The Future of Jobs is Upon Us
The March jobs report was met with great fanfare after a challenging economic (and personal) year. The top line number was an increase of over 900,000 jobs in a single month, and nearly 50% higher than predicted by economists. For me, I waited to hear the news about construction payrolls. As the news announcers got to construction, the 110,000 new jobs made me consider the implications of the recently-announced $2T infrastructure plan. The recent increase in new construction hires will help recover from 2020 but the prospect of huge spending over the next 10 years will present some serious challenges.
I think about it from the following perspective:
Without a solid pipeline of labor entering the market, it will be difficult to execute on these generational goals. The Associated Builders and Contractors (ABC) predicts the need to hire upwards of 430,000 workers in 2021 just to meet short-term demand. So, what’s being overlooked? Capacity. First, we need to have the capacity to provide human capital at the macro-level. And second, we need the capacity to be visionary – to see things as they will be, not as they have been.
So, what can we do now to ensure that the rebuilding of America can proceed successfully?
1. Embrace Technology and Innovation. Major shifts in “means and methods” can be frightening and unsettling. The use of technology in the physical construction and management of projects can be one way to help flatten the demand curve for labor. Innovation in the way we think and approach construction may be a gateway to greater efficiency and introduce new standard approaches.
2. Support Workforce Development. The skills needed in the past may not align with the future needs of skilled labor or management. Continuous upskilling will be central to meeting future needs and delivering more with less. Providing development opportunities will also encourage team members to stay with companies longer and promote a culture of growth and learning.
3. Bridge to the Next Generation. If the outside perception of the industry can be changed, there is the opportunity to attract the next generation of workers. Construction, to many, is not seen as innovative, dynamic, or creative. In reality, the industry and projects are all of them and more. We create a physical legacy for future generations and the projects are foundational to progress.
The tough news to swallow is that there is no magic bullet or miracle cure. These are challenges that need to be addressed seriously and creatively. The companies that can adopt a flexible and adaptable approach may find themselves riding the wave of progress while others are left on the beach watching the action from afar.
Michael Riegel
Director, A/E/C Business Strategies
MRiegel@AECBusinessStrategies.com