More than 1,000 firms participated in AGC's survey of which 83% reported having a hard time finding enough qualified craft workers and 61% reported difficulty finding qualified construction professionals. Nearly half of responding firms (48%) reported that they have increased  their use of subcontractors during the past 12 months. 37% of firms reported increasing the use of staffing firms while 19% have invested in labor saving equipment, tools, and machinery to cope with worker shortages.  These worker shortages have prompted 59% of firms to increase base pay rates for craft workers and 23% have increased contributions to, or improving, benefits. 

 

Many firms also cited difficulties in retaining qualified construction professionals. 22% reported losing construction professionals to nearby contractors while 14% said they lost them to contractors outside of their area.  17% of firms indicated loss of construction professionals to other industries in their area while 9% cited other industries around the country. 

 

In the next 12 months it will become harder to find and hire craft workers, according to 82% of respondents, with 4% of firms expecting it to be easier.  Meanwhile, 70% of firms expect the market for construction professionals to remain tight, or get tighter, during the next 12 months.  Six percent, however, think it will get easier. 

 

It is clear that the construction industry faces significant, and growing, worker shortages, as demand for construction continues to rebound. These shortages will help boost already generous construction pay levels, but are also likely to force contractors to charge more to complete construction projects or forgo bidding on projects they lack the manpower to complete.  Of course, rising construction costs and slower scheduled completions could in turn undermine the already tepid recovery.

 

In October Builders Association staff attended the AGC's Training and Education Conference, at which the War on Talent and associated workforce shortage were discussed at length.  The Builders Education & Training Foundation continues to address these critical issues and how the industry may work together to successfully resolve them.