The construction industry continues to problem-solve for recurring workforce and materials challenges, intimately focusing on how projects are planned and safely executed. Though studies show increasing interest and growing pipelines in the trades, the industry still faces an aging workforce and a projected shortage of nearly half a million workers in 2025. Companies must consider strategies for improving efficiency on the jobsite.

Largely, answers lie in solutions that have been around for years: materials management, modularization and technology. But today’s challenges demand a smarter, more integrated approach — a renewed perspective — that bridges engineering, procurement and construction to reduce inefficiencies and improve outcomes.

The Rise of Apprenticeships

There’s good news on the supply side. Recent reports from industry groups, including the Associated General Contractors (AGC), highlight the trend of more individuals entering apprenticeship programs than ever before. This momentum suggests that early recruitment efforts, such as K-12 STEM initiatives and trade partnerships, are making an impact.

While this growing interest is encouraging, translating it into reliable and consistent on-site strategies requires another look from a holistic industry perspective. Delivering projects efficiently and minimizing delays depends on how teams approach this critical upfront step — an approach that varies widely across construction teams, projects and execution.

Preplanning for Workforce Efficiency: The Role of Materials Management

One unsung hero of labor and cost efficiency is materials management. Traditionally, construction management has focused on workforce allocation, but since materials drive construction, a shift toward a materials-first mentality is essential.

Materials management connects the dots between project schedules, supplier lead times, logistics and site conditions. It bridges engineering, procurement and construction to streamline material flow, eliminating bottlenecks that can stall work. Yet, despite its significance, a comprehensive study of materials management has not been updated since the 1980s. At that time, research from the Construction Industry Institute (CII) indicated that inefficient materials management led to workers spending 1 out of every 5 working days waiting on materials. Even decades-old data revealed the impact:

With today’s significant craft labor shortage percentage, a fully integrated materials management system could reduce the number of additional craft workers needed by 10%-12%, an estimate CII considers conservative.

• Instead of requiring an estimated 500,000 extra craft workers to meet current demand, the number could be reduced to roughly 450,000, potentially alleviating the shortage by 50,000 to 60,000 workers needed on-site.
• Missed changes to material deliveries often go unnoticed for weeks, disrupting project timelines and further straining labor resources.

Incorporating real-time tracking and digitized materials management enables proactive responses to supply chain issues, allowing teams to adjust schedules before delays ripple through a project.

Modularization and Prefabrication

Prefabrication can be applied to much more than large steel and pipe components. It is bleeding into less obvious areas, but areas that can create much labor efficiency on the project site. Prefabrication applies to process equipment skids, handrails, staircases and helical pile foundations, significantly enhancing labor efficiency. Once established, the novel idea of the prefabrication of concrete reinforcement also could enhance the game by optimizing labor efficiency on-site. Prefabrication provokes strategic thought early in a project, focusing on how to translate key milestone targets into the optimal use of craft hours.

The Role of Robotics and Smart Technology

The future of construction isn’t just about who is working — it’s also about how the work gets done. Robotics and automation are powerful tools to offset material-related inefficiencies and labor demands, significantly improving precision. Integrating technology will likely attract more individuals to pursue careers in the trades, offering new and diverse career prospects compared to traditional perceptions.

Take robotic welding systems. At AZCO, a robotic welder is streamlining fabrication work, handling repetitive tasks such as solar pile caps. Cobots, as this tech is called, support welders by completing more repetitive tasks, allowing on-site personnel to focus on other critical project details. Additionally, automated rebar-tying machines prevent bottlenecks caused by slow manual tying, while prefabricated electrical systems simplify installation and reduce the need for excess material storage on-site.

By integrating real-time material tracking, digital procurement and smart automation, construction teams can adjust schedules and workforce needs based on material availability, instead of reacting to shortages after they occur.

The Future: Smarter, Safer and More Efficient

Data from multiple economic and industry organizations underscores the need for these renewed strategic approaches. AGC reports that 88% of construction firms are still struggling to find qualified workers, further emphasizing the need for efficiency-focused solutions.

Construction efficiency comes in working smarter, on- and off-site. By embracing materials-driven project planning, leveraging modularization and prefabrication, and integrating real-time supply chain insights, companies can increase productivity, minimize disruptions and build a more resilient industry.