What role will contech play in attracting and retaining talent in a labor-scarce industry?
Evelyn Long • Your construction colleagues and contractors are likely incorporating more technology to streamline workflows and save money. The labor shortage is the source of many corporate strains, though keeping the best talent is also an immense effort. These problems cause firms to decline work or extend timelines. Experts are turning to construction technology (contech) to mend worker availability gaps and entice you to stay for the long term. What does this look like in the industry’s current state?
The construction labor shortage in 2025
The worker deficit in 2025 has improved but is still insufficient for handling ballooning demands. Analyses report a 1.5 million home shortfall, with countless other commercial structures needing to break ground. At the end of 2024, estimates stated the industry would need to hire 723,000 more employees and contractors for these projects.
Some factors holding companies back have been prevalent for the last several years, though they fluctuate in severity.
Inadequate wages
Around 39% of construction workers’ families are enrolled in public programs to make up for the differences in poor salaries, with many failing to have insurance. The teams you interact with are plagued with long hours in the elements and have little to show for it. This has caused industrywide morale losses and discontent, begging for higher pay.
Pervasive inequality
Fewer people feel encouraged to join construction when it has been disproportionately unfair to minority populations. Women and people of color are underrepresented, and many face harassment and discrimination on the job. These patterns push away those who could flourish in construction environments yet worry about injustice and mistreatment.
Aging workforce
Many of construction’s most loyal workers are nearing retirement age. Around one in five laborers are over 55 years old, meaning the most experienced demographic will exit and lower the knowledge density of the remaining staff. Even more of the workforce is over 45, which gives a small window for talent acquisition teams to find high performers.
This problem combines with the lack of modern interest in higher education. While the collegiate route was popular for a time, diminishing entry rates into trades, the youth of today want to create their own path. The amount of students entering trade schools is increasing, but there is still a large enough gap between interested talent pools to cause harm.
COVID-19 and the great resignation
These cultural events likely happened within your organization as the quit rate has only risen in the construction industry since the thick of the pandemic in mid-2020. The sociopolitical stressors caused people to rethink their careers into safer, more stable industries with better work-life balance. Some left contract work to start individual businesses to find more financial agency, while others left because of health concerns.
What role does contech play in fixing the shortage?
These are the best, actionable ways for your companies or contractors to incentivize talent of all ages to enter and stay in the construction workforce with contech.
Enhanced collaboration tools
Miscommunication between project managers and site workers is a common problem. Overcoming these issues with cloud-based communication platforms allows all stakeholders to be on the same page regarding materials procurement, scheduling changes and contractual obligations.
Real-time communication prevents numerous delays and irritations that could drive talent away. Organizations must provide training sessions about how to use these assets during onboarding and at regular intervals in their career. It promotes a collaborative culture where feedback is welcome and accessible.
Virtual reality (VR) and augmented reality (AR)
These training sessions could happen in VR or AR. Using these technologies to appeal to younger generations of workers will help them visualize hands-on work without putting them in harm’s way before they are fully trained. It provides immersive experiences with no drawbacks of having inexperienced laborers on the site.
The experiences can replicate real scenarios, so workers have accurate expectations for a traditional workday. Establishing these mindsets at the beginning of a career informs people early on how they should contextualize the job offer with the expected reality of their career.
Drones and robotics
Safety is one of the most significant advantages of contech, and making work zones more secure will provide peace of mind to people considering leaving the field and those worrying about entering it.
Construction demands numerous surveys and analyses of the project before, during and after its completion. These are tedious and labor-intensive tasks that could turn away even the most patient workers. Automating it with drones and robots could make things enjoyable and potentially gamify the work for younger applicants. Firms can advertise these methods when displaying at job fairs or schools to highlight how much they cherish innovation.
Data analytics and artificial intelligence (AI)
Contech only exists because of data-collection techniques, and they improve because of AI and machine learning. These analytics make construction workers better at allocating resources, planning tasks and assessing risk. Employees of all ages will appreciate the depth of these numbers, as they provide hard evidence of how productive and worthwhile the industry can be while considering their safety.
Firms must encourage younger talent by offering the opportunity to work with these AI models, learn how to train them and contribute to their insights. This is a growing field, and young professionals could see this as a chance to get hands-on experience in a budding industry.
Sustainability and green building technologies
Competitors have likely instituted corporate social responsibility and sustainability initiatives to appeal to the growing moral concerns of eco-conscious workers. The construction industry has a notable impact on the environment, and everything from a job posting to an annual meeting needs to reflect a care for alleviating negative impacts.
Hosting workshops on how to build greener with sustainable principles can establish this culture. Additionally, using other contech like AI can amplify eco-friendly building strategies so sites save water, know more about soil strength and prevent excessive waste generation.
Flexible work environments
Not all construction professionals appear on-site. Some work remotely in project management, and some are on the field and casually travel depending on what’s needed. A work-life balance and adaptability in scheduling are some of the highest priorities in young workers, and construction must cater to this by highlighting these little-known possibilities.
Contech in construction talent retention
Technology could be the driving force behind keeping you in construction and empowering youth to enter the field. The sector is in desperate need of dedicated learners who embrace the potential of digital implementation. It is the workflow of the future, and companies incorporating contech into talent acquisition and regular operations will see a shift in project loyalty and efficiency. It is the only way to ensure tomorrow’s buildings are built today.
