Addressing it the AJ way - how can we do our bit to tackle the Skills Shortage in the U.S. Construction Industry.

Jason Bowler - Group CEO - Andersen James

As the CEO of AJ, with a dedicated team who specialize in U.S. construction and infrastructure, I’ve seen the current skills shortages up close. This issue boils down to two main factors: soaring demand for construction services and a dwindling interest in skilled trades among younger generations.

💡 The Demand Surge

The U.S. construction market is on fire, with Texas leading the way at a staggering $362 billion in commercial construction spending. This boom offers immense opportunities, but it also reveals a critical shortfall: we simply don’t have enough skilled workers to meet the rising demand.

💡 The Talent Exodus 💡

At the same time, our workforce is shrinking. Experienced workers are retiring, and attracting younger talent is a struggle. As of February 2023, job openings in construction soared by 129,000, yet hiring stagnated. With 25% of the workforce over 55, the skills gap is poised to widen further.

💡 Immediate Strategies for Success 💡

Addressing this skills gap demands collective action from all industry players. At AJ, we’re uniquely positioned to inspire change. Here’s some of our greatest recommendations for clients new and old to attract and retain top talent:

💡 Create Clear Career Pathways 💡

Attracting new talent is essential, but equally important is retaining and developing existing workers. With entry-level laborers making up 40% of new hires, establishing transparent career pathways ensures both newcomers and mid-career employees contribute to a robust skilled workforce. As part of defining career pathways, ensure that you pledge your support to:

Encourage Ongoing Education - investing in employee growth through training and education fosters retention and equips workers for advancement.
Enhance Employee Engagement - cultivating a culture where employees feel valued is crucial. Regular feedback and recognition can motivate them to invest in their roles.

💡 Embrace Technology 💡

To effectively close the skills gap, construction companies must adopt cutting-edge technologies. Leveraging innovative tools enhances efficiency and mitigates the impact of unfilled positions. This commitment to modernization can also attract the 23% of young people who currently view the industry as outdated. Beyond simply attracting younger audiences, we find that that using latest advancements in technology and AI is a fantastic step in fostering a more diverse workforce:

Bias-Free Job Descriptions: AI tools can analyze job postings for biased language, helping create inclusive descriptions that attract a wider range of candidates.
Diverse Sourcing Channels: AI-driven platforms can identify and reach diverse talent pools, including underrepresented groups, by leveraging data on various recruitment channels.
Blind Resume Screening: The beauty of AI systems are that they anonymize resumes during the screening process, focusing on skills and experience rather than demographic information.
Leveraging Social Media: By utilizing platforms to showcase projects and highlight career opportunities you can truly convey the best of your organization and above all, your Employer Brand.