When the construction industry can’t find qualified workers, the effects are felt far and wide: critical hospital construction is delayed, much-needed school renovation projects aren’t completed on time, and new homes don’t hit the market as planned.

According to the Associated General Contractors of America (AGC), over the past year, 89% of construction firms have struggled to fill hourly labor positions, and 86% struggle to fill skilled salaried positions, a problem likely to intensify. Associated Builders and Contractors (ABC) reveal that the construction industry needs to attract nearly 650,000 more workers this year on top of its normal hiring pace to meet increasing labor demand.

These obstacles may create difficulties, but they also present construction companies with a distinctive opportunity to separate themselves from the competition and reinvent the way they work. Forward-thinking industry leaders are doing everything they can to maximize productivity and find innovative ways to shrink the labor gap by boosting productivity and doing more with less. Here are three examples.

Example 1: Deploying software to streamline processes and boost visibility

Apps and software platforms designed for the construction industry can support faster, more informed decision-making and provide insight into project progress to keep work on track.

Depending on the type of platform used, software can help construction companies: 

• Better manage their workforce through efficient scheduling and people management
• Reduce the amount of time spent generating and responding to phone calls, emails, and text messages
• Decrease the potential for human error and double data entry
• Improve communication between field and office workers
• Simplify processes — from creating and managing estimates to establishing new safety policies
• Monitor labor costs in real time to make choices that positively affect budgets and profits 

Data visibility can also help contractors adjust workflow patterns based on what’s happening in the field. For example, in the summer, are workers more productive (or more apt to show up) when they work four 10-hour days instead of five 8-hour days? When this type of data is available, identifying how and where to improve efficiency becomes easier.

Example 2: Finding new ways to build

To reduce time spent in the field and keep workers in a safe and controlled environment, construction companies are finding unique ways to put building materials together.

Off-site construction (also called modular construction) is gaining traction as a way for construction companies to shorten timelines and minimize lost time due to injury or fatigue.

This approach allows a construction team to build certain components in a factory setting (e.g., wall panels for hospital rooms with electrical and mechanical already built in). From there, the components are transported to the jobsite and assembled on location.

In addition to improving quality and speeding up projects, offsite construction also helps ease labor costs. Because the on-site assembly process doesn’t rely on specific skills, it can be done by workers who may have less experience without sacrificing quality. Entirely new pools of workers can be considered since they no longer need specialized training, certifications, or skill sets.

Example 3: Reinventing ways to attract prospective employees

When there are open positions to fill, contractors are finding inventive ways to build their talent pipelines by: 

• Establishing relationships with local high schools to help guidance counselors and students learn more about construction careers. This can involve speaking to classes or giving staff the materials they need to confidently discuss career paths available in construction, from safety, engineering, and drone operation to surveying, marketing, and project management
• Creating diversity and inclusion initiatives and mentorship programs to make it more accessible and less intimidating for women and other traditionally under-represented groups to enter the world of construction
• Re-engaging with candidates who’ve expressed employment interest in the past but haven’t been hired
• Transforming in-house human resources teams to talent development departments that help recruit and retain skilled workers. These teams search for potential candidates and clearly communicate the benefits of working for your company
• Considering internship programs that offer the possibility of being hired after graduation or a certain number of months on the job. This can make internships more lucrative to potential prospects and get you the workers you need faster
• Partnering with workforce management companies that can provide staffing, training, and other professional services 

In an environment where workers are difficult to find, the only choice is change: transform your businesses, make employees more productive, and improve communication. Construction companies that take action and find new ways to work will build resilience against lingering shortages.

Find out how Wintrust’s Construction, Engineering, and Architecture group can help your business do more.