Construction Industry to Invest $1.6b To Bridge Labor Shortage Gap

The skilled labour shortage is one of the major concerns in the construction industry that has been persisting for so long. Skilled labor is always in demand as the industry needs perfection in work, that comes with skills and experience. Recently, to bridge this gap, Associated Builders and Contractors Inc. (ABC) has surveyed to propose a better solution. The survey showed that a significant amount has been invested in staff training. As a whole, the industry has now announced to invest around $1.6B to improve the knowledge, security, and leadership qualities in the workforce.

Investment breakdown

In a detailed survey presented by ABC, the investment breakdown was pretty clear and organized. The investment amount of $1.6B in 2024 continues previous investments of $1.5B in 20222 and $1.6 billion in 2021. This continuous financial support is a mere example of how important worker development is to the construction industry. The sector is going to need an extra half a million people by 2024, so this investment will be especially important.

ABC contractors continue to place a high priority on safety education, allocating 59% of their staff spend to this area. Since 2022, the sector has consistently placed a high priority on safety, which is indicative of its commitment to upholding strict safety regulations on construction sites. Furthermore, compared to 8% in 2022, ABC contractors spent an average of 7.5% of their payroll on staff development in 2023.

Moreover, contractors specializing in trades and crafts have raised their portion of the overall workforce development budget. From 42% in 2022 to 50% in 2023, their contribution increased. This rise suggests a more widespread commitment to improving personnel skills among various construction industry sectors.

Reason behind the labour shortage

According to the survey, there is a severe or very severe labour shortage, as expressed by 58% of respondents. The primary cause of this scarcity is said to be the baby boomer generation’s departure from employment. ABC is fighting this with a number of upskilling initiatives. More than 800 management, craft, health and safety, and apprenticeship programs are available through ABC’s network. Interestingly, over 450 of these are apprenticeship programs covering 20 various occupations that are registered with the government.

On the other hand, it is worth noting that ABC chapters encourage people to start careers in construction by supporting 328 entry-point programs across the country including the operators of heavy equipment and cranes for sale, dealers and the other construction staff. These initiatives are essential for drawing fresh talent to the field and equipping them with the basic to advanced know-how needed for success.

Each year, ABC members give the Trimmer Construction Education Fund about $500,000. Through funds given to ABC chapters, this fund fosters the creation of a workforce that is knowledgeable, secure, and long-lasting. These funds give chapters the ability to create and carry out efficient training programs that are suited to the requirements of their membership.

How technology can help in training?

The importance of using technology in training has grown massively in last few years. According to the report, 81% of participants used virtual or augmented reality (AR) to learn about safety. This industry’s deployment of technologies shows its dedication to creative training approaches that can raise safety standards and improve learning outcomes.

How did ABC conduct the survey?

The industrial consulting firm FMI performed the 2024 Workforce Development Survey between January 4 and May 20, 2024. The average amount each respondent spent on education was multiplied by the total number of ABC contractor members to create aggregated data. This thorough process guarantees that the survey findings fairly represent the industry’s workforce development expenditures.

Two Cents

The construction sector has demonstrated its commitment to tackling labour shortages and improving the capabilities of its workers by making large investments in workforce development. The sector is well-positioned to tackle the challenges of the future and guarantee a trained and sustainable workforce by putting a high priority on safety education, adopting technology, and backing a wide range of educational initiatives. A recent survey conducted by the ABC Inc. has revealed that the industry has recently invested $1.6B in worker training to bridge the skill shortage gap.

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