The Self-perform solution to construction labor shortage
Q4
2023
the look ahead
Market
Overview
The final quarter of 2023 saw the U.S. construction sector grapple with the effects of higher interest rates and an uneven economy. Overall starts for nonresidential construction took a 13% tumble compared to the previous quarter. This slowdown is expected to persist at least until the Federal Reserve cuts rates, tentatively forecast for mid-year. With more accessible funding in the latter half of 2024, demand should pick up, leading to modest growth of between 1%-3% for the year. While material prices seem to be stabilizing, certain areas like concrete remain volatile. Labor shortages remain a persistent challenge. Overall, we don’t necessarily see the makings of a recession ahead, but it is anticipated that stagnant growth in the economy at large will limit growth for most construction verticals in 2024.
We examine an aging labor force, construction labor force development efforts and field innovations in this issue’s Current Events.
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Self-Perform Spotlight
In this spotlight, Chris Cole, National Self-Perform Director, discusses the ongoing construction labor force shortage and how self-perform can be a solution to this ongoing issue while simultaneously diversifying the talent pipeline for a career in the industry. Last year, JE Dunn completed almost $600 million in self-perform work and close to 90% of our projects utilized some form of self-perform.
“By taking on self-perform work, the general contractor sources, hires, and trains talented and hard-working individuals who want to pursue construction trades as their career.”
Chris Cole
National Director of Self-Perform,
Current Events
Aging Labor Force
The construction industry is staring down a slow-moving obstacle — a workforce that isn’t getting any younger.
Construction Labor Force Development Efforts
With an aging population and an ever-changing technological landscape, attracting and retaining skilled labor is vital for continued growth and development.
Field Innovations
An aging workforce, a tight labor market, and rising demands for safety and productivity are further motivating construction companies to find new areas of innovation.
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