Seventy percent of construction firms report they are having a difficult time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industrywide survey released recently by Autodesk and the Associated General Contractors (AGC) of America. Association officials said that many construction companies are changing the way […]
Seventy percent of construction firms report they are having a difficult time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industrywide survey released recently by Autodesk and the Associated General Contractors (AGC) of America.
Association officials said that many construction companies are changing the way they operate, recruit, and compensate, but cautioned that “chronic labor shortages” could have significant economic impacts absent greater investments in career and technical education.
“In the short-term, fewer firms will be able to bid on construction projects if they are concerned they will not have enough workers to meet demand,” Stephen Sandherr, CEO of the AGC, said in a news release. “Over the long-term, either construction firms will find a way to do more with fewer workers or public officials will have to take steps to encourage more people to pursue careers in construction.”
Of the more than 1,600 survey respondents, more than 1,110 said they are having trouble finding qualified people for hourly craft positions, Sandherr noted. Craft-worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest (72 percent), South (70 percent), and Northeast (63 percent).
The labor shortages come as demand for construction continues to increase. Sandherr said that construction employment expanded in 258 of 358 metropolitan areas in the U.S., which the association tracks, between July 2016 and July 2017, according to a new analysis of federal construction employment data the association also issued. Growing demand for construction workers helps explain why 67 percent of firms report it will continue to be difficult, or get harder, to find hourly craft workers this year.
Tight labor-market conditions are prompting contractors to change the way they operate, recruit, and compensate workers, Sandherr said. Most firms report they are making a special effort to recruit and retain veterans (79 percent), women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers to attract recruits. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers.
Forty-six percent of firms also report they are conducting more in-house training to cope with workforce shortages, while 47 percent say they are increasing overtime hours, and 41 percent are boosting their use of subcontractors. In addition, 22 percent report they are increasing their use of labor-saving equipment, 11 percent are utilizing offsite prefabrication, and 7 percent are using virtual construction methods like building information modeling, or BIM for short.
“The ongoing labor drought continues to put pressure on the already high-risk, low-margin construction industry,” said Sarah Hodges, director of the construction business line at Autodesk, a leading 3D design, engineering, and construction software firm. “As labor challenges continue to grow, technology will play an increasingly important role supporting the existing workforce while inspiring the next generation of industry professionals.”
Sandherr called on federal, state, and local officials to act on the measures in the association’s Workforce Development Plan to address the growing worker shortages. In particular, he urged the U.S. Senate to pass legislation to reform and increase funding for the Perkins Career and Technical Education Act.
The survey was conducted in July and early August.
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Seventy percent of construction firms report they are having a difficult time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industrywide survey released recently by Autodesk and the Associated General Contractors (AGC) of America.
Association officials said that many construction companies are changing the way they operate, recruit, and compensate, but cautioned that “chronic labor shortages” could have significant economic impacts absent greater investments in career and technical education.
“In the short-term, fewer firms will be able to bid on construction projects if they are concerned they will not have enough workers to meet demand,” Stephen Sandherr, CEO of the AGC, said in a news release. “Over the long-term, either construction firms will find a way to do more with fewer workers or public officials will have to take steps to encourage more people to pursue careers in construction.”
Of the more than 1,600 survey respondents, more than 1,110 said they are having trouble finding qualified people for hourly craft positions, Sandherr noted. Craft-worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest (72 percent), South (70 percent), and Northeast (63 percent).
The labor shortages come as demand for construction continues to increase. Sandherr said that construction employment expanded in 258 of 358 metropolitan areas in the U.S., which the association tracks, between July 2016 and July 2017, according to a new analysis of federal construction employment data the association also issued. Growing demand for construction workers helps explain why 67 percent of firms report it will continue to be difficult, or get harder, to find hourly craft workers this year.
Tight labor-market conditions are prompting contractors to change the way they operate, recruit, and compensate workers, Sandherr said. Most firms report they are making a special effort to recruit and retain veterans (79 percent), women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers to attract recruits. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers.
Forty-six percent of firms also report they are conducting more in-house training to cope with workforce shortages, while 47 percent say they are increasing overtime hours, and 41 percent are boosting their use of subcontractors. In addition, 22 percent report they are increasing their use of labor-saving equipment, 11 percent are utilizing offsite prefabrication, and 7 percent are using virtual construction methods like building information modeling, or BIM for short.
“The ongoing labor drought continues to put pressure on the already high-risk, low-margin construction industry,” said Sarah Hodges, director of the construction business line at Autodesk, a leading 3D design, engineering, and construction software firm. “As labor challenges continue to grow, technology will play an increasingly important role supporting the existing workforce while inspiring the next generation of industry professionals.”
Sandherr called on federal, state, and local officials to act on the measures in the association’s Workforce Development Plan to address the growing worker shortages. In particular, he urged the U.S. Senate to pass legislation to reform and increase funding for the Perkins Career and Technical Education Act.
The survey was conducted in July and early August.
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Seventy percent of construction firms report they are having a difficult time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industrywide survey released recently by Autodesk and the Associated General Contractors (AGC) of America. Association officials said that many construction companies are changing the way […]
Seventy percent of construction firms report they are having a difficult time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industrywide survey released recently by Autodesk and the Associated General Contractors (AGC) of America.
Association officials said that many construction companies are changing the way they operate, recruit, and compensate, but cautioned that “chronic labor shortages” could have significant economic impacts absent greater investments in career and technical education.
“In the short-term, fewer firms will be able to bid on construction projects if they are concerned they will not have enough workers to meet demand,” Stephen Sandherr, CEO of the AGC, said in a news release. “Over the long-term, either construction firms will find a way to do more with fewer workers or public officials will have to take steps to encourage more people to pursue careers in construction.”
Of the more than 1,600 survey respondents, more than 1,110 said they are having trouble finding qualified people for hourly craft positions, Sandherr noted. Craft-worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest (72 percent), South (70 percent), and Northeast (63 percent).
The labor shortages come as demand for construction continues to increase. Sandherr said that construction employment expanded in 258 of 358 metropolitan areas in the U.S., which the association tracks, between July 2016 and July 2017, according to a new analysis of federal construction employment data the association also issued. Growing demand for construction workers helps explain why 67 percent of firms report it will continue to be difficult, or get harder, to find hourly craft workers this year.
Tight labor-market conditions are prompting contractors to change the way they operate, recruit, and compensate workers, Sandherr said. Most firms report they are making a special effort to recruit and retain veterans (79 percent), women (70 percent), and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers to attract recruits. Twenty percent have improved employee benefits for craft workers and 24 percent report they are providing incentives and bonuses to attract workers.
Forty-six percent of firms also report they are conducting more in-house training to cope with workforce shortages, while 47 percent say they are increasing overtime hours, and 41 percent are boosting their use of subcontractors. In addition, 22 percent report they are increasing their use of labor-saving equipment, 11 percent are utilizing offsite prefabrication, and 7 percent are using virtual construction methods like building information modeling, or BIM for short.
“The ongoing labor drought continues to put pressure on the already high-risk, low-margin construction industry,” said Sarah Hodges, director of the construction business line at Autodesk, a leading 3D design, engineering, and construction software firm. “As labor challenges continue to grow, technology will play an increasingly important role supporting the existing workforce while inspiring the next generation of industry professionals.”
Sandherr called on federal, state, and local officials to act on the measures in the association’s Workforce Development Plan to address the growing worker shortages. In particular, he urged the U.S. Senate to pass legislation to reform and increase funding for the Perkins Career and Technical Education Act.
The survey was conducted in July and early August.
