Wall Street Journal: Increase in Demand During Pandemic Has Toll Brothers’ CFO Worried

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Martin Connor, Chief Financial Officer at Horsham-based Toll Brothers, is worried about salary and benefit costs as demand for new homes continues to grow.

Martin Connor, Chief Financial Officer at Horsham-based Toll Brothers, is worried about salary and benefit costs as the demand for new homes continues to grow, write Mark Maurer and Nina Trentmann for The Wall Street Journal.

The luxury home builder is expecting to see an increase in labor costs over the following months. This will make it harder to control operating costs as the pandemic continues to drag on.

Meanwhile another challenge for the company is finding skilled workers while everybody increases production to meet the growing demand.

“We would expect some labor pressures, availability, and pricing based on the growth we are seeing and our competitors are seeing,” said Connor.

According to a new survey of around 1,070 executives by the Association of International Certified Professional Accountants, managers expect to see their salary and benefit costs increase by 0.9 percent over the next 12 months. This is a reversal from the second quarter when expenses were expected to fall by 0.7 percent.

The survey also found that labor costs represent the biggest inflationary risk for 37 percent of respondents, surpassing food, energy, and raw materials.

Read more about Toll Brothers at The Wall Street Journal by clicking here.

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