blog-banner

Are you a contractor?

Join our network and attract real clients!

How has the Construction Industry Been Affected by the Labour Shortage?

By Editorial Team

Updated on November 7, 2023

It’s not much of a secret that the construction industry is facing a labour shortage, as many companies report a lack of labour although faced with growing demands. With the industry itself booming in sectors such as residential housing, commercial properties, and public work projects, the workforce necessary to take on these projects isn’t readily available. So, what effect will the labour shortage have?

Naturally, this problem can’t be fixed by clicking a button or snapping your fingers, but bear in mind that it’s possible to tackle the issues that are created by the lack of labour. So, let’s take a more in-depth look at the problem.

The Construction Industry's Labour Shortage

construction_What's the impact of the construction industry labour shortage?_RenoQuotes.com

Source: Canva

Where's the labour shortage?

During the mid-2000s recession, it was reported that the construction industry lost around 2 million workers. Following this recession, many workers never returned to their respective jobs. On top of this, attracting new workers to the industry has proven to be quite a difficult task. Despite the surplus of high-paying positions in this field, young workers are seeking work in sectors such as social services and healthcare instead of skilled trades. Furthermore, the existing workforce is reaching the point of retirement, as about 32% of construction industry workers are over the age of 45.

The impact of the Covid-19 pandemic hasn’t made things easier, with 80% of construction companies reporting that they’re having trouble finding skilled labourers. It can’t be denied that the labour shortage is a huge hurdle, as it’s resulting in a stretched-thin workforce, and this causes delays and additional project costs. Let’s take a closer look at the challenges the labour shortage has created for the industry.

What challenges are construction companies facing?

Source: Canva

Safety

Let’s first discuss one of the most important areas affected by the labour shortage in the construction industry: worker safety. Many company owners and workers are concerned about the safety risk posed by the lack of labour on a job site. It’s becoming increasingly common for new, untrained workers to be injured within their first year, and with fewer people to refer to for help or support, the possibilities for injuries and mishaps continue to rise. Fatalities on job sites have increased, and safety is becoming a top concern for many construction companies. 

Productivity

Another major challenge that the industry is facing is a decrease in quality and productivity. Due to a lack of skilled labourers available, including project managers and supervisors, there are less effective management strategies, generally in the early stages of a project. This lack of management and leadership can lead to costly delays as well as issues during the project's initial and final steps.

The construction sector is a highly competitive market. Thus, contracting companies simply cannot afford to put inexperienced or underqualified workers in these positions, as it’ll cost them more time, energy, and money in the long run. So, how can we work towards solving these issues?

Methods to Mitigate the Construction Industry's Labour Shortage

Source: Canva

Here are some methods to consider to address the issue at hand:

Attract new, skilled labourers

To attract new and younger skilled workers, construction companies need to consider ways to compete with other booming industries. This can include offering incentives such as competitive pay, benefits, educational support, paid time off and so forth. Research suggests that younger workers will leave a construction company if they find they can make 25 to 50 cents more elsewhere. If you’re not able to offer a competitive salary, consider a plan that includes a profit-sharing plan. 

Another avenue to consider is investing in partnerships with local high schools, trade schools, and community colleges to establish relationships with younger talent. Paid time off is an additional method to show new employees that you’re supportive of their need for a work-life balance. 

Training and development

construction skyline_What's the impact of the construction industry labour shortage?_RenoQuotes.com

Source: Canva

Competitive wages and benefits are one way to attract new employees, but the smartest companies understand that keeping them requires more incentives. Retaining the best workers is key to growing one’s business and thus, it’s important to show you’re invested in them. Training and on-the-job development initiatives are key factors in attracting and keeping new workers. Offering safety training, skill-sharing and development sessions show your workers that you want them to grow and develop their skills alongside your business. Not to mention, consistent on-site safety training demonstrates that the company they’re working for cares about them and their wellbeing. 

Wanting your employees to learn new skills and leave safe at the end of the day is a huge incentive for many young workers. Lastly, a skilled and trained workforce coupled with regularly updated safety protocols can help a company reduce the costs of workplace injuries and accidents.

New technologies

If you’re still struggling to hire new talent, it’s important to work with the resources that are available to you. There are plenty of smart technologies on the market for construction firms, including construction software that can reduce costs while simultaneously speeding up your work schedule. These programs work to reduce losses, increase accuracy, minimize the use of material resources and free up labour for other tasks. Drones are becoming a way of the future in the construction sector, as they can collect data and survey workflow to determine or monitor areas that require improvement or lack efficiency. Drone surveillance on job sites can also lead to increased worker safety. 

For larger companies, worksite robots are becoming more common. Robots are being used to complete repetitive tasks including bricklaying and rebar tying, as they can be swifter and more accurate than humans.

Get new contracts for your construction or renovation company

RenoQuotes.com can help you get new contracts. We get new project proposals from clients seeking top-rated and trustworthy renovation professionals like yourself. To get started, simply fill in the form on our homepage (it only takes a few minutes) and receive information regarding potential clients by way of our services.

Dial 1-844 828-1588 to speak with one of our customer service representatives.

Get 3 free quotes for your project!

Submit a project and get 3 free quotes!

Looking for something else?

Get 3 free quotes for your project!

Submit a project and get 3 free quotes!

Are you a contractor?

Join our network and receive real leads!

Download the price guide for renovations

We’ll be emailing you the latest market price guide for renovations.



Related articles

The latest industry news, interviews, technologies, and resources.

7 min read

Editorial Team

01 Feb 2024

What Are the Best Marketing Tools for Your Construction Company?

There’s a plethora of marketing tools available, and, as a novice, you can easily get confused or spend your entire budget on them. With management tools, competitive analysis tools, and other keyword tools, it can be hard to know where to focus. 

4 min read

Cynthia Pigeon

18 Dec 2024

Procore: Construction Project Management Software

Whether you are a specialized or general contractor, the success of your business is something you hold on to dearly. As a matter of fact, the ability to swiftly and judiciously collaborate is essential to carrying out any project. 

6 min read

Editorial Team

07 Nov 2023

Bathroom Floors: 10 examples

Are you looking to replace your bathroom floors soon? Initially, it can be difficult to choose from the various styles and materials available. To help you make a decision, here’s an overview of the available options!

4 min read

Équipe éditoriale

07 Nov 2023

10 types of windows for all rooms in your house

Need to change your old windows? There's no shortage of options on the market! To give you an overview of the possibilities available to you, here are some of the most beautiful models to give you some inspiration.

Design and home decor
6 min read

Amanda Harvey

07 Nov 2023

How to know which building permits you need for your renovation project | Renovation Quotes

When it comes to home renovation, you might want to break out the hammer and nails as soon as possible. Before you do, it’s important to consider the types of permits you might need for the project.

Exterior renovations

Looking for a contractor?

Submit a project and get 3 free quotes now!