The construction industry is growing as demand for new homes continues to rise. Yet, for mid-level construction companies, it’s hard to expand and scale, even with demand, if you don’t have the labor to make it possible.
Numerous factors continue contributing to increased demand for residential housing, such as increasing zoning restrictions and high interest rates. Smaller but more extensive and modernized spaces in the commercial sector have become critical to office-based businesses. Demand for 2025 looks promising for the construction industry.
The talent gap impacts every facet of the construction industry, including project timelines, budgets, and overall efficiency.
The Root Cause of the Mid-Level Shortage
The core problem is a talent shortage. The National Association of Home Builders states a gap of about 1.5 million homes in the US, leading to a demand for 8.5 million construction workers on payroll across the country, with 3.4 million working in residential work. That means there’s an annual demand for 723,000 additional construction workers each year, and that level isn’t being reached. A core problem is a lack of mid-level construction team members, such as superintendents, project managers, and estimators.
Numerous reasons exist for a mid-level construction worker talent shortage, and it’s a combination of all factors causing stress in most companies today.
- Aging out: With 1 in 5 construction workers over the age of 55, there’s a key gap in experienced talent present. As these older workers begin to retire, there’s a lack of workers who are immediately ready to fill those gaps.
- Fewer people entering the trades: Those graduating high school are more consistently heading into the job market or college, often forgoing the trade industry, with some reporting a stigma for going to a vocational school. Others say their parents encourage them to go to college, not a trade school. In all results, not enough people enter the trade industry to meet demand.
- Increased demand: The increased demand for new construction is also straining workforces. Many cities have high demand for construction in vast ways beyond residential, such as in energy transition projects, infrastructure improvements, and repurposing of commercial spaces.
The Hidden Costs of a Prolonged Talent Search
As a construction business trying to meet objectives and goals, hiring makes sense. However, a prolonged talent search can be costly to companies in numerous ways.
- Projects are delayed the longer you do not have the proper levels of staff to meet your needs. The longer you go shorthanded, the fewer projects you can complete.
- Overburdened teams are more likely to burn out, worsening the talent shortage. The more you expect your team to do, the higher turnover builds.
- The financial impact of unfilled roles on productivity and profitability can strain construction companies to the brink of using less-than-desirable solutions. That could include hiring not as talented individuals, spending more on training in-house, or simply turning down projects because you don’t have the team to complete them.
Why Recruiters Provide a Cost-Effective Solution
Hiring is critical in building your construction business and overcoming your talent shortage. However, using recruiters to fill this role instead of in-company hiring methods could offer several key benefits. Recruiters can:
- Provide access to pre-vetted workers: Recruiters connect you with qualified candidates who are already available and looking for positions and the right opportunity.
- Faster hiring: By utilizing a recruitment service, you can hire to fill gaps faster, even immediately. This ensures that you do not have to turn down projects if you lose team members to illness or a new project becomes available. You also minimize project delays for unplanned events.
- Expertise minimizes complications: You also get a better fit when you utilize recruiters to hire your construction mid-level managers. The employee’s skills align with your company’s needs. Recruiters can also hire to fit your company culture, minimizing the time it takes to find the right talent.
- Reduced hiring tasks: By eliminating the work of hiring, your leadership can focus on other tasks that improve project outcomes and client relationships. This often leads to reduced hiring tasks performed by your management teams.
- Reduced hiring risks: Recruiters handle the compliance requirements as well. They ensure that you are hiring for the right fit in the best way possible to ensure long-term retention.
Recruiters Offer a Solution to the Construction Talent Shortage: Now
Utilizing a recruiter can facilitate better outcomes for construction companies struggling to find mid-level workers. The demand for your services is there, and the opportunities to grow are evident in many markets across the US. With the utilization of recruiters, you fill your talent shortage faster, meet labor needs even as project demands change, and continuously work to build a reliable, strong team.
Partnering with the right recruitment firm helps companies secure the top mid-level talent they need to remain competitive. MRINetwork can help you every step of the way. Contact us now to learn more about our ability to fill your mid-level construction worker positions with talented, ready-to-thrive employees.