In today’s competitive labor market, construction firms face two challenges: finding enough people to satisfy demand, and finding those with the right skills for future success.
Competition for talent across the skilled trades is reflected in recent wage trends. In June 2026, ADP Research’s Today at Work 2026, Issue 2 revealed that construction job-changers saw year-over-year pay growth increase by 12.9%. Median gross pay for construction job-changers topped $59,100, compared with $43,200 for job-changers overall.
For contractors, those numbers point to an expensive reality. Experienced workers have options, and competing for the best talent can quickly drive up labor costs for employers.
At the same time, the skills employers need are evolving rapidly. Artificial intelligence, increasingly complex projects and rising customer expectations are reshaping how work gets done, creating demand for employees and a workforce that can adapt, learn new technologies and take on greater responsibility.
With all of these factors at play, one of the most practical ways to address the competition for skilled labor is by upskilling those who are already on the payroll.
Closing the Talent Gap
Construction hiring has outpaced overall private-sector job growth for more than a decade, but the industry has struggled to add enough workers to meet demand. An aging workforce and too few new entrants have made the problem even harder.
There are encouraging signs. New hires represented 3.6% of construction employment between 2019 and 2025, according to Today at Work. So far this year, that share has risen to 4.6%. ADP research also found that the construction workforce is getting younger. Since January 2020, the median age of electricians, plumbers, carpenters and HVAC professionals has fallen by as much as five years, compared with a one-year decline for U.S. workers overall.
But bringing more people into the industry won’t solve the skills gap overnight. It takes time to develop an apprentice into a skilled craft worker, a craft worker into a crew leader and a crew leader into a superintendent. Contractors can start by leveraging the talent they already have.
Plan for Tomorrow’s Skills Today
To prepare for the future of work, contractors should build their training programs around a future vision for the organization, rather than immediate needs. Consider the types of work the company expects to pursue over the next several years, and identify the skills needed to win and the training needed to deliver it. For example, a contractor expanding into data centers or advanced manufacturing may need certain skills that aren’t existing priorities for its current business.
Next, conduct an assessment of the existing workforce to better understand where talent gaps lie and where certain skills are concentrated. Rather than a response to spontaneous vacancies, this helps to turn workforce development into part of an organization’s overarching business strategy.
Once those gaps are identified, give employees a way to close them. Apprenticeships, certifications, licensing support, technical training and leadership development can prepare employees for opportunities that strengthen their careers and empower the long-term growth of the organization.
While upskilling can come through formal training, contractors can also create pathways for mentorship opportunities, manufacturer programs, job rotations, shadowing and stretch assignments. Learning management systems can also help companies organize and track training across multiple jobsites.
Most importantly, employees need to see where the training can take them. According to ADP’s research, workers who felt confident that their education prepared them for their current role were nine times more likely to agree they had the skills needed to advance in their careers. Upskilling is more valuable when workers understand how those skills can translate to tangible benefits.
Growth as a Retention Strategy
A worker shouldn’t have to leave a company to get the next opportunity. Contractors can map out paths from apprentice to skilled craft worker, crew leader and superintendent, or from field employee to project manager and operations leader. Clear advancement opportunities not only help employees envision a future with the organization, but also reinforce a sense of long-term job security. In fact, Today at Work found that workers who felt safe in their jobs were six times more likely to be engaged at work and twice as likely to say they had no intention of leaving.
These pathways don’t need to be rigid. They simply need to show employees that advancement is possible and outline the skills, experience and training required to grow. Clear career paths also give managers a framework for identifying employees who are ready for greater responsibility and for supporting their development over time.
Knowledge Transfer
As experienced workers approach retirement, contractors risk losing more than labor. They can lose years of institutional knowledge about customers, equipment, processes and solving problems in the field. Organizations can start by identifying critical knowledge held by only one or two individuals and develop plans for broader distribution. If the employee responsible for operating specialized equipment or managing a key customer relationship was to leave unexpectedly, would the business be able to operate at the same level?
Employers in the skilled trades also have a unique ability to capitalize on the benefits of a multigenerational workforce. By pairing experienced employees with newer workers who are ready to learn, organizations can transfer valuable knowledge while providing opportunities for mentorship, especially regarding technological skills. This kind of cross-training also gives contractors more flexibility when someone is absent or leaves and reduces the risk of a single employee becoming a point of failure.
Digital Transformation
According to Issue 1 of Today at Work, only 29% of workers in construction and related trades are using AI weekly, and just 20% are using it daily. However, as adoption increases, contractors should note that simply investing in new technology from a business perspective doesn’t automatically lead to productivity gains. Employees need the skills and confidence to use the tools effectively.
Whether a contractor is adopting project-management software, building information modeling, prefabrication, automation or artificial intelligence tools, training should be part of the investment from the beginning. Organizations can start again by identifying the areas that would benefit most from the technology and pilot training programs with smaller groups before expanding them more broadly across the workforce.
Ultimately, AI and other emerging technologies are not eliminating the need for skilled workers. They’re reshaping the skills required to succeed in an evolving world of work.
Use the Front Line
Training programs work better when frontline managers are involved. Supervisors should know what skills employees are developing and look for opportunities to put those skills to work through stretch assignments and other activities.
Business leaders should also look to make career development goal-setting a regular part of performance conversations. During these reviews, managers can recommend training, provide feedback and give employees assignments that help them prepare for their next role. That turns training from a box to check into preparation for the future.
Build on Basics
Building talent internally doesn’t mean ignoring compensation. Contractors should regularly benchmark pay, particularly when competing for hard-to-find skills or entering new markets. The latest Today at Work report shows a 12.9% pay increase for construction job-changers, indicating just how quickly employees can gain grow their salaries by moving to another employer.
But pay is only part of the equation. Healthcare, retirement benefits and 401(k) support, paid time off, training and advancement opportunities all impact employee retention. Good management matters, too. Having regular conversations, providing recognition and establishing clear expectations can help contractors identify problems before they become reasons to leave.
Contractors that consistently invest in developing their people will be better positioned to meet changing customer demands, adopt new technologies and take on more complex work. In an industry defined by skilled labor, the strongest competitive advantage is having a workforce that’s committed to a career of continuous learning and preparing for what’s next.
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