The sound of nail guns thumping roof sheeting into place echoed across a cul-de-sac in Morgan Ranch, where crews were building the last house in a subdivision of 400 homes.

This week the 15 men will receive their last paycheck and begin job hunting at a time when many contractors are laying off workers because there’s not enough work to go around.

“I’m worried about these guys — the housing market is hurting,” said Tim Rowe, foreman of the Morgan Ranch Development since 2001.

Hardware stores, plumbers, carpenters, electricians, masons and others in the construction trade are feeling uncertainty in the air since the real estate market took a nose dive.

New home construction is down in western Nevada County, and the development of four major subdivisions is still years away from gaining approval, said Kevin Casey, owner of Caseywood Corporation, a major lumber supplier to area contractors.

In two years, Casey’s deliveries have fallen by 20 percent, he said.

Contractors who typically have two major projects going at once are now bidding against three other people for the same job, Casey said. As many as three people come job hunting daily at his company but he has to turn them away, he said.

“The level in the pond is much lower, but the number of the fish is the same,” he said.

The slowdown coincides with a national real estate slump, tighter home loan requirements and a wait-and-see attitude toward future home prices and interest rates.

Only two years ago, when business was booming, many construction-related companies upgraded with new equipment and shiny new trucks. Then business came to a grinding halt.

“You’re carrying all this new overhead. It can be a little unnerving,” Casey said.
Compounding the problem is the influx of Sacramento-based contractors coming into the region to build homes in Nevada County, said Keoni Allen, president of the board of the Nevada County Contractor’s Association and owner of Sierra Foothills Construction.

“Some of our local guys are out of work. That doesn’t seem right,” Allen said.


Remodels growing

The number of building permits issued by the county dropped from 390 in August 2005 to 275 in August of this year, said Brian Washko, director of the county’s building department.

The number of additions and remodels have increased while new home construction has fallen — a change Washko attributes to homeowners who decide to fix up their homes rather than try to sell them.

“The value has gone down. They can’t get what they hoped to get for it,” Washko said.

Permits for remodels generate little revenue for the building department, which gets the bulk of its money from new construction. The department’s revenue fell 7 percent
short of projections for August, Washko said.


What now?

Some out-of-work laborers are seeking employment outside of California, said Eric Fullmer of an employment agency called Rush.

Carpenters from the Morgan Ranch crew have varied plans. One plans to open a hot dog stand, another plans to get his contractors license and do his “own thing,” while another wants to collect unemployment and snowboard all winter.

The crews from Morgan Ranch had job security for 12 years, unheard of in the construction trade, where work comes and goes with the seasons.

“When they go out in the community (looking for work) there’s going to be nothing like that now,” said Tony Medler, developer of the Morgan Ranch subdivision.

Though much debated, local housing projects such as North Star, Loma Rica Ranch, South Hill and Kenny Ranch won’t help pick up the slack. “None of them have even scratched a road in,” said Casey.

Construction workers such as Rob Belendez are worried. He worked at Morgan Ranch for the past 11 years. He has a wife and four children to support, plus a mortgage and car payment.

A large bonus anticipated with his last check will get him by for awhile, but the lean times of winter are coming.

He’s sent out a few résumés around the area but hasn’t yet landed a job. “It remains to be seen,” Belendez said, shaking his head.


Service Sector

The impacts of the slowdown are far reaching and even service oriented agencies such as plumbers are feeling the crunch.

ABT Plumbing’s revenue has dropped 20 percent in the past two months, and it had to cut its workforce from 8 to 5 people in the past year because the company isn’t getting as many calls as it used to, said owner Andrew B. Twidwell.

“It’s filtering throughout the economy,” said Twidwell, who has tightened his company’s budget, sold a truck and heavy equipment in order to pay his bills.


Bright side

It’s not the first time economic hard times have befallen the local industry, said Casey,
who recalls a similar dip in the early 1990s.

“We stumbled and fumbled, and we all got through it,” Casey said.

On the bright side, now is a great time to build because lumber is at a 20-year low and property owners have a pool of quality contractors with time to devote to their clients, said Jeff Pardini, owner of Hills Flat Lumber, which opened a Home Depot sized store earlier this year.

“You’re crazy not to do something right now,” Pardini said.

Added Casey, “You’re going to get a lot of attention.”

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To contact Staff Writer Laura Brown, e-mail lbrown@the union.com or call 477-4231.