The Labour Shortage in Construction, is Tech the Answer?
The construction industry is suffering from a chronic labour shortage that is having a significant financial impact on the sector. So, it should come as no surprise that a huge number of projects in both the US and the UK are currently either on hold or delayed. But what can be done to address this ongoing issue?
According to the Royal Institution of Chartered Surveyors' 2023 Q1 UK Construction Monitor, 60% of respondents felt that a labour shortage was hindering building activity, with Quantity Surveyors among the top two professions with insufficient skill sets to meet project demands. Furthermore, a study carried out among the leading UK and US construction companies revealed that a labour and skills shortage was one of the top 3 reasons for project delays.
The problem may at least in part be attributed to an ageing workforce and a severely depleted talent pipeline. The 60+ age group is the fastest growing across the industry according to the Chartered Institute of Building. Respondents to their recent survey also noted a decline in the number of workers between the ages of 16 and 30 entering the profession, which is certainly cause for real concern.
Due to the long-term skills shortages, current material shortages, supply chain challenges, and escalating building prices, we are approaching a serious tipping point. But there are some viable solutions to these issues. Although they are not a miracle fix when used alone, they can help certain construction companies deal with the stresses they are now experiencing.
One of these is user-centric technology, which enables more productive methods of working both on and offsite and may hold the key to opening a currently locked door to a new generation of talent while simultaneously supporting an ageing workforce. But how?
The Tech Solution
It's a reality that, although trailing behind other industries, the construction industry is embracing digital adoption and that many projects now depend on more sophisticated technologies. Between 2020 and 2022 alone, investments in architecture, engineering, and construction technology increased by $50 billion. Unfortunately, despite this development, younger generations still view jobs in construction as labour-intensive with low advancement and a lack of diversity since construction careers, especially for women, are not widely recognised. Young talent is thus (mistakenly) driven to conventional "white collar" job pathways that promise six-figure earnings, such as banking, technology, or the sciences.
The truth is that technology is fundamental to construction work, working in tandem with more conventional abilities and giving prospects for professional advancement that have never been seen before. Modern building, especially in civil engineering, offers countless opportunities for those who enjoy problem-solving and technology to pursue these two interests. However, it necessitates improved communication, a dedication to investing in skill development, and active participation at all levels of the education system.
Damaging misconceptions about the industry need to be dispelled since they have dominated the professional narrative for far too long. Students today need to learn that contemporary construction involves more than just bricks and mortar. We must demonstrate to them how technology works in modern building and encourage them to explore the multitude of construction career options that are available.
Delay the Inevitable
Digital can also support and improve existing knowledge and expertise, ensuring that technology is as simple to use as possible and giving older workers more comfortable working conditions.
An increase in hybrid working and technological advancements like augmented reality (AR), remote video streaming, and cloud management platforms have extended career length and the operational capabilities of older workers. For instance, by enabling senior inspectors to work from the comfort of their homes alongside teams in the field, remote inspections can postpone retirement.
Bridging the Gap
Without question, technology can help in bridging the current skills gap. Digital technologies that increase construction productivity and assist contractors in keeping older team members on the job will help to reduce the number of people the UK construction industry will require by 2027 to meet demand, according to the Construction Industry Training Board. Attracting more tech-savvy teens and school leavers would help construction companies meet their talent objectives more quickly by simultaneously enticing a younger generation with the potential of using these powerful platforms and showcasing a broad range of roles to support its implementation.
How can we help?
Are you searching for a new opportunity in the construction industry or a hiring manager in need of construction talent? Get in touch today at getus@jamesgrayrecruitment.com