Navigating the Labor Shortage: Strategic Planning Considerations for Construction Companies

By Nancy Cox, on November 20th, 2023

The construction industry, which is one that heavily relies on skilled laborers, is facing significant challenges from the current labor shortages.

According to the Fall 2023 Home Builders Institute (HBI) Construction Labor Market Report, there will be a need for an additional 2.17 million new skilled workers in the construction industry between 2024 and 2026. This breaks down to over 60,000 new hires a month.

Given that the labor shortage doesn’t appear to be letting up any time soon, it is time for companies to get creative and plan around it. Below are four key considerations construction leaders should keep in mind as they plan to help offset the impacts of the labor shortage.

Invest in Internal Training Programs

Company sponsored internal training programs can both attract and retain qualified personnel. Individuals will 1. be able to advance their professional skills and 2. feel a sense of appreciation for the additional opportunities provided to them. If your company has enough resources, it is extremely wise to invest in an internal training program as a recruiting and retention tool.

Improve and Maintain Company Culture

It can be easy to lose sight of company culture when dealing with something like a labor shortage. However, in times like these, it is more important than ever to maintain your company’s culture.

Companies without strong employee engagement and a positive, meaningful environment, are seeing their employees disengage and look elsewhere for work. When a strong company culture is created and maintained, employees will ultimately want to stay and will even actively recruit their friends within the industry to come work for the company, becoming your most important recruiters.

Utilize Technology and Automation

One emerging strategy is the use of technology and automation to help offset the lack of qualified labor. While individuals can never be replaced by automation and artificial intelligence, the use of technology on job sites will continue to expand so it’s better to be ahead of the game here. Wherever feasible, companies should look to invest in technologies that allow their company to create efficiencies at job sites to help offset some of the labor issues within the industry.

Reduce Workload

Lastly, a trend that is gaining some momentum is reducing the amount of work for laborers, particularly top performers, to avoid burnout. Companies should focus on simplifying work when possible, implementing design thinking, and improving the work environment to help laborers focus and relieve stress at the job. The focus is learning to do less better, rather than doing more with less.

If you need further guidance or have any questions on this topic, we’re here to help. Please do not hesitate to reach out to our trusted experts to discuss your specific situation.

This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.

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Written By

Nancy Cox June 21
Nancy Cox
Industry Leader, Construction & Real Estate