The Skilled Labor Shortage in the Building Products and Construction Industry

The building products and construction industry is grappling with a significant skilled labor shortage, with 91% of firms reporting difficulties in finding qualified workers. This shortage poses substantial challenges to project timelines, budgets, and overall industry stability.

Aging Workforce and Retirement

A notable factor contributing to this shortage is the aging workforce. Nearly one-fifth of construction workers are over the age of 55, indicating a looming wave of retirements that could exacerbate the current labor deficit. The departure of these seasoned professionals results in a loss of invaluable experience and expertise, creating a gap that is difficult to fill.

Decline in Vocational Training

The decline in vocational training and apprenticeship programs has further reduced the influx of skilled workers into the construction sector. Over the past decade, there has been a significant drop in enrollment for these programs, leading to fewer qualified individuals entering the field. This trend has been compounded by a societal shift that often emphasizes four-year college degrees over trade skills, diminishing the pool of potential construction professionals.

Impact on Project Timelines and Costs

The labor shortage directly affects project timelines and costs. With fewer skilled workers available, projects are experiencing delays, and the increased demand for labor is driving up wages. According to recent data, the construction industry will need to attract an estimated 501,000 additional workers on top of the normal pace of hiring in 2024 to meet labor demand. This scarcity not only inflates project budgets but also strains existing workers, potentially impacting the quality of work and safety standards.

Strategies for Addressing the Shortage

To mitigate these challenges, companies are implementing several strategies:

• Enhanced Training Programs: Firms are investing in comprehensive training initiatives to upskill their current workforce and attract new talent. By offering apprenticeships and on-the-job training, companies aim to develop the necessary skills internally.

• Retention Efforts: Recognizing the value of experienced workers, companies are focusing on retention strategies, including competitive compensation, benefits, and career development opportunities, to keep their workforce engaged and committed.

• Outreach to Younger Generations: Efforts are underway to change perceptions of the construction industry among younger individuals. By highlighting the benefits and opportunities within the sector, companies hope to attract a new generation of skilled workers.

Conclusion

Proactive measures are needed to ensure the sustainability and growth of the construction sector in the coming years.

At The Bridger Group, we connect companies in the building products industry with exceptional talent for sales, management, and executive roles, helping teams overcome labor challenges and drive innovation. Contact us to learn more. 

‍