Study Shows Technology Can Ease Construction’s Labor Crisis

As the labor gap continues to widen, builders need to think of different, creative ways to attract new labor and bolster what they already have, according to an April report from consulting firm McKinsey.

The picture that the firm paints is grim. In skilled trades roles such as construction laborers, welders and electricians, the firm said for every successful new hire in the industry, there will be an additional 20 job openings to fill. Illustrating how robust demand for workers is, average wages in manufacturing and construction have increased by more than 20% since the first quarter of 2020.

To rectify these issues, McKinsey says that builders must turn to solutions that include collective action across public, private and social sectors, along with technology. The report’s authors pointed to, for example, an engineering firm on an unnamed high-profile project that secured scarce skilled workers with attractive sign-on bonuses and relocation packages.

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