As the cold weather dissipates and hazardous conditions dissipate in most of the country, your projects are likely ramping up. The construction industry as a whole is on the rebound, with spending estimated at a seasonally adjusted annual rate of $2,091.5 billion in February 2024. New housing projects are increasing, and the market is set to be in full swing moving out of the off-season.
Although numerous construction projects are underway, construction staffing remains a challenge for many companies. In the current climate, you may find yourself scrambling to find staff as your project workload increases during the busiest time of the year. With some preparation, though, you can tackle the challenges and keep all of your work on schedule.
Factors Impacting the Upcoming Construction Season
Your company may work on new residential construction projects, commercial buildings, infrastructure, or a myriad of other projects. Regardless of your primary sector, your business is likely subject to the following trends impacting the industry as a whole.
Changing Climate
The climate is changing, and areas all over the country are seeing more extreme weather events, including tornadoes, hurricanes, heavy winds, wildfires, and more. Each of these events can impact construction projects.
Your team may not be able to work on a project when there is flooding in the area, or a whole jobsite could be wiped out by a flood, tornado, or wildfire. On the flip side, your construction company may be asked to assist in repairing structures that are damaged by natural disasters such as hurricanes.
According to Newsweek, weather forecasters predict a “hyperactive tropical storm season” in 2024. Colorado State University and Tropical Storm Risk are predicting 11 Atlantic hurricanes in the upcoming season.
With average temperatures increasing and more areas experiencing extreme heat in the summer, construction crews are having to change their work hours to keep employees out of danger. The climate is impacting the industry in other ways as well. As weather becomes more unpredictable, construction teams are using materials that are lighter and more durable. Projects are also increasingly requiring green building materials, which are often more expensive/challenging to source.
Some of these projects also require different skills. You may find yourself looking for technicians who can correctly install solar panels to generate the most electricity from the sun. Or you might find yourself working on wind turbines and other alternative energy projects more frequently.
When you have to spend more time finding materials or to training your team, you may find yourself looking to optimize the rest of your budget in various ways.
Uncertain Economic Times
Although the construction industry seems poised to have a good year in 2024, looming economic concerns remain. According to the Congressional Budget Office, “economic growth is projected to slow in 2024 amid increased unemployment and lower inflation.” Additionally, multiple banks have folded in recent years, which is further driving economic fears.
Your company is probably dealing with inflation and rising costs, and while the construction industry itself may not be cutting projects, even if the economy stabilizes, your business could be impacted by slower economic growth. Clients may still attempt to negotiate prices down.
Increasing Government Investments in Construction Projects
Not all factors impacting the upcoming construction season are grim. As governments at all levels look to replace their aging infrastructure, they’re investing heavily in construction.
The Bipartisan Infrastructure Law has boosted commercial construction projects across the country, offering $110 billion to repair roads, bridges, and highways. In total, this bill offers $550 billion through 2026, also funding mass transit projects, water infrastructure, and broadband connectivity.
According to American Road & Transportation Builders Association, “State DOTs plan to increase highway and bridge capital spending by 13%” in 2024. Some have even increased their spending by more than $500 million. If your company works with government contracts, you might find yourself with a surplus of work in the upcoming years without the construction staff to tackle it.
Materials Pricing & Supply
In 2024, the price and supply of materials will remain an issue for construction companies. Since the pandemic, supply chain management hasn’t been the same and many delays have occurred, disrupting the flow of materials. Unfortunately, supply chain headaches aren’t over and will continue four years after the start of the COVID-19 pandemic.
Construction input costs are up 38.7% compared to February 2020, according to the Associated Builders and Contractors. Additionally, “the price of unprocessed energy materials, natural gas, and iron and steel have risen more than 50%”. These rising costs and supply chain disruptions require adaptation of your strategy.
Now, you are aware of the top challenges in staffing for construction season 2024 and can make informed decisions. Adjusting your staffing strategy can make all the difference for construction season.
Ace This Construction Season With Tradesmen International
You might think construction staffing challenges will impede your ability to work quickly and efficiently this year. This is why you should turn to Tradesmen International. Our construction staffing experts are experienced in the industry and know what to look for to help staff your team.
Tradesmen International has a network of pre-vetted skilled workers who are ready to work. Each member of our team is a permanent Tradesmen employee who has passed our rigorous screening process, offering you the same quality and experience you would expect from your own full-time team.
Whether you’re looking for someone to fill a gap for a specific construction project or you need skilled craftspeople for the whole construction season, we have the workers to meet your needs. All our craftspeople come to your job ready to work and complete projects on time.
Contact us today and find out how we can help you manage your construction season workload.