Labor Shortages in Construction: Solutions for Recruitment and Retention

The construction industry is facing a critical challenge: a significant labor shortage. This scarcity of skilled construction workers and heavy equipment operators is impacting projects nationwide, leading to delays, increased costs, and hindering the industry's growth. According to the Associated General Contractors of America (AGC), 92% of construction firms are having trouble finding qualified workers. The Associated Builders and Contractors (AGC) also reports that the construction industry will require nearly 454,000 additional workers beyond its usual hiring needs in 2025 to keep up with demand, even if construction spending growth declines considerably next year. This shortage isn't just a temporary blip, it's a growing concern demanding immediate action. This blog post will delve into the scope of the problem, explore the underlying causes, and highlight innovative solutions for attracting and retaining the skilled construction workforce and heavy equipment operators needed to build our future.

graph showing the employment forecast of construction spending and construction employment — Construction Spending and Employment Forecast - Source abc.org

The Scope of the Construction Labor Problem in the USA:

The numbers paint a stark picture. In 2025, the construction industry will need to bring in nearly half a million new workers on top of normal hiring to meet industry demand. This shortage impacts all sectors of construction, from residential and commercial building to infrastructure projects like road construction, bridge construction, and heavy civil construction. The consequences are far-reaching, including construction project delays, increased costs for both contractors and clients, and a potential slowdown in economic growth.

construction worker using an impactor gun to crew metal plates together — The need of construction workers is higher than ever

Causes of the USA Construction Labor Shortage:

As experienced construction professionals and heavy equipment operators retire, there aren't enough young people entering the industry to replace them. This is compounded by a skills gap. The construction industry is becoming increasingly technologically advanced, requiring workers with specialized skills in areas like Building Information Modeling (BIM), drone operation for construction, and operation of modern heavy construction equipment like excavators, crushers, screeners, and industrial shredders. However, many training programs haven't kept pace with these changes.

concrete printing machine — New technology is constantly appearing in the construction industry and we need to keep up! Source: hanson.es

Several other pressing factors contribute to this labor crisis:

Aging Workforce: The construction craft workforce is aging, with the average age in 2020 being 42.9 years. If the current aging rate continues, by 2030, the average age will exceed 46 years. nccer.org
Skills Gap: The industry increasingly relies on advanced technologies, requiring specialized skills in areas like Building Information Modeling (BIM), drone operation, and modern heavy equipment operation. However, many training programs haven't kept pace with these advancements.
Negative Perceptions: Many young people view construction jobs as physically demanding, low-paying, and lacking career advancement opportunities. This perception is often fueled by outdated stereotypes and a lack of awareness about the diverse and rewarding career paths available in modern construction.
Competition from Other Industries: Sectors like technology and manufacturing actively recruit skilled workers, often offering competitive salaries and benefits packages. Additionally, immigration policies and enforcement actions have led to labor shortages in construction, as immigrant labor plays a crucial role in the industry. barrons.com

two construction workers are being taught new skills — Upskilling is important for growth of the construction industry

Innovative Solutions for Recruitment in the Construction Industry:

Addressing this labor shortage requires a multi-pronged approach. One crucial area is attracting new talent to the industry. Successful strategies include:

Modernized Apprenticeships and Training: Implementing updated apprenticeship programs that incorporate the latest technologies and provide hands-on experience with modern construction equipment is essential. Partnerships between construction companies, vocational schools, and community colleges can play a vital role in developing a pipeline of skilled workers. For example, Omaha, Nebraska’s Metropolitan Community College has partnered with local construction firms to create specialized training programs.
Rebranding the Industry: The construction industry needs to actively promote the diverse and rewarding career opportunities it offers. Highlighting the use of cutting-edge technology, the potential for high earnings, and the opportunity to build tangible projects that benefit communities can help attract a new generation of workers.
Targeted Outreach: Reaching out to high schools, career fairs, and community organizations to educate young people about the opportunities in construction is crucial. Showcasing success stories and providing hands-on demonstrations of heavy equipment operation and other construction skills can spark interest and dispel misconceptions.

three construction apprentice students in bricklaying — Apprentice programmes are a great way to encourage students into the construction industry

Innovative Solutions for Labor Retention in the Construction Industry:

Attracting talent is only half the battle. Retaining skilled workers is equally important. Here are some key strategies:

Competitive Wages and Benefits: Offering competitive salaries and comprehensive benefits packages, including health insurance, retirement plans, and paid time off, is essential for attracting and retaining top talent.
Improved Work-Life Balance: Construction companies are increasingly recognizing the importance of work-life balance. Offering flexible work schedules, paid leave, and other benefits that support employees' personal lives can significantly improve retention rates.
Career Development Opportunities: Providing opportunities for professional development, training, and advancement is essential for keeping employees engaged and motivated. Investing in employee growth not only benefits the individual but also strengthens the entire company.
Creating a Positive Work Environment: Fostering a positive and inclusive work environment where employees feel valued and respected is crucial. Promoting teamwork, open communication, and a culture of safety can significantly boost morale and retention.

two engineers on a worksite — Creating a positive working environment is important to keep workers happy and in the construction industry

Technology's Role in Augmenting the Workforce:

Technology is playing a transformative role in the construction industry, not only by improving efficiency but also by making jobs more appealing and reducing the demand for certain types of labor.

Automation and Robotics: Automated equipment and robotics are being used to perform repetitive and physically demanding tasks, reducing the need for manual labor in certain areas.
Building Information Modeling (BIM): BIM software allows for detailed project planning and coordination, reducing errors and rework, which can translate to fewer workers needed for certain on-site tasks.
Drones and Remote Sensing: Drones and other remote sensing technologies are being used for site surveying, progress monitoring, and inspections, reducing the need for physical site visits.

Final Thoughts on the Labor Shortage in the USA

The labor shortage in construction is a complex challenge that requires a collaborative effort from industry stakeholders, educators, and policymakers. By implementing the strategies outlined in this blog post, the construction industry can attract and retain the skilled construction workforce and heavy equipment operators it needs to build a strong and prosperous future. The time to act is now. Investing in our workforce is an investment in the future of our industry and our communities.

However, overcoming the labor shortage is just one piece of the puzzle. To truly thrive in today's competitive construction landscape, you need more than just skilled workers. You need the right tools and equipment to maximize productivity, efficiency, and profitability.

Service engineer on a large jaw crusher — Machinery Partner are always here to help!

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