The Expert:
Stephen E. Sandherr, CEO, Associated General Contractors of America
QUESTION: What factors are contributing to the continued skilled labor shortage in construction, and what needs to be done to create a strong pipeline of available talent?
A: The Associated General Contractors of America and Autodesk each year partner to measure the state of construction workforce shortages. The results of this year’s Workforce Survey show that construction labor shortages remain severe.
One of the main reasons labor shortages are so severe in the construction industry is that most job candidates are not qualified to work in the industry. The most common explanation for difficulty in filling positions, cited by 77% of firms, is that available candidates lack the skills needed to work in construction or cannot pass a drug test.
These shortages are exacerbating the impacts of widespread supply chain disruptions that have made it difficult for firms to get materials delivered on time and are driving up the cost of those materials. Eighty-two percent of firms report projects they work in have been delayed because of supply chain challenges and two-thirds—66%—have projects that have been delayed because of labor shortages.
Many construction firms are working aggressively to cope with and/or overcome workforce shortages. In addition to raising base pay rates, 45% are providing incentives and bonuses, and a quarter of firms have also improved their benefits packages.
Beyond improving compensation, they are also getting more involved in preparing future workers for careers in construction. Fifty-one percent of survey respondents—up from 37% in the 2021 survey—report they have engaged with career-building programs such as high school, college, or technical school construction programs.
The Associated General Contractors of America and chapters like the AGC of New York State are supporting the industry with a broad range of workforce development initiatives. This includes the national association’s Construction is Essential targeted digital recruiting campaign and its Culture of Care workplace retention program.
We are also calling on federal, state, and local leaders to invest in the kinds of career and technical education programs that will expose more existing and future workers to the many career opportunities that exist in construction. These programs also provide the essential skills employers are seeking.
Public officials must also continue working to untangle supply chains. These supply chain problems have a similar potential to undermine new infrastructure and manufacturing investments.
Addressing labor shortages and supply chain problems will ensure that the construction industry can upgrade America’s infrastructure, modernize our manufacturing sector, and help deliver a more reliable and cleaner energy grid.