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General contractors admit that the most challenging issue on a job site today is finding qualified workers. Contractors expect labor shortages to remain difficult until the industry and its partners, especially educators and legislators, can offer workers more access to training opportunities and apprenticeships.

Recruiting and training new workers has proven a challenging feat. According to the Oregon Employment Department, nearly a quarter of construction workers in Oregon are age 55 or over, notably due to the small number of young people choosing careers in construction. Inadequate funding has decimated vocational programs and basic shop classes at schools, and many children are encouraged to attend universities that feed into the white-collar job market.

Today, in the middle of one of the hottest construction markets, the industry faces the largest construction worker shortage in the last 20 years.

Widespread consequences

According to the results of a on the construction worker shortage, an overwhelming majority of construction firms are strapped to find qualified workers to hire. Labor shortages are inspiring companies to change the way they operate to become more efficient and less reliant on labor.

The Portland Bureau of Development Services is on track to issue a record level of permits this year, but it too has been hindered by a shortage of employees, causing serious delays in issuing and tracking permits.

Labor shortages have also led to increased wages and higher overall development costs, which in turn, can impact housing affordability. Higher construction costs and slower schedules could even serve as a brake on broader economic growth.

How do we fix it?

While there are no quick fixes, we believe long-term success will come from focusing on three large-scale initiatives:

• Public/private education partnerships
• Diversity-focused hiring practices
• New technology

The Associated General Contractors of America (AGC) has led the way in raising awareness at the federal level, but on a local level, a partnership between the Associated General Contractors’ Oregon-Columbia chapter and Willamette Education Service District was formed to help bridge the disconnect between industry and education, and increase workers in the skilled trade sectors. This partnership made it possible for educators statewide to spend part of their summer learning about career opportunities in construction and its supporting industries. The goal was to inform teachers, counselors and administrators about post-secondary options in the high-wage and high-demand careers of construction and manufacturing so that they ultimately feel better prepared to talk to their students about career options.

Some local high schools have created new models that provide alternative pathways to success, recognizing that not everyone wants to go to college. Mortenson team members, along with other local contractors, donate time to mentor students at Benson Polytechnic High School. Initiatives like these are aimed at increasing awareness with young students. Mentorships include discussing construction career options in the classroom and giving project tours.

Five Portland high schools – Centennial, Reynolds, Helensview, Roosevelt and Sam Barlow – are currently engaged with All Hands Raised partnerships to build accessible pathways to careers in construction and manufacturing; strengthen career-technical offerings; and improve the handoffs to post-secondary career training programs.

Education is increasing at the collegiate level too. For more than 30 years, the building construction program at Portland Community College has trained men and women to enter the construction industry as skilled specialized professionals. Building Construction Technology (BCT) is the only program of its kind in the Portland area offered by an accredited institution with degree options in three areas of study: hands-on construction skills, construction management and design/build remodeling.

Diversity employment practices must also be considered as unions and construction companies are looking to recruit women, veterans and people of color into the field. Mortenson is leading this charge. In fact, women make up 25.4 percent of our Portland office and 14.49 percent of trade workers in the field. Minority workers make up 14.8 percent of our professional staff and 28.91 percent of craft workers as well. Oregon Tradeswomen Inc. has been working since 1989 to pave the way for more women to enter the construction industry. The nonprofit sees about 100 women graduate from its pre-apprenticeship program every year.

A shortage of skilled workers is also leading many construction firms to change the way they operate to become more efficient and less reliant on labor. Lean construction techniques – like using virtual construction tools, and increasing off-site prefabrication – are on the rise, as is a growing integration of labor-saving equipment, including drones, robots and 3-D printers.

Modular design, which has been widely adopted in Europe, is another increasingly popular technical advancement in U.S. markets due to its speed to market and high quality. This new design approach is a large step toward minimizing the issue of skilled labor shortages and significantly reducing raw material waste.

Mortenson is among several contractors already adopting modular design for their current and planned projects. In Seattle, Mortenson partnered with architecture firm Gensler and structural and MEP firm Arup to build Seattle’s first volumetric modular hotel called citizenM. Currently under construction, the 264-room hotel is expected to open in early 2019. Once complete, the interiors of the modules, which include two rooms and the section of hallway between them, are fully finished down to the furniture in the room. The exterior of the modules are sealed and waterproofed at the manufacturing facility so that once they are shipped on a private vessel, they can be stacked to significantly reduce the impact from weather. The modules are manufactured in a controlled environment in Europe, so delays are reduced and processes are streamlined and perfected by skilled employees.

With a continued focus on building strong partnerships with elected officials, educators, nonprofits, trade groups and students, we can and will ensure our construction workforce is ready and able to build America’s future.

Dan Mehls is the vice president and general manager of Mortenson’s Portland office. Contact him at 971-202-4113.