The construction industry’s challenge in regards to the labor shortage has been laid bare by a workforce survey conducted by Arcoro and the Associated General Contractors of America (AGC): 94% of contractors report they are having a hard time filling open positions.
“The most likely path to addressing construction workforce shortages is for the federal government to adopt better workforce policies,” AGC CEO Jeff Shoaf said.
Among surveyed firms—across numerous categories including building construction, highway and transportation, federal and heavy construction, and utility infrastructure—94% reported having trouble filling at least some positions, particularly among the workforce that performs the bulk of onsite construction work. Among firms from the building construction category, 93% reported having open hourly craft positions and 81% reported having open salaried positions.
The shortages are impacting timelines for projects, with 54% of contractors reporting project delays due to workforce shortages. The survey from the AGC indicated that labor shortages were more likely to cause project delays than supply chain challenges.
For some firms, not only is the lack of candidates a challenge, but also the lack of qualification among the candidates they are able to identify. More than three in five respondents reported that available candidates were not qualified to work in the industry because they lack required skills or certificates. Additionally, around half of surveyed firms report that new hires fail to show up or quit shortly after starting.
To help recruitment and retention, contractors are taking steps, such as increasing base pay and adding online recruiting strategies, to narrow the skilled labor gap. More than half of surveyed firms have engaged with career-building programs like high schools or training facilities. Forty-two percent of firms have initiated or increased spending on training and professional development programs to address labor shortages while an additional 26% have increased their use of learning programs with online or video components.
The AGC has partnered with its local and state level chapters to run more than a dozen targeted digital advertising campaigns to reach and recruit new workers. Additionally, AGC chapters host a variety of training and recruitment programs, partnering with local school districts to create new construction academies and pre-apprenticeship programs.
The Workforce Survey conducted by the AGC and HR technology company Arcoro generated responses from nearly 1,5000 firms, including 649 building construction firms.
