Building a Better Construction Industry
To many, the construction industry appears to be as healthy as it has been in years. A rejuvenated economy has spurred commercial construction and the growing population needs residential housing. Meanwhile the country’s aging infrastructure requires repair and replacement and funds are becoming available to do so. Factor in the fast growth of construction in the renewable energy sector and the future looks bright for the construction industry.
Despite so many positive indicators, however, the construction industry overall is struggling, and fast economic growth has contributed to the problem.
With the simultaneous expansion of so many sectors of the industry, finding skilled workers to keep up with demand has been challenging. After the recession, the construction industry saw a large workforce decline. Many people went into other lines of work, some retired, and others sought overseas opportunities. Making matters worse, this group may have discouraged younger workers from entering the construction industry. With an abundance of projects but not enough labor, many companies now find themselves in the unfortunate position of having to turn down work.
Rewarding private construction businesses that are proactively working toward improving industry employment, either by creating apprenticeship programs or sponsoring training programs, would incentivize them to think toward the future. Including these forward-thinking businesses in public works infrastructure projects would be a great reward to companies working to solve the construction industry's labor problems while simultaneously working toward improving the country's aging infrastructure.
The economics of the construction industry are encouraging, but without action on the parts of government and/or private industry we could be at risk of losing out on the full potential that exists. Much needs to be done to attract a supply of talented, skilled young people to the industry, and a plan needs to be created to incentivize improvement in the nation's infrastructure. With the right plan, the construction industry and the country could be stronger than ever.
