Construction Industry Resources

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The August 2024 McKinsey Report on construction labor productivity really got my attention. Their data shows that “…during U.S. Gulf Coast piping projects, productivity for major process-industry projects fell by 40% or more each time the labor market tightened, forcing owners to extend project timelines by 20 to 25 percent.” In fact, projects across the United States are also experiencing this challenge. The fix may seem daunting, but there are two important points to consider: First, the skilled labor issue is PERSISTENT. “Each time” we see growth in construction spending, we encounter labor shortages, and when things slow down, we tend to forget this ongoing challenge. It’s a recurring problem we can see coming. We should be prepared, not surprised. Second, this results of this issue are PREDICTABLE. We consistently see major productivity declines, extended schedules, and ultimately, budget overruns whenever labor markets tighten. Let’s respond to the need upstream, rather than react to the inevitable pain. The good news is that because this challenge is foreseeable, I believe it’s also preventable by following these three steps: 1) Take time to identify project labor challenges early 2) Implement labor risk metrics & accountability on every project 3) Establish a workforce investment & training culture When industry leaders embrace transformation, we can make a lasting difference. We must do it urgently because the construction market is expected to remain strong for an extended period of time. Productive projects lead to more projects, which help drive a healthy industry and economy.

The Construction Labor Market Analyzer (CLMA) helps you address skilled labor risks by providing forward-looking comprehensive data and insights into the construction labor market. By leveraging this information, particularly during pre-construction, you can make informed decisions about recruitment, compensation, training, and strategic planning...ultimately improving your ability to manage labor shortages and maintain a skilled workforce. If craft labor challenges and uncertainty are impacting you, check us out at www.CIRanalytics.com -- we would like the opportunity to work with you.

Congratulations to Primoris for being named the TX/LA Specialty Contractor of the Year. https://lnkd.in/dH8UNhuJ

Reliable understanding how construction spending and skilled labor challenges impact project success is essential. The challenges of labor – increased cost, schedule delays, poor quality, reduced productivity – are significant, but with good foresight and proper planning, they can be managed or avoided. This is where we come in – by identifying project labor risks early on and providing analytics and solutions to tackle these challenges proactively.

Construction projects continue to face serious threats due to craft shortages and a decline in new workers entering the industry. While the overall U.S. construction market remains strong and is expected to continue growing, the highly skilled workforce is dwindling rapidly, with over 30% of workers expected to retire by 2030. These challenges hinder economic growth, threaten future project opportunities, and pose significant financial risks to current projects – increased costs, schedule delays, poor quality, and reduced productivity.   We can help. We provide data and solutions to address these challenges during early planning stages, helping mitigate potential issues before they arise. Learn more at www.CIRanalytics.com

Many thanks to all our clients and friends. Wishing you joy and peace during this season.

Owners and Contractors -- During pre-construction planning, are you aware and planning for skilled labor threats and cost escalation challenges? Our skilled labor market analysis for 2 fast-growing Gulf Coast states (TX & LA) and key industrial regions can help you budget, schedule, and identify risks for your projects. The reports forecast labor supply/demand and cost growth through 2028 and examine key labor issues for the industrial construction market. With fierce competition for limited supply, understanding the regional labor market is essential to avoid surprises during planning and execution. Contact me at dgroves@ciranalytics.com for information on these reasonably priced reports. #skilledlabor #construction #projectplanning #riskmanagement #preconstruction