The construction industry, a vital driver of economic development and infrastructure enhancement, is currently grappling with a shortage of skilled employees in preconstruction roles. From estimators and project planners to cost analysts and schedulers, the demand for these critical professionals is outpacing the supply, creating a pressing concern that reverberates throughout the construction landscape.
Challenges in the preconstruction workforce
For the last few years, the construction industry has faced a labor outlook that paints a bleak picture. In a landscape where demand is ever-increasing, the industry finds itself in dire need of a substantial workforce. According to a recent analysis conducted by Associated Builders and Contractors (ABC), contractors are expected to hire an estimated 546,000 workers in 2023 alone. This figure, in addition to the industry’s regular pace of hiring, underlines the magnitude of the labor challenge.
The situation in the construction industry became acutely apparent in 2022 when it averaged more than 390,000 job openings per month — an all-time high and a significant indicator of the dire workforce shortage. Notably, the industry’s unemployment rate for 2022 stood at a mere 4.6 percent, the second-lowest in history. This low unemployment rate suggests that there are very few construction workers actively seeking employment, further shrinking the pool of available workers to meet the escalating demand.
To put this challenge into perspective, ABC predicts that for every $1 billion in new construction spending, there will be a demand for an additional 3,620 new jobs. This projection is on top of the already above-average job openings in the industry.
Solutions for addressing employee shortages in preconstruction
Addressing the pressing issue of employee shortages in the construction industry requires innovative strategies and a comprehensive approach. Preconstruction professionals must adapt to the evolving landscape and proactively bridge the workforce gap. Here are key solutions to meet the challenges head-on.
Strengthening relationships
In the construction ecosystem, the value of strong relationships with stakeholders cannot be overstated. Industry professionals should prioritize the cultivation and maintenance of these connections, fostering trust, collaboration, and open lines of communication. Aside from suppliers, subcontractors, and clients, fostering relationships with current employees to maintain high retention is vital. These relationships not only improve collaboration but also contribute to the development of a robust and reliable network of partners within the company.
Investing in skill enhancement
In-house workforce development and training programs have gained prominence in building better relationships within the company as construction companies recognize the value of investing in their existing employees. These programs provide opportunities for staff to upgrade their skills and knowledge, with a specific focus on critical preconstruction roles. This strategic investment contributes to a more proficient and adaptable workforce that is well-prepared for the industry’s demands.
Embracing technological advancements
The transformative influence of technology is a game-changer in the construction industry. Technology brings multifaceted advantages to various aspects of the business:
- Enhanced efficiency and productivity: Technology streamlines project management, elevates data accuracy, and automates repetitive tasks, resulting in increased productivity and reduced operational costs. This empowers construction companies to achieve more with fewer resources, maintaining their competitiveness in a challenging workforce environment.
- Effective cost control: Technology-enabled real-time cost monitoring helps construction firms stay within budget. It also helps identify cost-saving opportunities through data analysis, contributing to improved financial management. Technology equips construction professionals with the tools to make well-informed financial decisions.
- Commitment to sustainability: Technology supports sustainable construction practices, aligning with the industry’s increasing emphasis on eco-friendly approaches and innovative technologies. From energy-efficient building designs to resource optimization and waste reduction, technology contributes to a more sustainable construction ecosystem.
By integrating these time-tested strategies with technology’s transformative capabilities, industry stakeholders can build resilience and ensure their success in a dynamic, ever-evolving construction landscape. While the challenges of workforce shortages may appear formidable, the right approach allows the construction industry to continue to serve as a cornerstone of economic development and infrastructure enhancement.
Key takeaways for preconstruction professionals
As preconstruction professionals continue to navigate the challenges presented by employee shortages in the construction industry, there are several essential takeaways that can guide their efforts and ensure the continued success of construction projects.
- Invest in skill development: Prioritize the development of your workforce. Implement training programs, apprenticeships, and skill enhancement initiatives to elevate your team’s proficiency. By investing in your employees’ growth, you can mitigate the effects of employee shortages and contribute to a more skilled workforce.
- Efficiency is key: Efforts to enhance preconstruction efficiency can have far-reaching effects. By streamlining processes and improving scheduling and budgeting, you can better adhere to project timelines and budgets. Efficiency not only benefits your construction firm but also ensures that clients receive higher-quality services and projects are delivered successfully.
- Retention: While attracting new talent is crucial, retaining existing skilled professionals is equally significant. Offering opportunities for growth and development within your organization can foster employee loyalty, contributing to higher retention rates and a stable workforce.
- Advocate for pro-construction policies: Get involved with industry associations and engage in advocacy for policies that support workforce development in the construction sector. By actively participating in shaping the industry’s regulatory environment, you can help create a more favorable landscape for workforce growth.
- Plan proactively: A comprehensive and centralized pre-planning system can help prevent errors and disruptions. Break down the work into digestible phases with realistic timeframes, and identify potential bottlenecks and obstacles early on.
- Consider value engineering: Explore opportunities for value engineering to maximize the value derived from each dollar invested in the project. Focus on improving overall performance, quality, and functionality in a financially responsible manner.
By internalizing these key takeaways, preconstruction professionals can adapt to the evolving construction landscape and proactively address the challenges of employee shortages. With a resilient workforce, efficient processes, and a commitment to growth, construction projects can continue to succeed even in the face of workforce challenges.
