October 11, 2021

Construction Worker Shortages Persist Post Pandemic

As the economy barrels into recovery many Georgia businesses are welcoming the change with open arms. The increased demand for products and services means many will soon return to pre-pandemic profitability. Despite the optimism, the reality is the aftereffects of COVID-19 are creating new challenges for many, including Atlanta construction companies and contractors. The confluence of supply chain issues, increasing material costs, and project delays have made recovery a challenging endeavor. Matters are further complicated by the news that worker shortages are once again a growing concern. According to the Associated General Contractors (AGC) 2021 Workforce Survey, 96% of companies with open positions are having a difficult time filling vacancies for both salaried and craft positions. This has forced companies to increase training, expand professional development programs and launch new recruiting efforts. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key survey findings below.

About the Survey

The survey was conducted online between July and August 2021 and includes responses from 65 companies in Atlanta and across Georgia. The primary market sectors include building, utility infrastructure, federal and heavy, and highway and transportation construction. Revenue sizes varied with 45% reporting $10.1M – $50M in annual revenue, 32% $10M or less, and 23% $50.1M to $500M. Finally, respondents included a mix of both open shop and union contractors.  

• Hiring Challenges – The survey wanted to better understand the reasons why contractors are having such a difficult time hiring new workers. It was found that 78% indicated available candidates are not qualified, 58% unemployment insurance benefits are keeping workers away, 20% of potential employees cannot find reliable transportation, 12% require flexible work schedules and 7% are concerned about exposure to COVID-19. The primary hiring challenge appears to be the general lack of skills needed to fill open positions.
• Unfilled Hourly Positions – Given the difficulty in hiring, the survey wanted to understand which skilled positions are posing the greatest challenge to contractors. It was found that 100% of respondents are facing difficulties hiring plumbers, sheet metal workers, pipe layers, and traffic control personnel, 95% carpenters, 92% truck drivers, 86% ironworkers, 87%concrete workers, 83% mechanics, 80% cement masons, and 67% millwrights.
• Unfilled Salary Positions – There was also interest in understanding which of the salaried positions are posing the greatest hiring challenges. It was found that 89% of respondents are having difficulty hiring lean construction personnel, 86% BIM personnel, 80% project managers/supervisors, 73% estimating professionals, 64% quality control, 56% IT professionals, and 50% engineers.
• Hiring/Training Changes – The lack of a qualified workforce has compelled many to make changes to both the hiring and training processes. It was found that 32% of respondents are increasing spending on training/development, 27% have lowered hiring standards (education, arrest records, etc.) 27% increased the use of remote learning programs, 26% offered more overtime and 11% enhanced training with augmented and virtual training devices. It is interesting to note, no respondent has decreased or eliminated training program investments.
• Compensation Changes – To address the shortage many companies have also enhanced compensation for both hourly craft and salaried positions. It was found that 81% of respondents increased base pay rates, 25% offered incentives and bonuses, and 20% increased the employer portion of benefit contributions. In sharp contrast, only 2% of respondents had reduced base pay rates.
• New Hiring Approach – It is clear industry companies will need to explore other options to address worker shortage issues. It was found that 49% engaged with career-building programs, 41% leverage subcontractors, 32% unemployment agencies, 32% staffing agencies, 25% worker search firms, and 2% applied for employment-based visas.

Contact Us

As the hiring challenges continue, Atlanta construction companies will need to think “outside the box” to find new ways to attract qualified candidates. This will become increasingly important as supply chain issues resolve and project delays subside. If you have questions about the information outlined above or need assistance with a construction accounting or tax issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.