10 Key Factors Impacting the Talent Shortage in the Building Materials Industry
Everyone thinks the construction industry struggles only with rising costs, but the real crisis is a construction labor shortage crippling growth.
Even the highest-paying construction jobs cannot fix the structural factors behind it. Construction companies face record-low labor force participation rates, and despite strong economic growth, the construction sector cannot find enough skilled workers.
This shortage drives up construction costs and slows housing construction and infrastructure investment spikes.
In this article, we uncover the true drivers behind the current construction workforce crisis.
You will learn what’s causing the gaps, what’s changing, and what construction businesses need to rethink fast.
Why Highly Skilled Professionals Matter in Building Materials Projects
The construction sector cannot operate without highly skilled construction workers who know how to manage materials, resources, and timelines.
Building materials projects demand specialized skills because errors can cause safety risks, increased construction costs, and major project delays. Experienced worker teams are critical for interpreting modern technology tools like construction software and Building Information Modeling.
Construction companies also need professionals with soft skills who can adapt to rapid technological advancements and interact effectively with current employees and subcontractors. Without skilled laborers, the entire construction workforce will struggle to meet the growing demand for labor across construction trades and infrastructure projects.
Today’s building materials firms face a growing skills gap, made worse by the current labor shortage and the ongoing dropout rate from apprenticeship programs.
Hiring additional workers without proper experience only increases turnover rates and damages employee well-being over time. But by prioritizing career development opportunities and employee training, construction organizations can secure the skilled labor they need to deliver quality construction projects.
In the image below you’ll find a summary of why skilled professionals matter so much in this industry:
10 Reasons for the Current Talent Shortage in the Building Materials Industry
1. Skills Mismatch Between Traditional Trades and Modern Construction Technologies
The construction industry is evolving faster than the construction workforce can keep up. New tools like Construction software, Building Information Modeling (BIM), and automation systems are now standard in large building materials projects.
Yet a significant part of the current construction workforce was trained on traditional methods like blueprint reading, manual surveying, and hands-on craftsmanship, not digital platforms. This skills gap leaves many construction companies struggling to find skilled laborers who can manage both traditional construction tasks and advanced technology integration.
The graphic below shows a few reasons for the skills mismatch in the building materials industry:
According to a study by the Associated General Contractors of America (AGC), 94% of construction firms report having trouble finding qualified workers, with a major reason being a lack of technology skills.
Meanwhile, McKinsey found that construction productivity has grown by only 1% annually over the past 20 years, compared to 2.8% in the global economy: a result of slow technology adoption and workforce mismatch. As more construction projects demand familiarity with construction technologies, construction businesses that cannot bridge this gap face project delays, rising construction costs, and even lost bids.
2. Aging Construction Workforce and Accelerated Baby Boomer Retirements
The construction industry is facing a serious demographic shift. A large portion of the construction workforce is made up of Baby Boomers nearing retirement, and the building materials industry is feeling the pressure. Research suggests that nearly 1 in 5 construction workers is over the age of 55. As these skilled laborers leave the labor market, construction companies are struggling to fill the gaps with younger, qualified workers.
This retirement wave is not slowing down. Another report found that 41% of the U.S. construction workforce is expected to retire by 2031. At the same time, apprenticeship programs and training initiatives are not producing enough skilled construction workers fast enough to keep up. This is creating a severe supply-demand imbalance, particularly for experienced construction professionals with specialized skills in project management, construction trades, and Building Information Modeling systems.
In the building materials sector, this demographic shift creates an even bigger problem. Sales teams, project coordinators, and technical specialists who understand both traditional construction methods and new construction technologies are retiring faster than they can be replaced.
Without immediate investment in employee training, career advancement opportunities, and aggressive recruitment of younger talent, construction businesses risk a permanent decline in qualified worker supply and higher construction costs due to project delays and mismanaged resource flows.
The image below highlights some of the key reasons for the aging workforce in construction:
3. Cultural Factors Discouraging Youth from Careers in Construction
Even with strong economic growth and rising demand for labor, many young people are turning away from careers in construction and the building materials sector. Construction jobs are often viewed as physically demanding, unstable, and less prestigious compared to careers in industries like technology or finance.
A study from Stanley Black & Decker found that, while many students consider skilled trades a good career option, only 16% of them would actually consider it. As a result, apprenticeship programs are seeing lower enrollment rates, contributing to a persistent skills gap and a growing shortage of skilled laborers in the construction labor market.
The graphic below explores a few of the reasons why young people are turning away from careers in construction.
For building materials firms, this cultural factor is a hidden but massive threat. It’s not just about needing additional workers, it’s about losing future sales leaders, project managers, and technical experts who understand modern construction technologies. Construction organizations that fail to shift public perception and promote career opportunity stories showing real career development opportunities will continue to face the lowest fill rates in critical roles.
4. Drop in Immigrant Workers Joining Construction and Building Materials Roles
Immigrant workers have long been the backbone of the construction workforce, especially in labor-intensive areas like building materials handling, manufacturing, and installation. However, tighter immigration policies and ongoing cultural barriers have significantly reduced the number of immigrant workers entering the construction sector.
More than 30% of all construction workers in the United States are foreign-born, but it may still not be enough. The U.S. Chamber of Commerce reported that a shortage of immigrant workers is impacting many industries, including construction.
This shortage directly impacts building materials firms, where demand for labor remains high but construction worker supply is shrinking, particularly for roles requiring specialized skills like framing, concrete finishing, and materials logistics.
For the building materials industry, immigrant workers historically filled critical gaps in both skilled labor and entry-level roles. With fewer immigrant workers available, construction companies must now compete harder for a limited pool of qualified workers. Without proactive solutions like targeted recruitment, apprenticeship programs, and better career opportunity messaging, construction businesses risk further project delays, missed housing investment opportunities, and higher construction costs in an already tight labor market.
Check out the image below for more information on how the labor shortage is impacting the building materials industry:
5. Lack of Career Advancement Opportunities in Building Materials Firms
Career development opportunities play a major role in retaining skilled construction workers, but many building materials firms still lag behind. When construction companies offer little visibility into career paths, benefit opportunities, and leadership training, they push skilled laborers to leave for industries with faster promotion tracks.
The construction sector already suffers from high turnover rates. In fact, research shows that the annual turnover rate in construction sits at around 56%, one of the highest across all major industries. For the building materials sector, this means not only losing current employees, but also weakening sales teams, project coordination, and supply chain operations that rely heavily on experienced construction professionals.
Without clear career advancement pathways and structured employee training programs, the building materials industry will continue to struggle with skilled labor shortages. To retain the current construction workforce and attract the next generation, construction businesses must offer more than a paycheck, they must create real, visible career opportunity ladders tied to leadership roles, technical specialization, and project management expertise.
For more information on the factors affecting turnover in this industry, take a look at the graphic below.
6. High Turnover Rates Due to Poor Employee Wellbeing and Project Management
Employee wellbeing and effective project management are no longer optional in the construction sector. Construction firms that ignore worker feedback, overload crews, or offer poor safety and support systems see their skilled construction workers leave faster.
A 2020 study found that 83% of construction workers have experienced some form of mental health issue, which combines with physical risk and long-term health impacts.
This contributes to the high turnover rates discussed in the previous section. For building materials firms, this translates into lost experienced workers, weaker customer relationships, and longer project timelines, especially when project management systems fail to account for realistic work pacing, crew safety, or employee training opportunities.
In the building materials sector, firms that fail to implement employee insights into daily project planning and resource management end up with frequent disruptions. Skilled construction workers expect not just fair pay, but real investment in their physical safety, mental health, and long-term career opportunity. The image below expands on this.
Without strong programs around employee wellbeing, turnover rates will stay high, worsening the construction labor shortage and increasing construction costs for projects of all sizes.
7. Structural Factors Creating Low Labor Force Participation Rates
The construction sector has seen major increases in construction demand, but workforce strategies have failed to keep up. Construction companies and building materials firms have focused heavily on project delivery without investing enough in workforce development, which has led to a lower labor force participation rate.
Meanwhile, the Associated Builders and Contractors (ABC) reported that the construction industry will need to attract 454,000 additional workers on top of normal hiring levels in 2024 to meet the current construction workforce demand. Without more aggressive apprenticeship programs, career opportunity outreach, and ongoing training initiatives, the gap between construction projects and available labor will only continue to grow.
Check out the graphic below for some ways the construction industry can attract new workers:
In the building materials sector specifically, the mismatch is even sharper. Construction businesses rely on a steady supply of skilled laborers, sales professionals, and supply chain specialists to manage housing construction and infrastructure investment spikes. A shrinking labor force slows down everything from material sourcing to final delivery. Unless construction organizations directly address the structural factors hurting labor force participation, including low visibility of career advancement opportunities and outdated perceptions about construction trades, the construction labor market will remain dangerously tight.
8. Ineffective Employee Training and Ongoing Training Programs
Ongoing training is critical in today’s construction sector, yet many construction businesses continue to underinvest in it. This leaves the current construction workforce unprepared to meet the demands of construction technologies like Building Information Modeling (BIM), Construction software platforms, and automation tools used in building materials logistics.
Without structured employee training, construction companies also struggle with basic soft skills development — communication, leadership, and project management — that are increasingly necessary for modern construction jobs.
For building materials firms, ineffective training programs mean sales teams that cannot properly explain how construction technologies interface with products, project managers who cannot adapt to digital workflows, and construction workers who cannot operate advanced material handling equipment. Without strong, ongoing employee training and career development opportunities, the industry will continue to suffer from low labor productivity, high turnover rates, and a growing reliance on a shrinking pool of experienced worker talent.
Check out the graphic below to see how insufficient training can negatively impact construction projects:
9. Rising Construction Costs Pushing Firms to Cut Back on Workforce Investment
Construction costs have risen sharply in recent years, with some reports suggesting that costs are 30% higher than 5 years ago. This is forcing many construction companies to make tough budget decisions. Instead of maintaining or expanding employee training, apprenticeship programs, and career development initiatives, some firms cut these investments first.
These rising construction costs create a vicious cycle. Firms facing thinner margins prioritize immediate project delivery over long-term workforce development, which further weakens the construction labor market.
In the building materials industry, cutting back on workforce investment is especially dangerous. Sales teams must stay updated on advances in construction technologies, and project management staff need ongoing training to manage complex modern builds. Without continuous investment in skilled labor, construction businesses risk not only higher turnover rates but also costly project delays, lower productivity, and missed growth opportunities in a market that continues to see strong housing construction and infrastructure investment spikes.
In the image below, you’ll see a few examples of what happens when building materials firms cut down on workforce investment.
10. Housing Investment and Infrastructure Investment Spikes Outpacing Worker Supply
The U.S. is experiencing a surge in housing construction and infrastructure investment, but the construction labor market cannot keep up. According to the U.S. Census Bureau, housing starts increased in 2025 compared to last year.
This demand spike has led to the lowest fill rates seen in many building materials specialties. A report from the U.S. Chamber of Commerce found that over 88% of contractors are struggling to find enough additional workers to meet project demands. The shortage of skilled laborers delays project timelines, increases construction costs, and forces building materials firms to stretch thinner crews across more jobs, reducing quality and productivity.
The image here shows some key consequences of this labor shortage:
For construction companies and building materials suppliers, the stakes are even higher. Housing investment and infrastructure projects cannot move forward without experienced construction professionals and skilled construction workers who understand both traditional methods and modern construction technologies.
Unless construction organizations act fast to rebuild the current construction workforce through aggressive employee training, career opportunity development, and strategic workforce planning, the gap between industry demand and worker supply will only widen.
Common Challenges When Hiring for the Building Materials Industry
Let’s recap some of the biggest hiring challenges that face the building materials industry today, and what you can do to avoid them.
1. Prioritizing Speed Over Candidate Quality
Mistake: Companies rush to fill construction jobs without properly vetting candidates for specialized skills or cultural fit, which leads to higher turnover rates.
How to Avoid It: Build structured hiring processes that balance urgency with thorough skills assessments and soft skills evaluations.
2. Overlooking Technology Competence in Candidates
Mistake: Firms hire based solely on traditional trade experience without checking a candidate’s ability to work with construction software, Building Information Modeling, or modern material tracking systems.
How to Avoid It: Update your job requirements to reflect the need for basic digital literacy and offer employee training focused on current construction technologies.
3. Failing to Offer Clear Career Development Opportunities
Mistake: Businesses advertise roles without outlining paths for advancement, which can cause skilled construction workers to view the job as a dead end.
How to Avoid It: Position every role as a career opportunity, clearly communicating career advancement opportunities and ongoing training options during the hiring process.
4. Neglecting Cultural Fit and Team Integration
Mistake: Companies focus only on technical ability without assessing how well candidates will collaborate with the current construction workforce or adapt to project management styles.
How to Avoid It: Include behavior-based interview questions and reference checks that explore teamwork, adaptability, and leadership potential.
5. Ignoring Labor Market Conditions When Making Offers
Mistake: Firms offer wages and benefits that do not reflect the realities of a tight labor market, losing qualified workers to competitors.
How to Avoid It: Regularly benchmark compensation packages against local construction labor market trends and adjust yoiur offerings based on industry demand and specialized skills shortages.
What’s next for the building materials industry?
The construction labor shortage is not a temporary problem, it’s a structural threat that will deepen if ignored.
Building materials firms must act now to rethink hiring, training, and retention strategies. Strong economic growth means nothing without a strong construction workforce behind it, and every delay in workforce investment risks higher turnover, slower projects, and lost market share.
The demand for skilled labor will only rise as construction technologies evolve.
Firms that prioritize career development, employee wellbeing, and ongoing training will lead the next era. Act now to secure your teams, your projects, and your future in a tightening labor market.
