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Old 10-21-2015, 09:40 PM
 
7,654 posts, read 5,110,679 times
Reputation: 5036

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Regardless of how that bill rate is parsed out, the labor is by far the major cost run up not the materials. I get it the materials are more expensive but if you sat down and built out a spread sheet the labor is going to make the materials look like chump change. 80-100 bill rates are totally out of control and are the sole reason for alot of the issues we are facing right now. These companies better figure out how to drasticly tighten the belt or more projects are going to keep getting cut and less things getting built.

I got a price quote to dig a roughly 40x40 hole and fill it with gravel for a foundation and it was 15k, people are not going to be paying anywhere close to that very very soon as soon as reality starts setting in.

Quote:
Originally Posted by RayinAK View Post
Take a look at the price for SheetRock:
Drywall Panels - Drywall - *The Home Depot

Cement/concrete mixes:
Mortar, Cement & Concrete Mix - Concrete, Cement & Masonry - *The Home Depot

You are exactly right. We pay quite a lot for building materials compared to the lower-48. Copper pipes have gone up nearly 400% from five years ago. One has to take into consideration that it takes a lot of people to get a single shipping container packed and transported to Alaska. A whole bunch of fuel is used by all modes of transportation, and personnel wages: forklifts (loading and unloading), barges, trucks and trailers, trains, and so on. The added cost is passed to the customer (us), and it still takes a large number of individual sales for the store to make some money.

But in relation to Home Depot and Lowe's, their products are cheaper than most stores in town, because chain stores ship huge amounts of materials to have on stock, and have their own shipping contractors.

Something else that a lot of people don't realize that just to drive to the store to buy materials adds to the cost of living. We do a lot of driving, and fuel is more expensive than in the lower-48, and so vehicle maintenance.

Also, labor cost is tied to the cost of living. For example the place I work at charges $82.00 for labor per hour per worker. The worker earns maybe one-fourth of that amount, and the rest is for the following: company vehicle insurance and registration, healthcare insurance, gasoline, maintenance plus materials, and so on.

You take an ATV to one of the local shops and it costs around $100.00 per hour for labor. But again, the mechanic does not earn that much; most of this money the company uses for worker insurance, to pay for utilities, and so on. Home building works the same way as above.
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Old 10-21-2015, 10:56 PM
 
Location: Anchorage
1,004 posts, read 1,188,003 times
Reputation: 1375
If you are so disgruntled with things here why do you stay?
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Old 10-23-2015, 02:32 AM
 
7,654 posts, read 5,110,679 times
Reputation: 5036
I believe that I will be able to exploit the market in the very near future so I am holding out waiting to see what happens. Prices are already falling but not free falling yet, they wont hit 80s prices but the home with nice finishes have not started slipping enough yet. I am going to see what happens in the next year.

When a nice non fixer upper is going for around 200k and I can get construction done for half the rate then I will be a happy camper. Its coming.

Quote:
Originally Posted by Music_Man View Post
If you are so disgruntled with things here why do you stay?
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Old 10-29-2015, 03:50 PM
 
83 posts, read 90,782 times
Reputation: 34
Alaska and anchorage in particular is FULL BLOWN CORRUPTED by money ,its no wonder that people that were born and raised there are taking their children somewhere else.
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Old 10-29-2015, 04:10 PM
 
83 posts, read 90,782 times
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So id leave myself also especially if I had kids.
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Old 10-29-2015, 04:20 PM
 
83 posts, read 90,782 times
Reputation: 34
And for the record -6 -29 -75 I left NOT BECAUSE YOU GENERATE CHASED ME OUT ....
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Old 10-29-2015, 04:24 PM
 
83 posts, read 90,782 times
Reputation: 34
I tried to talk out about meth use and even the law enforcement looked down on me.
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Old 10-30-2015, 03:47 AM
 
26,143 posts, read 19,825,082 times
Reputation: 17241
Quote:
Originally Posted by minnieloo
From what I've read that 7400 is about how many people were arrested for drugs, burglaries and other crimes. That would explain the loss of residents.
I wonder if some people dont like the extreme cold??

Fairbanks I think has the biggest extreme thruout the year...
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Old 10-30-2015, 05:05 AM
 
7,654 posts, read 5,110,679 times
Reputation: 5036
Most people dont live in fairbanks, the issue is cost of living vs wages. It is a non trivial issue that is effecting alot of buisness owners. Its hard to attract genuine tallent to anchorage because the buisnesses would have to pay astronomical wages in order for people to keep a similar standard of living they are used to up here. They have published articles in the alaska buisness monthly and journel of commerse.

90% of it hinges around rental rates and home prices. Median income is 77k and median home prices are around 325k. And a large majority of that median income is from high income military and oil. IF you truncate the hand full of ultra high wage earners the median would be much lower. But rental rates for something habitable is around 1300 a month minimum.

Quote:
Originally Posted by Dude111 View Post
I wonder if some people dont like the extreme cold??

Fairbanks I think has the biggest extreme thruout the year...
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Old 10-30-2015, 07:56 AM
 
26,143 posts, read 19,825,082 times
Reputation: 17241
Ahh I see...... I guess it would cost alot living there wouldnt it? (The high maintenence to keep roads clear,etc)
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