Challenges Facing the Construction Industry

By Rob Trammell, Tax & Advisory Principal
ASL Construction Group

Labor Shortage

The construction industry, like almost all industries, is facing a shortage of available workers.  Many companies could be doing more work if they were able to find the employees to staff the jobs.  In addition, the workers you currently have are in high demand.  There are many other competitors and companies actively looking to hire.

It is important in times like these to consistently focus on recruiting.  You do not want to be in a bad position if a key (or non-key) employee leaves the company for any reason.  Perhaps consider employee referral bonuses.  Remember to get the word out that you are looking for people.  You never know where that next employee may come from.  Finally, if applicable, consider remote workers.

It is also a good time to review your salary structure.  Are your wages competitive and fair?  Is it time to consider a bonus plan or retention bonuses for key employees?


Studies show, we are currently experiencing the highest inflation since 1982.  This means that everything costs more including materials and supplies.  If you are signing contracts now for material to be purchased later, be sure to consider the potential price increase.  It could be time to review the language in your contracts to ensure that they are keeping up with current market conditions.

The high inflation rate however could also have a silver lining.  Not only are everyday purchases getting more expensive for you, but they are also getting more expensive for consumers.  Thus, potential employees who have been sitting on the sidelines may be forced to go back to work.

Despite the fact employers are experiencing challenges, the good news is that the demand continues to be strong for most.  Please feel free to contact us if you have any particular challenges, as we are here to help.