The construction industry faces its fair share of challenges. In recent times, two significant hurdles have emerged as top concerns for construction contractors: worker shortages and supply issues. JPMorgan Chase’s 2022 Business Leaders Outlook survey found labor shortages were the most pressing issue.
These twin challenges can significantly impact the industry’s ability to meet demand and complete projects efficiently.
Worker shortages
The shortage of skilled labor is especially concerning as the demand for construction projects remains high. Several factors contribute to the worker shortages in the construction industry.
Many skilled workers in construction are reaching retirement age. Also, there are not enough younger individuals with the necessary training and expertise to fill their shoes. There has been a decline in vocational training programs, which has led to a gap between the demand for skilled workers and the supply.
Changes in immigration policies can also impact the availability of labor in the construction sector. This industry often relies on foreign-born workers with specialized skills.
The construction industry can be physically demanding and hazardous. This makes it less attractive to potential workers concerned about safety.
Supply issues
Construction contractors are also grappling with supply issues that affect the availability and cost of construction materials. These issues can delay projects and increase costs.
The global health emergency in 2020 exposed vulnerabilities in the global supply chain. Delays in the production and transportation of materials have led to shortages and price increases.
Just as construction contractors face worker shortages, suppliers of construction materials may also struggle to maintain a workforce capable of meeting demand.
Stricter environmental regulations can affect the availability of certain materials and drive up costs as suppliers must comply with more stringent standards.
Worker shortages and supply issues exacerbate one another. Addressing these challenges requires a multi-faceted approach to meet the demands of a growing and evolving world.
