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Building the workforce of tomorrow: Overcoming skilled workforce challenges for a stronger construction industry

The US construction industry faces a critical shortage of skilled workers, with 439,000 needed by 2025. This article explores key challenges and strategic actions to attract and retain talent.

03/26/2025 · 6 minute read

A significant shortage of skilled workers has long been a challenge for the US construction industry. For years, the Associated Builders and Contractors (ABC) has expressed concern that the current workforce did not adequately meet demands. Its latest figures show that the construction industry must attract around 439,000 new workers in 2025, with next year’s number increasing to just shy of  500,000.

This concern weighs heavily on senior leaders in the industry. Research carried out by Marsh shows that hiring and retention are a major concern, with 35% of respondents naming it as their topmost business challenge. 

Largest construction business risks in 2025

And while the ABC data shows improved labor availability compared to prior years, this is believed to be due to slower spending growth and a changing worker demographic, with the relatively younger workforce slowing the pace of retirement. 

Key factors contributing to a skilled worker shortage

Challenges filling open positions with the needed skilled workers can have ripple effects well beyond the construction industry, potentially slowing the pace of critical projects and impacting other businesses. The reasons behind the industry’s long-standing difficulties in attracting and retaining the skilled workers it needs are embedded in a multifaceted set of issues, including:

  • Competitive job market. Competition for skilled labor is intensifying across the board, with multiple industries vying for the same talent pool. At the same time, the physical labor-intensive nature of many construction jobs, together with the potentially hazardous conditions and limited career advancement opportunities, may prove a stumbling block for attracting younger generations. Lack of flexible work arrangements compared to other industries and the need to travel to job sites may also serve as deterrents.
  • Health and safety concerns. The nature of many construction jobs — including working at heights and operating heavy machinery — presents an element of risk. Aside from the risk of accidents, the job is physically demanding, leading to an elevated possibility of cardiovascular disease, musculoskeletal disorders, sleep disturbances, and gastrointestinal problems. Further, construction workers have historically faced a heightened incidence of mental health challenges, with the most recent data from the Centers for Disease Control and Prevention showing the construction industry has the second highest suicide rates among all industries. While health and safety risks did not feature high among the list of concerns for our survey respondents, they can deter attraction and retention of the needed talent.
  • Limited training and development opportunities. Insufficient investment in training and development programs may lead to workers feeling ill-equipped to handle the demands of their current roles. Not only can limited training compound safety concerns, but it can also cause frustration and accelerate turnover rates. 

4 strategic actions to cultivate a skilled workforce

As they seek to capitalize on business opportunities in an already difficult economic and labor market landscape, it is critical for construction companies to address existing hiring and retention challenges by taking targeted actions to build the skilled workforce needed for immediate jobs and providing the necessary training to facilitate adequate succession planning. Strategic actions can include:

  • Investing adequately in training and development. Apprenticeship and mentorship programs and continuing  education opportunities can help workers feel valued and equipped to succeed in their current jobs, while also upskilling them and preparing them for future prospects. Career-furthering investments can foster loyalty and reduce turnover rates.
  • Making health and safety a priority. Take action to foster a positive safety culture. Employers should carefully consider the work environment that they create on their jobsite, potentially moving away from how these programs were historically run. Actions that can help create a feeling of empowerment among workers can include:
    • Ensuring that safety is embedded within the organization’s core values and actions on each site.
    • Providing adequate training to site leadership, helping them to better understand, mentor, educate, and monitor younger workers, which can also help grow young talent.
    • Having visible corporate safety teams and other corporate support functions, such as human resources, and mentors/training coordinators in the field, regularly touching base with new hires during their onboarding phase. 
    • Ensuring that supervisors and managers are incentivized to identify safety concerns and/or improvement opportunities and empowering them to address them immediately.
    • Encouraging the workforce to participate in risk identification and abatement, helping to create a positive environment that demonstrates care and understanding of worker concerns. 

While many of the stresses construction workers face may not be in the control of field supervisors, it is important for field management to recognize physiological issues and take proactive steps to support workers’ mental health well-being. This can include offering mental health resources, creating a supportive work environment, and promoting work-life balance. By demonstrating a commitment to worker safety and physical and mental well-being, construction firms can improve satisfaction among their existing workers and enhance their reputation and appeal to potential employees.

  • Enhancing recruitment strategies. Innovative recruitment strategies can help reach younger generations. This may include leveraging social media platforms, connecting with industry advocacy groups, engaging with local schools and vocational programs, participating in local mentoring programs, sponsoring youth and collegiate events, and participating in job fairs at various education levels. Seek opportunities to showcase the benefits of a career in construction, such as job stability, competitive pay, and opportunities for advancement, and make efforts to attract a more diverse pool of candidates. Clearly define your employee value proposition and find the most effective ways to communicate it to potential workers to differentiate your organization from competitors and improve the possibility of attracting top talent. 
  • Investing in technology and innovation. Technology is advancing rapidly and increasingly becoming a popular differentiator for many construction firms. As technology becomes more pervasive, companies should carefully consider how they can use it to improve their business through:
    • Identifying and implementing technologies that can improve productivity and efficiency at job sites, which can also help attract and retain talent.
    • Employing tech innovations, such as modeling programs, project management software, safety management systems, telematics, or site monitoring platforms to enhance safety and quality of work while keeping projects on time and budget. 
    • Investing in the training needed to help workers use tech-enabled equipment effectively and safely and identifying key skillsets that can help optimize the performance of selected tech platforms. 

Smart technology investments can make construction careers more appealing, especially to tech-savvy younger workers who are part of a generation for whom tech skills are integral in both their education and personal lives.

Workforce challenges are not a new issue for the construction industry. As demand for skilled labor continues  to grow, companies that take proactive steps to prioritize health and safety, provide competitive pay and benefits, and offer clear career advancement opportunities will be better placed to retain their current workers and attract the skilled talent needed for the jobs of today and tomorrow.

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