The construction labor market in the U.S. has been tightening for decades.¹ At the end of 2021, the U.S. Chamber Commercial Construction Index stated that 62% of contractors reported “high difficulty” finding skilled workers, and 56% of contractors reported a “high degree of concern” about their workers having adequate skill levels.²

Additionally, many skilled workers are nearing retirement, which is contributing to the labor shortage. Currently, the median age of construction workers in the U.S. is 41 years.³ Companies feel pressure to invest in younger employees.⁴ However, a survey of over 29,000 high school and college students concluded that approximately 17% of individuals entering the work force are interested in construction.⁵

In response to the labor shortages, contractors turn to construction technologies in an effort to increase the current workforces’ efficiency and productivity.⁶ For example, a recent Deloitte survey indicates 43% of engineering and construction executives plan to invest in new design processes in the next year in an effort to improve labor efficiency and productivity.⁷ The new design processes, known broadly as industrialized construction, include prefabrication and modular construction, among others.⁸ Industrialized construction uses technology and advanced manufacturing methods to automate the creation of building components, meaning there is less to build on site and thus less labor is required.⁹

Many of Breakwater’s clients feel the impacts of the tightening labor market. Breakwater has skilled professionals who are experienced in analyzing construction disputes related to labor issues.

1: “Construction’s career crisis: A look at the industry’s labor shortage” by Zachary Phillips, dated October 27, 2021.
2: U.S. Chamber Commercial Construction Index – Q4 2021, dated December 15, 2021.
3: “Median age of construction workers is contributing factor to workforce shortages” by Sebastian Obando, dated July 9, 2021.
4: “Construction’s career crisis: Recruiters target young workers driving the Great Resignation” by Ryan Golden, dated October 25, 2021.
5: “Tallo Data Insights: Where does Gen Z Want to Work?”, dated April 6, 2021.
6: “2022 engineering and construction industry outlook” by Deloitte.
7: “2022 engineering and construction industry outlook” by Deloitte.
8: “3 solutions to help with labor stability and supply chain certainty in a challenged construction environment” by DIRTT, dated February 14, 2022.
9: “3 solutions to help with labor stability and supply chain certainty in a challenged construction environment” by DIRTT, dated February 14, 2022.