The Hard Truths of Construction Project Management

Every field brings its share of”you’re-not-gonna-like-this ” news.
The global construction industry,like most businesses, is undergoing a transition from old ways to the new,technology-improved ways of carrying on business as usual. For over threedecades, the industry has seen a myriad issues pop to the landscape–whetherit’s labour inefficiencies alarming firms to underperforming projects, orlonger haul systemic issues where many businesses still don’t adopt technologyfor easing on-site workflows.
Depending on your current position in construction, you will feel the ripples depending on where you are, especially if you’re a projectmanager with direct reports who have to deal with the daily struggles of an industry that is at risk.
We break the silence about some harsh realities of the trade in this post as we hear more calls for concern echoing throughindustry corridors.
Let’s get our harnesses on!
1. Only a small percentage of construction businesses are successful.
According to 78% of engineering and construction companies, project risks are increasing.
Three more take-outs
Companies’ growth prospects are destroyed by rising material and labour costs, as well as late projects.
Backstory
Construction businesses play a high-stakes strategygame against developing risks.
Executives of large organizations in keysectors–energy and natural resources and public sectors–driving constructionactivities report a project failure rate of 71 per cent and 90 per cent respectively in the last financialyear.
Owners need to be able to make large capital investments in order to meet quality targets. They are often not met or even within the timeframes. Construction businesses often struggle to maintain capitalreserves during lean periods due to risks causedby unqualified workers and unrefined equipment. This phenomenon has been around for more than threedecades.
Only 35% of businesses survive beyond their fifth year. Is this not surprising? It’s not surprising, considering the budgetary overruns they have experienced in the five years they have been in business.
How can we overcome this setback?
Short-term strategy
Companies need to create meaningfulopportunities for younger skilled labour through job training programs run inpartnership with post-secondary institutions offering technical training inconstruction management and trades.
Long-term strategy
Companies must be open to businessinnovation. Being in one of the oldest industries that have an aging workforce,construction firms need to orient their teams with evolving methods of on-sitecommunication and collaboration.
2. Hiring and retaining skilled workers
Nearly 57% of contractors report a shortage of skilled workers.
Three more take-outs
Construction firms have always struggled to ensure that workers are properly trained. Because there aren’t enough and too few willing to take on safety risks early in their careers.
Backstory
90% of U.S. general contractor employees are concerned about labour shortages.
Project lags are caused by the fact that workers retire at a faster rate than new workers. A large demand for industrial and residential properties means that a well-equipped workforce must take over. This is rare at most firms.
Millennials are digitally-savvy and seek out less traditional jobs.
Foreign workers are attracted to countries with high-quality immigration laws because they are more valuable than their counterparts in the country.
Companies struggling to stay afloat are being hit hard by a growing employment gap. In 2018, 82% of firms spent a lot on qualified workers.
How can we overcome this setback?
Short-term strategy
Although it is unlikely that skilled workers will soon be available to all needs, owners should create employee training programs with contractors to better prepare their workforce to adapt to new technology.
Long-term strategy
To allow skilledimmigrant talent to enter the construction industry, the industry must consult with the federal government.