problems in the construction industry

Trends and Problems in the Construction Industry 

Posted December 28th, 2024

In November, much of my Mobilization Funding team and I attended The Dirt World Conference in San Antonio, Texas.  It was an opportunity to join together, get educated and begin to strategize on some of the latest trends in construction!  The focus of the meeting was really centered around the industry’s greatest resource — its people.  Aarron Witt, CEO or as he calls himself, the Chief Dirt Nerd, has “studied” the Dirt World’s trends for years.  The most common trend every construction company is talking about right now is their largest resource and asset, their people!  

One of the single-handed biggest problems in the construction industry, if not the biggest right now is the recruiting of young new talent to the workforce! Unfortunately, the construction industry is on the brink of a crisis, and one day, I fear we won’t have the workers needed to save cities from destruction!!  Nearly half of the current construction workforce is expected to retire within the next decade, creating a massive labor shortage. The U.S. will need millions of skilled workers across sectors like housing, infrastructure, and renewable energy. Without an influx of young talent, essential projects like roads, homes, and disaster recovery will be delayed, harming communities and the economy.

Today in the United States, Millennials and Gen Z make up the next generation of the workforce, the working class as we may call it.  They are the generations born from 1981 to 2012.  They are now in high school or college, or already in the workforce.  With this generation it is crucial they see the opportunity beyond the traditional path of a 4-year university degree, then into the corporate business world. Or white-collar work. 

Unfortunately, there are some misconceptions associated with the career path in the skilled trades – that is, “blue collar” work.  The problem is young workers just aren’t interested in construction. Studies say almost NONE OF THEM want to join the building trades.  Yikes!  Together we need to come up with a way to establish this essential industry as a pathway forward for our country, and for others to desire this career path as a means to build their own American Dream. 

In Aaron’s visits across the world, analyzing, watching, and working alongside various construction companies and contractors, he has found a series of actions that companies do well and set them apart from those that are struggling or even failing.    The biggest differentiator with who has the best talent lies in LEADERSHIP.   Much like other industries, what holds many people back and stifles careers in construction is often  the lack of leadership, a failure to focus on people and culture.  These are the essentials that breathe life and longevity into a business, and if they aren’t at the top of the priority list, the ship sinks.  People and leadership are the most important asset of every business!  If our goal is to attract and retain the next generation of workers, we may need to adjust our thought process and what our culture needs to look like.  So, what does America’s youth want in a career?  Forbes Magazine reports that nearly ALL of them say it’s important they feel valued, included and empowered at work. This is information none of us can afford to overlook!  Regardless of your job title, everyone can be a leader!!!  You 100% have the power to impact another person’s life and career just by asking questions, giving advice, and caring.  

Since the construction industry is constantly evolving, driven by innovation, environmental concerns, and shifting market demands, staying informed about emerging trends is crucial for businesses seeking to stay competitive.  The rise of construction tech is also a big trend in the construction industry and  is reshaping how projects are managed and executed. From robotic usage, AI (artificial intelligence), Building Information Modeling (BIM) to drone mapping and 3D printing, finding ways to adopt these technologies not only streamlines processes, reduces waste, and improves safety, but also gives the construction industry a hand up in the recruitment process of young new professionals to the workforce who are interested in careers with technology! 

With current environmental, resources, and global changes, finding and reusing resources continues to be another common industry trend.   Sustainability remains at the forefront of the construction industry. Companies are increasingly focusing on eco-friendly materials, energy-efficient designs, and renewable energy integrations. Techniques like net-zero energy construction, the use of recycled materials, and green certifications (such as LEED) are becoming standard.  By finding solutions and opportunities for sustainable solutions, companies achieve long term cost savings, reduced environmental negative impacts, and increased project values!

Another topic that was mentioned at the conference regarding current construction trends was the emphasis on employee training and safety. 

With an increased focus on safety, companies are implementing new safety technologies and rigorous training programs. Wearable tech, such as smart helmets and vests, monitors worker health and improves on-site safety.  These are important attributes that can also help recruit the next generation of workers.  

Additionally, we know turnover can be a common trend in the construction world, one major factor that is contributing to turnover or lack of job satisfaction is training!  It is so important to take the time to train your employees.  It doesn’t have to be fancy; it just needs to have some time, focus, and energy put into it.  Any one can train!  The benefit on construction is so much of it can be on the job training! 

One last final discussion around trends and problems in the construction industry was mental health.  Believe it or not, construction has one of the highest percentages in drug and alcohol abuse, depression, and suicide rates!  Mental health issues are vert prevalent in the construction industry. Here are some statistics and more information that can be found written by Sara Lorek:

With numbers like these, we can’t afford not to make this a priority and something we begin to change!  As we all know the majority of the construction workforce is males, and males are less likely to admit struggling and even less likely to seek help.  This industry is stressful, the expectations are high, and layoffs are sometimes unavoidable.  No longer can we assume everyone on the job site is in a healthy state of mind.  Our workforce needs to start looking out and supporting one another and companies would benefit from offering confidential help and support to those who need it!

The industry is at a pivotal time, strong LEADSERSHIP qualities will be essential, from there,  balancing innovation with environmental responsibilities, with proper safety and training, and last but not least mental health, problems in the construction industry can begin to be resolved and positive impacts can be made in attracting and preserving the right talent this industry desperately needs.