The construction industry faces a significant workforce shortage, with projections indicating a need for 454,000 additional workers in 2025. As skilled laborers exit the field faster than they can be replaced, the shortage threatens project timelines, safety and overall quality. Addressing this challenge requires a multi-faceted approach that includes innovative workforce strategies, collaborative engagement with subcontractors and the adoption of emerging technologies.
The Impact of the Workforce Gap
The aging workforce and the decreasing number of younger workers entering the trades have created a substantial skills gap. With only 9% of the workforce under 25, fewer individuals are pursuing careers in construction, leading to increased pressure on existing laborers. The workforce gap is straining productivity, driving up costs and extending timelines. Shortages also heighten safety risks, with audits revealing increased noncompliance issues — underscoring the need for experienced, well-trained labor to maintain industry standards.
Leveraging Design-Build for Workforce Efficiency
The design-build approach, which integrates design and construction under a single contract, offers a strategic solution to workforce shortages. By streamlining communication and fostering early collaboration, this model ensures potential issues are identified and addressed before they become costly problems. It also promotes a cohesive work environment where key stakeholders are aligned, optimizing scheduling and budget control from start to finish.
A key advantage of design-build is its early engagement with subcontractors. Unlike traditional design-bid-build projects, where subcontractors are often selected primarily based on the lowest bid, design-build prioritizes expertise and capacity, ensuring project expectations align with workforce availability. This approach reduces delays, improves quality and creates greater predictability in workforce management.
Technology as a Workforce Solution
Technological advancements are playing a critical role in offsetting labor shortages. Robotics and AI-driven tools are enhancing efficiency in field construction, allowing tasks to be completed with fewer workers while maintaining safety and quality.
Robotic layout tools are revolutionizing the framing process, eliminating the need for additional manpower while increasing accuracy. AI-powered painting systems require just one individual to control operations, providing a faster and safer method. The integration of technology also makes the industry more appealing to younger generations who are drawn to tech-driven careers.
Beyond on-site applications, technology is also transforming project management. AI-powered scheduling tools analyze BIM data to anticipate delays and optimize workforce allocation, while construction management software streamlines collaboration with features including document sharing, project tracking, resource management and more.
Supporting and Retaining Field Workers
Improving jobsite conditions is key to retaining skilled labor. Many contractors and subcontractors are implementing measures such as providing shaded rest areas, climate-controlled facilities and on-site meals to enhance worker comfort. These impactful efforts signal to tradespeople that their well-being is valued, helping to create a more sustainable and attractive work environment.
Recognizing and celebrating contributions is another essential step. While project milestones and industry awards often spotlight general contractors and owners, there is a growing call to acknowledge the men and women in the field who bring these projects to life. Industry events, groundbreaking ceremonies and award celebrations should increasingly include those whose work is instrumental to a project’s success.
Financial considerations play a major role in workforce sustainability. Subcontractors often face significant upfront costs and lengthy payment cycles, with some waiting up to 60 days to receive compensation. This financial strain can limit the ability of smaller subcontractors to take on additional work, further exacerbating labor shortages. Addressing these challenges — whether through more streamlined payment processes or financial support mechanisms — will be critical to ensuring subcontractors can continue to operate effectively and invest in workforce development.
Changing the Narrative to Secure the Future
Long-term solutions require a shift in how the industry approaches workforce development. Grassroots initiatives targeting high school and even junior high students are essential to building a pipeline of future construction professionals. Some subcontractors are already actively recruiting at high school career fairs, demonstrating that construction offers lucrative and stable career paths. Expanding partnerships with vocational programs and universities can also help bridge the gap between education and fieldwork.
The construction industry must evolve to meet growing demand, and tackling workforce shortages head-on will be critical to sustaining growth. Through strategic collaboration, technological innovation and improved workforce support, the industry can ensure a more resilient and efficient future.
As regional vice president at Phoenix-based LGE Design Build, Grant Blunt has spent more than nine years driving operational excellence, streamlining processes and fostering strong relationships with clients and subcontractors to ensure the successful execution of complex projects. His leadership has played a pivotal role in enhancing efficiency, improving team collaboration and strengthening the company’s reputation as a premier design-build firm.
Photo courtesy of LGE Design Build
