Marcum's 2023 Northeast Ohio Construction Survey

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Skilled Labor Woes Persist

46% Although the construction industry is not alone in facing a skilled labor problem, it was particularly hard hit by losses during the pandemic and has an overall aging workforce with fewer young people gaining the skills needed to be effective. These trends are clear in the Department of Labor’s Job Openings and Labor Turnover Survey. Marcum provides more insight into this and what it means for the construction industry in our Marcum JOLTS report. For some ideas on tackling the skilled worker shortage without breaking the bank, see the labor sidebar article in this report. Most of the jump in expenses for construction companies is likely attributable to the high cost of skilled labor, but the years-long labor issue affecting construction companies goes deeper than just pay. It is costing companies projects and work. In fact, a combined 74% of respondents noted that either labor shortages or a combination of labor and material shortages led to job delays or cancellations in the past year. Pay continues to climb to help address the issue, with 91% of respondents saying they have boosted pay in the past year, and 75% saying they are focusing on compensation to close the skilled labor gap. Challenges in securing skilled labor was the top threat to construction businesses cited by respondents in both the national and Northeast Ohio survey. The issue is leaving some companies unable to keep up with demand. “Growth opportunities currently exist if we can get enough labor to go after the opportunities,” said one respondent. Another lamented, “There are great opportunities for growth, but skilled labor and financing will hold it back from happening.”

46%

Cited securing skilled labor as their biggest threat in 2023, up 13% from last year.

9%

Ranked labor costs as their biggest threat.

10%

Are considering a joint venture to address labor shortages.