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Is There a Demographic Craft Labor Cliff that Will Affect Project Performance?

Publication No
RS318-1
Type
Research & Development Product
Publication Date
Sep 01, 2015
Pages
30
Research Team
RT-318
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DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract
After decades of facing periodic workforce challenges, many construction industry leaders seem to have become habituated to the idea of a looming skilled workforce cliff. With increasing concerns that imminent severe labor shortages could affect many
Key Findings

Some regions of the U.S., especially in the Southwest and Southeast, are expected to experience severe pipefitter shortages while other areas will experience surplus labor conditions. Projections for welders and electricians are in the RT318 Research Report. (RS318-1, p. 3)

The figure below shows Future Pipefitter deficit/surplus for First Quarter 2018.

The gap of real wages almost shrunk by half in 2014 when compared to 1974. The construction industry’s workers in 2014 earned $5.53/hr. less real income than in 1974, while the total private industries’ workers in 2014 earned $0.67/hr. less real income value as in 1974. (2014 Dollar Amount – Inflation Adjusted) (RS318, p. 10) 

The figure below shows this gap for 2014 inflation-adjusted wages.
RT318 developed a model to predict the impacts of craft labor shortages on project performance. Analyzing survey data and CII BM&M database enabled the research team to define 5 severity levels for craft labor shortage:

(RS318-1, p. 21)

  • Very severe – Staffing difficulties led to project delay
  • Severe – Staffing difficulties led to delay of completing project milestones
  • Moderate – Staffing difficulties led to delay of completing project activities on time
  • Slight – Staffing difficulties led to consumption of schedule float and/or contingency
  • No difficulty – There was any shortage. Able to staff the project with no delay on construction.
Filters & Tags
Knowledge Area
Construction Execution, Human Resource Management
Project Phase
Construction
Project Function
Project Business Sponsor, Project Management, Construction, Operations & Maintenance, External Stakeholders
Industry Group
Light Industrial, Heavy Industrial, Infrastructure
Research Topic
Is There a Demographic Craft Labor Cliff That Will Affect Project Performance
Keywords
Craft labor shortages, Construction real wages, CRAFT, Project performance, Wage gap, Craft labor cliff, rt318

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