The construction sector is at a crossroads. While demand for projects remains high, a severe talent crunch poses a significant roadblock.

News reports place the talent shortage at around half a million workers. More alarming than that large number are some of the roles that go unfilled, many of which fall into the mid-level leadership category. Addressing a leadership gap of this size and importance requires a smarter, more strategic approach to hiring, development, and retention.

Understanding the Talent Crunch

Before attempting to solve the problem, it helps to understand the causes of the current talent crunch in the construction sector, especially as it applies to mid-level leadership. In short, this isn’t simply a temporary dip in the labor pool. It’s the convergence of three long-simmering problems in the construction industry:

Aging workforce and retirement rates: Many experienced construction professionals are nearing retirement age, taking with them decades of accumulated knowledge and expertise. This exodus of seasoned leaders creates a significant void, especially since many in younger generations haven’t yet gained the necessary experience.

Lack of new talent entering the industry: For years, construction firms have struggled to attract young people. Misconceptions about the industry and a societal push for white-collar and tech professions have led to a decline in enrollment in vocational schools or other construction-related degree programs.  This has resulted in a shrinking pipeline of new talent.

Evolving skill sets required for modern construction projects: Technological advancements, such as Building Information Modeling (BIM), prefabrication, and construction management software, require mid-level leaders with digital literacy and data analysis skills. The talent market hasn’t fully adapted to these rapid changes quite yet.

The Impact of Mid-Level Leadership Shortages

Boyd Worsham, president and chief executive officer of the National Center for Construction Education and Research, has spoken recently about how the lack of capable project managers, superintendents, estimators, and foremen has impacted the construction industry. In 2024, he said:

“The lack of available new talent has impacted companies throughout the industry, from small specialty contractors to the nation’s largest industrial construction firms. We frequently hear about the current difficulties in hiring from our contractor network who look to us for training solutions.”

The mid-level leadership vacuum has real-world consequences. Project timelines fall behind, negatively impacting budgets. Without modern tech knowledge, innovation in the industry suffers. Sustainability efforts fall behind without input from younger generations. In addition, individual construction firms feel the impact on their company growth, ultimately making them less competitive.

Smart Hiring Strategies to Mitigate the Shortage

Worsham talked about these impacts while offering one way to mitigate the mid-level leadership shortage:

In 2024 Warsham reflected that “With more complex projects, increased schedule demands, and fewer experienced people, among other things, superintendents have to be better today than they were 10 or 20 years ago. Why not accelerate their learning through focused development and education?” 

Investing in training and development programs to reskill and upskill existing employees solves immediate needs and helps retain veteran leaders. Construction firms can position education as a pathway for career development, which can further help with retention efforts.

In addition, construction companies should reevaluate their recruitment process. Leveraging modern technology like applicant tracking systems (ATS) can help broaden their candidate pools. Online job platforms further extend recruiting’s reach. Social media recruitment does too, and it also helps reach new talent among younger generations.

Construction’s Talent Crunch: Future Outlook

While these tips will help with the current mid-level leadership talent crunch, several other construction roles now face, or will soon, shortages. For example, as sustainability efforts grow, construction workers experienced with wind turbines or solar photovoltaic installations will be in demand.

Similarly, as technology becomes a standard component of the industry, software developers and systems administrators will become more important on construction sites. Tech workers are always in demand across many sectors, so expect strong competition for this type of talent in the construction sector.

Meanwhile, future leadership gaps can be prevented with employee development programs, succession planning, and utilizing technology for more innovative recruiting strategies. Also, talent pipelines should be developed with local trade schools and universities to build relationships with emerging leaders.

Navigating the Skills Gap in Construction

Like many industries, the construction sector is in a state of transformation. While talent shortages are nothing new, an aging workforce and new technological developments have created a critical need for mid-level leaders. Fortunately, employee development and smarter hiring strategies present solutions that any construction firm can implement now.

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