Associated General Contractors (AGC) of America, and Arcoro, a human resources (HR) technology company, have conducted a survey that highlights a shortage in the construction industry workforce.
The survey, which gathered responses from nearly 1,500 companies across the union and open shop companies of various sizes, was conducted in late July and early August 2024.
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The lack of investment in construction workforce education and training is claimed to be having a tangible effect on the nation’s capacity to undertake infrastructure and other construction projects.
According to the survey, 94% of contractors are struggling to fill open positions, with one-in-three contractors facing a deficit of at least 11 unfilled craft positions as of 30 June.
This shortage is leading to project delays, with 54% of contractors experiencing setbacks due to the lack of skilled workers.
The survey indicates that labour shortages are a more significant factor in project delays than supply chain issues or shipping delays.
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By GlobalDataOne of the primary challenges in recruiting is said to be the inadequate investment by federal officials in construction workforce training and education, resulting in 62% of respondents reporting that candidates lack the necessary skills or certifications.
Furthermore, 43% of firms face difficulties with employees lacking required documentation, and half report issues with new hires failing to show up or quitting soon after commencement.
To combat these labour shortages, contractors are taking measures.
The survey shows that 91% of firms have increased base pay rates for hourly construction positions in the past year.
Additionally, 57% have implemented online recruitment strategies to attract younger workers, and 51% are engaging with career-building programs such as high schools or training facilities.
Contractors are also investing more in internal training to address the lack of hard and soft skills among candidates.
Additionally, 42% of companies have initiated or increased spending on training and professional development programmes, the report said.
A quarter of the companies have also enhanced their use of learning programmes with strong online and/or video components.
To address workforce challenges, construction companies are increasingly turning to human resources technology.
A quarter of the companies are said to be using technology to deliver training programmes, and 34% have partnered with third-party firms to establish training courses and professional development.
The AGC of America is also working to alleviate labour shortages through various initiatives.
In addition, association officials are calling on Congress and the White House to increase funding for construction-focused education and training programmes.
