Using Technology to Deal with Construction Labor Shortage

By Dr. Sergey Sundukovskiy

The ongoing labor shortage in the construction industry is a chronic issue that isn’t going away. The construction industry must turn to technological solutions to help manage increasingly complicated projects with fewer workers.

It’s been nearly a decade since the worst days of the Great Recession and the housing market crash. An estimated 30 percent of construction workers left the field during the economic downturn.

The skilled construction labor pool has never recovered. More than 70 percent of construction firms reported having trouble recruiting for hourly craft labor positions in August 2017, according to the Associated General Contractors of America.

The existing labor pool is also aging. In July 2016, about 15 percent of construction laborers were 55 years old and up, presumably meaning they were within 10 years of leaving the workforce. As this cohort ages out, overall employment demand for construction laborers is projected to grow 13 percent through 2026, according to Bureau of Labor Statistics.

The persistence of project delays
This labor shortage is making itself felt. According to KPMG’s 2015 Global Construction Survey of more than 100 project owners, 75 percent of construction projects did not come within 10 percent of their original deadlines in the three years previous to the study.

The tightness of the construction industry labor pool equates trying to complete multiple projects with smaller crews. The new normal for construction supervisors is having to accomplish more with less. Construction executives will be pressed to achieve the most results from the least effort.

Evolving technology
The construction industry has traditionally been fairly disinterested in turning to new technology to bolster productivity. That has begun to change as companies are being spurred to increased efficiency by the ongoing labor crunch.

Many companies are adopting the use of various project management software platforms, which have become indispensable tools. Another development is the advent of convenient, cloud-based construction monitoring software.

New ways to build
U.S. construction firms and contractors are also taking a much closer look at the advantages of prefabrication. Offsite fabrication can reduce completion time for projects by allowing assembling of components or even whole residences away from the jobsite. Robotics and automation are beginning to supplement human workers, taking up the slack of smaller crews.

New management techniques
Aided by technological advancement, construction firms are adopting leaner, more agile workflow processes such as the Design-Build model of project delivery. In contrast to the traditional Design-Bid-Build model, the Design-Build team provides both design and construction services during the entire project lifecycle.

Firms are also using technology to inform the design and building process through Building Information Modeling. which use real-life data to guide physical construction. This, in turn, is being incorporated into comprehensive Virtual Design and Construction management processes.

There are exciting developments in computer-aided visualization through virtual and augmented reality technology. One application allows users to visualize complete construction projects on top of incomplete construction sites while the project is underway.

Recruitment, retention through technology
Technology is also becoming a means to attract and retain new talent for construction firms. Social media can be used to reach active job seekers and so-called passive candidates — those skilled workers who are employed and not necessarily looking for a new job. Data analysis can be used to vet and evaluate candidate qualifications.

Some firms are even using data analytics to better visualize the impact of individual employee performance to company performance as a whole. This type of benchmarking can be used to analyze employee training needs, providing tools for remediation and career advancement.

Technology can also help recruit workers in unexpected ways. If candidates know that a specific company is using the latest construction technologies, they might be more inclined to accept an employment offer. Millennials, especially, want to know that your company is dynamic and keeping up with the times.

Summing it up
With the decline of vocational training in public schools and the now generations-long effort to push young people away from trade schools to pursuing college degrees, the chances of a quick end to the ongoing construction labor shortage are slim. As demand for solutions increases, expect more investment in the construction technology space as companies race to meet the need. The future of the construction industry will depend on its flexibility and willingness to embrace the technological disruption of traditional management and fabrication processes.

Dr. Sergey Sundukovskiy is co-founder and chief technology and product officer for Raken,a daily reporting application for the construction industry.