The construction industry is heading into 2025 with some good news and some challenges. There’s a feeling that things will grow, but there will also be some problems with finding workers. Here’s a simple look at what to expect this year:
Good News:
- Many people in construction are feeling positive because the recent election is over and there seems to be plenty of work coming up.
- There should be more chances to bid on projects, and the industry is expected to grow.
- Some think things are going to \”pick up speed\” from now on.
Challenges with Workers:
- There are still not enough skilled workers in the construction field.
- Many experienced workers are retiring, taking their knowledge with them.
- There’s a big increase in infrastructure projects, which need a lot of workers.
- Construction companies are competing with each other and with other industries for workers.
- Some areas of construction are doing great, like data centers and energy projects, while others, like building apartments and offices, are slower.
- Some regions are having a harder time finding workers because big projects are using up all the local workforce.
Pay and Benefits:
- Because there aren’t enough skilled workers, wages have gone up. Some companies are paying 15-20% more to keep their workers.
- Workers on big, long-term projects might accept lower pay because the jobs are steady.
- Pay raises have slowed down compared to last year.
- Government money for infrastructure should help keep wages stable.
What Companies Can Do:
- Hire smart: If you find a good worker, hire them even if you don’t have a job for them right away.
- Get the word out: Advertise open jobs and talk about why your company is a good place to work.
- Training: Create programs to train people for the construction trades.
- Good benefits: Offer things like paid time off, retirement plans, health insurance, and mental health support.
- Company culture: Make sure your company is a good place to work, with a positive culture.
- Look in new places for workers:
- Consider hiring people with different ways of thinking.
- Recruit women, who are good at communication and problem-solving.
- Give people who were previously in prison a chance to work.
- Train workers: Help workers learn new skills that are in demand.
- Use technology: Make sure job sites are welcoming to all kinds of workers.
- Get more efficient: Find ways to get more work done with the same number of workers to save money on labor.
Other Things to Keep in Mind:
- Politics: New government leaders and policies might cause some changes and uncertainty.
- The new administration will likely focus on traditional projects like roads and bridges, not so much on high-speed rail or electric vehicles.
- Material Costs: The cost of materials is a concern, so companies need to keep up with price changes.
- Some suppliers have already indicated a 16% increase on certain materials.
- These increases may level off by late February or early March.
- It is important to update material quotes regularly.
- Contractors should add a buffer to quotes to account for potential increases.
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