The construction industry plays a vital role in fueling infrastructure, driving economic growth, and fostering progress within communities across the country. Construction businesses feel this pressure every day as they bring projects to life in an increasingly difficult landscape, often facing new hurdles in addition to rigorous job demands.
Since these challenges aren’t disappearing anytime soon, it’s crucial for contractors to find ways to do more with less.
Technology can serve as a critical tool in overcoming industry hurdles. By adopting technology, businesses can tackle the skilled labor shortage, recruit and retain top talent, bridge the generational technology gaps, and even prepare for future challenges.
This article explores how technology can be leveraged in these key areas, providing actionable insights for construction businesses seeking long-term success.
Addressing the Skilled Labor Shortage
There is a growing gap between the demand for skilled workers and the available workforce. Estimates put the deficit at more than 500,000 laborers, according to Associated Builders and Contractors.1 Meanwhile, projects are becoming more complex — without enough skilled labor, construction businesses face a number of issues, including delays, increased costs, and quality concerns.
Most contractors struggle to fill vacancies. In the 2024 Construction Hiring and Business Outlook, 77% of respondents indicated difficulties filling some or all salaried or hourly craft positions.2 The worker shortage is a long-standing issue in the industry further exacerbated by the pandemic and retirements among aging workers without enough new talent to take their place.3
Contractors can help lessen the effects of the labor shortage by investing in upskilling and training while also utilizing technology to help improve productivity.
Investing in Upskilling & Training
Equipping current employees with advanced skills and training can help construction businesses bridge the gap between available labor and the increasing complexity of projects.
Upskilling employees and offering targeted training programs not only helps workers expand their skill sets, but it can also help enable them to adapt to evolving industry trends and provide new career paths. This can improve overall job satisfaction and employee morale.
“Building high-quality projects starts with high-quality people who are motivated, excited, and eager to grow,” says Thomas Cochran, CFO at New West Building Company. “We put processes in place to help our employees tackle tough challenges and empower them to develop their skills and grow into any role, from trim carpenter to master carpenter to CEO or business owner. Regardless of the path they choose, each employee should be treated fairly and feel valued.”
While some businesses may lack the resources for comprehensive training initiatives, technology can help with training and skill development. In addition to traditional in-person learning, technology can provide teams with accessible and flexible learning options.
This includes online learning platforms and virtual training programs that offer an array of modules from safety certifications to advanced technical skills, enabling workers to learn at their own pace. These online programs also enable businesses to track employee progress, measure competencies, and customize training plans for individual workers.
Technologies such as augmented reality (AR) and virtual reality (VR) offer new possibilities when it comes to practical, hands-on training. AR and VR offer immersive simulations that replicate real-world construction scenarios, such as operating heavy machinery, conducting site inspections, or installing systems in a risk-free environment. This helps teams learn faster and ensures they can handle complex real-world tasks.
Improving Productivity
Technology plays an instrumental role in improving productivity and reducing the burden on workers who must manage heavier workloads. However, it is important for tools to be properly vetted to ensure they’re the best fit. “We’re facing what I’ve heard called ‘Appageddon’,” notes Reid Bangert, COO and Integrator at Bangert, “where the sheer number of apps can overwhelm teams and workflow. So, when evaluating technology for our business, I always ask: ‘will it improve my employees’ and customers’ lives?’ If the answer is yes, I’m ready to explore it further. This focus on user experience is essential for ensuring we remain successful for the next 40 years.“
The right technologies can help streamline workflows, increase automation, and reduce the time spent on repetitive tasks prone to errors such as data entry. Automated scheduling, reporting, and budgeting systems can ease the load of administrative work, enabling employees to focus on higher-value strategic tasks.
Cloud-based project management platforms and mobile apps allow workers to access real-time information, communicate seamlessly, and update project progress anytime and anywhere, eliminating bottlenecks and ensuring that teams base decisions on current data.
Joe Murray, Managing Partner at ACT Construction, notes the importance of having tools in place to improve both the employee and customer experience:
“With 50 to 60 jobs running across the country, we have 50 to 60 superintendents out in the field using our software on a daily basis. I don’t want them having to deal with difficulty in navigating their tablet or phone or multiple apps and complicated systems. I want to make their lives easier and let them focus on the job.
“We’ve been streamlining our solutions, aiming to consolidate multiple apps into just one or two. This approach not only improves their experience but also improves our overall customer service. Customers want things like cameras on the job and photos so they can get real-time updates and visibility into their projects, which our solutions deliver.”
Advanced construction technologies like drones, BIM, and robotics enhance productivity further. Drones enable faster site assessments and more accurate measurements, while BIM provides a digital representation of a project that helps teams quickly identify potential issues before a project starts, reducing errors and rework. Robotics can deliver automation to labor-intensive tasks such as bricklaying or excavation, helping workers complete the tasks more quickly and with greater precision. This increases jobsite efficiency and enables workers to focus on more strategic tasks.
Technology not only helps construction businesses do more with fewer workers, but it can also ease the physical and mental strain on teams. This helps prevent employee burnout and enables them to manage larger projects without compromising quality or safety.
Recruiting & Retaining Top Talent
Another way businesses can remain competitive and minimize the effects of the skilled labor shortage is to prioritize recruiting and retaining top talent. Top employees have many job options, so construction businesses need to create an environment that attracts skilled workers and encourages them to stay.
Being a tech-forward company that leverages the latest technology and fosters innovation and growth can help create a more attractive, efficient, and supportive workplace.
Technology in Recruitment
A tech-forward company culture can be a key differentiator in attracting new talent. Millennials and Gen Z often prioritize innovation and technological advancement when choosing where to work.4
There are industry-wide initiatives aiming to attract new, tech-savvy workers. An example of this is Be Pro Be Proud, a national workforce development initiative designed to reframe the image of skilled trades.5
Julie Strong, Owner and CEO of C1S Group, believes initiatives like this can help show new talent that the construction industry offers opportunities to apply their technical skills. “We need the next generation to come in and help us sharpen our skills and come up with new technologies and innovations that help us work safer and smarter, not harder. Technology is going to be a big lead for getting youth involved in the industry.”
Matt Abeles, Vice President of Construction Technology and Innovation for Associated Builders and Contractors (ABC), adds, “ABC is committed to developing the next generation of construction workers, partnering with over 50 universities and hosting a construction management competition at our annual convention where students can recreate a real project built by ABC members. We’re also using virtual reality to show students a day in the life of every type of trade contractor, so we are exposing them to cutting-edge technology to really show them that construction is innovative.”
Companies that leverage the latest construction technology — such as drones, AR, VR, BIM, AI, and cloud-based solutions — can appeal to early career workers by positioning themselves as leaders in modern practices. Using these tools highlights a company’s forward-thinking approach and demonstrates a commitment to innovation. It also shows dedication to reducing inefficiencies, improving safety, and enhancing the quality of work.
Technology’s Effect on Retention
When it comes to retention, technology can improve the overall employee experience by making jobs easier, safer, and more rewarding. For example, mobile apps and cloud-based platforms enable seamless communication and project management, allowing employees to access real-time information, track tasks, and collaborate more effectively, no matter where they are.
“To retain high-quality clients and employees, you need the best technology,” Cochran adds. “We aim for the best in everything — from accounting software to project management tools, trucks, and equipment. It’s important that our employees feel proud and that our clients see that we’re dialed in. With integrated cloud systems, we always have real-time data to ensure we make the right decisions and keep our business moving forward.”
Having the right technology in place reduces frustration and streamlines day-to-day operations, which can lead to higher job satisfaction. Additionally, using technology like wearables or AI-driven safety systems can help reduce workplace hazards, showing that the company prioritizes employee safety —
a key factor in long-term retention.
Technology also supports continuous learning and career development, which are major motivators for employee retention. The focus on upskilling and training, as mentioned previously, demonstrates that a business prioritizes the development of its employees. This investment in personal growth not only helps workers feel valued but also equips them with the skills needed to stay relevant in an evolving industry.
Employees who feel that their professional development is supported and see a clear career path are more likely to stay loyal to a company, reducing turnover and maintaining a highly skilled workforce.
Bridging the Generational Tech Gap
The generational tech gap in construction refers to the disparity in technological proficiency and adoption of digital tools among workers from different age groups. Varying exposure to technology, differing attitudes toward innovation, and distinct learning styles can create friction between generations.
To remain competitive, construction companies must work to bridge this gap, fostering an environment where all employees can thrive in an increasingly tech-driven workplace.
Bangert also notes that employee attitude is just as important of a consideration. “It’s not always easy to motivate people to accept change and embrace new technology. I’m on the generational agnostic train where I think regardless of generation, people need to get it, want to do it, and have the capacity to do it in order for teams to be successful in adopting new technologies.”
How Technology Can Help Unite Generations
While employees entering the workforce may be more adept at navigating new technologies, more experienced workers often possess a wealth of practical knowledge that remains invaluable to construction businesses. Cultivating an environment that embraces these different skills and strengthens relationships between generations is critical.
“We prioritize building strong relationships, so while we provide the flexibility that employees value, we also ensure they can connect at events and have face-to-face interactions, which is important to break down barriers between colleagues. We also like to pair senior team members with newer ones to share knowledge. This cross-collaboration strengthens our teams and drives success,” shares Cochran.
Technology itself can be a powerful tool in uniting generations. By implementing digital solutions that support collaboration, knowledge sharing, and continuous learning, businesses can help workers of all ages become more comfortable with new technologies and work together more effectively.
For instance, project management platforms and cloud-based communication tools can provide a common workspace where team members of all generations interact seamlessly. These tools also promote transparency and alignment on shared goals, which is key to fostering teamwork and productivity.
Technology can also help create structured mentor and training programs that utilize the strengths of each generation of workers. For example, more experienced workers can share their insights with new workers, while new workers can teach colleagues how to use digital tools in reverse-mentoring programs. Technology can provide platforms to streamline this process, match mentors with mentees, and track progress. Mentor programs can strengthen intergenerational collaboration and ensure that technology adoption becomes a shared effort.
Encouraging Innovation & Knowledge Sharing
Technology can also spark innovation and foster knowledge sharing across generations. Tools like BIM and drones can be used to optimize workflows and provide real-time project insights.
When team members see the tangible benefits of these tools — such as fewer errors, streamlined processes, and better project outcomes — they are more likely to embrace them. Likewise, the experience and problem-solving skills of seasoned workers can complement the tech-driven approach of newer employees, creating a more balanced and innovative work environment.
By using technology to break down generational silos, construction businesses can cultivate a more inclusive company culture where workers across generations feel valued. This not only fosters a stronger sense of collaboration, but also promotes a continuous improvement mindset.
While specific goals may vary, every successful construction business has a shared purpose of delivering high-quality projects safely, on time, and within budget. Reminding teams of their common purpose can help highlight similarities and bring teams together to drive progress.
Preparing for Future Challenges
Having the right technology is essential in construction — this includes technology used on the jobsite as well as in the back office. Murray adds, “A carpenter needs the best tools to get the best outcome. Technology is no different — it’s a tool, and you need to have the best tools available to achieve your business goals.”
However, technology is constantly evolving, as is the industry landscape. This makes it increasingly important for businesses to stay up to date on the latest trends and technological advancements.
Businesses can do this by subscribing to industry publications and newsletters, attending conferences and trade shows, and engaging with industry peers through online forums to better understand their options for adopting new technology.