The construction industry is facing a severe shortage of skilled professionals on the owner side - those managing and overseeing projects rather than performing physical labor. High-stakes projects like data centers, semiconductor facilities, and infrastructure developments are particularly affected. Here’s why this is happening and what it means:
The result? Staffing challenges on large-scale construction projects often lead to delayed projects, increased costs, and missed opportunities. Companies must recruit construction labor in a tight market, invest in internal training, and leverage technology to address these challenges.
For more insights, read on to explore practical solutions and strategies to tackle this shortage.
Construction Owner-Side Talent Shortage Statistics 2024-2031
The construction industry is in the midst of an intense battle for skilled professionals. Between 2022 and 2027, an estimated $130 trillion will be poured into capital projects - a 70% jump compared to the previous five years. This surge spans industries like data centers, semiconductor plants, healthcare expansions, and infrastructure projects, all vying for the same pool of experienced workers.
Federal initiatives have added fuel to the fire. Laws like the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act have doubled U.S. manufacturing construction spending since 2021. These measures have created a fierce demand for specialized roles, particularly in areas such as MEP (mechanical, electrical, and plumbing) engineering and project management.
Kurt Wallner, Project Executive at DPR Construction, summed up the situation:
It used to be just Northern Virginia, and New York, and Dallas. And now we're hearing Indiana, and Louisiana and every state in between. … Really, what we're seeing, it's an arms race for people, material, equipment.
The problem is exacerbated by bottlenecks in engineering and technical services, fields that require years of education and licensing. During the peak years for Bipartisan Infrastructure Law projects (2027–2028), the construction sector is expected to face a deficit of 160,000 contractors, 145,000 materials workers, and 40,000 engineers. Matt Landek, Managing Director at JLL, highlighted the scope of the issue:
Demand for project management staff is very high among data center operators. It's a national problem in the United States and Canada, if not a global problem.
While the sheer volume of projects is driving demand, the aging workforce is shrinking the pool of available talent even further.
The aging workforce is another major factor straining the construction labor market. 41% of current workers are expected to retire by 2031, and the proportion of workers aged 55 and older has nearly doubled, rising from 11.5% in 2003 to 22% in 2023. Of the 349,000 new workers needed by 2026, more than half will be replacing retirees rather than filling roles created by growth.
The struggle to fill positions is evident. By 2024, 79% of construction firms reported openings for salaried employees, up from 69% in 2023. Among these, 78% said estimating positions were particularly hard to fill. Ken Simonson, Chief Economist at the Associated General Contractors of America, explained the challenge:
The problem is most acute for occupations requiring specialized training or prior construction experience... 78% of firms seeking estimating personnel said those openings were difficult to fill.
Training programs have also struggled to keep up. Many paused during the pandemic and have been slow to restart, while federal funding remains heavily focused on four-year college programs rather than vocational or technical education. The pandemic accelerated retirements too, with 3.2 million baby boomers leaving the workforce in 2020 alone. Anirban Basu, Chief Economist at Associated Builders and Contractors, pointed out:
There's a structural component tied to retirements and demographics, and a cyclical component tied to demand. The cyclical side has softened... but more than half of the workers needed will be required simply to replace retirees.
The talent shortage isn’t affecting every region equally. Construction activity is expanding into secondary and tertiary markets like Phoenix, Austin, Raleigh/Durham, Indiana, and Louisiana. These areas often lack the deep labor pools found in traditional hubs like New York or Dallas, creating fierce local competition for skilled professionals.
In states like Texas, companies with significant capital are actively pulling subcontractor labor away from other sectors. Daina Pitzenberger, Senior Vice President at JLL, described the situation:
Because of the shortage of subcontractor labor in places like Texas, companies that need the labor force and have more capital funding than healthcare companies are soliciting subcontractors directly from healthcare job sites.
Regional challenges extend beyond labor. For example, 100% of firms surveyed in Georgia in 2025 reported difficulty finding hourly craft workers. Immigration policies have also disrupted labor markets, with 75% of construction firms in Georgia citing workforce impacts - compared to less than 10% in states like Idaho and Alaska. On top of that, infrastructure limitations are creating delays. In some areas, data center operators face grid connection wait times of up to three years, leading to a scramble for alternative energy solutions.
This shortage isn't limited to owners; large GCs struggle to staff mission-critical projects as well.
Traditional recruitment methods often fall short in addressing the complex demands of mission-critical construction projects. Simply posting job openings and waiting for applicants isn’t effective when 92% of construction firms report difficulty filling salaried positions, and 94% struggle to find craft workers. At the end of August 2024, the industry had 370,000 job openings, significantly outpacing the 338,000 hires made that month.
The real issue isn’t just a lack of applicants - it’s the lack of qualified ones. A staggering 62% of firms cite unqualified candidates as the primary obstacle, and 68% of applicants lack basic construction skills. As Ken Simonson, Chief Economist at the Associated General Contractors of America, put it:
The biggest takeaway from this year's Workforce Survey is how much the nation is failing to prepare future workers for high-paying careers in fields like construction.
Adding to the problem, many owner-side organizations rely on outdated hiring assumptions, using executive “guesswork” or past experiences to match talent to project needs. These methods fail to address the complexity of today’s large-scale construction projects. The challenges are further magnified by bottlenecks like prolonged training timelines, ineffective headhunting practices, and the limitations of simply raising wages.
Even when candidates are available, the time it takes to train them creates delays. Apprenticeships and skills development programs can take years to produce workers with the specialized expertise required for roles such as project management, estimating, or MEP (Mechanical, Electrical, and Plumbing) engineering.
High attrition rates among new hires only add to the difficulty - 50% of new hires either fail to show up on their first day or quit shortly after starting. To tackle this, Latoya Goree Smith, Principal at Rhys Ivy Construction in Kansas City, launched a three-to-five-week paid workforce training program in August 2024. This program provides certifications like CPR and OSHA 10-Hour, as well as foundational lessons in math and financial literacy. As Smith explained:
What some might fail to realize is that, not only are we bringing people into the industry for the trade, but we are also bringing individuals who might not have those basic skills to be effective in the workplace.
The skills gap isn’t limited to entry-level roles. By 2028, 44% of current infrastructure skill requirements are expected to change, making traditional job descriptions and hiring criteria increasingly outdated. Meanwhile, demand for skills in people management and business management continues to rise. Unfortunately, federal funding often prioritizes four-year college programs over vocational or technical education, further widening the gap.
While prolonged training timelines hinder the development of entry-level talent, labor market conditions make it even harder to attract experienced professionals.
The construction industry is operating at near-full employment, leaving little room to recruit experienced workers. With unemployment rates at historic lows, most qualified candidates are already employed and not actively seeking new roles. In fact, construction employment grew by 3% through September 2024, nearly double the 1.6% increase in total nonfarm payroll employment.
This tight labor market often leads to firms poaching talent from one another, driving up costs without increasing the overall talent pool. For instance, 78% of firms report difficulty hiring estimating personnel, and 76% struggle to find surveyors. Despite these efforts, the number of unfilled positions remains high compared to pre-pandemic levels. Jeff Shoaf, CEO of AGC of America, highlighted the issue:
The government's lack of investment in construction workforce programs is having a real, measurable impact on the country's ability to build infrastructure and other construction projects.
It’s easy to assume that higher wages would solve recruitment challenges, but the data tells a different story. Between 2019 and 2021, construction wages rose by 7.9%, yet they were still outpaced by a 12.6% increase in the transportation and warehousing sector. Even with competitive pay, other factors - like geographic limitations, policy hurdles, and the shortage of trained professionals - remain major barriers.
Research from McKinsey underscores this point: while competitive wages are a baseline expectation, candidates are increasingly prioritizing broader benefits and workplace culture when choosing an employer. Higher pay alone can’t create qualified candidates or speed up the years of training required to develop the expertise necessary for owner-side roles.
Traditional hiring methods aren't cutting it anymore. To tackle the talent shortage, companies need to focus on building internal talent, refining recruitment strategies, and improving employee retention. It's about creating systems that attract, develop, and keep the right people for critical roles.
Instead of relying solely on external hires, companies can develop their own talent. Structured mentorship programs and hands-on training are key to building skills from within. Pairing younger employees with seasoned professionals ensures knowledge transfer while fostering a sense of belonging. This is especially important as over 40% of U.S. construction workers are expected to retire by 2031, threatening to take decades of expertise with them.
Combining classroom learning with on-the-job training helps embed new skills across teams. For instance, a European EPC company identified skill gaps during a major project ramp-up and addressed them by training 24 staff members through 500 hours of virtual sessions over eight weeks. As one participant from an Asian engineering firm put it:
The academy was key to supporting the transformation - and genuinely embedding the changes in the company.
Clear career paths are another powerful tool. When employees understand the certifications and training required for advancement, they’re more likely to stay. Add job rotations and cross-training into the mix, and turnover drops significantly - companies using a skills-based approach are 98% more likely to retain top performers. Partnerships with schools, government agencies, and community organizations can also create targeted pipelines for specialized roles, especially in areas like data center management, advanced manufacturing, and infrastructure projects. For more insights, check out our guide on jobs in the construction workforce.
While internal development lays the groundwork, a sharper recruitment strategy is essential to fill critical gaps.
Generic job postings won’t cut it for niche roles. Instead, companies need data-driven workforce planning to determine the exact skills and number of full-time equivalents (FTEs) required based on project complexity, timelines, and contracting models.
For example, a global mining company managing a $15 billion portfolio used advanced analytics to realize it needed to triple its owner-side team, prompting a complete hiring overhaul. Similarly, a global oil and gas company overseeing a $10 billion program used dynamic staffing to reallocate 25% of its team during final delivery stages, ensuring smooth transitions across projects.
Shifting to skills-based hiring - focusing on specific competencies rather than job titles - can align talent with project needs. This is crucial as demand for skills like people management and metal fabrication has surged by 77% and 40%, respectively, since 2019. Expanding recruitment efforts to include underrepresented groups, such as women (who make up just 30% of the construction workforce), veterans, and second-chance citizens, can also help fill the gap. As of February 2024, there were 456,000 unfilled construction jobs in the U.S. - the highest in 20 years.
For highly specialized roles like commissioning or QA/QC in advanced facilities, partnerships with educational institutions, nonprofits, and government agencies can establish dedicated talent pipelines. Virtual recruitment tools and digital learning modules can also connect employers with a broader, more diverse pool of candidates.
Given the long training periods and high turnover rates, keeping employees engaged is just as important as recruiting them. While competitive pay matters, companies must also focus on career growth, mentorship, and providing a variety of challenging projects.
Mapping out clear role progressions, including the certifications and experience needed for advancement, can have a big impact. Brad Werner, Partner at Wipfli LLP, emphasized this point:
Companies that invest in training, certifications and mentorship not only strengthen their teams but also demonstrate a commitment to their workers' futures.
Flexibility is another major factor, especially for younger workers. Options like four-day workweeks, staggered shifts, and predictable schedules can help reduce burnout. Joe Supino, Segment Director at Actalent, highlighted the importance of transparency:
Simply making cross-training/career progression tools and programming available can build trust and let employees know you're listening.
Providing access to advanced tools - like drones, Building Information Modeling (BIM), and AI-powered platforms - can also attract forward-thinking employees. Highlighting opportunities to work on high-profile projects, such as stadiums or major infrastructure initiatives, further strengthens a company’s appeal.
Turner Construction Company demonstrated this in May 2024 when it received an Award of Excellence for its workforce development efforts, which included tuition assistance, scholarships, and grants to support future talent. Additionally, training supervisors in leadership and coaching skills plays a huge role in retention. Leadership quality often determines whether employees stay or leave. While contractors allocated 60% of their workforce development budgets to safety training in 2023, investing in soft skills like conflict resolution and mentorship is equally critical to keeping top talent.
When traditional hiring falls short, technology steps in as a game-changer. Digital tools not only make operations smoother but also address critical talent shortages. These tools don't just improve how existing teams work - they reduce the need for as many people on-site. With over 40% of the U.S. construction workforce expected to retire by 2031, and 456,000 construction jobs unfilled as of February 2024, automation and smart systems have become more than helpful - they're essential. This shift toward digital solutions also helps refine processes and preserve valuable knowledge.
AI-powered tools are transforming how owner teams monitor project progress. Instead of relying on manual inspections, platforms that compare jobsite images with 3D models now provide real-time updates automatically. Lee Howlett, a Planner at IHP working on a large hospital project, shared:
There is no doubt about it; having Buildots has saved 2–3 person days per week to gather the progress data for review in collaborative meetings and input into the monthly reports.
In another example, GTM Sud-Ouest TP GC, a VINCI Construction subsidiary, reduced time spent on manual data collection by 66% during the fit-out of an aeronautical assembly line. For Intel’s global semiconductor fab program, AI-driven quality controls flagged installation errors early, cutting rework costs by 4.3% and shaving an average of four weeks off project timelines per fab. Even more impressive, Intel decreased the need for hard-to-fill roles like quantity surveyors by over 50%.
For more insights into construction project delivery, these tools are proving indispensable.
Automation also takes on repetitive, time-consuming tasks, freeing skilled professionals to focus on higher-value work. Digital quality assurance systems, for example, can boost on-site productivity by 50%. Building Information Modeling (BIM) has shown to cut drafting costs by 80–84%.
However, the sheer number of software tools can overwhelm teams - 88% of construction professionals report feeling burdened by the daily software demands. Consolidating these tools into unified platforms can save time, eliminating the 11 hours per week lost switching between disconnected systems.
Automated reporting is another time-saver, allowing teams to prioritize strategic decisions. Despite advancements, 91% of construction professionals still rely on paper forms, and 95% of projects exceed their budgets. As Barak Gur-Arie, VP Mission Critical at Buildots, put it:
The industry can't hire its way out of the labor crisis. But it can adapt.
With a growing number of retirements looming, capturing and transferring expertise is critical to maintaining high standards. Sixty-three percent of construction leaders are worried about the aging workforce. AI-powered systems help by documenting and embedding the knowledge of experienced professionals into digital workflows, enabling less experienced staff to handle complex tasks with guidance from these systems - a "force multiplier", as experts call it.
Virtual workshops and self-paced digital learning modules create bridges between senior leaders and on-site teams. Tools like augmented reality (AR) and virtual reality (VR) allow retirees to pass on trade skills in simulated environments.
This demographic shift makes knowledge capture systems a necessity for the next decade. Companies that invest in modern technology also appeal to younger workers - 82% of firms labeled as "digital leaders" attract young talent, compared to just 55% of those slower to adopt technology.
The shortage of skilled talent on the owner side of construction isn’t going away anytime soon. With nearly half a million positions still unfilled and 41% of the workforce expected to retire by 2031, the challenge is pressing for organizations handling critical projects. Relying on traditional job postings won’t cut it, especially when 80% of construction firms report project delays.
There are three key approaches to address this issue. First, analytics-based planning eliminates guesswork. For example, data-driven workforce planning has uncovered significant gaps in staffing needs for large-scale projects. Second, internal talent development programs need to go beyond short-term fixes. One engineering and construction firm in Asia tackled this by creating a tailored academy with seven focused training modules for over 45 project managers. Participants credited the program as being "key to supporting the transformation - and genuinely embedding the changes in the company".
Finally, technology adoption is critical. Leveraging advanced tools can increase efficiency, simplify operations, and capture the expertise of retiring professionals. Dara Treseder, Chief Marketing Officer at Autodesk, put it perfectly:
We need to discuss how we're augmenting human ingenuity by leveraging AI and automating repetitive tasks so our talented people can focus on what matters most.
By combining precise workforce planning, focused recruitment efforts, such as recruiting construction project managers with specialized skills, and smart use of technology, companies can tackle these talent shortages head-on. This also means expanding recruitment to include underrepresented groups, such as women, who currently make up only 30% of the workforce. For organizations ready to adapt, strategies like these can be the difference between success and setbacks in their next project.
For more information on related strategies, check out this guide on construction project delivery. The real challenge isn’t deciding whether to act - it’s how fast you can implement these changes before your next project kicks off.
"Owner-side" construction work involves responsibilities handled directly by the project owner or their team. This includes planning, overseeing design, procurement, and managing construction activities. Unlike contractors or subcontractors, the owner's role centers on ensuring smooth project execution, coordinating with stakeholders, and aligning the project with broader strategic objectives.
For large or complex projects, this often means bringing in specialized experts to tackle the unique challenges of critical infrastructure. Their goal? To ensure everything runs efficiently while meeting high-level goals and expectations.
To tackle labor shortages and keep essential projects on track, owners can focus on speeding up talent development through several key strategies. Strategic workforce planning and analytics-based forecasting allow businesses to anticipate and prepare for future talent needs. Meanwhile, proactive engagement with talent pools ensures a steady stream of potential candidates.
Investing in targeted training programs and building internal pipelines can help workers acquire necessary skills more quickly. Additionally, adopting labor-saving technologies can enhance productivity, reducing the overall demand for manual labor. By blending these methods, businesses can effectively navigate workforce challenges and maintain project momentum.
AI-powered workflows and digital platforms are transforming how mission-critical construction projects are managed, significantly reducing the need for on-site staff. Tools that support connected workflows handle repetitive tasks, process real-time data, and offer predictive insights, all of which help streamline operations and cut back on staffing. Meanwhile, construction management software allows for remote project oversight, team collaboration, and efficient resource planning. This combination makes it possible to oversee complex builds - like data centers or advanced manufacturing facilities - while relying on a smaller, more focused team.
