The construction industry has been facing a conundrum for years—far before the COVID-19 pandemic sent things into a tailspin. This conundrum plaguing the construction industry continues to be finding skilled workers to help complete construction projects on time and on budget. The numbers tell us a compelling story about where we have been and where we must go to manage a skilled workforce.
In late August, the AGC (Associated General Contractors of America) released the results of a workforce survey that painfully shows 94% of contractors admit they are having a hard time filling open positions, particularly among the craft workforce that performs the bulk of onsite work. Additionally, nearly one-in-three contractors report having at least 11 unfilled craft positions as of June 30. This is a big, big problem.
This isn’t the only survey to unpack this issue. Earlier this year, ABC (Associated Builders and Contractors) released numbers that suggest the construction industry will need to attract an estimated 501,000 additional workers on top of the normal pace of hiring in 2024 to meet the demand for labor. That is half a million workers.
All this to say, the worker shortage is a significant challenge that needs to be addressed. Sadly, we have been sounding the alarm for years, but it has only fallen on deaf ears. The recent AGC survey suggests the biggest failure here is the nation’s ability to invest in construction workforce education and training problems. A report the association recently released in partnership with the Progressive Policy Institute found federal officials invest four times as much each year encouraging students to earn four-year degrees than they do supporting workforce development programs for fields like construction.
This shows up in the recent survey, which reveals roughly 62% of candidates were not qualified to work in the industry and 43% lack the required documentation like a driver’s license, work permit, or clean background check. And yet half of firms report new hires fail to show up or quit shortly after starting. Yikes. We know this is a real problem. Now what can we do about it?
This survey suggests 91% are increasing base pay rates for hourly construction positions; 57% are adding online strategies to recruit younger workers; and 51% are engaging with career-building programs like high schools or training facilities. Contractors are also increasing investment in internal training for both hard and soft skills. Technology also enters the equation. As an example, in HR, one-in-four firms are using technology to deliver training programs for workers.
These are all good first steps. In our report, Who Is the Worker of Tomorrow?, we find the top eight reasons construction workers stay in their current position include: technology, the people, challenges, mentors, advancement opportunities, flexibility, compensation, and interest in the work.
We need to recognize the workforce of tomorrow needs are changing and we need to embrace these unique needs. We also need to acknowledge we are in the midst of a technology revolution, understanding that we need the technological advances and workers to work together. Given this recent shift in digital transformation, strategic thinking will be key, as will talent development. Highly engaged workers will also be needed to address the challenges we face in the construction industry today and tomorrow.
AGC suggests federal officials are responsible for investing in construction workforce training and education. The reality is we all must pick up the mantle: federal officials, construction companies, schools, media, each individual construction worker, and beyond. We all have a responsibility here to improve the workforce of tomorrow in the construction industry. What will you do this week and in the future to ensure you do your part?
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