How Technology Helps Builders Overcome Labor Shortages

The construction industry is facing a major challenge: a shortage of skilled labor. While construction employment is rising, it’s not enough to meet the high demand for projects. With nearly 450,000 open positions in construction, workers are in short supply. By 2025, the labor shortage is expected to reach about 439,000 workers. Adding to the problem, many workers are nearing retirement, and fewer young people are entering the field due to changes in education policies.

As a result, builders are finding it harder to meet deadlines and control costs. Many are turning down projects, and bidding for new work has become more cautious. Workers are being stretched thin, and construction costs are rising to compensate for the lack of skilled labor. This labor gap isn’t expected to ease anytime soon—without action, these trends will continue to push up timelines and project budgets.

Leveraging Technology to Boost Productivity

To cope with these challenges, many builders are turning to technology to make their teams more efficient. Technology isn’t a replacement for workers, but it can make existing teams more productive. By adopting the latest tools, construction firms can get more done with fewer people. Here’s how:

1. AI-Powered Scheduling and Resource Planning

AI and automation are starting to play a crucial role in streamlining construction schedules. With AI-driven software, builders can forecast labor demand and schedule tasks more efficiently. These tools help reduce idle time and avoid costly scheduling mistakes.

Example: By using intelligent scheduling platforms, teams can automatically assign the right workers to the right tasks, ensuring smoother operations and faster project completion.

2. Cloud-Based Project Management

Modern project management tools, often hosted in the cloud, are transforming communication on construction sites. These tools store all documents, drawings, and plans in one place, allowing teams to access up-to-date information on their phones or tablets. This eliminates delays caused by outdated plans or paper-based processes.

Example: Cloud platforms help field crews access the latest blueprints, permits, and change orders on the go, ensuring that everyone is working from the same information and reducing errors.

3. Mobile and On-Site Technologies

Mobile technology is also changing how work is done on site. Smartphones and tablets allow workers to submit time cards, fill out reports, and annotate blueprints instantly. This cuts down on delays and miscommunication.

Example: Drones are increasingly used for surveying sites and documenting progress. These tasks would normally take hours but can now be done quickly with drones, freeing up skilled labor for more complex tasks.

4. Wearable Devices and Automation

On-site safety and efficiency are enhanced by wearable devices like connected hard hats and IoT sensors. These tools track worker location, monitor safety, and even help spot errors before they become major issues.

Example: Laser scanners can verify placements and detect errors in real-time, reducing costly rework. Similarly, drones can perform aerial surveys, saving both time and manpower.

5. Modular Construction and Off-Site Prefabrication

Modular construction and offsite prefabrication are gaining popularity because they reduce labor needs on-site. By building components in controlled environments, construction companies can assemble homes faster and with fewer workers.

Example: Builders are using digital design tools to create modular components, which are then assembled on-site. This speeds up construction and reduces the need for complex on-site assemblies.

Key Takeaways for Builders

To stay competitive and manage labor shortages, construction companies should prioritize integrating technology. Here are some actionable strategies to help you get started:

• Leverage AI-driven scheduling: Use software to forecast labor needs and reduce downtime.
• Adopt cloud-based collaboration tools: Centralize plans and documents to improve communication and reduce delays.
• Equip teams with mobile technology: Use smartphones, drones, and sensors to automate routine tasks and improve accuracy on-site.
• Invest in training and apprenticeships: Build digital skills in your workforce with short, focused training courses.

Technology as the Key to Thriving Amid Labor Shortages

Technology isn’t just a convenience—it’s a necessity in the face of persistent labor shortages. But without a strategy, tech adoption can become expensive and disorganized. The Business Plan of Actions (BPA) from Small Business Growth Partners provides a detailed, builder-specific roadmap to boost productivity, optimize systems, and train your team to thrive in a tech-enhanced jobsite environment.

Even more importantly, it’s not just for general contractors. Many of the trades you depend on—framers, electricians, HVAC installers, finish crews—are also struggling with labor inefficiencies. When your subcontractors improve their operations through a BPA, your entire build cycle improves.

Don’t Let Labor Shortages Hold You Back