When the construction industry can’t find qualified workers, the effects are felt far and wide: critical hospital construction is delayed, much-needed school renovation projects aren’t completed on time, and new homes don’t hit the market as planned.
According to the Associated General Contractors of America (AGC), over the past year, 89% of construction firms have struggled to fill hourly labor positions, and 86% struggle to fill skilled salaried positions, a problem likely to intensify. Associated Builders and Contractors (ABC) reveal that the construction industry needs to attract nearly 650,000 more workers this year on top of its normal hiring pace to meet increasing labor demand.
These obstacles may create difficulties, but they also present construction companies with a distinctive opportunity to separate themselves from the competition and reinvent the way they work. Forward-thinking industry leaders are doing everything they can to maximize productivity and find innovative ways to shrink the labor gap by boosting productivity and doing more with less. Here are three examples.
Apps and software platforms designed for the construction industry can support faster, more informed decision-making and provide insight into project progress to keep work on track.
Depending on the type of platform used, software can help construction companies:
Data visibility can also help contractors adjust workflow patterns based on what’s happening in the field. For example, in the summer, are workers more productive (or more apt to show up) when they work four 10-hour days instead of five 8-hour days? When this type of data is available, identifying how and where to improve efficiency becomes easier.
To reduce time spent in the field and keep workers in a safe and controlled environment, construction companies are finding unique ways to put building materials together.
Off-site construction (also called modular construction) is gaining traction as a way for construction companies to shorten timelines and minimize lost time due to injury or fatigue.
This approach allows a construction team to build certain components in a factory setting (e.g., wall panels for hospital rooms with electrical and mechanical already built in). From there, the components are transported to the jobsite and assembled on location.
In addition to improving quality and speeding up projects, offsite construction also helps ease labor costs. Because the on-site assembly process doesn’t rely on specific skills, it can be done by workers who may have less experience without sacrificing quality. Entirely new pools of workers can be considered since they no longer need specialized training, certifications, or skill sets.
When there are open positions to fill, contractors are finding inventive ways to build their talent pipelines by:
In an environment where workers are difficult to find, the only choice is change: transform your businesses, make employees more productive, and improve communication. Construction companies that take action and find new ways to work will build resilience against lingering shortages.
Find out how Wintrust’s Construction, Engineering, and Architecture group can help your business do more.