U.S. contractors are struggling to find skilled workers which is undermining their efforts to build national infrastructure and it’s also affecting the country’s economic development.
That’s the word from a survey of nearly 1,500 firms done by the Associated General Contractors (AGC) of America and Arcoro, a human resources technology company supporting the construction industry.
This past summer, there were 407,000 job openings in the construction industry with a projected need for 723,000 workers annually going forward due to economic expansion, worker retirements and the changing skill needs due to energy transitions and technological advancements.
Ninety-four per cent of construction firms nationwide reported having open positions they are trying to fill.
Among those firms, 94 per cent were having trouble filling at least some of those positions — particularly among the craft workforce that performs the bulk of onsite construction work. Nearly one-in-three contractors reported having at least 11 unfilled craft positions.
Federal officials need to support, instead of undermine, our national infrastructure and economic development policies,
— Jeff Shoaf
Associated General Contractors of America
Jeff Shoaf, chief executive officer of the AGC, says the association is taking a range of steps to help the industry cope with labor shortages but the federal government needs to boost funding for training.
“The most likely path to addressing construction workforce shortages is for the federal government to adopt better workforce policies,” he explains. “Federal officials need to support, instead of undermine, our national infrastructure and economic development policies.”
The AGC has partnered with its chapters to run more than a dozen targeted digital advertising campaigns designed to reach and recruit new workers. The association has also created recruiting resources for member firms and its chapters, and it regularly hosts virtual and in-person gatherings to share workforce development success stories to entice people into the industry.
In addition, AGC chapters run a host of training and recruitment programs and partner with local school districts to create new construction academies. The association has also created pre-apprenticeship and registered apprenticeship programs, hosted dozens of career fairs each year, and built and supported networks of career and technical education teachers.
However, association officials say more must be done.
The AGC is calling on Congress and the White House to significantly boost funding for construction-focused education and training programs. The association wants more funds to be allocated for workforce training as part of the Workforce Innovation and Opportunity Act and a boost in funding for in-school construction programs via the Perkins Vocational and Technical Education Act.
“Considering all that this industry and our association are doing to prepare, recruit and retain new workers, we are confident that better federal workforce policies will make a meaningful and lasting difference for the better when it comes the construction workforce,” Shoaf states.
Fifty-four per cent of contractors surveyed reported experiencing project delays because of workforce shortages.
Responses showed that labor shortages are also more likely to be the cause of project delays than other causes like supply chain challenges and shipping delays.
The AGC maintains the nation’s failure to invest in construction workforce education and training programs is having a “real, measurable impact” on the country’s ability to build.
A separate report by the association recently released in partnership with the Progressive Policy Institute found federal officials invest four times as much each year encouraging students to earn four-year degrees, then they do supporting workforce development programs for fields like construction.
Construction officials noted 62 per cent of respondents reported available candidates were not qualified to work in the industry because they lack required skills or certificates.
Forty-three per cent of those surveyed said employees lack required documentation such as a driver’s license, work permit or clean background check. Half of firms reported new hires fail to show up or quit shortly after starting.
Contractors are taking steps to overcome the labor shortages.
Ninety-one per cent of firms reported they’ve increased their base pay rates for hourly construction positions during the past year while 57 per cent said they’ve added online strategies to recruit younger workers. Fifty-one per cent have engaged with career-building programs like high schools or training facilities.
Contractors are also increasing investments in their internal training to address candidates’ lack of hard and soft skills, with 42 per cent of firms reporting they have initiated or increased spending on training and professional development programs to address workforce shortages.
One in four firms reported they’ve increased their use of learning programs with strong online and/or video components.
Construction firms are also using human resources technology to address workforce challenges. One in four firms report they are using technology to deliver training programs for workers while 34 per cent of respondents noted they’ve partnered with a third-party firm to establish training courses and professional development.
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