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Contractors are looking for more workers, but they’re still struggling to find them. A new survey by the Associated General Contractors of America has done shared numbers that provide context around the subject.
Most U.S. contractors have increased their workforce in the past 12 months, according to the AGC member survey, and this year more respondents are looking for both hourly tradesmen and salaried contractors. More than nine in 10 report that they have trouble finding the people they need.
“What this year’s survey makes clear is that our nation’s failure to invest in construction workforce education and training programs is having a real and measurable impact on the nation’s ability to build infrastructure and other construction projects,” said Jeff Shoaf, CEO of AGC. in a statement. “These impacts include higher costs, longer construction schedules and a significant number of delayed and/or canceled projects.”
Precisely, the report indicates that the lack of workers has created a problem for the execution of the projects.
“The majority, 54 percent, of respondents report experiencing project delays due to either in-house or subcontractor labor shortages,” AGC Chief Economist Ken Simonson said in the statement. “And 80 percent of companies report experiencing at least one project that has been canceled, scaled back, or postponed.
The causes of difficulties in finding suitable workers are many, but mainly respondents reported that candidates were not qualified for construction work (62%) or that they did not show up or quit soon after starting (50%).
Contractors struggle to find qualified workers to come forward
Answers from AGC members on why they are having trouble filling positions.
According to the survey, the three most difficult salaried positions to work for were superintendents (83 percent of respondents), project managers/supervisors (81 percent), and estimators (78 percent).
According to the survey, the three most difficult hourly or craft labor positions to work were mechanics (83%), cement masons (83%) and plumbers (80%).
Causes and solutions
AGC blamed government programs that support higher education to the detriment of workforce training.
“One of the reasons it’s so hard for companies to find people is because federal officials haven’t invested properly in training and educating the construction workforce,” Shoaf said.
A study released in June by the Progressive Policy Institute in partnership with AGC and Procore found that of the $139.5 billion the federal government spends annually on postsecondary education, $28.3 billion goes to workforce education and training programs. The remaining $111.3 billion supports traditional degree programs.
AGC connects this to the ongoing labor shortage, and builders are trying to do something about it.
“The construction industry, however, is taking a number of steps to address this shortage,” Simonson said.
The majority, 61% of respondents, said they had increased base pay rates more than a year ago. Nearly three in five have implemented an online strategy (such as a social media presence or targeted ads) to recruit younger workers, and half have partnered with a job training program.
Shoaf called on the federal government to increase funding for professional development and implement practices to make it easier for construction workers to immigrate to and work in the US.
“The bottom line is that the federal government needs workforce policies that support, rather than undermine, our national infrastructure and economic development priorities,” Shoaf said.
