It has now been over two years since skilled workers in the construction labor pool have reduced significantly. Numerous companies across America are currently facing tremendous difficulties to complete construction projects due to severe understaffing.

According to its 2022 “Workforce Survey Analysis” report, the AGC (Associated General Contractors of America) has encountered that at least 91% of companies in the industry are finding it challenging to fill some open positions, especially the ones that deal with heavy tasks such as working with materials like concrete and steel or moving rocks from an area to another.

We have witnessed this situation before, but the aftermath of the pandemic coupled with the current problems in the supply chain which is making access to construction materials an arduous job, plus the lack of skilled craft workers, have intensified the pressure on firms of all types and sizes.

This issue is even extending to government-based investment. The federal government has put forward plans to modernize the nation’s infrastructure that can be potentially jeopardized since those projects, evidently rely largely on construction labor.

 

But, what’s causing this problem?

The Associated General Contractors of America and Autodesk found that for nearly 77% of firms the majority of candidates needed to fill open positions in the industry are unqualified. Some of the reasons for this are:

  • Lack of skills: we can imply potential employees didn’t meet the requirements for the job, a growing problem calling for attention.
  • Failure to pass a drug test: even though any employee under the influence of drugs poses a threat to the safety of all personnel, people in charge of heavy machinery must be completely clean when performing their work.
  • Flexible work schedules: the AGC reports that nearly 23% of respondents in the survey indicate that candidates asked for flexible working hours, including working from home for reasons such as taking care of a loved one.
  • Difficult access to transportation: potential employees reported having difficulty having access to transportation, both from and to the worksite.

Canceled or postponed projects are taking a toll on firms due to labor shortage

At least half of the firms consulted say they have had to cancel or postpone projects due to rising costs. 39% of them indicate the rising costs of construction materials have influenced those decisions and that they have not been able to cover additional costs successfully.

Nevertheless, it is more than clear the lack of skilled workers is the main cause that needs to be solved immediately for a swift respite in this sector to obtain fruitful results.

At AME, we have more info to share with you on this and other matters. Please, contact us for more details.

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