FMI: Skilled Labor to Slow Construction Growth

FMI‘s (Raleigh, NC) recent survey of its Construction Personnel Executives Group, showed that “24 percent of respondents will be unable to bid more work and 32 percent will experience slow growth if their companies cannot reasonably meet the need for skilled labor and tradespeople.” Top executives at the largest contract firms in the U.S. took part in the survey. “Overall, there’s an increase needed in skilled trade workers of more than 10 percent throughout the next three to 10 years,” said Ken Wilson, director for FMI. One large construction company said, “Our current hiring forecast shows a need for 8,500 additional craft workers by 2017.” The top five positions that are expected to be the most difficult to fill are:

• Operator (heavy equipment)
• Welder (boilermaker)
• Carpenter
• Pipefitter
• Ironworker (reinforcing)

There are two significant contributing factors to the high demand for craft labor:

• The shift of the construction workforce to oil and gas related construction. FMI estimates that by 2017 nearly 10% of the total U.S. construction workforce be employed by that industry.
• Some 65% of the survey respondents are considering or planning to increase self-performing projects.

The survey includes an analysis of the driving factors behind the skilled-labor shortage, the most effective recruitment tactics and how companies are filling the demand for field management of the craft labor force. The report also provides practical counsel on how to develop human-resource strategies to improve recruiting and retention rates. Download a copy of the “Craft Labor Recruiting and Retention” here.