While there are signs of a softening labor market, there continues to be a marked skills gap and labor shortage in the construction industry.
According to recent U.S. Bureau of Labor Statistics findings, over 2.5 million construction workers are over the age of 55. The U.S. Census Bureau reports that by 2030, all Baby Boomers will be 65 years or older. That said, the Associated Builders and Contractors (ABC) reports that one in five workers will exit the construction workforce in the coming years. ABC also states the industry will need to bring in more than 450,000 new workers on top of normal hiring to meet industry demands.
This means the industry needs to attract even more workers on top of the normal pace of hiring for the year just to meet labor needs. This could be difficult, as a survey conducted by Associated General Contractors (AGC) noted that 85 percent of construction firms report they have open positions they are trying to fill. Among those firms, 88 percent are having trouble filling at least some of those positions — particularly among the craft workforces.
Closer to home, Texas has welcomed nearly 1 million new residents since 2022, which is the third highest growth rate in the country. The U.S. Census Bureau reports Fort Worth having the fastest growth in the country and San Antonio coming in third, while Houston holds on to its spot as the fourth largest city in the nation. This record growth directly impacts infrastructure and abbreviates its longevity while heightening the need for new structures. And new structures cannot be built without skilled workers who can help meet this monumental demand.
We are at an impasse of high construction demand without the workforce available to complete projects in a timely manner.
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Introducing careers in construction at a young age is critical in helping close the skills gap and ensure the construction industry keeps up with the increasing demand. It is also imperative for those who have years of industry experience to pass along their knowledge to the younger workers.
There are a number of ways for the construction industry to tackle the skills gap, both in encouraging youth to take the career path and passing along industry knowledge. It’s not the responsibility of one group to do it all, but it is a collaborative effort.
Enticing talent to choose construction as a career involves dispelling myths and addressing any stigmas they may have about the industry. School districts are open to partnering with established organizations. Working with high school students through industrial arts, STEM programs, career fairs, and hands-on job site discovery days can introduce new career opportunities and paths some students didn’t even know existed. These partnerships can ignite a passion for the craft in young talent, fostering their interest in pursuing careers in construction.
Existing programs like the ACE Mentor Program is an industry-specific initiative designed to introduce high school juniors and seniors to career opportunities in architecture, construction, and engineering through hands-on learning, onsite tours, and one-on-one mentorship and coaching. Involvement in a program like this can encourage youth to consider construction and serve as a recruiting tool.
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Mentorship programs can make a world of difference for young talent. As the current construction workforce ages, it is even more important to make certain the knowledge gained from years of experience doesn’t walk out the door completely at retirement.
Nothing can fully replace your most experienced workers, but their guidance and mentoring of the younger generations in a more formal capacity can prove invaluable. Reverse mentoring is important as well. Younger generations may be able to quickly pick up on new work site technologies and help mentor the older generation where retirement is further in the future.
No matter the industry, experience is the best teacher. As new workers enter the field, experienced industry professionals are primed to guide their peers. The more seasoned the expert, especially in the trades, the more valuable their knowledge, even amid the myriad technological advancements. The transfer of knowledge is essential in bridging the gap between generations. Younger employees can use their initial years on the job sites to learn from everyone in the field, as they have untapped knowledge to impart. Every moment is a teaching moment for someone who is new on the job.
As the industry clambers for talent, upskilling and reskilling is critical as well. Look for employees who are eager to learn and show an aptitude for the industry. Those who have enthusiasm for the industry and embrace innovation are prime candidates for cross-functional training and career development programs. Likewise, training employees in new technologies, advanced skills, and specialized certifications will establish a more talented workforce ready to step into new roles as others retire.
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Training programs offered through initiatives like the Construction Career Collaborative (C3) also prove to be an asset to the industry in the Houston area. Through their programs and partnerships on specific projects, most recently 1550 on the Green, they provide skilled talent and advanced training opportunities for existing team members who want to better or deepen their skills.
Those with an aptitude for technology might not always consider the construction industry as a career option. However, construction technology offers some of the most prolific advancements across various market sectors, from environmental processes to digital imaging and thermography. Technology is transforming construction in safety, project management, and trade communications. That said, those who are going into construction technology must know the principles and foundational practices of the industry’s construction standards.
The true potential of technology is unlocked when combined with the expertise of skilled tradespeople. This synergy ensures that repetitive tasks are minimized, allowing workers to focus on more complex aspects of projects. Technological advancements now enable better management of projects and specific trades by considering the impact on subsequent specialty trades. Drones are increasingly used for surveying and enhancing safety, while other tech innovations streamline workflows to keep projects on schedule and within budget.
The advent of new technologies can pique the interest of a new generation of tradespeople who are keen to create and operate innovative technologies. And as technology becomes more prevalent, it can only help encourage future workers to consider the construction industry as a career path.
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Construction is an enduring industry. As Texas continues to grow, new and existing infrastructure needs our attention. Younger generations today should understand construction offers competitive salaries, safe work environments, and a focus on sustainable building practices. In turn, this creates a stable work environment.
Every general contractor, builder, and tradesperson has an important role to play in the future of Texas’ construction industry. We all must make it our goal to introduce as many people as possible to the industry, and no matter what company they land with, if they choose construction, we are filling the talent pipeline. Approaching the skills gap from every angle can only have a positive impact on our industry’s growing workforce needs.
Ryan Aalsma serves as the Executive Vice President/General Manager for Skanska USA Building’s San Antonio operations, and Dennis Yung serves as the Executive Vice President/General Manager for Skanska USA Building’s Houston and North Texas operations.
