Leveraging IT to Solve Construction Labor Shortage

Posted May 24, 2022

Throughout the COVID-19 pandemic and in its aftermath, many industries have faced an increasing challenge in finding and retaining enough talent. During this period the U.S. unemployment rate has hovered at a multi-decade low of 3.8% as job openings and quits swelled to historic highs, and layoff rates fell to record lows. Adding to the pain for employers, employees are actively seeking to change jobs with 44% of currently employed workers identifying as “job seekers” — according to Willis Towers Watson’s 2022 Global Benefits Attitudes Survey. Like never before, employees are open and prepared to seek a change in employment.

The construction industry knows the labor shortage pains all too well. Construction has suffered from labor shortages as well as supply chain issues delaying many projects. Prior to the pandemic, the United States construction industry employed 7.6 million workers. The count of total employed dipped by 1.1 million during the pandemic and has since recovered back to 7.4 million — still short of the pre-pandemic level. Add in the pre-pandemic annual labor growth rate of 2.5 million jobs per year, and the construction industry has fallen well behind the labor curve.

The labor pains faced by the industry are not new and were only amplified by the pandemic. Contractors have had to face a perception problem as today’s workers look to safer work environments that better leverage technology, especially around productivity and remote work.

However, it’s not all bad news for the industry. Many of the technological advances that will attract new talent can also lead to increased productivity and improved scheduling. By leveraging automation and cloud collaboration platforms, construction companies can respond to increasing demand by completing projects faster and more efficiently. Tools that increase project visibility, workflows, and streamline scheduling are widely available and growing in use throughout the industry. Improving collaboration leads to enhanced quality control as well as job site safety as inspections are logged, vitals are monitored, and safety documentation is more easily shared.

Working smarter instead of harder can help solve many of the industry’s perception problems when it comes to hiring. Leveraging digital technologies can lead to better data, faster decisions, and ultimately increased margins; while also creating a technically advanced work environment that attracts talent. Companies can access a range of tools to reduce labor inputs required per job and drive productivity in project development and delivery. Technology advancements in design, automation, and cloud collaboration will drive this evolution.

Construction projects in the US are short-staffed and the problem is set to get worse. Innovative companies within the industry can stand out in the job market by leveraging technology to attract new employees and retain established talent all while improving job efficiency and safety. If you are ready to set your competitive edge in the market, contact us, we’re here to help.

Kyle Vinar

Kyle Vinar is Partner / President of Verus Corporation. He oversees all business operations and coaches Verus teams to continually improve on their solutions from client experience to product development and overall solution implementation. He works with all Verus resources to increase efficiencies and excellence in every aspect of their organizational roles. Kyle believes that people are the last real competitive edge that a company can have and constructing a rich culture is a vital step in running a world-class organization. Therefore he strives to create a culture within Verus that allows everyone to show up authentically and grow both personally and professionally, which in turn allows Verus Corp team members to provide clients with top-of-the-line service. Kyle helps balance strategy, capacity, and culture in such a way that has allowed Verus Corp to achieve exponential growth since he joined the company in 2013. One of Kyle’s greatest professional achievements has been in helping lay the foundation upon which Verus Corporation could be named the 2nd Best Place to Work by the Minneapolis/St. Paul Business Journal. Kyle holds a Bachelor of Science in Marketing from St. Cloud State University. He lives in Champlin with his wife and 3 children. He has enjoyed volunteering as a soccer coach for over 6 years and was the former Director of Coaching for Rebels Soccer Club. If Kyle isn’t on the sidelines of one of his children’s soccer games or in the audience of his eldest’s musicals, he can often be found cruising scenic routes on his Harley, in a deer stand, or on the golf course.