Skip to main content

Construction Firms Find Severe Hiring Problems

Sep 11, 2015
Home Under Construction/Credit: Purestock

If there is a future slowdown in construction projects involving both residential and commercial real estate and the surrounding infrastructure for both sectors, you can blame it on the lack of qualified workers to create these projects.

A new survey by the Associated General Contractors of America has found 86 percent of construction industry firms are experiencing problems in filling both hourly craft and salaried professional positions. According to the trade group’s survey, 79 percent of construction firms are having a hard time filling one or more of the 21 hourly craft professional positions, most notably carpenters (73 percent of firms responding to the survey have difficulty hiring this segment), sheet metal installers (65 percent) and concrete workers (63 percent). Beyond the blue collar positions, 52 percent of firms are struggling to fill salaried professional positions including project manager/supervisor roles (55 percent), estimators (43 percent) and engineers (34 percent).

Competition for workers is also creating a problem. The survey found 36 percent of firms report losing hourly craft professionals to other local construction firms and 21 percent to other industries locally, while 13 percent of responding lost workers to construction firms in other locations. As a result of this, 56 percent of the surveyed construction firms had to increase their base pay rates for hourly craft professionals and 43 percent increased their reliance on subcontractors. Occupational hazards due to worker shortages are also rising, with 15 percent of firms reporting an increase in injuries and illnesses due to inadequate manpower.

“Few firms across the country have been immune from growing labor shortages in the construction industry,” said Stephen Sandherr, CEO for the Associated General Contractors. “The sad fact is too few students are being exposed to construction careers or provided with the basic skills needed to prepare for such a career path.”

About the author
Published
Sep 11, 2015
Condo Prices, Sales Falling In Florida

New regulations and rising insurance costs hold back buyers in six major metros.

Feb 26, 2024
Rocket Companies Reports Decline in Fourth Quarter Revenue, Projects Optimism for Future Growth

Despite revenue dip, mortgage giant sees increase in market share and advances in AI technology.

Feb 22, 2024
Broker Action Coalition Unveils Inaugural Board Of Directors

Newly formed nonprofit organization BAC announces industry professionals to guide its mission of legislative change and educational initiatives in the mortgage industry.

Feb 21, 2024
GSEs Report Strong Earnings

Robust performance marks growth for both Fannie Mae and Freddie Mac, despite a dip in home purchases.

Feb 15, 2024
Friendly Competition Joins Forces

The merger aims to enhance local fulfillment and sales support, marking Guild’s sixth acquisition since 2021 and expanding its licensed originators to over 2,100 amidst a challenging market.

Feb 14, 2024
Guild Mortgage Announces Acquisition Of Competitor Academy Mortgage, Bolsters National Presence

The strategic move will see Guild Mortgage enhance its market share and become the 8th largest non-bank retail lender in the U.S., welcoming over 600 loan officers from Academy.

Feb 13, 2024