The construction industry is facing a significant challenge that cannot be ignored. By 2031, 41% of the construction workforce is projected to retire, according to the National Center for Construction Education & Research. That’s less than six years away.

This isn’t just a future problem. It’s happening now. Month after month, we’re seeing nearly 400,000 unfilled job openings in construction. Meanwhile, demand for skilled labor is surging, driven by a wave of projects like manufacturing plants, data centers, and infrastructure upgrades.

The simple truth is that the current hiring landscape is already cutthroat, and workforce erosion will only intensify the strain. Burnout is increasing, and the next generation isn’t entering the industry at a pace that matches the need.

Why is the Workforce Shrinking?

Several factors are contributing to this workforce challenge:

• Retirement Surge: A significant portion of the workforce is nearing retirement, and their expertise is leaving with them. By 2030, the average age of craft workers is expected to climb to 46.
• Lack of New Talent: Younger generations are not entering the trades at a rate that meets demand, leaving a critical gap.
• Evolving Skills: Technologies like AI, automation, and digital project management are reshaping the industry. According to Deloitte’s 2025 Construction Outlook, 44% of infrastructure skills will evolve within five years.

The result? The industry is experiencing both a lack of available workers and a gap in the specialized skills needed to keep up with modern demand.

What Can You Do to Prepare?

The shift in the workforce presents both a challenge and an opportunity for leaders in the construction sector. By taking immediate steps to adapt, forward-thinking companies can place themselves at the forefront of the industry’s future.

1. Rethink Hiring Practices

It’s time to expand your view of the “ideal candidate.” While experience is valuable, investing in training and skill development for less-experienced workers can help you build your workforce from within. Consider partnering with trade schools, launching apprenticeship programs, and connecting with younger audiences earlier in their career journeys.

2. Leverage Technology for Efficiency

Investing in AI and automation offers the dual benefits of increasing productivity and alleviating labor constraints. Prefabrication and modular construction techniques, for instance, can reduce inefficiencies and require fewer workers to complete large-scale projects. Companies adopting these technologies now will not only meet demand but also gain a competitive edge in the years to come.

3. Foster Industry Partnerships

Building stronger relationships with educational institutions, trade schools, and community organizations can create pathways for new talent to enter the construction field. Programs that highlight the benefits of a career in construction—such as showcasing earning potential, job stability, and growth opportunities—are key to attracting younger workers.

4. Upskill Your Team

With digital tools and automation rapidly becoming a part of construction workflows, upskilling your current team is essential. Whether it’s training in cutting-edge design software or managing tools enabled by AI, empowering your workforce with these new skills will future-proof your business.

5. Build a Sustainable Workforce Strategy

Retention is just as important as recruitment. Focus on creating a workplace culture that prioritizes employee satisfaction and well-being. Offering competitive benefits, clear career paths, and work-life balance is essential for retaining top talent.

The Time to Act Is Now

Despite the dark predictions for the economy, construction isn’t slowing down—but the ways we build must evolve. Industry leaders who recognize this workforce challenge and invest in solutions today will play a pivotal role in shaping the future of construction.

The companies that promote innovation, prioritize workforce development, and act decisively will not only overcome these challenges but thrive in a transforming landscape.