Construction firms are struggling to hire skilled project managers, leading to delays, cost overruns, and lost opportunities. By 2026, the industry will need 499,000 more workers, but 92% of firms report difficulty finding qualified candidates. Key issues include:
Specialized construction recruiters can help solve these challenges by delivering pre-vetted candidates quickly, ensuring better matches for technical and leadership needs. Firms must also improve hiring strategies for project managers with role-specific assessments, competitive pay, and retention policies to secure and keep top talent.
Construction Manager Hiring Crisis: Key Statistics and Workforce Challenges
The construction industry is grappling with a major workforce challenge. Federal investments in infrastructure, semiconductors, and green energy - driven by the IIJA, IRA, and CHIPS Act - have created a surge in demand for specialized project managers [6, 11]. At the same time, the talent pool is shrinking as experienced professionals retire faster than new workers can fill their roles. By 2031, an estimated 41% of the current construction workforce will have retired [16, 20], and more than half of the 349,000 workers needed in 2026 will simply replace retirees rather than support new growth.
The situation is particularly stark in the global data center sector, which will need over 300,000 additional workers by 2025. Meanwhile, 93% of construction firms report having unfilled positions. Without enough qualified personnel, contractors are often forced to turn down new projects, leading to delays and higher costs for infrastructure and commercial expansions. These challenges underscore the growing strain on the industry, as detailed below.
Modern construction projects increasingly require advanced technical skills. Cloud computing expertise has grown in demand by 15% since 2019, metal fabrication by 40%, and software development by 13%. Additionally, projects involving MEP systems, BIM coordination, and commissioning now demand a level of technical fluency that many traditional candidates lack. Boyd Worsham, President and CEO of the National Center for Construction Education and Research, highlights the issue:
With more complex projects, increased schedule demands, and fewer experienced people... superintendents have to be better today than they were 10 or 20 years ago.
This widening skills gap has intensified competition among employers. For instance, demand for people management skills in construction has jumped by 77% since 2019, while business management skills have risen by 41%. Companies are no longer just looking for workers - they’re vying for a small pool of candidates who can meet the technical and leadership demands of today’s projects.
As the industry evolves, the need for specialized skills grows, but the simultaneous retirement of seasoned professionals only makes hiring more difficult.
As of February 2024, the construction industry reported 456,000 unfilled positions - the highest number in two decades. When experienced professionals retire, they take decades of institutional knowledge with them - expertise that formal training programs often can’t replicate. Marianne Monte, Chief People and Administration Officer at Shawmut Design and Construction, puts it plainly:
As many members of the senior workforce retire from construction, there aren't enough qualified, experienced folks to take their place.
The shortage is especially critical for mid-level roles like project managers, superintendents, and estimators - positions essential for overseeing complex projects and ensuring they stay on track. Unfortunately, the industry’s reliance on vocational training has diminished just as demand for skilled workers has surged [5, 12]. This creates a perfect storm: increasingly complex projects paired with a shrinking pool of qualified candidates. The consequences ripple across the industry, threatening everything from data center construction to national infrastructure upgrades.
In the midst of a pressing talent shortage, general recruiters often add to the delays in construction hiring due to their misaligned evaluation methods. Construction firms that rely on these recruiters frequently end up with candidates who look great on paper but struggle to deliver on-site. The problem isn’t about effort - it’s about expertise. General recruiters lack the specialized knowledge required for construction roles, which leads to mismatches that construction firms can’t afford, especially when nearly every company is struggling to fill key positions.
One of the biggest challenges with general recruiters is their limited understanding of the construction industry. They often treat construction project managers as interchangeable, failing to recognize the technical requirements that set top candidates apart. Skills like cost estimation, safety compliance, and specific certifications - such as SMSTS, CSCS Black Card, or NVQ Level 6 - are critical for success but are frequently overlooked. For example, a project manager experienced in residential builds might not have the technical expertise needed for commercial projects that involve complex Mechanical & Electrical integration or demanding civil engineering tasks.
General recruiters also struggle to assess whether candidates can handle key responsibilities like negotiating subcontractor costs or enforcing safety protocols on-site. As Robert Hurst Group Ltd. puts it:
Filling a role under pressure without proper vetting means hiring on instinct, not insight - and that's a gamble most sites can't afford to take.
Another major issue is the lack of thorough candidate screening. General recruiters often rely on surface-level evaluations, focusing too much on CVs and degrees while neglecting to assess practical leadership and problem-solving abilities. This approach fails to uncover how candidates handle real-world challenges like budget overruns or safety incidents.
Take FootBridge Company as an example. They successfully placed Jeff, a QA/QC manager, by using behavioral screening to evaluate his problem-solving skills. This rigorous process helped mitigate critical supply chain delays. Stories like this highlight the importance of going beyond credentials to identify candidates who can navigate the complexities of construction management.
Without these deeper evaluations, firms risk hiring managers who lack the leadership and conflict-resolution skills essential for project success. As Robert Hurst Group Ltd. aptly asks:
A project manager may know how to build - but do they know how to lead?
The consequences of poor hiring decisions are steep. Hiring the wrong person can cost up to 30% of their annual salary. With over 91% of construction projects exceeding budgets, schedules, or both, ineffective hiring only worsens the challenges. Bridging these gaps in screening and evaluation is crucial to addressing the ongoing shortage of skilled construction project managers.
Even companies with strong screening practices often falter when it comes to offering competitive pay or moving quickly in the hiring process. Relying on outdated salary benchmarks or dragging out hiring timelines can push top talent toward competitors or even other industries. In a market as competitive as construction, these missteps can quickly escalate into costly problems, compounding the staffing challenges already faced by the industry.
One of the biggest pitfalls is ignoring compensation trends specific to the construction industry. Many firms rely on general market data or internal equity to set salaries, rather than considering construction-specific benchmarks. This approach misses critical factors, like the rapid rise in construction costs - projected to climb 14% over the next five years - and the unique skill sets required for today’s complex projects.
Jordan Shapiro, Senior Managing Director at Bachrach Group, emphasizes the risk of sticking to outdated pay structures:
Relying on internal equity or the pay ranges of existing employees previously hired under different circumstances will prevent a firm from attracting new talent today.
The numbers back this up. A staggering 80% of contractors report difficulty finding qualified workers. And it’s not just other construction firms competing for talent - industries like technology, engineering, and manufacturing often lure workers with better pay and more flexibility. With 67% of job seekers prioritizing higher compensation, and 35% of workers leaving jobs after being denied a raise, uncompetitive salary offers can lead to significant turnover. For context, 22% of hiring managers say turnover costs their company at least $100,000 annually.
Compensation isn’t the only issue - delays in hiring can be just as damaging. On average, roles like construction estimators or project managers remain vacant for 68 to 90 days, while top candidates tend to accept offers within just 10 days. As Scott Moore from OpenArc explains:
Top candidates are only available for about 10 days before accepting other offers.
The financial toll of these delays is substantial. A vacant position costs approximately $500 per day in lost productivity. For specialized roles, the annual cost of an unfilled position can amount to twice the role’s salary. Worker shortages also directly impact project timelines - 45% of construction firms cite staffing gaps as the primary cause of delays. In fact, nearly 80% of contractors experienced at least one project delay in the past year.
Adding to the problem, lengthy hiring processes actively discourage candidates. Forty-six percent of job seekers lose interest in a role if they don’t hear back within 10–14 days. This means that slow hiring not only drains resources but also pushes away the very talent firms are trying to attract.
Teaming up with specialized construction recruiters can address many of today’s hiring challenges in the construction industry. Unlike general recruiters, who often lack the nuanced understanding of construction roles, these specialists bring a wealth of industry knowledge and streamlined hiring processes. This expertise not only speeds up the hiring process but also ensures that candidates meet both technical and leadership requirements for various construction management jobs. The result? Faster placements, better candidate matches, and clear pricing.
Take iRecruit.co, for example. This firm focuses exclusively on mission-critical construction roles, particularly in areas like data centers and MEP infrastructure. Their deep understanding of the industry allows them to grasp the subtle differences between roles - like knowing how a Commissioning Engineer differs from a VDC/BIM Manager - something general recruiters might miss. With 92% of construction firms struggling to fill open positions, working with a recruiter who truly understands your needs can make all the difference.
One major benefit of working with specialized recruiters is their access to a pool of candidates who have already been vetted for the technical and leadership skills specific to construction. Unlike broad job boards that attract a wide range of applicants, these recruiters leverage their industry connections to find top-tier talent, including candidates who aren’t actively job hunting.
At iRecruit.co, candidates undergo rigorous screening to ensure they meet the specific technical and leadership demands of the role. This eliminates the frustration of interviewing project managers who lack the necessary skills or the ability to handle high-pressure situations. For instance, iRecruit.co has successfully placed candidates in over 200 projects for more than 70 clients, with project values exceeding $10 million. One standout example is Emma Harrison, a Project Manager who led an $80 million mixed-use project from pre-construction to completion. Thanks to her efforts, the project achieved a 98% client satisfaction score and reduced delays by 35% through better workflow tracking.
By gathering supervisor feedback as part of their vetting process, iRecruit.co minimizes the risk of a bad hire - an error that can cost up to 30% of the candidate’s annual salary.
Speed is often a deciding factor when hiring for key positions, and specialized recruiters excel in this area. With their established networks, they can quickly deliver qualified candidates. For example, iRecruit.co strives to secure offer acceptances within 30 days of starting a new search. This efficiency ensures that critical roles are filled promptly, keeping projects on schedule. A great example is Noah Clarke, who was placed by iRecruit.co as a Data Center Project Manager. He successfully oversaw a 100MW data center expansion, delivered on time and within budget, while managing $400 million in concurrent builds.
Another advantage of partnering with specialized recruiters is transparent and flexible pricing. iRecruit.co offers plans designed to fit different hiring needs, whether it’s a single role or a large-scale recruitment effort.
| Plan | Monthly Fee | Success Fee | Best For |
|---|---|---|---|
| 1 Open Role | $0/month | 25% of first year's salary | Single, critical hire |
| 2 Open Roles | $4,000/month per role | 20% of first year's salary | Growing teams |
| 3+ Open Roles | $3,500/month per role | 20% of first year's salary | Large-scale hiring |
Additionally, iRecruit.co offers a 90-day search credit or replacement policy if a hire doesn’t work out due to performance issues. As they state on their platform:
If a candidate doesn't work out within the first 90 days due to performance, we will find a replacement at no additional cost.
With a 90% client retention rate, this guarantee provides both financial security and peace of mind, ensuring you get the right fit for your team.
Bringing a construction project manager on board is just the first step. To ensure a stable and reliable workforce, a well-thought-out strategy is key. With the construction manager job market projected to grow by 11% by 2026, companies need systems that not only secure the right hires but also keep them engaged for the long haul. These strategies work hand in hand with quick hiring and competitive pay to build a resilient team.
Relying on gut feelings or references alone isn’t enough to predict job success. Instead, objective, role-specific assessments can provide a more accurate measure of a candidate’s potential. As The Predictive Index emphasizes:
Your gut isn't a good predictor of job success. Having a positive 'gut feel' about someone doesn't mean they'll be successful in the role.
To improve hiring outcomes, start by defining a "Job Target" that outlines the exact behavioral and cognitive traits needed for the role. For instance, these tools can evaluate skills like cost estimation, quality control, and project management. Behavioral assessments help identify whether a candidate is an "Analyzer" (methodical and data-focused), a "Controller" (detail-oriented and rule-abiding), or a "Specialist" (precise and collaborative). Cognitive tests, on the other hand, measure problem-solving and learning speed - critical abilities for handling on-site challenges.
Take a comprehensive approach by combining technical tests (like blueprint reading or budgeting) with soft skill evaluations (such as leadership and communication). Administer these assessments before the interview stage to save time and focus on the most qualified candidates. Finally, use interviews to confirm both technical expertise and alignment with company values.
Technical know-how is important, but it’s not the whole picture. A candidate also needs to fit your company’s culture and meet the specific demands of your projects. Practical tests like blueprint analysis or project planning exercises can help gauge both cultural and project fit.
Using scorecards ensures interviewers evaluate candidates based on objective criteria rather than personal biases. As TJ Kastning from Ambassador Group points out:
When an employee fails, that failure started in the interview process.
Train interviewers to identify red flags and assess soft skills effectively, treating interviewing as a skill that requires practice. Before you even start recruiting, decide whether the role calls for an "Analyzer" for detail-heavy tasks, a "Controller" for compliance-driven projects, or a "Specialist" for fast-paced, data-intensive environments. Be upfront about your company’s challenges during interviews - this helps manage expectations and reduces early turnover. To ensure a smooth transition, schedule structured feedback sessions at 30, 60, and 90 days to confirm the new hire’s experience aligns with what was promised.
A poor hiring decision can cost a company up to 30% of the employee’s first-year earnings. To mitigate this risk, consider working with recruiters who offer replacement guarantees. This not only reduces financial loss but also builds confidence in the hiring process.
Retention is just as important as hiring. Start with a standardized onboarding program that clearly communicates expectations and safety protocols from day one. Offer clear career development opportunities - lack of growth is the top reason employees leave. As Joe Supino, Segment Director at Actalent, explains:
Today's construction companies can't just tell their up-and-coming employees to stay in their lane. They want opportunities to develop their skills and grow in their careers.
Another key factor is supporting the managers who oversee new hires. Preventing manager burnout ensures they have the energy and focus needed to mentor and retain talent. With the U.S. construction industry facing the challenge of hiring an additional 500,000 workers to meet demand, protecting every hire through thoughtful policies and strong retention efforts isn’t just smart - it’s essential for success.
The construction industry is grappling with a tough hiring landscape. With 89% of construction companies struggling to fill positions and a labor shortage that continues to intensify, the challenges are undeniable. Companies face hurdles like an aging workforce, recruiters lacking industry-specific expertise, sluggish hiring processes that allow competitors to snap up top talent, and compensation packages that fail to align with current market demands.
In this environment, traditional hiring methods are falling short. The solution lies in partnering with specialized construction recruiters. These professionals tap into established networks of pre-qualified candidates, shorten the time it takes to fill critical roles, and use role-specific assessments to ensure candidates bring both the necessary skills and the right fit for the team. It’s not just about filling a position - it’s about building a team that performs well and stays the course.
iRecruit.co is a standout in this space, focusing on recruiting construction project managers for data centers and complex infrastructure projects. Their streamlined process delivers pre-qualified candidates and operates on success-based pricing. Plus, their 90-day search credit for replacements ensures your investment is protected, so you don’t waste time or resources on hires that don’t work out.
As experienced professionals retire and fewer young workers enter the industry, the leadership gap is growing. To navigate these challenges, firms need to embrace specialized recruitment, adopt structured assessments, and prioritize both speed and quality in their hiring processes. These steps are essential to securing the talent required to meet rising demand and successfully complete projects on time and within budget.
Construction companies can address the project management skills gap by prioritizing strategic hiring and employee growth initiatives. Collaborating with recruitment specialists like iRecruit.co can help identify and connect with pre-screened professionals experienced in construction project management. This approach not only simplifies the hiring process but also saves valuable time for the organization.
At the same time, investing in employee training programs can help current team members develop leadership skills, reducing the need for external hires. By highlighting construction as a rewarding career choice and offering competitive pay, companies can attract skilled professionals and strengthen their workforce for the long term.
Specialized recruiters play a key role in streamlining the hiring process for construction project managers, tackling the unique challenges that come with the construction industry. With a deep understanding of the technical skills, leadership abilities, and industry-specific knowledge required for these positions, they make it easier to identify and assess qualified candidates. This is particularly important in a competitive market where the demand for skilled professionals often exceeds the available supply.
Using tools like structured assessments, behavioral evaluations, and well-established industry connections, these recruiters help eliminate common hiring pitfalls - such as relying too heavily on intuition or conducting incomplete reference checks. Their focused strategies not only make the hiring process more efficient but also shorten the time it takes to fill roles. More importantly, they improve the chances of finding candidates who can successfully manage projects, lead teams, and deliver outcomes. This expertise helps create stronger, more effective project teams that can meet the demands of the industry.
The construction industry is facing a pressing issue: an aging workforce. With nearly 20% of construction workers aged 55 or older, and the average age steadily climbing over the past decade, the sector is bracing for a wave of retirements. As these experienced professionals step away, a skills gap emerges, posing risks to project quality, timelines, and overall labor availability.
Adding to the challenge, attracting younger workers has been an uphill battle. Limited recruitment efforts and less-than-appealing retirement benefits make it harder to bring in fresh talent to fill the void left by retirees. These dynamics underscore the need for proactive workforce planning and stronger retention strategies to secure the skilled labor necessary for the industry's future.
