A recent Workforce Survey shows that 94% of construction firms face difficulty finding skilled workers, highlighting a significant labor shortage within the industry. This issue spans all roles, from laborers to management positions, and affects companies of all sizes. According to the survey, the lack of available workers is becoming one of the most pressing challenges for construction firms, threatening to delay projects and increase costs.

The Associated General Contractors of America (AGC) survey points out that a combination of factors has contributed to this workforce gap. Many experienced workers have left the industry, either retiring or seeking employment elsewhere. Meanwhile, fewer young workers enter the construction field, leaving companies struggling to fill roles requiring a specialized skill set. This lack of new talent coming in puts additional strain on the remaining workforce.

Effects of the shortage

This shortage is not just a problem for hiring new employees—it’s causing major productivity concerns. Construction firms are seeing projects take longer to complete, with nearly 40% of firms reporting that they’ve had to delay jobs due to labor shortages. Many companies are also forced to offer higher wages and increased benefits to attract workers, which has led to higher costs overall. Even with these incentives, finding reliable workers remains difficult.

The labor shortage is also making it harder for firms to maintain quality standards. As companies scramble to fill gaps, some hire less experienced workers, which can lead to mistakes or safety issues. Firms also rely more on subcontractors, who may not always have the same training or expertise as in-house employees. As a result, the overall quality of construction projects could be at risk.

Possible solutions

Industry leaders are calling for solutions to this problem, including increased investment in training programs. Many believe that providing younger workers better education and apprenticeship opportunities could help bridge the gap. Some firms are already partnering with schools and vocational programs to promote construction careers as a viable option for students. However, this approach takes time, and companies need immediate solutions to stay competitive in the current market.

In the meantime, firms are adopting various strategies to cope with the labor shortage. Some are turning to technology, using automation and advanced equipment to reduce the need for human labor. Others are focusing on improving job site efficiency, ensuring that the workers they have can maximize their output. But these measures can only go so far without a steady influx of skilled labor.

Bottom line

The construction industry’s labor shortage is a complex issue that will likely continue to challenge firms for years to come. Without enough workers, companies will face ongoing project delays, higher costs, and potential declines in quality. Addressing this shortage requires immediate action and long-term strategies to attract new talent and ensure that the next generation of construction workers is adequately trained and prepared.