Tag: labor shortage

Addressing Labor Shortages in Construction Amid Investment Boom

On By Paul DeffenbaughLeave a comment

The Infrastructure Investment and Job Act, signed into law in Oct. 2021, injected $1.2 trillion into the U.S construction market over a ten year period. To date, there have been more than 40,000 projects and awards across 4,500 communities in every state in the union. The impact on the industry, especially the roads and bridges segment and other infrastructure projects, is immense.

There is another factor at work in the ups and downs in the industry that works against the benefit of a steady investment, and that is its price-focused mentality.

That investment also represents huge vote of confidence in the U.S. construction labor market. The general thinking is that a steady supply of money should help attract more people to the trades because the vicissitudes of the market — its wild swings up and down — will be smoothed out and become more predictable. In turn, that means contractors will be able to provide reliable employment for their workforce, and trades people can count on not getting laid off at the next downturn.

The industry has always claimed it provides good-paying jobs, and it does. But the industry does not do a very good job of providing careers for trades people. After you get laid off the second time in 10 years because of an economic downturn, you begin searching around for other opportunities. You might even end up writing for a trade publication.

The hope is that this supply of steady investment will overcome those problems. But there is another factor at work in the ups and downs of the industry that works against the benefit of a steady investment, and that is its price-focused mentality. Much of the work that will be generated by the IIJA will rely on government financing. Because of that, much of that work will go to the lowest bidder.

I can’t think of any single aspect of our industry that undermines the long-term success of its participants than the focus on giving work to the lowest bidder. The industry’s inability to sell its true value to building owners and other buyers means that the decisions about hiring are usually made on price, not quality — or, at least, the price of the project is the differentiator between equally qualified companies. And the problem with competing on price is there is always — always — someone offering a lower price. They do it by cutting corners.

There is an old business axiom that customers have three choices when buying. They can have it fast, cheap or good, but they can only get two of those attributes. Fast and cheap, but not good. Fast and good, but not cheap. Cheap and good, but not fast. You don’t get all three.

In our industry, that axiom feels especially true. Sure, we’re getting a huge influx of investment over the next 10 years, but until we change the nature of our industry — until we move from price-oriented to quality-oriented — that money will only reinforce a system focused on the wrong value.

And the skilled labor shortage will endure despite that money. It would be a shame to lose this opportunity to solve one of our biggest problems, but just throwing money at it won’t do it.

Mental Health Crisis in the U.S. Construction Industry

On By Paul DeffenbaughLeave a comment

Mental health challenges in the U.S. construction industry have reached a critical point. The demanding nature of the work, coupled with stigma and isolation, creates a perfect storm for mental distress among workers. Yet, personal stories and open conversations are beginning to shed light on this often-overlooked issue.

The Human Cost of Construction Work

Statistics Speak Volumes
The data is staggering. Construction workers are four times more likely to die by suicide than the general population, with rates of nearly 50 per 100,000 male workers and 25 per 100,000 female workers. A 2020 study found that 83% of construction workers reported experiencing a mental health challenge, with depression and anxiety being common. Substance abuse is also a concern, with 12.3% of workers reporting non-medical marijuana use, significantly higher than the 7.5% in the general population.

These numbers paint a grim picture, but they don’t fully capture the human experience behind them.

A Personal Glimpse Into the Struggle
I remember meeting John, a construction foreman in his mid-40s, on a residential project years ago. John had been in the industry for over two decades, working grueling 12-hour shifts to meet deadlines. He was tough, efficient, and respected by his crew. But underneath the stoic exterior, John was battling a storm of anxiety and insomnia.
John confided in me one afternoon, saying, “I can’t sleep because I’m constantly worried about what could go wrong on-site. It’s like my brain never shuts off.” He admitted he felt isolated because he didn’t want to appear weak in front of his team. Tragically, this is a sentiment echoed by many in the field.
Another colleague, Luis, shared his struggle with job insecurity. When his hours were cut during a slow season, he turned to alcohol to cope. “You pour your heart into this work, and then suddenly it’s gone. It messes with your head,” Luis told me.

These stories are not unique. They represent the lived reality of thousands of construction workers who grapple with immense pressure and little support.

Prevalence of Mental Health Issues

  • High Stress Levels: The construction industry ranks among the top sectors for stress-related conditions. In the U.S., approximately 16% of construction workers experience substantial mental distress. PubMed Central
  • Depression and Anxiety: A 2020 study revealed that 83% of construction workers have faced a mental health issue, with depression and anxiety being prevalent. Trimble Constructible

Suicide Rates

  • Elevated Suicide Rates: Suicide rates in construction are among the highest of all industries, according to the Centers for Disease Control at 53.2 suicides per 100,000 workers or four times the national average. In the context of construction fatalities, it rates higher than all construction fatalities combined, and would probably top the list of OSHA’s Fatal Four Hazards: falls, struck by an object, electrocution, and caught in something or between two objects.

Substance Abuse

  • Higher Substance Use: Construction workers exhibit higher rates of substance use compared to the general population. For instance, 12.3% reported non-medical marijuana use, compared to 7.5% in the general population. Trimble Constructible

Contributing Factors

  • Work Environment: The construction sector involves high-pressure environments, exposure to hazardous conditions, and long hours, all contributing to mental health challenges. Corfix
  • Stigma: The predominantly male workforce may underreport mental health issues due to stigma, leading to untreated conditions. Trimble Constructible

Addressing the Crisis

  • Mental Health Programs: Implementing mental health initiatives can reduce absenteeism rates by 25% and decrease presenteeism by 40%. Corfix
  • Supportive Work Environment: Creating a culture of open communication and support is crucial for improving mental health outcomes. Corfix

Addressing mental health in the construction industry requires a comprehensive approach, including raising awareness, reducing stigma, and providing access to mental health resources. By prioritizing mental well-being, the industry can enhance worker safety, productivity, and overall quality of life.

Mental health is as critical to job safety as a hard hat or safety harness. By sharing personal stories and providing support, we can begin to dismantle the stigma and create a healthier, more resilient construction workforce.

An Industry Ready for Rapid Change

On By Paul DeffenbaughLeave a comment

When my wife and I were new parents, our go-to parenting guide was a book by pediatrician T. Berry Brazelton called, “Touchpoints.” The premise was that children go through rapid cognitive and development changes. They can, literally, grow over night. Brazelton calls these “touchpoints.” The idea that we grow and improve a little bit at a time in a steady progression is false. Our bodies and minds grow in leaps and bounds.

93% of parents of current high schoolers would support their child’s choice to pursue a career in the skilled trades. 57% would offer major financial support to pursue that option.

StrataTech Education Group Study

At a touchpoint, such as a when a child is learning to talk, they often forgot how to do things they had previously learned. In simplest terms, the new advancement requires so much energy and concentration that previous improvements are forgotten. A child learning to talk may struggle with walking. It feels like they take a step backward. Also, during these developmental leaps, children are fussier and don’t sleep as well. Then, boom! They start talking, remember how to walk and move on to build-up to the next touchpoint.

In evolutionary biology, this change process is called punctuated equilibrium, and I believe industries and businesses follow the same pattern. We change by leaps and bounds, in sudden bursts and not by incremental steps. And at the moment of change, things can get messy.

In the last few months, I’ve spoken with hundreds of people in the industry, ranging from residential and commercial contractors to architects to suppliers to building product manufacturers. I’ve also had the opportunity to talk with leading experts on the industry. If I can take away one thing from those conversations, it would be that people are optimistic about the future of the industry but recognized we are in a very uncertain period. A messy period.

The COVID pandemic turned our world upside down, upsetting supply chains, work requirements, demand for services, etc. That disruption has mostly abated , although it is not nearly as clearly identifiable what isn’t working well. There are not just a few big things going wrong; there are lots and lots of little things failing, and there is a malaise of uncertainty that is washing over the industry.

To me, that means we’re nearing a massive leap forward. Job-site technology, business software processes, and cultural influences are all changing rapidly and their effect on our industry will be massive. Consider that the number of parents actually encouraging their children to go into the trades is increasing. It’s unheard of in my lifetime. A survey in 2019 by StrataTech Education Group found that 93% of parents of current high schoolers would support their child’s choice to pursue a career in the skilled trades. 57% would offer major financial support to pursue that option.

That, ladies and gentlemen, is a huge change in cultural attitudes.

My conclusion? The construction industry is poised not for a small leap, but a significant change. Unlike with pediatric development, though, we don’t have any data or patterns that we can point to that would suggest what the developmental process might be.

What does the future of the industry look like? That crystal ball is clouded, but the only thing I’m 100% certain about is that how we will be working five to 10 years from now will look very little like how we work now.