Most construction businesses and contractors are dealing with problems due to the labor shortage. The industry is also currently dealing with supply chain and material shortage issues, and these factors are driving up the costs of labor and materials. In order to deal with construction staffing issues, you need to understand how pressing the labor shortage problem is in the industry.
According to reports, more than one in five workers in the construction industry are over 55 years of age. Most of these workers are now either retiring or close to it, and very few young workers are recruited to replace them. In the last decade, we have seen a steady decline in construction workers under the age of 55.
On the other hand, with the increase in demand for infrastructure, the competition for workers has also increased. Now, business owners and contractors are paying higher wages to secure commitment from workers. Booking a job is useless if you are short-staffed and unable to complete the project.
Securing Commitment from Workers
Businesses would not be able to function without workers and resources. They would have to delay jobs or let competitors with the appropriate resources complete them. Therefore, as a business owner, you have to make the decision of whether or not you are willing to pay your workers higher wages to ensure that you are not short-staffed.
Delays
In construction work, delays are extremely expensive. They can tie up your cash flow, so it will be very difficult for you to pay your employees. It will also make it difficult for contractors to take on other projects and work with suppliers when previous payments are delayed. According to several reports, there has been a 47% increase in construction project delays compared to pre-pandemic projects.
Technology
In order to deal with these staffing challenges faced by the construction industry, you need to incorporate technology such as AP automation into your firm. Surveys reveal that professionals are more likely to consider jobs at organizations that have automated some or all of their work. It allows them to focus on important things like securing discounts and strengthening relationships with equipment dealers and suppliers. Even if you are short-staffed, with the proper technology, you will be able to get more work done…