We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.

logo
  • Engineers & Specifiers
  • Contractors & Installers
  • Wholesalers & Distributors
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Free Subscription
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • PRODUCTS
    • Bath & Kitchen
    • Fire Protection
    • HVAC
    • Hydronics/Radiant
    • Plumbing
    • PVF
    • Tools
  • PROJECTS
    • Commercial
    • Green Building
    • MRO/Retrofit
    • Remodeling
    • Residential
  • HOW TO
    • Design
    • Fire Protection
    • Legal Matters
    • Management
  • BUSINESS
    • Buying Groups
    • Technology
    • Associations
  • CODES & STANDARDS
    • ANSI
    • ASHRAE
    • ASSE
    • Regulations
    • Green Building
    • IAPMO
    • ICC
    • NFPA
  • RESOURCES
    • Media Kit
    • Advertise
    • Contact Us
    • Classifieds
    • Digital Editions
    • Behind the Wall
    • Webinars
    • AHR Live 2023
  • PODCASTS
  • DIGITAL EDITIONS
Home » Construction Survey: Labor Shortage Means Missed Deadlines

Construction Survey: Labor Shortage Means Missed Deadlines

March 12, 2019
No Comments
Construction Survey: Labor Shortage Means Missed Deadlines

Results from the Q1 2019 USG Corporation + U.S. Chamber of Commerce Commercial Construction Index indicate the labor shortage continues to pose major challenges to the industry, causing firms to ask skilled workers to do more work (81 percent), struggle to meet deadlines (70 percent), increase costs for new work (63 percent), and reject new projects (40 percent).

As the industry fights to solve the labor shortage, the latest survey suggests a contributing factor could be negative perceptions of construction careers by young workers, leading to fewer workers seeking to enter the industry. 

When asked about the biggest myths about working in the commercial building industry, contractors cited the perception that construction jobs are all "dirty" jobs (61 percent), construction work requires only brute strength (55 percent) and construction is just a "job" rather than a career (52 percent). Yet, contractors note good pay, opportunities for advancement, and the ability to learn new skills on the job as the best reasons to pursue a career in construction. 

"It is important for construction leaders to consider how we can shift the perception of the industry and increase the number of young workers who want to work in the trades," said Jennifer Scanlon, president and CEO of USG Corporation. "Retention will be particularly important to meet infrastructure demands, as well as a continued focus on innovative processes and technology on the jobsite." 

Contractors agree that the best way to increase the skilled workforce in U.S. construction is to increase enrollment in technical schools and vocational training. A better reputation for compensation, apprenticeship programs and opportunities for advancement were also cited as ways to recruit more workers – particularly those under the age of 30 – into commercial construction. 

To retain employees, 55 percent of contractors believe there should be more opportunities for advancement, in addition to increased employee engagement and more on-the-job training. The growing role of technology on the jobsite was also cited as a means to attract the next generation of workers to the construction workforce.

Overall, the Q1 composite score of 72 shows a healthy market though contractors may be slightly more cautious about the health of the commercial construction industry, evidenced by a drop in the three leading indicators – backlog, new business and revenue forecasts. The survey was fielded in January during the federal government shutdown, so concerns about economic stability and future growth were likely more top-of-mind than in previous surveys. However, the data about industry perceptions should still be troubling to anyone looking to solve the prevailing labor shortage. 

"The first quarter findings suggests that the fundamentals of the construction industry remain strong, but to sustain future growth, it is clear that we need bipartisan policy solutions from Washington that promote trade, reform our immigration system, and better prepare America's workforce for the jobs of today and tomorrow," said Neil Bradley, U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer.

The Index looks at the results of three leading indicators to gauge confidence in the commercial construction industry, generating a composite index on the scale of 0 to 100 that serves as an indicator of health of the contractor segment on a quarterly basis. 

The Q1 2019 results from the three key drivers were: 

  • Backlog: Contractors' ratio of actual to ideal backlog dropped three points to 77 (down from 80 in Q4 2018). In Q4 2018, 41 percent of respondents said their backlog had increased. This quarter, that number fell to 28 percent. 
  • New Business Confidence: The level of overall confidence dropped five points (from 76 to 71) quarter-over-quarter. 
  • Revenue: The revenue driver dropped two points to 67 this quarter, indicating moderated expectations for the magnitude of revenue growth in the next 12 months. 

 

Apprentice Commercial Contractors & Installers HVAC Hydronic Piping Systems Industry Community News Management Mechanical Millennials Plumber Plumbing Trends
  • Related Articles

    AGC Survey: 70 Percent of Contractors Report Labor Shortage

    Skilled Labor Fund: Skilled Labor Shortage Still Troubling the Residential Construction Industry

    Survey: 9 Out of 10 Contractors Report Skilled Labor Shortage

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular

  • Chicago Plumber’s Union Dyes Chicago River Green for St. Patrick’s Day 2023

  • Six Truths About New DOE 2023 HVAC Efficiency Standards

  • Everything You Wanted to Know About Orangeburg Pipe (But Were Afraid To Ask)

  • The Basis for Most Plumbing Codes

Featured Video

Caleffi video thumb

The Gold Standard: Separation with NO Compromise

Industry Events

  • 26Mar

    MCAA 2023 Annual Convention

    Phoenix, AZ
  • 29Mar

    2023 SFPE European Conference & Expo

    Berlin ,
  • 11Apr

    ASA ELEVATE2023

    Charleston, SC
More Events

Subscribe to our newsletters & stay updated

Subscribe & Learn More

  • Tw03 2023 cover
    Learn More
  • Pe03 2023 cover
    Learn More
  • Phc03 2023 cover
    Learn More
  • Es 2022
    Learn More
Subscribe

More from PHCP Pros

  • Editorial Team
  • Home
  • Contact Us
  • About
  • Advertise

Follow Us

© 2023 All Rights Reserved

Design, CMS, Hosting & Web Development | ePublishing