2023 Workforce Survey shows nation is failing to prepare young people for construction careers
BY NICK FORTUNA
Construction workers have always taken pride in the demanding nature of the job, which requires skill, knowledge, teamwork, work ethic, strength, stamina and a willingness to sweat. But these days, the hardest-working person at most construction firms is more likely to be wearing office attire than a hardhat and work boots.
Recruiters at construction firms just might have the most difficult jobs in their companies, working to counter stereotypes about the industry and to spread the word about the rewarding, high-paying jobs available at AGC member firms.
Try as they might, recruiters face an uphill battle in a society that still perpetuates the notion that a college degree is necessary to avoid a dead-end job. Even as the price of college climbs ever higher, construction firms struggle to gain traction with ambitious jobseekers, many of whom believe they simply lack the opportunities their parents had.
That reality is spurring construction recruiters and executives to call for a new approach to preparing young people for careers in the industry. Faced with a dearth of qualified candidates, AGC member firms have tried raising pay, offering robust benefits packages, apprenticeships,
internships, mentorships, flexible schedules and even work-from-home opportunities when feasible.
Still, the vast majority of construction firms are struggling to fill their rosters, as evidenced by the 2023 Workforce Survey, conducted by AGC of America and Autodesk. The survey found that 85% of construction firms have open positions they’re trying to fill, and among those firms, 88% are having trouble filling at least some positions, particularly among the craft workforce that performs the bulk of on-site construction work.
The labor shortage is widespread, affecting firms of all sizes and in every region of the country. Similar results were reported by contractors that use exclusively union craft labor and firms that operate as open-shop employers. Likewise, firms raking in more than $500 million in annual revenue reported the same issues as those with $50 million or less in annual receipts.
Whether a firm handles primarily building construction, highway and transportation projects, federal and heavy work or utility infrastructure, the story remains the same: plenty of work and too few employees to do it.
One of the prime drivers of the industry’s labor shortage is that most jobseekers lack the skills to succeed at construction firms. According to the Workforce Survey, 68% of firms report that many job applicants have no construction skills, a shocking finding, said Ken Simonson, chief economist at AGC of America. In addition, one-third of firms say many jobseekers can’t pass a drug test.
“The biggest takeaway from this year’s Workforce Survey is how much the nation is failing to prepare future workers for high-paying careers in fields like construction,” Simonson said. “It’s time to rethink the way the nation educates and prepares workers.”
Driving Up Costs
AGC and Autodesk conducted the 11th annual Workforce Survey in July and August, getting responses from more than 1,400 firms representing a broad cross-section of the construction industry.
Workforce shortages, combined with supply chain disruptions, are pushing up costs for construction firms, making it more difficult to complete projects on time and within a budget. Even as supply chains return to normal, 65% of survey respondents said they’ve had projects delayed because of supply challenges, while 61% have had projects delayed by labor shortages.
The increased costs are undermining demand for certain types of projects despite the nation’s recent spike in infrastructure spending, Simonson said. Half of survey respondents report that owners have canceled, postponed or scaled back projects due to elevated costs. Meanwhile, 22% of firms report that projects were adversely impacted by lengthened or uncertain completion times.
The labor shortage has proven stubborn despite the best efforts of construction firms. The survey found that 81% of respondents have raised base pay rates for workers in the past year, 44% are providing incentives and bonuses for joining the company and sticking with the job, and 26% have improved their benefits packages.
Construction firms also are redoubling efforts to meet young jobseekers where they are. The survey found that 63% of firms are adding online recruiting strategies such as social media and targeted digital advertising to connect with younger applicants. That figure is up from 39% in 2022.
Firms are investing more in training new hires as well, focusing on both basic construction skills and the soft skills that many jobseekers lack today. The survey found that 41% of firms are boosting spending on training and professional-development programs, 25% are enhancing their online and video training capabilities, and 14% are using augmented and virtual reality technology to better train workers.
Opportunities Abound
AGC notes that in virtually every community, there are open construction positions that pay better than the average job and are vital to local economic growth. But too few schools offer classes in construction or even expose students to opportunities in the field. The association is pushing federal officials to narrow the education funding gap that currently invests five times as much to encourage students to enroll in college as it does preparing them for fields in construction.
By boosting investments in programs that introduce students to the construction industry, schools can put more students on a path toward professional and financial success while addressing the needs of local employers, Simonson said.
Rebuilding the nation’s career and technical education programs will take years, however, so in the short term, the association will advocate for sensible immigration policies that will allow more people to lawfully enter the country and work for construction firms.
Meanwhile, construction firms are embracing technology to cope with the labor shortage and appeal to young workers who have grown up with digital technology.
The survey found that 91% of firms agree that their employees need to possess digital technology skills to be successful, and almost three-quarters of firms say at least half of their new hires do possess the technology skills they need. Moreover, three-quarters of respondents agree that using cutting-edge technology helps them recruit talent.
The emergence of artificial intelligence and robotics could enhance the “cool” factor of construction jobs, making them more appealing to young workers. The survey found that 44% of firms believe that those technologies will make construction jobs better by automating manual, error-prone tasks. In addition, 41% say AI and robotics will make workers safer and more productive.
“For potential hires, a career opportunity in construction should mean an opportunity to work with advanced technology and perform safe, meaningful work,” said Allison Scott, director of customer experience and industry advocacy at Autodesk.
“As firms adopt more digital technologies and create stronger classroom and training pathways, we’ll begin to see a new generation enter the industry equipped with the tools and skills needed to tackle construction’s largest challenges,” Scott added.
Educate and excite
Amid the persistent labor shortage, many construction firms have stepped up their outreach efforts to high schools, vocational schools, community colleges and universities. But what if they could plant the seeds for a career in construction even earlier, before students have developed firm plans for life after school?
Branch Group, an AGC of Virginia member that handles a wide range of construction jobs, is working to do just that. Kim Sargent, director of marketing for Branch Group, said most construction workers get into the business because they had a formative experience as a child, seeing construction crews hard at work and using cool equipment, sparking an early interest in the field.
But between the time when kids are playing in the dirt and snapping together Legos and the time when they enter high school, there’s a gap where they have little to no exposure to the construction industry. Filling that gap with educational opportunities might go a long way in encouraging young people to consider careers in construction, Sargent said.
The idea is to “educate and excite” students about construction careers, she said.
Last November, Branch Group and Carter Machinery, also an AGC of Virginia member, sponsored The Construction Zone, an exhibit at the Kids Square children’s museum in Roanoke. The 1,500-square-foot space features construction-related exhibits, including a workable crane, a real mini excavator and an operational but stationary dump truck.
Children also can create and connect electrical circuits and use a drill to build a house. The Construction Zone was designed to encourage kids to explore science, technology, engineering and mathematics, or STEM-related fields.
“The kids just love it, and we’ve had a really positive response from the community,” Sargent said.
The Branch Group also hosts special events marketed toward girls ages 5 to 14, recognizing that since women make up only 14% of the construction workforce, they represent the industry’s biggest source of untapped talent.
The events give girls a safe space to explore construction concepts in a setting that isn’t intimidating, Sargent said. Just as important, parents are there, giving company executives a chance to speak with them and dispel some of the myths about construction – specifically, that it’s unsafe, dirty, doesn’t pay well or lacks room for career advancement.
Parents get to hear success stories straight from women working as engineers, construction supervisors or skilled tradeswomen. Sargent said the outreach to young students is part of a broader marketing strategy to increase awareness of job opportunities in the industry.
Since the labor shortage shows no signs of abating, construction firms must do a better job of selling themselves to jobseekers.
“When it comes to messaging, we have to be bold,” she said. “We can’t hide behind the curtain anymore. People have to know who we are, that we have lots of work and that we’re here to hire them and pay them. And the second part of that is we will have work to sustain them for a long time. They can have a career with us.”