The Shortage Gets Shorter: Industry to Lose 1.2 Million Workers This Year
An estimated 1.2 million construction workers will leave their jobs to work in other industries in 2022—a drain that is expected to be offset by an anticipated 1.3 million workers who will leave other industries to work in construction, according to a new analysis of the workforce shortage from Associated Builders and Contractors. In addition, the construction industry will need to attract nearly 650,000 additional workers on top of the normal pace of hiring in 2022 to meet labor demands.
ABC’s proprietary model uses the historical relationship between inflation-adjusted construction spending growth, sourced from the U.S. Census Bureau’s “Value of Construction Put in Place” survey, and payroll construction employment, sourced from the U.S. Bureau of Labor Statistics, to convert anticipated increases in construction outlays into demand for construction labor at a rate of approximately 3,900 new jobs per billion dollars of additional construction spending. This increased demand is added to the current level of above-average job openings. Projected industry retirements, shifts to other industries and other forms of anticipated separation are also factored into the model.
“The workforce shortage is the most acute challenge facing the construction industry despite sluggish spending growth,” says ABC Chief Economist Anirban Basu. “With many industries outside of construction also competing for increasingly scarce labor, the industry must take drastic steps to ensure future workforce demands are met.”
This trend will continue into 2023, when the industry will need to bring in nearly 590,000 new workers on top of normal hiring to meet industry demand, —presuming that construction spending growth slows over the next year.
Visit abc.org for more on the workforce shortage model methodology and other findings.
Ransomware Attacks Double the Trouble
Ransomware attacks almost doubled in 2021, rising 92.7% year-over-year, according to NCC Group’s 2021 Annual Threat Monitor. The most-targeted regions were North America (53% of attacks) and Europe (30%). The most-targeted sectors were industrial (19.35%), public (19.35%) and consumer cyclicals (16.13%).
There has been a gradual rise in ransomware attacks since the COVID-19 pandemic began in 2020, with ransomware accounting for 65.38% of all incidents recorded by NCC Group in 2021.
The most prevalent threat actor noted in the report was Conti, a Russia-based group that emerged in 2017. Conti represented 18% of all attacks across the past two years; the industrial sector was its main target. Another notable threat is Lockbit, with 16.4% of cases.
Skilled Trades Pay Off
Skilled craft professionals are earning higher and higher salaries, according to NCCER’s 2022 Construction Craft Salary Survey. Among the 135 companies, 41 construction positions and 337,000 employees reviewed in the survey, annual salaries averaged from $49,920 to $98,965. Project supervisors and managers topped the list, earning from $90,200 to $98,900.
Positions earning more than $65,000 include HVAC technician, electrician, pipefitter, rigger, site safety technician, mobile crane operator and plumber. The positions with the most significant pay increases are powerline worker (up 25%) and plumber (up 23%).
NCCER notes that many craft professionals receive additional incentives, so take-home pay is typically greater than what’s reflected in the survey, which doesn’t include overtime, per diem, bonuses, etc.
Visit nccer.org/research for complete survey results.
White House Does Spring Carbon Cleaning
The White House has launched several initiatives to support lower-carbon materials in manufacturing. First, it has created the Buy Clean Task Force, which will utilize the purchasing power of the federal government to promote lower-carbon construction materials, with the General Services Administration and the Department of Transportation expected to commit to similar initiatives. In addition, the Biden administration will be rewarding American manufacturers of clean steel and aluminum.
Finally, President Joe Biden is pushing for the passage of the America COMPETES Act, which is intended to strengthen supply chains, lower pricing, create manufacturing jobs and decarbonize the industrial sector.
No Shortage of Challenges for Construction
The top threats for construction companies worldwide are business interruption (43%), natural catastrophe (42%) and fire or explosion (24%), according to the latest Allianz Risk Barometer. The Allianz Risk Barometer 2022 covers 2,650 experts in 89 countries and territories; 160 respondents were from construction.
Cyber incidents (23% of responses) and shortage of skilled labor (21% of responses) also rated highly among concerns.
Access the full report at https://tinyurl.com/2ssh56yx.
