Have you ever heard people complaining about the Amish underbidding construction companies on projects? In this guide, we’ll unravel the reasons behind the widespread discontent, exploring the dynamics of Amish craftsmanship and the challenges it poses.
Why Everyone’s Complaining About Amish Underbidding?
Construction companies and self-employed carpenters often get annoyed with the Amish, saying they always underbid on projects.
The Amish leverage an affordable workforce and don’t pay worker compensation, allowing them to occasionally slash bids by 50%.
Companies argue that the Amish lack master craftsmen and their work often falls short in quality compared to most English carpenters and contractors.
However, the upside to their business lies in its affordability and speed. The Amish can work faster, thanks to the sheer number of workers they deploy on a job.
Donald Kraybill, a professor at Elizabethtown College in Pennsylvania, and an expert on the Amish, notes that the underbidding complaint is common in areas where Amish workers are present.
He explains, that the Amish have a significant advantage in terms of cost, as they don’t contribute to Social Security but also don’t draw from the Social Security system.
They also save on insurance costs by not acquiring health and worker compensation insurance.
Additionally, the Amish do not have retirement plans and rely on family and community support in their later years.
Being classified as a “church,” the Amish are exempt from paying self-employment tax or unemployment insurance.
Additionally, they can claim various other tax exemptions, enabling them to offer their services at a lower price than companies or self-employed carpenters.
Amish Pivot to New Ventures Amidst Declining Farming Income
The Amish had to shift to alternative activities as their farming income declined. This is one of the reasons more Amish men work in construction and carpentry nowadays, as farming alone isn’t sufficient to put food on the table.
According to Kraybill, in 1950, farming made up 95 percent of Amish households’ income.
Today, 60 percent of the income for Amish nationwide comes from farming, with the remaining 40 percent sourced from non-farming activities.
The Amish community is worried about the shift from farming to involvement in small businesses and working outside their community. One major concern is the fear of increased exposure to worldly influences.
Conclusion
In summary, the complaints about Amish underbidding in construction and carpentry arise from their unique advantages. As a church, they are exempt from certain taxes, giving them a cost edge.
Despite concerns about their work quality, the Amish’s fast and affordable services, fueled by a cheap workforce, contribute to their competitiveness.