Experts predict that new building construction spending will exceed the $2 trillion mark in 2025, and nearly 92% of companies responding to a US Chamber of Commerce study said they have some difficulties in hiring skilled individuals to meet the market demands.
Consumers are feeling the pressure, too. These shortages extend project timelines, increase budgets, and hamper overall industry growth. Those shortages reduce the overall inventory of new construction, but demand is only going up.
New solutions are emerging that promise to help mitigate some of the effects these labor shortages cause for construction companies, investors, and end consumers. We’ll get to those solutions, along with the current state of construction labor shortages, their root causes, and tactics for addressing them.
The Current State of the Construction Labor Shortage
The demand for new building developments of all kinds means a higher demand for skilled construction workers. According to an ABC News release, the construction industry will need to source an additional 500,000 workers for 2025. And that’s on top of normal hiring needs.
Certain pockets across the United States have a greater need for skilled construction workers. These include northern states, like Wyoming, Montana, North Dakota, Maine, Vermont, and New Hampshire. Likewise, states in the south, like Alabama, Mississippi, and South Carolina, also experience a severe need for skilled labor.
Additionally, several specialties are in constant demand, presenting challenges for construction companies and subcontractors while offering opportunities for workers. Here is a small sample of those in-demand trades:
- HVAC technicians (heating and cooling)
- Electrical Trades (electricity and internet wiring)
- Plumbers
- Carpenters
- Framers
- Green builders
- Machine operators
Skilled tradespeople are hot commodities for these construction jobs, and careers often offer a pathway to a comfortable financial future. Despite somewhat favorable job security, construction companies are always in need of good, reliable, and skilled workers.
Why is There a Construction Labor Shortage?
Many construction company owners across the industry struggle to fill essential positions across numerous trades and specialties. Knowing the underlying root causes of these shortages will help you develop a strategic approach that addresses your construction firm’s workforce challenges.
- Aging Workforce: The average construction worker is 42 years old, and nearly 20% are 55 or older. The rapidly graying workforce means experienced tradespeople are retiring faster than the next generation can replace them.
- Lack of Skilled Workers: Technical construction trades like electrical, plumbing, and machine maintenance face severe shortages as fewer workers receive the specialized workforce training needed for these high-demand positions.
- Negative Perceptions of the Industry: Many young people avoid construction careers due to misconceptions about low wages, limited advancement opportunities, and physically demanding conditions. Little does the youth know that many construction trades provide practical pathways to six-figure careers.
- Competition from Other Industries: Other sectors are actively recruiting potential construction workers by offering the appearance of more money, better benefits, and improved work-life balance.
- Impact of the Pandemic: COVID-19 exacerbated existing labor shortages, especially as many workers left the industry permanently in 2020 and 2021. This exodus of skilled staff created project backlogs that further increased workforce demand beyond available labor supply.
Addressing these fundamental challenges requires long-term solutions involving education, technology, and changing public perceptions about the value and opportunity of construction careers.
How Can Construction Managers Address the Labor Shortage?
Your construction firm needs practical and actionable methods to overcome the labor and skill shortages within the construction industry. While the challenges may seem daunting, managers can implement several of these proven approaches to expand their construction labor force and maximize the productivity of existing teams:
- Attracting New Talent: Partner with industry sponsors to develop internship and apprenticeship programs. Invest in construction education programs and technology that introduces, excites, and attracts young people to the diverse career opportunities available in construction trades.
- Retaining Existing Workers: Successful general contractors focus on providing a competitive compensation package and positive jobsite culture. They recognize the value that experienced construction workers bring to the table while reducing costly turnover.
- Investing in Training and Development: Construction workforce development and ongoing training build a more versatile labor force capable of adapting to technological advancements and changing project demands. These trainings also reinforce proper technique and safety habits.
- Improving Productivity and Efficiency: Leverage innovative technologies to streamline workflows, automate repetitive tasks, and improve communication. Advanced tech makes it easier for construction managers to get more work done with fewer workers without sacrificing quality standards.
TrueLook’s security solutions, which feature both fixed and PTZ camera options, provide construction managers with powerful oversight capabilities. These cameras enhance jobsite productivity while addressing crucial workforce challenges.
With 24/7 remote monitoring capabilities, these advanced camera systems not only improve security but also enable better resource allocation and supervision across multiple jobsites with fewer on-site personnel.
Maximizing Productivity with Technological Advances
We’ve mentioned tech solutions a bit already, but the advancements are exciting enough to merit their own section. These new tech features offer commercial construction firms new methods of combating labor shortages while maintaining positive project outcomes.
- Remote Live Viewing: Reduce expensive travel costs with remote live viewing. Remote access to cameras allows project managers to oversee multiple construction projects at once without physically being on the worksite.
- AI and Predictive Analytics: Identify potential project delays and safety risks before they impact project timelines. Artificial intelligence (AI) and predictive modeling highlight trends that help PMs optimize resource allocation and increase productivity. For example, TrueAI analyzes jobsite data to provide real-time insights and predictive analytics, allowing project managers to monitor site activity, track traffic patterns, and gain a better understanding of jobsite occupancy.
- Time-Lapse Video: Document progress automatically with time-lapse image capture during live video recording. These time-lapse videos eliminate manual documentation, improve communication among stakeholders, and free workers to focus on other tasks.
- Improved Communication and Collaboration: A construction site camera solution, like those from TrueLook, facilitates better communication and collaboration, even when working remotely. This tech connects in-office teams with field personnel, providing everyone with a consistent image of conditions that keeps everyone on the same page.
- Enhanced Safety: Detect unsafe practices, safety violations, or unusual activity on the jobsite. AI-powered analytics tracks these incidents to produce reports that help reduce accidents or injuries that further strain labor resources.
These solutions empower general contractors to meet growing demand despite challenges in labor force participation. The vice president of business development at many firms now recognizes technology as essential for public works projects and long-term construction industry success.
Embrace Technology for a Thriving Construction Industry
The construction industry lost nearly 2 million workers in 2024 due to labor disputes, pay discrepancies, and conditions, among other factors. While organizations like the Laborers International Union attempt to close the gaps between skilled workers and demand, many private and public works projects face unprecedented delays.
There is a light at the end of the tunnel, though. Construction firms are finding new workers from the next generation while improving participation rates through tech advancements. Media relations departments within the industry recognize that tech plays a crucial role in getting more done with fewer resources.
TrueLook’s comprehensive monitoring solutions help construction companies maintain quality standards with enhanced jobsite visibility while attracting more people to an industry embracing cutting-edge technology. Contact TrueLook today to schedule your free demonstration and discover how our advanced camera solutions can transform your construction business.
