General contractors are facing a severe shortage of skilled professionals in project management (PM) and mechanical, electrical, and plumbing (MEP) roles. This shortage is driven by an aging workforce, a lack of vocational training programs, and the increasing demand for specialized skills. Key challenges include:
To address these gaps, contractors are adopting solutions like AI-driven recruitment tools, partnerships with trade schools, employee training programs, and advanced technology like Building Information Modeling (BIM). These strategies aim to improve hiring efficiency, upskill existing employees, and create long-term talent pipelines. By modernizing their approach, contractors hope to reduce delays, lower costs, and meet the growing demand for infrastructure projects.
Construction Industry PM and MEP Talent Shortage Statistics 2024
Project Managers (PMs) and MEP (Mechanical, Electrical, and Plumbing) professionals are the backbone of any successful construction project. MEP systems are essential for a building’s functionality, covering intricate networks like HVAC, electrical grids, and plumbing. These systems must align seamlessly with structural components, as even a minor coordination error can lead to significant project delays. PMs also play a vital role by integrating advanced technologies like Building Information Modeling (BIM), ensuring everything runs smoothly.
In high-stakes sectors like data centers, energy facilities, and public infrastructure, the work of MEP professionals is critical. They ensure systems operate reliably, which is essential for safeguarding public safety and maintaining essential services. The stakes are even higher when dealing with electrical installations and heavy machinery, where safety risks can escalate quickly. On top of that, MEP systems often account for a large share of the overall construction budget.
The financial aspect underscores the importance of these roles. The average MEP engineer in the U.S. earns around $101,752 annually, reflecting the specialized knowledge and skill these positions require. From December 2019 to 2021, construction wages rose by 7.9%, driven by fierce competition for skilled workers. For a deeper dive into workforce trends, check out our jobs and workforce guide.
As the industry evolves, these roles face increasing pressure, highlighting the urgent need to address the ongoing talent shortage.
The construction industry is grappling with multiple, overlapping challenges. One major issue is the aging workforce. About 20% of construction workers are over 55, and with the average retirement age at 61, the sector is losing experienced professionals at an alarming rate. For every five workers retiring, only two new ones join the field, leaving firms struggling to retain institutional knowledge.
The problem starts early. A long-standing focus on four-year college degrees has led many schools to cut vocational and trade programs, shrinking the pool of skilled MEP professionals. Between 2003 and 2023, the proportion of construction workers aged 55 or older nearly doubled, from 11.5% to 22%. Meanwhile, unfilled construction jobs hit a two-decade high.
Technology is also reshaping the industry faster than workers can keep up. Since 2019, demand for people management skills in construction has surged by 77%, while business management skills have risen by 41%. The rapid adoption of BIM and digital twin technology has created a need for digital skills that many in the current workforce lack. By 2028, nearly half of the required skills in infrastructure are expected to change.
Adding to the strain, construction firms are competing for workers with industries like transportation, warehousing, and tech, which often offer better flexibility or faster wage growth. Immigration trends have further tightened the talent pool. Net migration in the U.S. dropped from 1.06 million in 2016 to just 244,000 in 2021, limiting access to international engineering talent.
These combined factors are making it harder for firms to find the skilled professionals they need, with serious consequences for project execution.
Labor shortages are causing noticeable setbacks across the construction industry. Productivity has dropped by 40% annually, timelines are being extended by 20% to 25%, and labor costs have doubled due to overtime and other incentives. In fact, 80% of construction firms report experiencing delays on current projects.
The impact doesn’t end when the build phase is complete. A lack of experienced MEP professionals often leads to rushed or subpar work, resulting in costly maintenance issues down the line. The stakes are especially high given the U.S. Bipartisan Infrastructure Law, which promises $550 billion in new infrastructure investments over the next decade, potentially creating 3.2 million new jobs. Yet, in October 2021, 402,000 construction positions remained unfilled - the second-highest level since 2000.
This growing gap between labor demand and supply threatens the nation’s ability to deliver on critical infrastructure projects, underscoring the urgency of addressing the talent shortage.
General contractors are increasingly using AI-driven recruitment platforms to streamline the hiring process for PM and MEP roles. These tools analyze resumes, LinkedIn profiles, and niche platforms to match candidates based on keywords, experience, and technical expertise, cutting down on time-consuming manual screening.
The efficiency of these tools is impressive. For example, MokaHR reduces time-to-hire by 63% while maintaining 87% accuracy in candidate screening. This speed is critical, especially when 81% of construction firms report struggling to find qualified project managers.
These platforms employ machine learning to rank candidates against job-specific criteria and automatically create detailed profiles, eliminating the need for manual data entry. Some even incorporate conversational AI chatbots to engage candidates via SMS or chat, handling pre-screening questions and scheduling interviews 24/7. This real-time interaction helps minimize project delays caused by unfilled positions.
Predictive analytics is another powerful feature, identifying passive candidates - those not actively job hunting but open to new opportunities - by analyzing job-switching trends and extensive data sets. For contractors juggling multiple searches, exploring workforce trends and hiring strategies offers additional insights into market conditions.
Skills-based assessments, enabled by AI, are particularly effective for technical roles. These tools simulate practical scenarios to test candidates' abilities in areas like project management and engineering design. This approach reduces mismatches that can lead to costly errors. With demand for digital skills in construction up 15% since 2019 and people management skills increasing by 77%, these assessments help identify candidates capable of balancing technical expertise with leadership.
In addition to leveraging advanced tools, tapping into established industry networks remains a key strategy for finding qualified talent.
Industry networks provide access to specialized talent pools that general job boards often overlook. Organizations like the Associated General Contractors of America (AGC), Associated Builders and Contractors (ABC), and the National Association of Home Builders (NAHB) maintain extensive databases of professionals actively working in construction. Local AGC chapters and groups such as the TED Forum or AGC Lean Construction Committee connect contractors with experts in modern construction methods and experienced PMs who understand complex project demands.
Programs like "Helmets to Hardhats" offer a valuable pipeline of veterans with transferable skills such as discipline, safety awareness, and technical expertise - perfect for MEP roles. With the industry needing an estimated 439,000 additional workers by 2025, these veteran-focused initiatives provide a timely solution.
Partnerships with trade schools and community colleges also help contractors reach new talent early. As nearly 75% of parents now see skilled trades as a better investment than traditional college degrees, enrollment in construction trade programs is climbing.
Social media has also emerged as a critical recruitment tool, especially for engaging Gen Z candidates. Contractors are using platforms to post videos and reels that highlight technologies like Building Information Modeling (BIM) and digital twins, reframing MEP roles as innovative and tech-driven rather than purely manual labor. This strategy aligns with Gen Z’s preferences, as 70% of them would switch jobs for better technology.
Attracting top talent requires more than competitive pay. Contractors must emphasize career growth, safety, and work-life balance to stand out. Companies that prioritize skills-based development are 98% more likely to retain high performers. Highlighting initiatives such as tuition assistance programs or mental health resources, like Turner Construction’s "YinzGood?" program, demonstrates a commitment to employee well-being.
Modernizing recruitment materials is another crucial step. Outdated training videos don’t resonate with today’s workforce. Instead, using smartphone-shot, relatable content can better engage younger recruits. Social media storytelling that showcases the high-tech aspects of MEP work appeals to digital-native candidates who want to envision themselves in these roles.
"Families now realize that skilled trades can deliver a better ROI." – Israel Simmons, Civil & Infrastructure Solutions Specialist, Procore Technologies
Flexibility is also key. Adjusting schedules to allow workers to attend family events reflects the evolving values of today’s workforce. As Gen Z surpasses Baby Boomers in the workplace, their demand for transparency, social impact, and work-life balance will only grow.
A strong employer brand not only attracts quality candidates but also supports long-term workforce development. These modern strategies are essential for building a reliable pipeline of skilled PM and MEP professionals.
To address the growing demand for skilled professionals in project management (PM) and mechanical, electrical, and plumbing (MEP) roles, contractors are teaming up with technical schools and community colleges. This proactive effort ensures a steady pipeline of qualified candidates before they even enter the job market. With unfilled positions at record highs, these collaborations are proving to be a game-changer.
One key strategy is aligning career and technical education (CTE) programs with industry needs. Through the AGC's Industry-Educator Partnerships Task Force, contractors work with school administrators to ensure students gain the skills required for modern PM and MEP roles. This approach bridges the gap between what’s taught in the classroom and what’s needed on the job.
Community colleges play a critical role in this effort. Many apprenticeship programs now offer associate degrees, providing students with clear, debt-free pathways into the industry. Contractors also invite educators to active job sites for externship opportunities. These hands-on experiences allow teachers to see cutting-edge tools like Building Information Modeling (BIM) and digital project management software in action, helping them better prepare their students for the workforce.
Financial investments further strengthen these partnerships. In 2023, contractors contributed over $800 million to trade and specialty programs. Initiatives like tuition assistance, scholarships, and grants not only help students but also build early connections with future talent. Partnering with student organizations such as SkillsUSA allows contractors to identify promising candidates early in their education journey. For more workforce insights and hiring strategies, contractors can explore resources available on iRecruit.co.
Another key element is promoting industry-recognized credentials, such as those from the NCCER. These credentials set consistent standards for PM and MEP competencies, reducing skill mismatches and ensuring graduates are job-ready for even the most complex projects.
These academic partnerships naturally extend into broader community initiatives and trade associations.
Trade associations offer contractors access to established workforce development networks that can be difficult to replicate independently. Local AGC chapters, Chambers of Commerce, and specialized groups provide recruitment resources and workforce committees that connect contractors with untapped talent pools.
A great example of this collaboration is the TPM framework, which uses data-driven methods to address workforce shortages. In September 2023, a partnership in Sacramento - featuring ACCO Engineered Systems, Turner Construction Company, and Kaiser Permanente - used this model to tackle regional PM and MEP talent gaps. With a $250,000 grant from Kaiser Permanente, the group launched the "Promise to Career" scholarship at Los Rios Community College District, supporting over 50 individuals. They also hosted "Trades Day" events through the Construction Industry Education Foundation (CIEF) to attract diverse talent.
"Our goal is to truly expose individuals to the trades in the construction industry. Many people don't understand what happens behind the scenes and ACCO wants to provide a path for individuals into the industry because it can be daunting to figure out how to get there."
– Mike Avakian, Sales Manager, ACCO Engineered Systems
These partnerships also address barriers beyond training, such as transportation challenges, driver's license requirements, and other socioeconomic hurdles. Community programs play a vital role in breaking down these obstacles, opening doors for underrepresented groups like women (currently only 6% to 7% of the construction workforce), veterans, and justice-involved individuals.
Interactive events are another effective tool. By giving students hands-on exposure to PM and MEP tasks, these events help them better understand potential career paths. Rebecca Martin, a student at Los Rios Community College, shared her perspective:
"It was really amazing to have the opportunity to ask real-life employees of the industry questions that we might have had. It gives you the option to see that your first choice might not have been your final choice when it comes to career options."
– Rebecca Martin, Student, Los Rios Community College
While external partnerships lay the foundation, retaining talent requires robust internal support systems, including mentorship programs.
Mentorship programs are key to bridging the gap between classroom learning and on-the-job realities. With an aging workforce exiting the industry, passing down knowledge from experienced professionals to new hires has become more important than ever. Beyond traditional one-on-one mentoring, some contractors are using virtual reality to expand the reach of these efforts, aligning with earlier discussions about data-driven recruitment.
Pairing seasoned MEP professionals with new employees allows for hands-on learning while fostering meaningful professional relationships. This not only boosts job satisfaction but also improves retention rates. Companies focusing on skills rather than rigid job titles are 98% more likely to retain top talent.
Modern retention strategies also address evolving workforce priorities like work-life balance. Flexible schedules, mental health resources, and family-friendly hours are increasingly important. For example, in September 2024, the Master Builders Association of Western Pennsylvania (MBA) and the Constructors Association of Western Pa. (CAWP) introduced "YinzGood?", a free mental health program for the regional construction industry. This initiative aims to combat the industry's high suicide rate - four times that of the general population - while supporting long-term retention.
Clear career advancement opportunities also play a huge role in reducing turnover. When employees have defined goals and pathways for growth, they’re less likely to seek opportunities elsewhere.
"Talent management is not just about recruiting and retaining employees; it is about investing in the future of the organization by building a workforce that is agile, adaptable, and ready to meet the challenges of tomorrow."
– Deloitte Insights
Regular feedback and open communication further enhance retention efforts, allowing contractors to refine their strategies and maintain a positive work environment for their teams.
With 456,000 construction jobs left unfilled as of February 2024, contractors are turning to targeted training programs to upskill their teams and close the gaps.
Programs like the AGC's Project Manager Development Program (PMDP) are a popular choice for nurturing early-career project managers. These courses focus on construction-specific skills - such as estimating, safety protocols, and construction law - while also building leadership and ethical decision-making abilities. For MEP (mechanical, electrical, and plumbing) roles, the MEP National Network offers certifications in areas like automation, electrical systems, and mechanical maintenance, addressing the growing demand in these specialized fields.
Digital skills are another priority. A whopping 91% of construction firms report a need for employees skilled in Building Information Modeling (BIM), AI-driven project tools, and cloud computing. To meet this demand, contractors are adopting blended learning methods that combine classroom lessons with hands-on applications, using tools like virtual simulations and augmented reality.
One standout example comes from an Asian engineering and construction firm that launched a training academy with seven tailored modules. Using a "field and forum" model, the program alternated between classroom sessions and real-world assignments. Over 45 project managers participated, with certifications motivating them to adopt new operational practices.
"The academy was key to supporting the transformation - and genuinely embedding the changes in the company."
– Participant, Asian engineering and construction company
These certification programs not only address immediate skill gaps but also create clear pathways for career growth within organizations.
Certification programs are just the start. Contractors are also focusing on defined career progression tracks, which have been shown to improve retention rates by 98%. This shift is crucial, as 44% of infrastructure-related skills are expected to evolve by 2028.
For example, a European EPC company tackling a multibillion-dollar project introduced a tailored training program for its staff. Employees, acting as "change agents", completed over 500 hours of virtual training over eight weeks. This intensive program covered both technical skills and soft skills, giving participants a clear roadmap for advancement.
Another effective strategy is job rotation and cross-training. By exposing employees to new roles and responsibilities, companies not only address immediate skill shortages but also keep workers engaged. Employees who see how training leads to promotions and raises are more likely to stay loyal to their employers.
"Leading contractors map out clear career paths with defined roles and training tied to each step. When employees see how training leads to advancement, they are more likely to stay engaged and commit to a future with their company."
– Caroline Raffetto, Construction Owners Club
Beyond structured training programs, creating a workplace centered on continuous learning is key to long-term success. For example, one major EPC firm, following a merger that caused cultural tension, launched a capability-building program for over 30 managers. The training emphasized collaborative problem solving, root-cause analysis, and coaching. To ensure lasting results, they held monthly progress meetings and regular feedback sessions.
Knowledge transfer is another critical element. With more than 40% of the current U.S. construction workforce set to retire by 2031, contractors are racing to capture institutional knowledge. Many are creating digital libraries, featuring videos of experienced MEP professionals sharing their expertise, so teams can access this knowledge on demand.
Interactive virtual workshops are also bridging the gap between headquarters and job sites. These workshops, which include experiential learning games and breakout sessions, help ensure consistent training across multiple locations while accommodating the flexible schedules modern workers prefer.
Finally, performance-based measurement ensures training delivers real results. Instead of just tracking attendance, effective programs require employees to demonstrate their skills on actual projects. This hands-on approach reinforces learning while giving companies confidence that their investment translates into better project outcomes.
The construction industry is facing a tough hiring landscape, with 81% of firms unable to find qualified project managers and 83% struggling to hire superintendents. To tackle this, many general contractors are using applicant tracking systems (ATS) to cut through the noise of irrelevant applications. These systems leverage AI to scan resumes for essential MEP certifications and provide mobile dashboards that simplify candidate evaluation, significantly cutting down on manual review time. For instance, Zillow reported a 75% reduction in candidate review time after adopting AI-driven application ranking. For companies swamped with applications, this kind of efficiency is a game-changer.
ATS platforms also include tools like standardized "interview kits" and scorecards, ensuring candidates are evaluated consistently on technical skills, which helps reduce hiring bias. Integrated background check solutions, such as Checkr, complete 89% of criminal record checks within an hour, keeping the hiring process moving quickly.
Virtual interviews are another major advantage, slashing travel costs and speeding up the evaluation of specialized talent from across the country. Some companies are even using Virtual Reality (VR) to simulate busy jobsites during interviews, allowing them to observe how candidates handle safety challenges and make real-time decisions. For high-stakes projects that demand top-notch PM and MEP talent, these tools expand the search beyond local markets, offering access to a much broader pool of skilled candidates.
"70% would leave a position to work for a firm with better tech." – ENR/Sensera Systems
These advanced recruitment tools integrate seamlessly with workforce management systems, setting the stage for better project execution.
Real-time data has transformed workforce management, giving contractors immediate insights into site performance. Instead of relying on end-of-week reports, managers can now spot productivity issues as they happen and reallocate resources to keep projects on track.
Simulation software takes this a step further by analyzing countless critical paths to determine the most efficient and least risky ways to complete a project. This is crucial, as history shows that labor shortages in the shale construction sector have caused productivity drops of 40% or more and extended project timelines by 20% to 25%.
Building Information Modeling (BIM) is another powerful tool, offering detailed preconstruction planning that ensures the right people are assigned to the right tasks at the right time. Acting as a "digital twin", BIM allows seamless collaboration across trades and provides clear task requirements before work begins. This kind of precision reduces the overall labor needed for a project, directly addressing skill shortages and minimizing delays.
"During preconstruction, the specificity of BIM generates certainty in the demands of the tasks ahead, enabling planners to put the right people in place at the right time." – Procore
With digital tools and predictive analytics streamlining operations, construction firms are now able to cast a wider net for talent. AI-powered remote solutions provide 24/7 jobsite visibility, allowing companies to recruit from a national talent pool. This is critical as the industry anticipates needing 439,000 additional workers by 2025 to meet demand.
Highlighting advanced technology and AI-enabled workflows not only fills these gaps but also attracts a younger workforce. For example, 70% of Gen Z workers say they’d leave their current job for one that offers better technology. To tap into this tech-savvy generation, firms are adopting digital recruitment strategies, including tailored outreach and leadership programs supported by HR technology.
Additionally, the rise of new roles like drone operators, BIM technicians, and AI specialists is drawing talent from outside traditional construction fields. By embracing remote management and cutting-edge tech, firms are not only addressing labor shortages but also positioning themselves as forward-thinking employers, appealing to the next wave of workers.
"Firms that embrace advanced construction AI not only improve project outcomes but also position themselves as desirable employers for the next generation of workers." – Engineering News-Record
Bridging the talent gaps in project management (PM) and mechanical, electrical, and plumbing (MEP) roles requires a forward-thinking approach to recruitment and training. With the construction industry needing 454,000 new workers each year to meet demand, and 41% of the workforce expected to retire by 2031, relying on outdated hiring practices simply isn’t an option anymore.
Top-performing firms are taking action by blending data-driven recruitment strategies, forming educational partnerships, prioritizing internal upskilling, and adopting integrated technology solutions. When these efforts are aligned with clear business objectives, they create a talent ecosystem that’s built to last.
"Talent management is not just about recruiting and retaining employees; it is about investing in the future of the organization by building a workforce that is agile, adaptable, and ready to meet the challenges of tomorrow." – Michelle Meisels, Principal, Deloitte Consulting LLP
The key lies in integration. Whether it’s leveraging applicant tracking systems or fostering a culture of continuous learning, these strategies are most effective when combined. Contractors who embrace comprehensive workforce development programs not only address immediate labor shortages but also build a steady talent pipeline for future projects.
AI-powered tools are reshaping how companies hire for project management (PM) and mechanical, electrical, and plumbing (MEP) positions. These tools can process massive amounts of applicant data, identifying candidates with the right skills and experience much faster than traditional methods. This means less time spent on manual screening and more focus on finding the best fit.
Beyond just sorting resumes, AI can assess how well candidates match job requirements and even gauge their compatibility with a company's values and work environment. This helps employers make better hiring choices and improve employee retention. Plus, by automating tasks like reaching out to candidates and maintaining engagement, AI ensures companies stay connected with top talent - especially younger professionals like Gen Z, who are entering the workforce in growing numbers.
These tools also play a critical role in addressing talent shortages by spotting skill gaps and highlighting training opportunities. With the industry's demands constantly increasing, AI has become a key ally in building a stronger, more prepared workforce.
Collaborating with trade schools is one of the smartest ways to address the construction industry's ongoing talent shortage. These partnerships help create a steady flow of skilled workers by giving students access to practical training, apprenticeships, and real-world project experience. Plus, trade schools can tweak their programs to match industry needs, ensuring graduates are equipped with the exact skills employers are looking for.
For companies, working with trade schools isn't just about filling immediate job openings - it's also a chance to connect with younger generations and attract a more diverse workforce. This strategy helps build a talent pool that can support long-term growth, especially for large-scale, high-priority projects. By teaming up with trade schools, construction companies are taking a big step toward meeting both the current and future demand for skilled professionals.
Building Information Modeling (BIM) is reshaping how workforce management works in construction by boosting teamwork, accuracy, and efficiency. By creating a detailed digital model of a project, BIM allows teams to plan, design, and manage every stage with greater precision. This approach minimizes mistakes, reduces rework, and cuts down on delays, all while improving communication among everyone involved.
BIM also plays a key role in workforce development by streamlining processes and offering advanced training opportunities, especially in specialized fields like data centers and hospitals. With features like real-time coordination and clash detection, BIM simplifies project execution and appeals to skilled professionals who appreciate working with modern tools. In the end, BIM helps build a workforce that’s more skilled, connected, and ready to embrace technology.
