The construction industry faces a major challenge: a serious shortage of experienced project managers is delaying critical projects and driving up costs. With $130 trillion in global capital projects planned between 2022 and 2027, demand for skilled managers has surged, but retirements and insufficient training have left a significant talent gap. Here's why this matters:
Without experienced project managers, projects face delays, cost overruns, and reduced profitability. Solutions include targeted recruitment, better training programs, and leveraging technology like AI and automation to ease workloads. Addressing this shortage is critical to keeping major builds on track and meeting global infrastructure goals.
Construction Project Manager Shortage Statistics and Impact 2022-2030
The lack of experienced project managers is a growing concern, driven by a mix of retirements, insufficient training, and uneven distribution of talent. These challenges are creating a significant gap in the workforce, especially in industries like construction. Let’s break down the key reasons behind this shortage.
The construction industry is grappling with a "silver tsunami" - a wave of retirements that’s draining the workforce of its most experienced professionals. Over the past two decades, the percentage of construction workers aged 55 and older has nearly doubled, climbing from 11.5% in 2003 to 22% in 2023. In stark contrast, only 11% of workers in the infrastructure sector are 24 or younger. When seasoned project managers retire, they take with them years of knowledge and expertise, leaving a gap that’s not easily filled without structured mentorship or training systems.
The COVID-19 pandemic only accelerated this trend. In 2020, around 3.2 million baby boomers exited the workforce - over a million more than any year before 2016. For some infrastructure employers, this has meant losing 10% or more of their workforce annually.
"A 'silver tsunami' of workers has swelled in recent years, causing many infrastructure employers to see 10% (or more) of their workers retire annually, and as more of these workers reach the end of their careers with fewer younger workers to pick up the baton, vast amounts of institutional knowledge and skills may be lost forever."
– Joseph W. Kane, Fellow, Brookings Metro
While new professionals are entering the field, many lack the preparation needed to manage today’s increasingly complex projects. Over half (57%) of construction firms report that candidates don’t have the essential skills or licenses required for the job. Interestingly, much of the current training investment - about 40% - focuses on tools, processes, and methodologies. While these are important, they often overshadow critical areas like leadership, strategic thinking, and problem-solving, which are essential for managing large, multifaceted projects.
Technology in training is another weak spot. Despite advancements in digital tools, 75% of construction companies still rely on manual training methods, and nearly a quarter (24%) haven’t adopted any upskilling initiatives. Even worse, only 22% of organizations actively track the effectiveness of their training programs. Considering the rapid evolution of construction demands - like smart building technologies, green energy retrofitting, and stricter environmental standards - outdated training programs are leaving project managers unprepared. By 2028, nearly half (44%) of the skills required for infrastructure jobs are expected to shift, making the need for updated training even more urgent.
Another factor contributing to the shortage is the uneven distribution of skilled managers. Large-scale projects often pull experienced professionals into specific regions, leaving other areas struggling to find qualified talent. This creates a ripple effect, where nearby projects face delays or staffing shortages due to the concentration of skilled workers in certain hubs.
Adding to this challenge is competition from other industries. Between December 2019 and 2021, wages in construction rose by 7.9%, but transportation and warehousing saw even higher increases at 12.6%. These wage disparities make it harder for construction firms to retain talent, especially in regions already dealing with labor shortages. The result? A growing imbalance that leaves some areas with a critical lack of experienced project managers.
The shortage of experienced project managers is doing more than just creating staffing headaches - it’s disrupting project timelines and blowing up budgets. 45% of firms blame labor shortages for project delays. These delays not only derail schedules but also drive up costs, creating a ripple effect of financial challenges. Let’s break down how these delays are impacting costs and increasing risks.
A lack of skilled project managers creates a bottleneck, slowing down project kickoffs. Without seasoned leadership, projects are plagued by poor risk management and overly optimistic planning that fails to account for real-world challenges. The result? Projects drag on, and daily expenses for equipment, supervision, and design pile up, eating into profit margins.
The numbers tell the story: as of February 2024, there were 456,000 unfilled construction jobs, the highest in 20 years. This labor gap forces contractors to inflate bids to cover risks tied to rising costs and potential delays.
"Construction projects of all types are being delayed because there aren't enough qualified workers available for firms to hire."
– Ken Simonson, Chief Economist, Associated General Contractors of America
One striking example is the Denver VA Hospital, where costs skyrocketed from an initial $328 million in 2005 to $1.73 billion. The primary culprit? A lack of an in-house, experienced project management team to handle the complexities of a megaproject.
Delays don’t just stretch timelines - they eat into profits and magnify financial risks. In large-scale projects like nuclear plants, civil works (structures and foundations) make up 40% to 50% of total capital costs, making effective management critical to financial success. Without skilled project managers, these projects face higher risks and reduced profitability.
The skills gap is glaring. Since 2019, demand for people management skills has jumped 77%, while business management skill needs have grown 41%. Yet 57% of firms report applicants lack essential skills or licenses. Even when companies find candidates, they often lack the expertise to manage suppliers, control budgets, or coordinate stakeholders effectively.
These pressures are forcing some firms to scale back or cancel projects altogether. 16% of firms report cancellations or postponements due to rising costs and market instability. Labor shortages are also fueling price inflation. For example, between 2012 and 2017, median housing prices rose by 30%, far outpacing general inflation.
"The talent gap in our profession isn't just a workforce issue. It's a barrier to progress for business and for the future of the world."
– Pierre Le Manh, PMP, President and CEO of PMI
The impact of experienced project managers is undeniable when comparing projects with and without their oversight. Organizations that treat project management as a strategic function - often called "Front-Runners" - are twice as likely to achieve better revenue growth and customer satisfaction compared to those that see it as merely tactical.
A great case study comes from Japan’s ABWR nuclear builds in the 1990s and 2000s. Toshiba partnered with GE and Hitachi to manage construction for Japanese utilities. By using a single contract manager and modular construction, they cut overall schedules by nearly 20% and non-civil construction times by almost 40% compared to earlier projects.
| Performance Metric | Projects WITH Experienced PMs | Projects WITHOUT Experienced PMs |
|---|---|---|
| Schedule Adherence | 20% faster completion through expert oversight and modular techniques | 45% of firms report delays due to talent shortages |
| Cost Control | Improved supplier management and stockpiling; better revenue outcomes | Multi-billion-dollar overruns and potential cancellations |
| Risk Management | Proactive mitigation of regulatory and technological risks | Increased optimism bias and financial mismanagement |
| Scalability | Gains from repetitive builds and knowledge sharing | Stalled growth as experienced workers retire |
The takeaway is clear: experienced project managers aren’t just helpful - they’re critical. Without them, firms face delays, cost blowouts, and a tougher path to staying competitive in high-stakes industries.
With 13 million project managers expected to retire by 2030 and a demand for 25 million new professionals in the same timeframe, companies face a pressing challenge. To tackle this shortage and keep major projects on track, businesses need a three-part strategy: targeted recruitment, effective training, and leveraging technology.
Recruiting project managers has become a tough task. Over 80% of construction executives report difficulties filling open roles. Posting job ads and waiting for responses isn’t enough anymore. Leading organizations - often referred to as "Front-Runners" - are expanding their talent search. They recruit nationally 47% of the time and internationally 25% of the time, compared to 40% and 12.5%, respectively, for other companies.
Switching to skills-focused hiring can widen the talent pool. Instead of requiring a four-year degree, companies are looking at what candidates can actually do - like managing budgets, coordinating suppliers, or leading complex projects. This approach increases the likelihood of retaining high performers by 98%. Additionally, businesses are reaching out to underrepresented groups, including women (who make up just 30% of the construction workforce), veterans, and individuals seeking second chances.
"For the veteran community, mentoring is very important. We know we have skills that are very well aligned from a leadership perspective for project management, but there are gaps in things like tools, methodologies, and managing budgets." – Michael Quinn, CEO, HireMilitary & Tenova LLC
Specialized recruitment firms can speed up the hiring process by pre-qualifying candidates with the right mix of technical and leadership skills. For example, iRecruit.co specializes in filling mission-critical construction roles, including project managers for data centers, energy, and advanced manufacturing. Their success-based pricing model ensures you only pay when you hire.
But finding talent is only half the battle - developing it internally is just as important for long-term success.
Recruitment alone won’t solve the problem. Companies need to invest in training their workforce. In 2023, construction contractors spent over $800 million on trade and specialty programs. However, many of these programs focus too much on technical skills, neglecting areas like leadership, empathy, and strategic thinking. The best training programs combine classroom learning with hands-on experience, allowing junior managers to apply new concepts directly to real-world projects.
"In building relationships, we should have a connection with our stakeholders and treat them as people - it’s switching to asking how are you doing rather than what are you doing... You will uncover so much more as a project manager with an empathetic approach." – Geetha Gopal, Head of Infrastructure Projects Delivery and Digital Transformation, Panasonic Asia Pacific
Mentorship is especially valuable, particularly for veterans transitioning into construction. Pairing junior managers with experienced directors provides the guidance and feedback needed to accelerate their growth. Job rotation is another effective strategy, exposing junior managers to different areas like procurement, site execution, and cost control. This helps them develop the business knowledge required for managing complex projects. With 40% of the current U.S. construction workforce set to retire by 2031, these programs aren’t just helpful - they’re necessary.
Once internal talent is strengthened, technology can take efficiency to the next level.
Technology won’t replace skilled project managers, but it can make their jobs easier. Currently, only 25% of organizations automate low-value tasks. This leaves project managers stuck handling repetitive work like updating schedules and tracking costs. Tools like Robotic Process Automation (RPA) and AI can take over these tasks, giving managers more time to focus on strategy and building relationships.
Data-driven staffing models are also changing the game. Advanced analytics can determine the right team sizes and identify when staff can be reassigned to other projects. This reduces guesswork and ensures projects are supported by the right skills.
"A data-led approach took the guesswork out of assembling project teams and supported project owners to meet their objectives with the right size team and skill sets." – Shu'aib Mahomed, Małgorzata Olszańska, and Maksim Varshavskiy, McKinsey & Company
Demand for cloud computing skills in construction rose by nearly 15% between 2019 and 2023, while the need for software development skills grew by 13%. Companies investing in digital training, such as Augmented Reality (AR) and Virtual Reality (VR) for hands-on learning, can upskill junior managers faster and ease the workload for senior staff. One-third of organizations plan to increase their use of automation, AI, and VR within the next five years, signaling a shift in how project management is handled.
The growing shortage of project managers calls for immediate and decisive action. With 13 million project managers expected to retire and a demand for 25 million new professionals by 2030, companies need to prioritize solutions now. Addressing this challenge requires leadership focus and a strategy that combines targeted recruitment, talent development, and smart use of technology. This approach can deliver quick, tangible results.
Specialized recruitment platforms, such as iRecruit.co, help companies connect with experienced project managers ready for high-stakes roles. Their success-based pricing model minimizes financial risk by charging only when a hire is made. However, recruitment alone won’t solve the problem. Companies also need to invest in training programs that mix practical experience with mentorship. This is especially crucial for veterans and early-career professionals stepping into complex projects. By strengthening internal talent pipelines, organizations can secure long-term project success.
Technology plays a pivotal role in boosting efficiency. Tools powered by AI and automation can handle time-consuming tasks like scheduling updates and cost tracking, allowing experienced managers to focus on strategic decisions and stakeholder engagement. Currently, only 25% of organizations are automating these low-value tasks, which means there’s significant room for improvement. Additionally, technologies like AR, VR, and data-driven staffing models can speed up the training of junior managers. When combined with focused recruitment and training efforts, these tools can help close the talent gap and ensure a more stable future for project management.
To address the lack of experienced project managers, companies can use a mix of smart hiring strategies and employee development efforts. Targeted recruitment, driven by data insights, allows businesses to pinpoint and bring on the right talent when it's needed most. At the same time, investing in training programs for current employees can prepare teams to handle emerging challenges, such as shifts in technology and the growing focus on sustainability.
Building a strong employer brand and cultivating a supportive workplace can also make a company more appealing to skilled professionals. Partnering with schools and workforce development programs is another way to create a steady flow of qualified candidates. On top of that, offering competitive pay, comprehensive benefits, and clear paths for career advancement can significantly improve both hiring and retention efforts. Together, these strategies ensure organizations have the expertise required to successfully manage large-scale projects.
Technology plays a key role in tackling the challenge of finding seasoned project managers by boosting efficiency and cutting down on manual work. Modern project management software helps teams plan with greater precision, allocate resources wisely, and build schedules that are both practical and achievable. This ensures projects stay on track and stick to their budgets.
On top of that, tools like automation, AI, and real-time collaboration platforms simplify communication and speed up decision-making. These technologies take care of routine tasks, reducing the need for constant supervision by highly skilled managers. By adopting these solutions, organizations can increase productivity, enhance safety, and close the skills gap in project management, making it easier to handle large-scale projects smoothly.
Mass retirements are hitting the construction industry hard, intensifying labor shortages and leaving a noticeable talent gap. As seasoned professionals exit the workforce, their expertise - critical for managing large-scale projects - is becoming harder to replace. This challenge is compounded by growing infrastructure demands and a shortage of younger workers stepping into the field.
One major hurdle in attracting fresh talent is the lack of robust investment in workforce development and training programs. Without enough skilled workers, the consequences are clear: delayed projects, increased costs, and, in some cases, outright cancellations. To tackle this, the industry needs to focus on targeted recruitment strategies, upskilling current and incoming workers, and leveraging technology to streamline project management and improve efficiency.
