Construction firms are short experienced managers and laborers everywhere. Shortages made worse by job hopping in search of higher pay. Field managers need workforce data in hand more than ever. Safe Site Check In is provides workforce management data plus safety screening and daily log automation. Saves Supers, Project and Safety managers hours every week on every jobsite.
Construction labor shortage is an international trend
The construction industry in the US today has an historic shortage of experienced managers and laborers. According to a National Association of Home Builders report, construction needs 2.2 million new hires from 2022-2024 to keep up with industry growth and the loss of workers through retirement or exiting the sector. The industry needs 61,000 new hires per month! But there are simply are not enough people for hire.
The labor shortage amplifies other industry challenges such as: labor cost inflation, project delays, and supply chain instability. A recent FMI study shows that almost 50% of the responding contractors saw a declining labor productivity in the space of a single year. That means less profitability. According to the same study, contractors lost approximately $30 billion to $40 billion to labor inefficiencies in 2022 with significant project and enterprise margin erosion.
With no easy solution available to fill in such massive vacancies. But in the near term, there’s only so much the industry can do to develop new workers. For example, in an effort to meet labor shortages, a government-funded program delivered by Colleges and Institutes in Canada offers up to $20,000 for companies hiring new apprentices.
But this only shows how acute the labor shortage problem is for companies trying to find a skilled and motivated younger workforce. Demographic trends and resistance to immigration means the industry won’t find more workers easily.
Why job hopping in construction is problematic for productivity and site safety
Another challenge for the industry is retaining the current workforce. Job hopping in search of higher pay is historically high. But that’s not the only reason why people change jobs. Younger generations have different expectations compared to baby boomers.
Today, almost half (46%) of the US workforce consists of Generation Z (born between 1997 and 2012) and Millenials (born between 1981 and 1996). These construction workers might be more interested to work for design-build firms, where the designer and the builder are put on the same team. These generations value teamwork much more highly. And they are digital natives who want to work for more technically advanced firms.
A less experienced workforce has lower productivity. The industry needs to leverage new tools and technology to turn the tide, become more efficient and productive. Construction managers — Supers, Project and Safety Managers — are even harder to find than the trades.
FMI found that factors affecting productivity are related to planning, communication and collaboration. Better management efficiency directly results in higher productivity, which will lower project costs and higher profitability. But this is possible only if construction managers have access to their jobsite’s workforce management information.
SSCI: A smarter way to manage construction workforce
With a constantly changing workforce, construction managers have more new faces to manage, as well as workers with unknown skills and knowledge. Worker profile data dan tell you a worker’s employer, trade, skill set, licenses and credentials — whatever data is needed to build more efficiently.
And knowing who is on a jobsite and their profile data is crucial to manage daily operations, improve communication and planning. SSCI offers a digital approach to construction jobsite workforce management through its mobile web app that also captures daily log data. with SSCI, jobsite managers can to screen all workers and visitors for safety, and even when working remotely, they will know who is on a jobsite, both in real-time, and any day in the past.
The industry faces a lack of experienced jobsite supervisors. These people need years of experience to learn the ropes. But new technologies like SSCI can make their jobs a lot easier. With the assistance of jobsite productivity software they are able to work “smarter” and deal with a changing workforce. SSCI captures worker profile data such as experience and certifications, making managers more effective with today’s changing workforce.
Collecting daily job site data such as attendance is standard practice. But is collecting this data a good use of a manager’s time if it can be automated? SSCI automatically keeps track of who has access to a jobsite, and whether they have the right documentation and qualifications. SSCI saves expensive management time while improving safety and security.
And travel time to jobsites is often time wasted. Most Safety and Project Managers do not need to be onsite everyday. SSCI gives them a way to monitor worksites without travel time.
A $20 billion opportunity
Construction industry productivity is a $20 billion opportunity that starts with smart digital tools. Tools that help your jobsite become more safe . Tools to distribute worker profile data for more collaboration and communication. SSCI is fast and easy to implement. See the results immediately on your next construction project.
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