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A softer construction market hasn’t made skilled workers much easier to hire.
For the first time since the COVID-19 pandemic, more contractors cut staff than added workers over the past year, Ken Simonson, chief economist for the Associated General Contractors of America, said during a Sept. 3 webinar on labor supply.
“This is the first year since we came out of the pandemic that we’ve seen more businesses shrink than expand,” Simonson said. “In other words, while some companies are adjusting to weaker demand, many contractors continue to compete for a limited supply of skilled workers.”
In fact, 87% of companies still report works for craft workersaccording to a survey of AGC staff and the National Center for Construction Education and Research. Among companies with openings, 88% of respondents said filling them was as difficult or more difficult than a year ago.
The disconnect is pushing contractors other strategies besides recruitment.
“You can’t hire your way out of this situation,” said Mindy Bates, director of human resources for Ace Electric, an electrical contractor based in Valdosta, Georgia, during the AGC webinar. “We also have to grow it from within.”
Develop talent already in the building
New research points to multi-skilling or the training of artisan workers perform complementary tasksas another possible solution, according to a study published by the Simplar Foundation and faculty from Arizona State University, the University of Kansas and the University of North Carolina at Charlotte.
The study estimates that for every 10 multi-skilled workers observed, 14 to 17 single-trade workers would be needed to cover the same scope of work, said Brian Lines, an associate professor in the University of Kansas’ department of civil, environmental and architectural engineering, during ABC’s live event on Sept. 2.
But that trust in delivery tasks has to be properly earned, Lines said.
“The definition of multiskilling that we’re using here is that it’s a workforce strategy where workers are qualified to perform selected tasks safely and competently in more than one trade, trade or skill classification,” Lines said. “Now, that doesn’t mean that individual workers are performing informal task shifts. It doesn’t mean that all workers are performing all tasks.”
For workers, additional skills can also open paths to career advancement, said Joel Dutton, preconstruction manager for Evans General Contractors, during the ABC session. Dutton began his construction career as a welder before his employer sent him to a training program to develop new skills.
“That’s where I learned how to do plumbing,” Dutton said. “And from there, picking up that additional skill set opened the door for me to become a foreman and become a certified building inspector, and really get into different aspects of the construction industry.”
To benefit from versatility, contractors are implementing different programs from the beginning of worker tenure. For example, Ace Electric brings new hires to its Ace University building for a weeklong orientation. The program covers safety and professional development pathways, Bates said during the AGC event. Then the company sends the workers to their first project.
Holder Construction, an Atlanta-based contractor, also uses a similar workforce development approach. The company partners with technical and community colleges on roughly five-week boot camps, said Aja Gower, Holder’s senior director of workforce development. Business partners participate in training and undertake work for participants who successfully complete the program.
“We hope to solve this problem in five years,” Gower said during the AGC session. “People entering these programs today will be our foremen five years from now.”
These partnerships between contractors and universities are becoming the norm. San Antonio’s Alamo Colleges District runs a 13-week program that introduces participants to construction trades and prepares them for employment, said Sammi Morrill, the institution’s vice chancellor. the district also works directly with employers to develop training for existing workers, including programs focused on supervision and leadership.
“We customize the curriculum to enhance that skill,” Morrill said. “We have account executives who are dedicated to the employer, so we see what your talent need is and then fill that need.”
Data center boom reinforces labor pressure
Contractors with data center awards are very hungry for workers.
AGC reported that 58% of respondents said data center construction increased competition for skilled workers, while 49% reported increasing wage pressure. Another 37% identified the availability of workers or subcontractors as their biggest challenge in carrying out or delivering these projects.
“We have to turn down the job,” Bates said. “We don’t want to overcommit.”
The scale and complexity of the compilations can also create a retention challenge, said Boyd Worsham, NCCER president and CEO. Inexperienced workers can quickly find themselves overwhelmed on a multi-billion dollar project site.
“We’re taking young people who have never worked in construction in their lives and putting them on the biggest projects in our country,” Worsham said. “Of course, they’re going to need direction and help, and we need to figure out how to provide that so they can have that wonderful startup experience.”
Bates agreed that it is particularly difficult to retain staff on data center projects. Turnover is higher in the company’s roaming data center teams, he added.
“We have data center work that’s run by a team that’s a local team, and we have data center work that’s run by travel teams,” Bates said. “Travel team data center work has the highest turnover, especially in the field and at the level of electricians and helpers.”
