Q3 2023: Labor Updates
“It’s no secret that attracting, developing, and retaining talent is the most critical issue in our industry....”
Engineering News Record spoke to multiple construction industry CEOs this summer and reported their thoughts on construction labor and project planning. Mark Anderson, CEO of MGAC, suggests, “more intensive planning, up-front financial analysis, and cost modeling to inform the design from the onset of the project and begin the value management process as the design process starts”. On the labor front, Chris Payne, CEO of Gardiner & Theobald Construction, says “The firm needed to change its thinking entirely, transitioning the responsibilities of one of its senior executives to solely focus on employee recruitment and retention. It’s no secret that attracting, developing, and retaining talent is the most critical issue in our industry and vital for our own growth”. Despite a slight cooling of project starts brought on by higher interest rates, “we continue to operate in a highly competitive labor market,” says Cumming president and CEO Derek Hutchison. [1]
Next year, construction will need to bring in more than 342,000 new workers on top of normal hiring to meet industry demand for mega projects such as manufacturing plants, clean energy facilities, and US government infrastructure upgrades. [2]
[1] Adolphus, E & Keller, J. (2023, Jun 28). ENR 2023 Top Professional Services Firms: Complex Challenges AreStacking Up. https://www.enr.com/articles/56703-enr-2023-top-professional-services-firms-complex-challenges-are-stacking-up[2] Wilson, C. & Wang, X. & Lantz, D. (2023, Jul 18). Cumming Insights Q2 U.S. Construction Labor Trends.https://insights.cumming-group.com/national-labor-construction-employment/