As millions of workers continue to quit their jobs during the “Great Resignation,” businesses across industries are feeling the strain of the current labor shortage. After having time to reconsider their priorities and career goals during the pandemic, workers have been quitting their jobs en masse over the course of the last year. Almost no other industry has seen such a gap between available workers and opportunities than construction. Given the recent Infrastructure Investment and Jobs Act (IIJA), builders are about to see a surge of available resources, but the talent shortfall threatens their ability to take advantage of them.
Labor Shortage By the Numbers
According to an Associated Builders and Contractors (ABC) study published in Forbes Magazine, the construction industry’s labor shortage came in at an estimated 430,000 workers in 2021 – a number that’s predicted to grow well into 2023. Worse, the sector has recovered only 67% of the jobs lost in the first two months of the pandemic.
Another ABC analysis revealed the construction industry will need more than half a million workers above its current pace of hiring in order to meet demand: an additional 650,000 workers.
The Labor Shortage and Your Business
A key component of construction is job bidding. Builders meet with potential clients to give them a quote and proposal in hopes of being hired. With fewer workers, builders aren’t able to take on as many jobs as they’d hope – driving up selectivity and project costs.
While the competition for jobs is steep, competition for skilled labor is even steeper. The supply and demand for experienced employees and tradespeople are at a steep imbalance right now, and therefore, skilled labor is available only at a premium.
Boosting Your Bottom Line
While offering competitive wages is perhaps the most obvious way to recruit workers, prioritizing safety is another way to boost your retention rates. Not only will a strong safety training program help prevent risk, but it will also create a culture of safety among employees. That in turn shows these workers their employer cares about their well-being and gives them a sense of security in their job.
Investing in innovative tools is another way to keep your business competitive in the long run. New technologies have begun to emerge that will help fuel the infrastructure boom and will make it easier for workers to do their jobs. These developments include robots and drones, 3D printing, collaborative tools, and much more.
At Home Builders Financial Partners, we’re here to lend our financial expertise, bookkeeping, and account management services so that you can continue to focus on what you do best: building custom homes. Ready to see how the HBFP difference can become your advantage? Call (843) 402-0977 to schedule a FREE consultation or visit our website to learn more about our services: hbfpllc.com