The U.S. construction industry is battling its biggest worker shortage in 80 years.
According to the 2020 Construction Outlook Survey by the Associated General Contractors of America (AGC), 81% of construction firms have trouble filling both salaried and hourly craft positions, and 72% anticipate labor shortages to be the biggest hurdle in the next year.
A lack of public education about — and exposure to — construction and trades is a major cause of the labor shortage. That is why there is a renewed interest by many associations, trade groups and individuals in vocational training in all phases of offsite construction.
More than 2 million new construction workers are needed over the next three years to meet demand, according to industry experts.
The industry says it now has up to 430,000 open construction jobs and will need another 61,000 new hires every month for the foreseeable future.
In September, Amazon said it was looking to fill 125,000 logistics positions with an average hourly wage of $18 that can run to $22.50 in some places.
“The difference between $15 and $20 is whether or not they are going to have a lunch or a dinner, and what it’s going to be” said IRS Commissioner Charles Rettig.
Gender imbalance in construction work has also had a negative impact on the construction skills gap.
With women making up only 11% of construction workers sector-wide, and 2% of skilled labor, it’s not difficult to see where the skill gap has arisen. A new wave of apprenticeship schemes and a willingness to diversify the workplace have seen initial success but there’s still a long way to go.
A wider variety of vocational courses alongside on-site training is now needed to make a success of these new apprenticeship schemes.
The construction industry is huge and consumes up to 10% of all money used in the world. On average, it can be considered that one in ten able-bodied people in the world is somehow connected with the construction industry.
As more modular factories become vertically integrated, the need for skilled labor will extend far beyond the factory production line. All positions from Project Managers to truck drivers and set crews will need to be filled and if a factory has nowhere to turn to for recruiting and training, it will suffer in the end.
Related Articles:
- Workwise Gets $300,000,000 For Skilled Labor Training Including Modular Construction
- Off-Site Construction Stumbling Over Skilled Labor Shortage
- “Parents, Don’t Let Your Children Grow Up Without Skilled Labor Training”
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder. Email at [email protected]
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