Construction crisis looms as skilled labor shortage deepens
Writer: Ryan Gandolfo
2 min read November 2024 — The U.S. construction sector is facing a significant workforce shortage just as demand for infrastructure, commercial, and residential projects is expected to climb post-interest rate cut. As federal infrastructure investments roll out and private sector development continues, the lack of skilled workers in key trades could have a lasting impact on economic growth.
According to the 2024 workforce study from the Associated General Contractors of America, 94% of firms are struggling to find qualified craft workers. The shortage is particularly acute in trades such as electrical work, plumbing, and carpentry, where demand is outstripping the supply of trained professionals.
“There is a shortage of people in the trades, so we are trying to attract new people there,” Florida-based engineering firm Wilson & Girgenti CEO Joseph Girgenti told Invest:. “Part of that is cross-training between construction and engineering. We are using our construction side to train engineers better and vice versa. A lot of construction workers are curious about how we come up with these numbers and values, and why we do what we do. We are using our engineering side to inform and educate and train our construction side.”
WG, which provides a range of services in the construction sector, has navigated the labor landscape by adjusting how it approaches staffing and project planning. WG President Brock Shrader also noted that the rising costs for skilled labor are putting pressure on project budgets and timelines.
To address the skills gap, construction firms are partnering with local educational institutions and investing in training programs.
“Acquiring talent is always a challenge. We like to look at local schools such as UNF, UCF, and USF for our talent and to stay in-tune with what the new engineers want,” said Shrader. “We constantly look for new trends and more feedback from our employees to ensure that we are providing them with the culture and value that they are looking for, particularly young engineers coming out of college. We also offer benefits such as 100% paid-for healthcare to individual employees, which not many companies do.”
While such programs are promising, the long-term nature of training means that the shortage of skilled workers will likely persist for the foreseeable future. Firms like Wilson & Girgenti are proactively seeking efficiencies and crafting new strategies to stay ahead.
“We developed a sister construction company called WG Build that focuses on building out what Wilson & Girgenti engineers design. Our engineering firm focuses on structural, mechanical, electrical, plumbing and fire protection design, and WG Build provides construction services for those HVAC, electrical, plumbing, and fire protection designs,” said Shrader.
“We aim to cut out that middle process entirely by having engineers and subcontractors talk to each other directly. That makes the life of both general contractors and owners easier, and it reduces the actual cost of the construction project.”
While industry experts agree that the labor shortage will have ripple effects on project timelines and costs, a fresh approach to recruiting and retaining talent will be key for long-term industry growth.
“We’re looking to expand WG Build heavily over the next couple of years both as a service for our clients and to help both the engineering world and the construction world,” noted Shrader.
Photos provided by WG
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