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Episode 5: The Construction Workforce Crisis

Posted on by Taylor
19
Feb

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Episode Description

The construction industry is facing a major workforce crisis. Since 2011, the workforce has only grown 33%, while spending on construction has skyrocketed by 173%. With record-high job openings, high turnover, and an aging workforce, companies are struggling to keep projects moving.

In this episode, we break down:
✔ Why we’re struggling to attract younger workers.
✔ Why workers are quitting faster than we can replace them.
✔ Why we can’t meet growing industry demand.

We’ll explore real-world challenges, industry data, and solutions that can help companies retain workers, build a pipeline of new talent, and stabilize the industry.

Key Points

  1. The Workforce Crisis – Setting the Stage
    • Workforce growth hasn’t kept up with industry demand.
    • Companies struggle to fill open positions, leading to delays.
    • An aging workforce isn’t being replaced fast enough.
  2. Why We’re Not Attracting the Next Generation
    • Construction isn’t seen as a desirable career.
    • Most enter through connections—are the connections advocates or deterrents?
    • Gen Z values work-life balance and social responsibility.
    • Early outreach, industry rebranding, and culture shifts are key.
  3. Why We’re Losing Workers Faster Than We Can Replace Them
    • High turnover and disengagement hurt retention.
    • Stress, lack of flexibility, and poor work-life balance push workers out.
    • Retention improves with better leadership, mentorship, and flexibility.
  4. Why We Can’t Meet the Demand
    • Experienced workers are retiring faster than replacements enter.
    • Productivity suffers when knowledge isn’t passed down.
    • Mentorship, and tech adoption can help.
  5. Takeaways
    • Construction’s challenge is retention, not just hiring.
    • Delays, rising costs, and safety risks will worsen without change.
    • Investing in mentorship, valuing workers, and improving culture is critical.
  6. One Action You Can Take
    • Have one conversation on your jobsite about what’s keeping workers in construction—or making them leave.

Episode Breakdown: The Construction Workforce Crisis

Coming Soon…

Sources: The Construction Workforce Crisis

  1. Construction Labor Statistics: Since 2011, the workforce has grown only 33%, while the amount of money spent on construction has increased by 173%. Additionally since 2011, the number of workers aged 55-65 has increased by 5%, while workers aged 16-24 have only increased by 2%.
  2. Construction Job Openings: 94% of construction firms report having openings for craft workers. Over 90% of firms report these positions as hard to fill. And 54% of firms have experienced project delays due to worker shortages. 80% of firms report experiencing at least one project that has been canceled, scaled back, or postponed. 
  3. Gen Z: Workforce Institute, Gen Z workers wouldn’t tolerate these three things: 35% say they wouldn’t tolerate being forced to work when they don’t want to. 34% say they wouldn’t tolerate not being able to use vacation days when they want to. 33% say they wouldn’t tolerate an employer who gave them no flexibility over their work schedule.
  4. Construction Turnover: 54% turnover rate in construction.
  5. General Cost of Employee Turnover:  Employee voluntary turnover alone costs U.S. businesses $1 trillion per year. Attrition and employee disengagement costs a median-sized S&P 500 company $228 million per year.
  6. Disengagement: In 2023, 50% of employees were not engaged (quiet quitting).
  7. Money as a Motivator: Less than 10% of employees identify pay as the core reason for quitting their job.
  8. Engagement and Money: Gallup study states that if an employee is engaged, it will take more than a 20% raise to lure them to another company. 
  9. Financial Benefits of Culture: McKinsey and Company of over 1,000 organizations that encompass more than three million individuals, those with top measurable cultures post a return to shareholders 60 percent higher than median companies and 200 percent higher than those in the bottom quartile.  

Taylor