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Workforce shortages remain one of the single most significant threats to the construction industry. The worker shortage in the construction industry is worsening, and the private sector is hoping the government will get involved. Construction groups are asking federal officials to both increase funding for career and technical education programs and to allow more immigration to fill vacancies. According to a new survey from the Associated General Contractors of America (AGC), 80 percent of construction firms say they are having a hard time filling hourly and craft positions, which represent the bulk of the industry’s workforce.
With cities and states carrying $4.3 trillion in outstanding debt, and the US government unable to meet even the most basic financial needs to improve publicly owned infrastructure, asking for the government to significantly increase funding is an unlikely scenario. Rather than asking government for handouts, IFP offers an alternative approach.
Construction sites are complex operations fraught with risks ranging from unsafe situations to financial pitfalls. With most construction projects facing razor-thin profit margins, construction firms need everything to go right. Technical education is critical in the construction industry. Construction managers and their teams need to have the skills necessary to perform their jobs. The issue is the inability to supply the demand for certified laborers.
The U.S. Bureau of Labor Statistics states that were 300,000 monthly vacancies in the construction industry in 2019. They project the industry will require 747,000 more workers per month by 2026. This problem is not geographically based -- shortages were reported at nearly equal rates in regions across the entire U.S.
It’s not surprising then, that at the beginning of 2019, nearly 80 percent of construction firms said they wanted but were unable to expand headcount this year. This huge deficit of labor has raised the price of construction, affecting us all. Businesses typically resort to hiring overseas craft workers and perpetually relocating a diminishing pool of labor from state to state. This does nothing to expand the labor pool or localize employment.
In addition, people currently employed in the construction industry are, on average, older that the rest of the workers in other fields, with a medium age of 42.6. Only 1.8 per cent of the industry workers are between 16 and 19-year-old, while fewer than 9.4 per cent are younger than 25. This aging workforce creates the need and the opportunity to foster a new crop of young trade laborers.
For any developer of a consortium that is serious about saving money, improving the community, increasing project and operational efficiencies, and driving brand awareness, IFP’s certification program would not only be the best option, it would be the only option.
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