Surveying members of the Construction Personnel Executives Group, FMI, reports that 24% of respondents will be unable to bid more work and 32% will experience slow growth if their companies cannot reasonably meet the need for skilled labor and tradespeople. Top executives at the largest contract firms in the U.S. took part in the survey.
“Overall, there’s an increase needed in skilled trade workers of more than 10% throughout the next three to 10 years,” says Ken Wilson, director for FMI, citing highlights from survey partipants. One large construction company says, "Our current hiring forecast shows a need for 8,500 additional craft workers by 2017.”
The top five positions that are expected to be the most difficult to fill are:
- Operator (heavy equipment)
- Welder (boilermaker)
- Carpenter
- Pipefitter
- Ironworker (reinforcing)
There are two significant contributing factors to the high demand for craft labor:
- The shift of the construction workforce to oil and gas related construction. FMI estimates that by 2017 nearly 10% of the total U.S. construction workforce will be part of this burgeoning segment of the industry.
- The number of survey respondents that plan to increase the amount of work the company self-performs. Currently, surveyed firms self-perform less than 40 percent of construction projects. However, 65 percent either have plans to or are considering plans to increase self-performed projects.
- This in-depth look into recruiting and retention of craft labor includes an analysis of the driving factors behind the skilled labor shortage, the most effective recruitment tactics and how companies are filling the demand for field management of the craft labor force. The report also provides practical counsel on how to develop human resource strategies to improve recruiting and retention rates.
To download a copy of the 2015 survey report, “Craft Labor Recruiting and Retention,” click here.
Related Stories
Contractors | Dec 1, 2015
ABC: September's nonresidential spending retains momentum in October
Spending increased in 10 of 16 nonresidential construction sectors on a monthly basis.
Greenbuild Report | Dec 1, 2015
Data centers turn to alternative power sources, new heat controls and UPS systems
Data centers account for 2% of the nation’s electricity consumption and about 30% of the power used annually by the economy’s information and communications technology sector, according to the National Renewable Energy Laboratory.
Contractors | Dec 1, 2015
The contractor’s role in promoting job site sustainability [AIA course]
Robins & Morton’s Jackie Mustakas offers specific actions that contractors and construction managers can take to green every job site.
Contractors | Nov 30, 2015
Sundt Construction opens its own craft employee training center
The contractor's Center for Craft Excellence, in Phoenix, is in response to the labor shortages in the industry.
Contractors | Nov 24, 2015
FMI survey: Millennials in construction get a bad rap, tend to be loyal, hard-working
While the stigma exists that Millennials are entitled, disloyal, and lazy, it appears that this is not true, according to a new report from FMI.
Contractors | Nov 12, 2015
Construction will outpace worldwide GDP growth over the next 15 years
Three countries—the United States, China, and India—will account for nearly three-fifths of worldwide construction growth over the next 15 years, according to a new report from Global Construction Perspectives and Oxford Economics.
Contractors | Nov 5, 2015
Budget bill provision raises OSHA fines for first time in 25 years
Inflation-adjusted penalty hikes could go up as much as 80%.
Contractors | Nov 3, 2015
ABC, AIA & NAHB: Residential, nonresidential construction growth expected in 2016
Economists from the three trade associations discussed several indicators for sector performance in a joint web conference.
Contractors | Nov 2, 2015
ABC: September's nonresidential spending slip no cause for concern
Despite the monthly drop, September's year-over-year increase is largest in seven years. Seven of 16 nonresidential construction sectors saw spending increases.
Contractors | Oct 30, 2015
ABC: Economic growth stronger than headline GDP figure suggests
GDP expanded 1.5% during the third quarter while nonresidential fixed investment expanded by 2.1% during that period.