The Associated General Contractors of America recently released its 2020 Workforce Survey results, outlining the latest labor trends within the construction sector. This year’s survey focused primarily on how COVID-19 has impacted the industry—analyzing the effects of the ongoing pandemic as it relates to project demand, workforce stability and job site productivity.
Project Demand
Fallout from the COVID-19 pandemic has created major struggles in the realm of construction project demand. Just over 30% of survey respondents reported that one or more of their projects in progress was halted due to the coronavirus, while 60% confirmed that one or more of their scheduled projects had been postponed or canceled altogether in the midst of the pandemic.
Looking ahead, a notable portion of survey respondents voiced concerns that project demand will remain low in the coming months—with 38% predicting that it will take more than six months to return to their “normal” levels of business.
Workforce Stability
Apart from project demand problems, the survey also found that many organizations are facing labor shortages. Just over 50% of respondents reported having a difficult time filling hourly positions, while 28% reported a struggle to fill salaried positions. Although these percentages are down from last year’s findings, they remain significant.
In an effort to retain employees, some survey respondents reported making changes to their salary and benefits offerings—with 38% increasing base pay rates and 17% providing incentives or bonuses.
Job Site Productivity
A combination of necessary job site changes to protect workers from COVID-19 and labor shortages have contributed to lowered productivity levels. The survey found that 44% of respondents reported taking more time to complete projects, while 32% confirmed that it cost more to finish projects due to industry conditions.
To combat these challenges, many respondents reported making a variety of organizational adjustments to their hiring, training and scheduling procedures. Over half (52%) of large organizations and 33% of mid-sized organizations have increased their usage of educational programs—specifically those with online or video elements. Further, 20% of large organizations and 9% of mid-sized organizations have implemented virtual, augmented or mixed reality systems within their workforce.
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