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Construction Lost as Much as $40B on Poor Productivity in 2022Construction Lost as Much as $40B on Poor Productivity in 2022
About half of contractors see labor inefficiencies worsening, according to a new report, but firms see relief through lean practices.
October 13, 2023
1 Min Read
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Construction Dive
U.S. contractors wasted between $30 billion and $40 billion in 2022 due to labor inefficiencies, and it appears to be getting worse, according to a new survey from FMI Corp.
Nearly half of respondents (45%) said they saw declining labor productivity on their jobsites in the last 12 to 18 months, compared to 23% who claimed improvements. The report describes labor as “the largest, riskiest, yet most controllable variable cost” in construction and said that these problems could worsen in coming months.
The report emphasizes construction’s already thin labor margins, and respondents estimated the industry could have saved $25 billion of the wasted funds with improved management practices.
To read more, click here to go to our sister website, Construction Dive.
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