0 4 . 50 (2 /) 100 71 75 38 54 54 21 (2 /) $ 183.40 80. 90 57. 80 7. 30 15. 30 8. 90 13. 20 (2 /) 100 94 97 3 79 59 41 (2 /) $ 16 3. 10 9 1 .50 4 0 .4 0 (2 /) Z . 00 6. 30 9. 70 9. 30 100 100 100 (2 /) 60 48 44 36 100 100 100 100 56 100 78 78 6 109.00 75 . 30 41 .70 16. 20 9.0 0 4.4 0 2. 70 . 80 .60 100 100 100 88 54 100 46 21 17 127. 80 81 . 20 37.00 19. 80 14. 50 5. 90 2.00 1 .5 0 . 50 100 100 100 97 71 97 21 91 15 101.90 69 . 30 36. 50 23. 10 2.50 5. 60 1.40 . 30 (2 /) 100 100 100 100 20 100 36 60 (2 /) 19.90 11. 20 7 .4 0 1. 30 100 78 100 44 16. 80 10.50 3. 30 3. 00 96 58 67 88 26. 80 18. 60 6. 70 1 .4 0 100 76 88 35 13. 30 6. 70 4 . 80 1.80 96 80 80 84 21 .50 3.4 0 6 .4 0 2. 60 1.8 0 1. 30 2. 50 3. 20 .40 U /) 100 94 94 72 33 44 11 78 17 (2 /) 16. 90 3. 00 2. 70 4 . 80 2. 30 . 80 1.50 1. 30 (2 /) . 50 100 92 71 71 46 21 12 33 (2 /) 12 19. 80 5. 60 3.00 1. 50 2. 50 2. 00 1. 10 . 70 1.40 1. 30 100 97 91 26 56 35 18 18 21 6 19. 30 2. 90 2. 60 5. 50 2. 60 1.40 .9 0 . 30 1.70 1.00 100 88 84 92 36 28 32 17 40 20 Cost 100 $5 0 4 .0 0 $ 193.10 77 .40 51. 30 32 .70 11.40 9. 10 8. 10 3. 10 100 94 95 11 70 62 31 14 S t o n e , c l a y , an d g l a s s p r o d u c t s ........................... C e m e n t , c o n c r e t e , an d g y p s u m p r o d u c t s . . R e a d y - m i x c o n c r e t e .......................................... G y p s u m p r o d u c t s .................................................. C o n c r e t e b l o c k a n d b r i c k ................................ C e m e n t ......................................................................... P r e c a s t c o n c r e t e p r o d u c t s .............................. L i m e .................................................. .......................... C o n c r e t e p i p e .................... .................................... 11 5.30 7 6 .40 38. 20 19.60 9.0 0 5. 30 2.90 .90 .40 S t r u c t u r a l c l a y p r o d u c t s ........................................ B r i c k ........................................................................... C e r a m i c t i l e ............................................................ C l a y s e w e r p ip e a n d d r a i n t i l e ...................... O t h e r s t o n e , c l a y , an d g l a s s p r o d u c t s . . . . S a n d a n d g r a v e l .................................................... F i b e r g l a s s i n s u l a t i o n ........................................ A s p h a l t t i l e .............................................................. V i n y l an d v i n y l a s b e s t o s t i le ......................... M a r b l e an d o t h e r c u t s t o n e ........................... W i n d o w g l a s s .......................................................... C r u s h e d r o c k and a g g r e g a t e ......................... G l a s s d o o r s an d e n c l o s u r e s ........................... M i r r o r s ...................................................................... South P ercent o f un its reporting Percent o f un its reporting S e e f o o t n o t e s at e n d o f t a b le N orth Central 1962 T a b l e 10. C o s t o f M a t e r i a l C o m p o n e n t s f o r E a c h $ 1 ,0 0 0 o f C o n s t r u c t i o n P r i c e o f S u r v e y e d P r i v a t e O n e - F a m i l y H o u s e s , b y R e g i o n , U n it e d S ta te s S e l e c t e d p r o d u c t s an d p r o d u c t g r o u p s Cost Percent o f un its reporting N ortheast P ercent o f un its reporting Cost South N orth C entral Percent o f un its reporting Cost 1 9 6 2 - - C o n t in u e d W e st P ercent o f un its reporting Cost Cost Percent o f units reporting $ 5 2 . 80 34.80 11.70 7. 20 5. 80 2. 70 2. 70 2.00 1.40 1. 30 100 100 76 92 91 50 44 35 52 37 $4 9 .4 0 27. 10 1 1 .9 0 6. 70 3. 10 . 90 1.60 . 70 .40 1.90 100 100 72 100 78 17 28 22 33 39 $ 4 8 . 00 31. 30 10. 30 5. 30 5 .0 0 2. 10 3. 20 4. 50 . 20 .60 100 100 62 79 88 29 33 67 8 17 $ 56.60 4 0 . 50 11. 30 7. 70 8. 10 4 . 30 2. 60 2. 10 2. 30 2. 20 100 100 74 91 94 68 44 35 76 59 $ 5 5 . 30 37. 30 13. 50 8. 60 5. 90 2. 90 3. 20 . 60 2. 20 .40 100 100 96 100 100 68 64 12 76 24 O t h e r m e t a l p r o d u c t s .................................................. C o p p e r .............................................................................. N a i l s ................................................................................... G a l v a n i z e d s h e e t m e t a l ........................................... A l u m i n u m s h e e t m e t a l ........................................... 17.90 7.8 0 4 . 80 2. 90 1.40 97 95 95 67 40 22. 30 11.00 4 . 60 4 . 20 1.90 100 100 100 78 39 16. 7. 3. 2. 2. 70 10 90 90 30 100 96 83 67 25 16. 10 7.4 0 5. 60 1 .7 0 . 70 100 94 97 59 41 18. 00 6. 50 4. 80 3.40 1. 10 100 92 100 72 52 P l u m b i n g p r o d u c t s ............................................................... F i x t u r e s ................................................................................. C a s t i r o n p i p e .................................................................... V a l v e s and s p e c i a l t i e s ................................................ S t e e l an d g a l v a n i z e d p i p e ........................................... 26. 80 1 4 .6 0 5. 30 4. 30 2. 20 100 100 93 100 90 22. 00 1 2 .4 0 3. 90 4.4 0 1.40 100 100 83 100 83 25.80 1 5 .0 0 3. 90 3. 90 2. 70 100 100 83 100 92 31. 16. 6. 4. 2. 10 60 90 30 80 100 100 100 100 91 26. 00 13.40 5. 80 4. 80 1.70 100 100 100 100 92 H e a t i n g an d v e n t i l a t i n g e q u i p m e n t ............................ R a d i a t o r s , b o i l e r s , h ot w a t e r h e a t e r s ............. W a r m a i r f u r n a c e s ....................................................... O i l b u r n e r s 3 ....................................................................... E l e c t r i c h e a t e r s ............................................................ B l o w e r s an d e x h a u s t f a n s ........................................... A i r c o n d i t i o n i n g e q u i p m e n t 3 ................................... P u m p s ................................................................................... Unit h e a t e r an d v e n t i l a t o r s ...................................... 19. 60 6. 80 6.6 0 1.6 0 1. 10 .90 . 80 . 50 .50 100 85 71 10 10 36 3 8 8 26. 80 14. 30 5.8 0 3.40 (2 /) 1.00 (2 /) . 70 (2 /) 100 94 50 22 (2 /) 50 (2 /) 6 (2 /) 20.80 5. 80 8. 00 . 80 . 50 1. 10 1. 20 1.50 1.00 100 79 83 4 4 38 4 25 21 20.40 6. 00 5. 70 2. 00 3. 00 . 70 1. 50 (2 /) . 50 100 91 59 12 24 21 6 (2/) 6 11.40 2. 90 6. 80 . 60 (2/) . 80 (2/) (2 /) . 20 100 76 92 4 (2 /) 44 (2 /) (2 /) “ 4 E l e c t r i c a l e q u i p m e n t , f i x t u r e s , an d w i r e ............. L i g h t i n g f i x t u r e s ............................................................. W i r e an d c a b l e .................................................................. S w i t c h b o a r d a n d p a n e l s ............................................. C u r r e n t c a r r y i n g w i r i n g d e v i c e s ......................... N o n c u r r e n t c a r r y i n g d e v i c e s ................................... 16. 50 4 . 70 4. 60 3. 60 1 .6 0 1. 30 100 100 100 100 100 100 13. 3. 3. 2. 1. 1. 100 100 100 100 100 100 17. 90 5.6 0 4 . 90 3. 90 1. 70 1. 20 100 100 100 100 100 100 16. 70 4 . 90 5.4 0 3. 20 1.50 1. 30 100 100 100 100 100 100 17. 70 4. 30 4. 50 4.4 0 1.90 1.40 100 100 100 100 100 100 M e t a l p r o d u c t s ( e x c e p t p l u m b i n g and h ea tin g) . . . F a b r i c a t e d m e t a l p r o d u c t s ........................................ M e t a l w i n d o w s ............................................................. B u i l d e r s h a r d w a r e .................................................. F a b r i c a t e d s h e e t m e t a l p r o d u c t s ....................... R e i n f o r c i n g b a r s , r o d s , e t c ......................... .. M e t a l d o o r s , f r a m e s , a c c e s s o r i e s ............... S t r u c t u r a l s t e e l .......................................................... W i r e m e s h ....................................................................... O r n a m e n t a l m e t a l ..................................................... S e e f o o t n o t e s at e n d o f t a b le 20 80 20 80 30 10 T a b l e 10. C o s t o f M a t e r i a l C o m p o n e n t s f o r E a c h $ 1, 000 o f C o n s t r u c t i o n P r i c e o f S u r v e y e d P r i v a t e O n e - F a m i l y H o u s e s , b y R e g i o n , U n it e d S ta tes S e l e c t e d p r o d u c t s an d p r o d u c t g r o u p s Co st N ortheast P ercent o f un its reporting Cost Percent o f un its reporting North C entral P ercent o f un its reporting Cost 1 9 6 2 --C ontinued South Cost W est P ercent o f un its reporting Cost Percent o f units reporting F i x e d h o u s e e q u i p m e n t .................................................. O v e n s a n d r a n g e s ......................................................... R e f r i g e r a t o r s ................................................................. O t h e r k i t c h e n a p p l i a n c e s ........................................ $ 13.70 9. 10 1.40 2. 90 72 65 10 34 $ 1 0 .8 0 7. 20 (2 /) 3. 50 78 67 (2 /) 39 $ 14.40 9. 30 2. 70 2. 20 58 54 8 29 $ 14.10 10. 10 2. 30 1. 50 71 68 21 18 $ 1 4 .9 0 9.4 0 . 20 4. 90 80 72 4 48 P e t r o l e u m p r o d u c t s ......................................................... A s p h a l t s h i n g l e s ............................................................ A s p h a l t f e l t ...................................................................... A s p h a l t p a v i n g .............................................................. O i l an d f u e l ...................................................................... A s p h a l t and t a r p i t c h e s ............................................. 1 1 .1 0 7.4 0 1. 30 1. 10 . 70 . 60 100 67 59 25 85 32 13. 20 8. 30 . 20 3. 50 1. 20 (2 /) 100 94 22 61 100 (2 /) 10. 10 7.9 0 . 90 (2 /) . 60 . 60 100 79 42 (2 /) 75 25 11.90 8. 30 1 .9 0 . 50 . 50 . 70 100 68 79 9 76 29 9. 30 4. 90 1 .9 0 1. 20 . 70 . 80 100 36 96 40 80 56 P a i n t s and o t h e r c h e m i c a l s ........................................ P a i n t s .................................................................................. A d h e s i v e s ........................................................................ P u t t y and c a u l k i n g c o m p o u n d s .............................. 10. 30 8. 50 .90 . 30 100 97 97 49 7 .9 0 6. 70 . 80 . 20 100 94 100 28 9. 30 7. 50 1. 10 .40 100 100 96 54 11.70 9. 50 . 80 . 50 100 97 100 71 11. 30 9. 50 1 .0 0 (2 /) 100 96 92 (2/) C o n s t r u c t i o n e q u i p m e n t ( d e p r e c i a t i o n ) ............... T r a c t o r s an d b u l l d o z e r s .......................................... P o w e r c r a n e s , b a c k h o e s , an d s h o v e l s .......... T r u c k s ..................................................... ..................... S c r a p e r s , g r a d e r s , an d r o l l e r s ......................... S m a l l c o n s t r u c t i o n e q u i p m e n t .............................. T r e n c h e r s ......................................................................... 9. 80 2. 90 2. 30 1.90 .90 . 70 .70 91 64 50 55 34 40 35 16. 00 4 . 80 5. 50 1. 20 3. 10 (2 /) . 80 100 89 83 39 72 (2/) 22 7 .4 0 2. 20 2. 00 . 80 . 30 1.00 . 70 83 62 62 38 8 21 33 8. 00 3. 00 1 .4 0 1 .9 0 . 30 . 60 . 70 85 44 24 59 18 41 26 9.4 0 1 .9 0 1. 30 3. 30 . 50 1. 10 . 50 100 76 52 80 52 72 56 A l l o t h e r c a t e g o r i e s ....................................................... N u r s e r y p r o d u c t s ......................................................... L a m i n a t e d p l a s t i c s .................................................... A s b e s t o s s h i n g l e s ....................................................... L e a d ..................................................................................... C a r p e t ................................................................................ W a l l p a p e r ......................................................................... C o n s t r u c t i o n p a p e r s .................................................. P o l y e t h y l e n e p l a s t i c .................................................. O a k u m ................................................................................ I n s u l a t i n g b o a r d ........................................................... N o n m e t a l l i c p ip e ......................................................... 13. 30 3. 50 2. 60 2. 20 1. 10 1.00 . 80 .40 .40 .40 . 30 . 30 100 65 53 16 99 7 25 59 23 98 5 8 18. 50 4 . 20 2. 00 7. 30 1. 10 (2 /) 2. 30 . 30 (2 /) . 40 (2 /) . 20 100 83 39 56 100 (2 /) 44 50 (2 /) 100 (2 /) 17 13. 60 3. 80 2. 20 1.60 .90 1. 30 . 30 . 60 . 70 .40 .90 . 60 100 67 67 12 100 8 17 46 29 96 8 4 14.40 5.0 0 3.40 1. 10 1 .6 0 1.60 .40 . 30 . 20 . 50 (2 /) (2 /) 100 76 41 9 100 12 15 53 12 100 (2 /) (2 /) 7. 50 . 70 2. 30 (2/) . 70 . 60 . 50 . 60 .60 . 30 . 20 (2 /) 100 36 68 (2/) 96 4 32 88 40 96 8 (2 /) ^In g e n e r a l , the c l a s s i f i c a t i o n o f m a t e r i a l s w a s d i r e c t e d t o w a r d i n d u s t r y c l a s s i f i c a t i o n r a t h e r than p r o d u c t c l a s s i f i c a t i o n . A m o u n t l e s s than 15 c e n t s o r c o u l d n ot be s e p a r a t e d f r o m o t h e r i t e m s . In s o m e h o m e s , a i r c o n d i t i o n i n g w a s an i n t e g r a l p a r t o f the h e a t in g unit and is i n c l u d e d wit h the v a lu e o f the h e a t in g unit. Note: G r o u p t o t a l s i n c l u d e p r o d u c t s n ot sh ow n s e p a r a t e l y . B e c a u s e o f t h is and r o u n d i n g , s u m s o f c o m p o n e n t s m a y not a d d to t o t a l s . 32 M eta l p ro d u cts m ade up 5. 3 p e r c e n t o fth e c o n s tr u ctio n p r ic e . F a b r i ca ted m e ta l p rod u cts a cco u n te d fo r tw o -th ird s o f this grou p . M eta l w in dow s; d o o r s , fr a m e s , and a c c e s s o r ie s ; and builders* h a rd w a re r e p r e s e n te d about 62 p e rce n t o f the fa b r ic a te d m e ta l p ro d u cts . T he b ro a d group d oes not r e p re s e n t the tota l co n trib u tio n o f the m e ta lw o rk in g in d u s trie s , sin ce it e x clu d e s the m eta l p ro d u cts shown s e p a ra te ly in the equipm ent c a t e g o r ie s . P lu m b in g p ro d u cts to ta lle d a lm o st 3 p e rce n t o f the tota l c o n s tr u ctio n p r ic e ; heating and v en tilatin g equipm ent, in clu d in g a ir con d ition in g e q u ip m en t, 2 p e r c e n t. T he duct m a te r ia ls re q u ir e d fo r a ir -e x c h a n g e throughout a h ou se w e r e ex clu d e d fr o m the la tte r equipm ent grou p . T h ey a re in clu d ed in fa b r ic a te d sh eet m e ta l p ro d u cts o r in g a lv an ized sheet m e ta l under the oth er m eta l p ro d u cts c a te g o r y . E le c t r ic a l equipm ent, fix tu r e s , and w ir e u sed a little le s s than 2 p e rce n t. M a te ria ls re q u ire m e n ts v a r ie d som ew hat by g e o g ra p h ic a r e a , r e fle c tin g d iffe r e n c e s a r is in g fr o m lo c a l p r e fe r e n c e s in hou se d esig n and c h a r a c t e r is t ic s , and fo r c e rta in m a te r ia ls . F o r e x a m p le , in the N orth C en tra l r e g io n , the a v e ra g e c o s t o f lu m b e r and lu m b e r p ro d u cts p er $ 1 ,0 0 0 o f c o n s tr u ctio n p r ic e w as h igh er than that fo r the U nited States and any o f the oth er th ree r e g io n s . T h is w as due to the su b sta n tia lly g re a te r u sa g e o f p r e fa b r ic a te d o r package h o u se s than in the oth er r e g io n s . W hile in clu d ed in the lu m b er and lu m b er p ro d u cts grouping, on an in d u stry b a s is , this m a te r ia ls com p on en t in clu d es the c o s t of m a te r ia l ite m s w hich a re not m ade o f lu m b e r. The m u ch h ig h er c o s t p e r $ 1 ,0 0 0 fo r b r ic k in the South r e fle c t s the p red om in a n ce o f e x t e r io r w a lls o f m a s o n r y in that re g io n . H o w e v e r, d esp ite som e re g io n a l d iffe r e n c e s in m a te r ia ls r e q u ir e m e n ts , a r e la tiv e u n ifo rm ity o f m a te r ia ls c o s ts and com p on en t co m p o s itio n is in d ica te d fo r o n e -fa m ily h ou se co n s tr u ctio n . The o v e r a ll a v e ra g e s on m a te ria l re q u ir e m e n ts m a y not fu lly r e fle c t in d u stry p r a c t ic e s in the p u rch a se and u se o f building m a te r ia ls a s s e m b le d o f f - s i t e . F o r e x a m p le , ex p en d itu res fo r rough and d r e s s e d lu m b e r do not in clu d e such m a te r ia ls co n su m e d in su b sta n tia lly p r e fa b r ic a te d o r p ackage h o u s e s . S im ila r ly , exp en d itu res fo r w indow g la ss do not in clu d e g la ss in p u rch a se d p r e g la z e d w in d ow s. T h is re s u lts fr o m the fa ct that m a te r ia ls w e r e g e n e ra lly c la s s ifie d on an in d u stry ra th er than a p rod u ct b a s is . The a v e ra g e s a re a ls o a ffe cte d by v a ria tio n o f lo c a l p r a c t ic e s in p ro v id in g in sta lle d a p p lia n ce s w h ich a re in clu d e d in the co n s tr u ctio n p r ic e . E le c t r ic r e fr ig e r a t o r s w e r e in s ta lle d in r e la tiv e ly few h o m e s as p art o f the p r ic e . O nly a few h om e s had a ir -c o n d itio n in g and so m e o f th ese had co m b in a tio n heating and c o o lin g u n its. The a v e r a g e s , t h e r e fo r e , do not r e p r e s e n t t y p i ca l ex p en d itu res, fo r any p a rticu la r h om e, o f a ll the ite m s lis t e d . 33 A P P E N D IX A . S cop e and M ethod o f S u rvey T h is study w as d e sig n e d to d evelop e stim a te s o f m a n -h o u r r e q u ir e m en ts a s s o c ia t e d with the co n s tr u ctio n o f p riv a te , n o n fa rm , new o n e -fa m ily h o u s e s . P r o je c t data ob tain ed fr o m or rela tin g to a ctiv ity at the c o n s t r u c tion s ite , as w e ll as in fo rm a tio n b a sed on s e co n d a ry data such as the C ensus o f M a n u fa ctu res, w e r e u tiliz e d . C h a r a c t e r is t ic s o f the U n iv e rse and S e le ctio n o f the Sam ple The s e le c tio n o f the sam ple fo r this study w as in two d istin ct p a rts: F ir s t , the nu m ber and value of the h ou ses to be su rv e y e d in ea ch a re a w as d eterm in e d on the b a s is o f B ureau o f the C ensus data. S econ d , the s p e c ific h o u se s to be studied in each a re a w e r e s e le c te d fr o m FH A r e c o r d s . The m eth od s and s o u r c e s u se d in each step w e re as fo llo w s : The b a s ic s o u r c e o f the u n iv e rse fo r the study w as B ureau o f the C ensus co n s tr u ctio n r e p o r t s 12 con tain in g a su m m a ry o f r e s id e n tia l building p e rm it a re a data fo r the y ea r I960. T h e se r e p o r ts p ro v id e d the m ea n s fo r s e le c tio n o f a sa m ple o f p r o je c t s by lo ca tio n (fo u r g e o g ra p h ic r e g i o n s ,13 by State, and lo ca lity ) and by p r e s e n c e in a m e tro p o lita n o r n o n m e tro p o lita n a re a as co n tr o llin g fa c t o r s . The sam ple ra tio w as a p p ro x im a te ly 1 out o f each 7 ,4 0 0 p riv a te o n e -fa m ily d w ellin g un its. S e le c tio n w as m ade se p a ra te ly in m e tr o p o lita n and n on m etrop olita n a re a s by sta rtin g with a ran d om num ber and counting to the sa m ple a r e a . One hundred and one units or hou se p r o je c t s 12B ureau o f the C en su s, Co n stru ctio n R e p o r ts , B uilding P e r m it s , New H ousing U nits A u th o riz e d by L o c a l B uilding P e r m it s , Annual S u m m a ry , 1 9 59 -6 0 , C 4 0 -2 8 , O c to b e r 1 9 6 l, and C o n stru ctio n R e p o r ts , B uilding P e r m its , New R e sid e n tia l C o n stru ctio n A u th o riz e d in P e r m it -I s s u in g P l a c e s , C alen der y e a r I960, C 4 2 -1 4 , A ugust 1 9 6 l. 13The States in clu d e d in ea ch o f the re g io n s w e r e as fo llo w s : N o rth e a st--C o n n e c t ic u t, M ain e, M a ssa ch u se tts, New H a m p sh ire , N ew J e r sey , New Y o rk , P en n sy lv a n ia , R hode Islan d, and V e rm o n t; N orth C e n tra l- I llin o is , Indiana, Iow a, K a n sas, M ich ig a n , M in n esota , M is s o u r i, N eb ra sk a , N orth D akota, O hio, South D akota, and W isco n sin ; South--A la b a m a , A r k a n sa s, D ela w a re, D is tr ic t o f C olu m b ia , F lo r id a , G e o r g ia , K entucky, L o u is i ana, M a ry la n d , M is s is s ip p i, N orth C a rolin a , O k lahom a, South C a ro lin a , T e n n e s s e e , T e x a s , V irg in ia , and W est V irg in ia ; and W e s t- - A r iz o n a , C a li fo rn ia , C o lo ra d o , Idaho, M ontana, N evada, New M e x ic o , O re g o n , Utah, W ashington, and W y om in g . 34 were selected for the sample. The selected sample units were then a s signed sales price ranges on the basis of unpublished data furnished by the Bureau of the Census showing price class distribution by region and m et ropolitan and nonmetropolitan area. Final selection of the specific or actual houses to be studied in the sample areas were made by Bureau of Labor Statistics field representa tives from records made available in the various regional offices of the FHA. The field representatives, provided with location, area, and sales price range information for each of the projects in their regions, called upon FHA officials at the local offices and obtained assistance in locating the most recently completed one-family house meeting the sample criteria, from the records. Alternate projects were selected in like fashion, to allow for required substitutions at the field data collection stage, in the event of inadequate data or lack of cooperation from the respondents of the originally selected projects. A substantial amount of project character istics and cost data were also made available from FHA records. Selection of the "m ost recently completed house” from FHA records made possible the coverage of houses built during the different seasons,of the year, as the field representatives proceeded with data collection which extended over the period of a little more than one year. Use of FHA records for sample project selections arose from the need for a source of unbiased and relatively constant valuation data. It is believed that these records provided such a source. Their use resulted, with few exceptions, in the study of sample project houses either appraised for valuation purposes or mortgage insured by FHA. Although construction of the projects studied extended over a period of less than 1 -1 /2 years, most of the construction took place during the calendar year 1962. Man-Hour Estimates The customary presentation of employment data for construction projects includes estimates for on-site and off-site employment. Such a presentation is followed by this study. In addition, however, there is an economic distinction which can be made in analyzing man-hour require ments for construction. The basic grouping in this instance would be the primary and secondary labor effects of construction expenditures. Primary man-hour requirements, for purposes of this report, in clude, in addition to all on-site labor, the builders or construction con tractor's office employment and the labor required in those manufacturing industries which fabricate the construction materials used on the s ite -that is., the "last stage of manufacturing" plus all trade, distribution, and 35 services involved in placing the construction materials at the site. They also include the ’’ selling11 employment (salesmen and real estate office clerical employees) generated by real estate sales commissions. Secondary employment includes all other labor requirements neces sary to produce and transport the raw materials and semifinished products to the factories which finally produce the items used at the site. For this study of one-family houses, it also includes the indirect employment aris ing from such selling costs as newspaper and billboard advertising. On-Site Man-Hours On-site labor requirements data for the construction of the new onefamily houses in this study were obtained by field representatives from builders (owners, developers, brokers), architects, contractors, and other direct participants in the projects. Information for on-site man-hours and occupational wage rate data were generally derived from payroll or labor cost records, or daily work force reports. Only summary man-hour re sults, by occupation and wage rate, were requested. For some contractors whose records could not be used to isolate the data for specific house proj ects, estimated hours and materials costs were substituted. The selfemployed contractor-journeymen on the projects also provided estimates of their hours at the site in the absence of adequate records for the purpose. Off-Site Man-Hours From the builders, contractors, and subcontractors cooperating in the study, a list was obtained of the value of each type of material used in the sample house projects. These material listings were classified into categories consistent with 4-digit Census of Manufactures product groups. For each of these product groups, the average amount used per $ 1,000 of construction price was determined. Once the average use was calculated, each figure was reduced by a specific ratio to determine the difference be tween valuation by the purchaser and valuation by the producer.14 Since all data reported by the builders or contractors were in purchasers1 value, r e duction to producers' value made the figures consistent with Census data published on these various components. Primary Distribution Industries Employment Primary man-hours in the trade, transportation, and service indus tries were estimated from the difference between producer and purchaser value for each construction material. The value differences were allotted 14This ratio is based on data provided by U .S. Department of Com merce, Office of Business Economics. 36 to trade and transportation, and primary man-hours for each component of transportation and trade were then estimated from labor factors in cluded in the 200-order interindustry analysis. Primary Manufacturing Employment Primary employment in manufacturing was considered to be that required to produce items in the construction bill of materials in their final stage of fabrication. In this stage, man-hours resulting from pri vate one-family house construction were developed by multiplying average value of each construction component by a ratio of manufacturing man hours to $ 1,000 of production. 5 Secondary Employment in All Industries Secondary employment is defined as employment in all industries involved in production and transportation of building materials and equip ment, from basic extraction to, but not including, the final manufacturing stage. To calculate all secondary man-hours involved in construction mate rials and equipment, a 200-interindustry system of classification was used. The 200-order was adjusted to I960 prices and productivity le v e ls .16 The 200-order interindustry system is also constructed on a six-sector deter mination of associated employment needed to produce a given bill of goods. Each of the six sectors--agriculture, mining, manufacturing, transporta tion, trade, and all other--has an individual employment factor for each product group. By multiplying the value of each component by the six indi vidual employment factors, it was possible to determine employment re quired in agriculture, mining, and the other sectors to produce each given material. Price and productivity adjustments were made to arrive at data for the year consistent with the bill of materials. Total Man-Hour Requirements From each off-site stage (primary distribution, primary manufac turing, and secondary industry), man-hours per $ 1,000 of private onefamily housing construction were obtained. When these were combined 15This ratio was established by using the 1961 Survey of Manufactures adjusted for price and productivity change to provide comparable 1962 data. l6While updated to reflect I960 prices and productivity, the secondary man-hours were estimated on the basis of the 1947 interindustry relation ships study made by the Bureau. See W. Duane Evans and Marvin Hoffenberg, ’’Interindustry Relations Study for 1947, ” Review of Economics and Statistics, Yol. XXXIV (1952), Cambridge, M ass. 37 with direct or on-site man-hours, the total employment effect, within the definition used by the study, was determined. However, procedures used in estimating employment generated by private one-family housing con struction did not include all such employment. The technique used for the off-site segment covers only employment generated by direct purchases of materials and supplies and that implicit in depreciation of construction equipment. The following areas of employment related to volume of con struction activity were not covered: (1) Inspection by government employ ees during construction; (2) labor time involved in installations by public utility employees; (3) labor generated by money expended by builders and contractors for taxes (including payroll taxes) and welfare payments; (4) the "multiplier11 effect of respending of wages and profits; and (5) the con struction and equipment of new production facilities, if needed to supply construction materials. * U.S. GOVERNMENT PRINTING OFFICE : 1964 0 - 7 3 5 - 2 1 2
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