Rachel Urquhart
A recent report found that a shortage of skilled labour and supply chain disruptions are two of the major business issues impacting specialty contractors, with the skills shortage predicted to worsen.
Released by construction management software provider Procore Technologies, in partnership with Dodge Construction Network, the 2022 Top Business Issues for Specialty Contractors Report aims to analyse recurring trends while encouraging industry to explore digital solutions.
The report found that more than 90 per cent of surveryed subcontractors had experienced the negative effects of a skilled labour shortage on projects. Half or more claimed those effects included project delays or cost impacts, and about 40 per cent flagged worker health and safety issues, quality problems and more rework.
According to Procore Technologies, the current worker shortage is anticipated to worsen; on average, 33 per cent of the current workforce is likely to retire in the next five years.
The researchers claim the answer to these issues lies in technology, jobsite automation and offsite construction. More construction technology investments to improve team productivity were planned by more than one-third of all specialty contractors surveyed, led by mechanical contractors at 48 per cent. A similar percentage across all trades surveyed planned to increase their use of jobsite automation and offsite construction.
Further, the report showed that 20 per cent of workers’ time is currently spent on low-productivity tasks, such as tracking down information or documenting information on paper. Larger companies reported this under-productivity more heavily, at 30 per cent compared to only about 10 per cent of small and medium companies. Companies based in the UK and Australia were the highest reporters of this issue, with US the lowest.
According to the report, an average of 39 percent of respondents state they still primarily use whiteboards, spreadsheets and other traditional processes in lieu of digitisation or trade-specific software.
Dodge Construction Network Senior Director of Industry Insights Research Steve Jones says specialty trade contractors are vitally important to the construction industry.
“Dodge and Procore partnered on this research so these companies can better understand how their peers are performing and what could improve their critical outcomes. We sincerely hope these insights will help them operate more safely, efficiently and profitably.”
The survey was completed by five types of specialty contractors (mechanical, electrical, plumbing, steel and concrete) in four geographic regions (US, Canada, UK and 118 respondents from Australia and New Zealand). Company sizes ranged from $2 million to over $2 billion in annual revenue.
Photo courtesy of Procore.
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