How Smart Contractors Are Solving Workforce Challenges - NCCER

The construction industry is facing an undeniable challenge: Workforce shortages and skill gaps are making it harder for subcontractors and specialty contractors to meet project deadlines, maintain quality and operate efficiently. With increasing project demands and fewer qualified workers available, companies must adopt smarter strategies to maximize productivity without compromising safety or performance.

The reality is that productivity in construction isn’t just about working faster—it’s about working smarter. Contractors who invest in workforce development through structured training, competency-based assessments and industry-recognized credentials are not only closing skill gaps but also building more efficient, capable teams.

The Workforce Challenge: Skill Gaps and Productivity

The labor shortage in construction is well-documented. According to FMI, the industry suffered around $30-$40 billion in lost profits due to labor issues in 2022. However, hiring alone isn’t the solution. Many new hires enter the workforce without the necessary skills, leading to inefficiencies, higher rework rates and increased safety risks.

This gap directly impacts productivity. When workers aren’t properly trained, projects take longer, mistakes increase and jobsite coordination suffers. The result? Delays, cost overruns and frustrated clients. Contractors must shift their focus from simply filling positions to ensuring their workforce is fully equipped to perform at the highest level.

To stay competitive in this environment, subcontractors and specialty contractors need to take a proactive approach to workforce development. Here are four key strategies to enhance productivity while addressing skill gaps:

1. Implement Structured Training Programs

One of the most effective ways to bridge skill gaps is through structured training programs. By providing workers with standardized, competency-based training, contractors can ensure that employees gain the necessary skills to perform their jobs effectively.

Programs like NCCER’s craft training provide a consistent framework that ensures workers are trained to industry standards. When employees receive hands-on, structured training, they become more efficient, confident and capable on the jobsite.

2. Use Assessments to Identify Skill Gaps

When there are strains on the workforce, contractors can struggle with placing workers in roles that best align with their unique skillsets and experience levels. Competency-based assessments can help leaders identify their workers’ strengths and areas where additional training is recommended.

Assessments can be used both for new hires and existing employees to gauge proficiency and determine targeted training needs. This approach helps contractors deploy their current workforce more effectively and provides a roadmap for impactful upskilling in areas where gaps may exist or additional focus is most valuable.

3. Invest in Industry-Recognized Credentials and Certifications

Employing qualified craft professionals with industry-recognized credentials and certifications ensures a higher level of competency and reliability. Credentials verify that workers have met rigorous training and assessment standards, giving contractors confidence in their teams’ abilities.

Certifications for crane operators, riggers and field leadership roles such as foremen and superintendents are particularly valuable. These roles are critical to jobsite coordination and safety, making their proficiency and qualifications essential to overall productivity.

4. Develop a Sustainable Workforce Pipeline Through Apprenticeship

Rather than competing to find skilled and experienced labor on the open job market, contractors can invest in apprenticeship programs to develop their workforce from the ground up. Apprenticeships provide a structured pathway for new entrants into the industry to gain hands-on experience, earn standardized credentials and start a potential long-term career at their company.

Although new apprenticeship programs may take a few years to yield fully trained professionals, once established they can provide companies with a steady and sustainable flow of  talent ready to contribute. Building a pipeline of skilled professionals through forward-thinking workforce development reduces turnover, improves retention and fosters a culture of continuous learning in the long run.

The Business Impact of Workforce Development

Investing in training, assessments and credentials strengthens a company’s bottom line. Skilled workers complete tasks more efficiently, reducing project delays and costly errors. Safety incidents decrease, leading to lower insurance costs and a better reputation in the industry. Additionally, companies that prioritize workforce development are more attractive to top talent, giving them a competitive edge in recruitment and retention.

Productivity Starts with People

The construction industry’s workforce challenges won’t be solved overnight, but contractors who take a proactive approach to workforce development will see measurable improvements in productivity, efficiency and jobsite performance.

By implementing structured training, utilizing assessments, investing in credentials and building apprenticeship programs, contractors can not only navigate today’s labor shortages but also future-proof their businesses. The path to greater productivity isn’t just about working harder—it’s about working smarter, with a well-trained, highly skilled workforce leading the way.

Are you ready to take your workforce to the next level? Explore how NCCER’s training, assessments, and credentials can help your business build a stronger, more productive team.

Click here to connect with a member of NCCER’s Workforce Development Solutions team.