Can Construction Technology Bridge the Gap? The Construction Labor Shortage and the Rise of ConTech

The construction industry in the United States faces a pressing challenge: a significant labor shortage. The Associated General Contractors of America (AGC) reports a record-high workforce shortage of 650,000 in its 2023 Construction Workforce Shortages Survey. This deficit threatens project timelines, budgets, and ultimately, the industry’s overall capacity.

While the causes are complex, factors like an aging workforce, competition from other sectors, and a skills gap all contribute to the shortage. But amidst this challenge, a beacon of hope emerges: construction technology (ConTech).

How Can ConTech Help?

ConTech encompasses a wide range of tools and software designed to streamline processes, improve efficiency, and enhance communication on construction sites. Here’s how ConTech can potentially help address the labor shortage:

• Increased Productivity: Autodesk reports that construction projects using Building Information Modeling (BIM) software, a type of ConTech, experience up to 30% reduction in rework and a 20% improvement in project delivery timeframes. This frees up valuable labor for other tasks.
• Improved Safety: Wearable technologies and sensor-based monitoring systems, both advancements in, can reduce workplace hazards, making construction sites safer and potentially attracting a broader pool of workers. According to OSHA, construction has one of the highest fatal injury rates of all industries.
• Enhanced Collaboration: Cloud-based project management platforms, another form of ConTech, facilitate seamless communication and collaboration between diverse teams (architects, engineers, builders, etc.), reducing errors and delays. This allows existing workers to be more effective, potentially mitigating the impact of the shortage.
• Upskilling and Training: Virtual reality (VR) and augmented reality (AR) technologies, emerging areas of ConTech, offer immersive training experiences, allowing workers to develop necessary skills in a safe and controlled environment. This can shorten training times and upskill the current workforce to adapt to new technologies.
• Attracting New Talent: By showcasing the innovative and tech-driven nature of the industry, ConTech can make construction careers more attractive to younger generations with a digital aptitude.

The construction industry must embrace a multi-pronged approach to address the labor shortage.  Investing in ConTech solutions alongside initiatives that attract and retain workers, including competitive wages, skills development programs that emphasize ConTech literacy, and a focus on workplace safety, will be key to building a more robust and resilient construction sector.

Also Read : Tracking field productivity with construction tech | An iFieldSmart perspective.