flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Construction industry skills shortage is contributing to project delays

Contractors

Construction industry skills shortage is contributing to project delays

Higher costs also hampering progress on project timelines


By Peter Fabris, Contributing Editor | September 11, 2023
Image by PIRO from Pixabay
Image by PIRO from Pixabay

Relatively few candidates looking for work in the construction industry have the necessary skills to do the job well, according to a survey of construction industry managers by the Associated General Contractors of America (AGC) and Autodesk.

It’s a frustrating and business-impacting situation for many of the 1,400 U.S. construction firms that responded to a questionnaire in July and August. About 85% of survey respondents said they are trying to fill openings, but the going is rough.

Supply chain issues and workforce challenges are ongoing concerns. A whopping 68% of respondents said that applicants lack the skills needed to work in construction. Some 61% reported project delays due to labor shortages, and 65% reported delays because of supply challenges. Higher costs caused half the respondents to cancel, postpone, or scale back projects.

In response to the skills shortage, firms are investing more in internal training, with 41% boosting spending in this area. One-quarter of respondents say they are using video training, and 14% have turned to augmented and virtual reality technology for training.

There is some optimism reflected in the survey. A sizeable minority of construction firms responding to the survey are hopeful that new technology will improve the workforce skills outlook. About 41% of respondents said that AI and robotics in the next five years will improve the quality of construction jobs and make workers safer and more productive.

Related Stories

Market Data | Mar 1, 2016

ABC: Nonresidential spending regains momentum in January

Nonresidential construction spending expanded 2.5% on a monthly basis and 12.3% on a yearly basis, totaling $701.9 billion. Spending increased in January in 10 of 16 nonresidential construction sectors.  

Market Data | Mar 1, 2016

Leopardo releases 2016 Construction Economics Report

This year’s report shows that spending in 2015 reached the highest level since the Great Recession. Total spending on U.S. construction grew 10.5% to $1.1 trillion, the largest year-over-year gain since 2007. 

Market Data | Feb 26, 2016

JLL upbeat about construction through 2016

Its latest report cautions about ongoing cost increases related to finding skilled laborers.

Contractors | Feb 25, 2016

Huntsville’s Botanical Garden starts work on new Guest Welcome Center

The 30,000-sf facility will feature three rental spaces of varying sizes.

Architects | Feb 24, 2016

Is the booming freelance economy a threat to AEC firms?

By shifting the work (and revenue) to freelancers, “platform capitalism” startups have taken considerable market share from traditional businesses.

Religious Facilities | Feb 22, 2016

For the first time in Bulgaria, a temple’s construction raises a metal dome

The church is 2½ times larger than the basilica in Ukraine it references.

Market Data | Feb 10, 2016

Nonresidential building starts and spending should see solid gains in 2016: Gilbane report

But finding skilled workers continues to be a problem and could inflate a project's costs.

Contractors | Feb 2, 2016

ABC: Nonresidential spending falls again in December

For a second consecutive month, 12 of 16 nonresidential subsectors experienced spending decreases on a monthly basis.

Contractors | Feb 1, 2016

ABC: Tepid GDP growth a sign construction spending may sputter

Though the economy did not have a strong ending to 2015, the data does not suggest that nonresidential construction spending is set to decline.

Contractors | Jan 15, 2016

Controlling interest in Clark Construction sold to employee group

The death of its founder last year set the wheels of this transition in motion. 

boombox1
boombox2
native1

More In Category



Government Buildings

One of the country’s first all-electric fire stations will use no outside energy sources

Charlotte, N.C.’s new Fire Station #30 will be one of the country’s first all-electric fire stations, using no outside energy sources other than diesel fuel for one or two of the fire trucks. Multiple energy sources will power the station, including solar roof panels and geothermal wells. The two-story building features three truck bays, two fire poles, dispatch area, contamination room, and gear storage.


Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.

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