flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction demand continues to outpace the industry’s workforce capacity

Contractors

Construction demand continues to outpace the industry’s workforce capacity

Skilled worker shortages are causing project delays, and even cancellations, according to latest AGC-Autodesk survey.


By John Caulfield, Senior Editor | September 3, 2021
Contractors practicing social distancing on jobsite.

Contractors are social distancing on jobsites around the country. The coronavirus pandemic remains a factor in the trouble that construction firms are having finding workers, as well as scheduling and completing projects. Images and charts: Associated General Contractors of America

The markets in Northwest Arkansas and Southwest Missouri that the construction company Carson-Mitchell, Inc. serves are “booming,” says its President and CEO Chris Carson. Despite the coronavirus pandemic’s impact on its economy, construction “never really slowed, or stopped” in Florida, says Brett Strassel, Vice President of Operations for the West Palm Beach-based Hedrick Brothers Construction.

But like construction companies across the U.S., these firms have been struggling to keep pace with demand in their territories because they can’t find enough skilled labor.

On Thursday, Carson and Strassel participated in ZOOM call during which the Associated General Contractors of America (AGC) and Autodesk presented their ninth annual Workforce Survey, with new data—based on responses from more than 2,100 companies—that show the scope and impact of construction workforce shortages that have reached pre-pandemic levels and continue to be affected negatively by the lingering coronavirus.

Contractors are ready to hire and want to add more employees

 

Contractors are ready to hire more employees; finding them is the problem.

 

“We’re in an odd paradox,” said Stephen E. Sandherr, the association’s CEO. On one hand, the shortages, which predate the pandemic, along with supply-chain snags, are causing projects to be delayed. On the other hand, the pandemic “has been driving” the industry’s construction and workforce issues.

This morning, AGC reported that the construction sector lost 3,000 jobs between July and August, which the association attributed, in part, to “ongoing declines in nonresidential” building and infrastructure segments where jobs have shrunk for five consecutive months. Total construction employment in August stood at 7,416,000.

Reasons why pros can't find workers

The AGC-Autodesk survey shows that contractors are drawing from a shallower pool of qualified workers. And that's leading to project delays and affecting completion scheduling.

Worker shortages are short-circuiting projects

The AEG-Autodesk survey’s findings, which the association’s chief economist Ken Simonson summarized during the ZOOM call, were sobering. They included the following:

•88% of the companies polled are experiencing project delays, and three-quarters of respondents specifically cited longer lead times or materials shortages as culprits.

•More than half of those polled (51%) report projects that had been cancelled, postponed, or scaled back due to rising costs.

•Fewer than half (46%) said their companies’ volume matched or exceeded the level of a year ago, and 28% thought their recovery might take longer than six months.

Most firms say they are eager to hire and expect to add new employees over the next 12 months, even though nearly nine of 10 respondents also conceded they were having difficulty finding craft workers to fill existing positions. More disconcerting was the 72% of respondents who said available job applicants weren’t qualified to work in the industry.

Respondents also complained that supplements to unemployment benefits were keeping qualified workers away from jobs. A smaller percentage (6%) say the fear of coronavirus exposure on the jobsite was hamstringing projects.

 

TECHNOLOGY EASES PROJECT MANAGEMENT

Technology is helping contractors manage with fewer employees

Technology is being relied upon more to help contractors manage projects with fewer workers.

 

The industry’s chronic worker shortages have compelled construction firms to rethink how to attract and retain new blood. Nearly one-third of those polled are now spending more on training and professional development. Another 37% are engaged in career-building programs at the high school, collegiate, and technical school levels.

Firms are also turning to technology: Neary three-fifths—57%—of respondents said that the adoption of technology had increased at their firms over the past 12 months. Around the same percentage expects the rate of technology adoption to increase over the next year.

During the ZOOM call, Allison Scott, Autodesk’s Director of Construction Thought Leadership and Customer Marketing, said that her company had seen a 150% increase in the application of its Project Management software over the past year. (About 45% of the survey’s respondents have adopted project management software.)

Scott implied that tech-savvy contractors might have a better shot at luring younger workers at a time when “construction has an image problem in attracting emerging talent.”

Strassel admitted that, prior to the pandemic, he would roll his eyes at some of the suggestions about how to get Millennials interested in the construction arena. But as the worker shortage problem has gotten worse, he’s having second thoughts. Last year, Hedrick Brothers hired a consultant and set up a task force to strategize how to make the company and its jobs more appealing to younger workers. “We can’t ignore an entire generation,” he said.

Contractors are raising the pay scales to attract workers

Improving compensation and better training are among the measures that contractors have taken to make their companies and jobs more attractive to potential employees. 

Contractors making internal changes to make jobs more appealing to candidates

 

 

ASSOCIATION URGES FEDERAL ACTION

 

AGC wants more federal dollars spent on career training

AGC wants the federal government to spend more on career training to get younger people interested and prepared for construction employment.

 

The two contractors on the ZOOM call said that the pandemic’s impact on projects mostly revolved around getting workers vaccinated. Carson acknowledged that subcontractor resistance to vaccination “has made life difficult” for his company on certain projects, notably hospital construction and renovation where worker vax is mandated. Sandherr pointed out, too, that contractors can’t impose mandates on union workers, and he questioned whether contractors should be put in the position of becoming “health police” monitoring sub compliance.

Neither Carson nor Strassel said his company plans to make vaccinations mandatory for workers or subs. Both sounded more concerned about ongoing supply-chain delays, “which are subject to change every day,” said Carson, and are not likely to be resolved quickly, lamented Strassel.

Nationally, about half of all construction workers have been vaccinated. AGC has been encouraging workers to get the shot, and has been instrumental in establishing jobsite safety protocols.

To mitigate worker shortages, AGC has also launched a targeted digital ad campaign that promotes the construction industry. And its “Culture of Care” program is designed to help contractors retain workers. “We’re doing what we can,” said Sandherr during the ZOOM call.

AGC thinks Washington could be doing more, too. Sandherr noted that the federal government spends only $1 on career training for every $6 it spends on college prep, when only one in three jobs requires a college diploma. The association is also urging the House of Representatives to pass the $1 trillion bipartisan infrastructure bill, which the Senate has already passed. (A House vote on that bill is scheduled for Sept. 27.)

Related Stories

Affordable Housing | Jun 12, 2024

Studio Libeskind designs 190 affordable housing apartments for seniors

In Brooklyn, New York, the recently opened Atrium at Sumner offers 132,418 sf of affordable housing for seniors. The $132 million project includes 190 apartments—132 of them available to senior households earning below or at 50% of the area median income and 57 units available to formerly homeless seniors. 

Contractors | Jun 12, 2024

New hire strengthens Kraus Anderson's relationships with design-architects

Nate Enger, the firm’s second design phase services manager, has worked on both sides of the designer-contractor fence.

Contractors | Jun 12, 2024

The average U.S. contractor has 8.3 months worth of construction work in the pipeline, as of May 2024

Associated Builders and Contractors reported that its Construction Backlog Indicator fell to 8.3 months in May, according to an ABC member survey conducted May 20 to June 4. The reading is down 0.6 months from May 2023.

Lighting | Jun 10, 2024

LEDs were nearly half of the installed base of lighting products in the U.S. in 2020

Federal government research shows a huge leap in the penetration of LEDs in the lighting market from 2010 to 2020. In 2010 and 2015, LED installations represented 1% and 8% of overall lighting inventory, respectively. 

Contractors | Jun 7, 2024

First-in-nation law requires contractors to pay prevailing wage for subsidized housing projects in Minnesota

Minnesota recently adopted a first-in-nation law that requires contractors to pay prevailing wage for subsidized housing projects in the state. This action makes Minnesota the first state in the nation to mandate prevailing wages on projects funded by federal Low-Income Housing Tax Credits (LIHTC).

Libraries | Jun 7, 2024

7 ways to change 'business as usual': The Theodore Roosevelt Presidential Library

One hundred forty years ago, Theodore Roosevelt had a vision that is being realized today. The Theodore Roosevelt Presidential Library is a cutting-edge example of what’s possible when all seven ambitions are pursued to the fullest from the beginning and integrated into the design at every phase and scale.

Education Facilities | Jun 6, 2024

Studio Gang designs agricultural education center for the New York City Housing Authority

Earlier this month, the City of New York broke ground on the new $18.2 million Marlboro Agricultural Education Center (MAEC) at the New York City Housing Authority’s Marlboro Houses in Brooklyn. In line with the mission of its nonprofit operator, The Campaign Against Hunger, MAEC aims to strengthen food autonomy and security in underserved neighborhoods. MAEC will provide Marlboro Houses with diverse, community-oriented programs.

Contractors | Jun 4, 2024

Contractors expect to spend more time on prefabrication, according to FMI study

Get ready for a surge in prefabrication activity by contractors. FMI, the consulting and investment banking firm, recently polled contractors about how much time they were spending, in craft labor hours, on prefabrication for construction projects. More than 250 contractors participated in the survey, and the average response to that question was 18%. More revealing, however, was the participants’ anticipation that craft hours dedicated to prefab would essentially double, to 34%, within the next five years.

Airports | Jun 3, 2024

SOM unveils ‘branching’ structural design for new Satellite Concourse 1 at O’Hare Airport

The Chicago Department of Aviation has revealed the design for Satellite Concourse 1 at O’Hare International Airport, one of the nation’s business airports. Designed by Skidmore, Owings & Merrill (SOM), with Ross Barney Architects, Juan Gabriel Moreno Architects (JGMA), and Arup, the concourse will be the first new building in the Terminal Area Program, the largest concourse area expansion and revitalization in the airport’s almost seven-decade history. 

Construction Costs | Jun 3, 2024

Escalation: Predicting project costs in a volatile market

Thad Berkes, Chief Cost Estimator, Design Collaborative, shares that one of the major hurdles that Design Collaborative attempts to forecast for its commercial construction projects is escalation.

boombox1
boombox2
native1

More In Category


Healthcare Facilities

Watch on-demand: Key Trends in the Healthcare Facilities Market for 2024-2025

Join the Building Design+Construction editorial team for this on-demand webinar on key trends, innovations, and opportunities in the $65 billion U.S. healthcare buildings market. A panel of healthcare design and construction experts present their latest projects, trends, innovations, opportunities, and data/research on key healthcare facilities sub-sectors. A 2024-2025 U.S. healthcare facilities market outlook is also presented.



halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021