Filling open jobs continues to be a challenge for many contractors, with 94 percent of respondents to a recent workforce survey by Associated General Contractors of America and HR technology company Arcoro reporting that they have openings for to craft workers and 94% of these companies said openings have been difficult to fill. 92% of contractors surveyed said they also had difficulty filling open salaried positions.
The ongoing shortage of skilled labor has impacts not only for contractors, but also for projects. Contractors’ labor shortages, or their subcontractors’ labor shortages, caused project delays for 54% of respondents.
AGC leaders said unfavorable federal education, training and immigration policies exacerbated recruitment challenges. Jeff Shoaf, CEO of AGC of America, said during a webinar about the survey results that the government’s lack of investment in construction workforce programs “is having a real and measurable impact on the country’s ability to build infrastructure and other construction projects.”
“These impacts include higher costs, longer construction schedules and a significant number of delayed or canceled projects,” he said.
AGC surveyed nearly 1,500 of its members in July and August from companies in the construction, federal, transportation and infrastructure construction sectors, representing a mix of sizes in terms of revenue and contractors both union and open. Many of the recruitment challenges were similar across market segments.
Most craft positions are hard to fill, but contractors reported the most difficulty finding mechanics and cement masons, followed by plumbers, carpenters, electricians and pipe fitters/welders.
62% attribute their hiring difficulties not only to a lack of candidates, but also to a lack of qualified candidates. Half said new hires either didn’t show up or quit shortly after starting. Other candidates lacked the required credentials, failed a drug test, or were unable to find reliable transportation to a job site.
Boost recruitment
57% of respondents said they have started using online strategies, such as social media posting or targeted digital advertising, to find new workers. And 51% participated in vocational training programs at high schools, universities, or technical education programs.
In Kansas City, Mo., Latoya Goree Smith, principal of Rhys Ivy Construction, said her company will hire for a specific project and offer paid workforce training programs for three to five weeks to introduce participants to trades Participants earn certifications such as CPR, first aid and OSHA 10-Hour, as well as basic skills lessons in math, financial literacy and career preparation.
“What some may not realize is that we’re not just bringing people into the industry for the trade, we’re also bringing people who may not have those basic skills to be effective in the workplace,” he said. “And so you have to realize that it’s not just about training the workforce, it’s more of a holistic approach to supporting these people to get into the skilled trades.”
61% of respondents said their companies increased base pay rates or their share of benefit contributions in the past year for hourly craft workers. 42% said they had started training and professional development, or had increased their spending in these areas. The practice was more common among large companies with at least $500 million in annual revenue, as opposed to smaller contractors with $50 million or less in revenue.
Jami Klomp, human resources manager for Ludington, Mich.-based Hardman Construction, said the contractor began noticing a slowdown in available workers a few years ago. They focused on building good relationships with their union partners and also created a mentoring and training program.
“We started to focus more on retaining those individuals who come into our organization,” he said. “We’ll train you, we’ll give you all the support you need to get you where you need to go.”
The craft labor shortage looks set to continue over the next 12 months, when 73% of businesses said they expected to add employees. That would be more than just 51% who added employees in the last 12 months.
