There is a new term out that has many employers troubled: the silver tsunami. That is code for a rapidly aging workforce where a large number of people are closer to retirement than they are to starting out. And this is probably truer for the construction industry than many other sectors. Right now, 22 percent of the construction workforce is 55 or over, according to labour force statistics.
This a significant segment of construction workers—and this is not only about the numbers, critical as they are; it is also about the loss of knowledge that leaves with a generation that retires.
At the same time this sliver tsunami is happening, there is also another seismic change taking place. The industry itself is shifting from almost exclusively manual work to more digitally connected work, including drone surveying and other autonomous machinery. Change brings challenge and opportunity, and that is why it is pivotal for the construction industry to make a connection with Gen Z workers and future generations whose lives revolve around digital tech pretty much as soon as they can walk. But attracting a new generation of workers takes a concerted effort.
An important place to start is by understanding the economic and workplace forces that are shaping choices for these generations.
One of the primary changes is the cost of pursuing an education continues to go up. In the past 10-plus years, tuition has risen as much as 30 percent, CNBC reports. These costs are leading young people to take a hard look at what education means, and more are considering vocational training as a way to gain the experience that will translate into direct career opportunities. The construction industry is in a prime position to bridge the skills that many are looking for.
Combine that with the potential impact AI will make as it continues to mature and changes the landscape for traditional desk jobs. There is a very real opportunity to attract a younger crowd that could have a long-term impact on the industry. To do that means getting into schools to reach out to kids, as well as focusing on influencers, parents, and guidance counsellors to move past the old, outdated view of construction.
By making vocational training more ubiquitous, kids will be more open to the opportunities in the industry that are available to them. Initiatives like sponsoring builders’ clubs and hosting onsite tours can show kids what construction looks like and dispel some of the outdated views of the industry. It is also a way to showcase the modern, technology-driven aspects of the sector and emphasize the career security that comes with the field through ongoing labor demand. Mentorships and tuition reimbursement for training can be motivating for young people as well.
Further, there is an opportunity for the industry to reach young people who may otherwise not have options through the college system. The Ohio Construction Academy, for example, is a community school (or charter school) that is funded by the Ohio Department of Education. The academy offers students in Grades 9 to 12, or from the ages of 14 to 22, who live in the local community and do not possess a high school diploma or the equivalent, the opportunity to gain carpentry and electrical training. While enrolled, students spend part of the day working on their academic requirements to receive a diploma and the rest of each day is spent building their skills in a workshop adjacent to the classroom areas.
Like many good ideas, this academy was born from necessity. The central Ohio chapter of the Associated Builders and Contractors saw the coming skilled trades shortfall and opened the academy to get ahead of it. “We decided to take a hands-on approach,” Barton Hacker, Chapter President and CEO, told a local news service. The academy is connected to an adult apprenticeship program that the Associated Builders and Contractors already managed.
A public-private partnership approach like this can create opportunities not only for the construction industry, but for youth who are looking for a career path.
Further north, in Canada, the government of Ontario launched what is called a Specialist High Skills Major where students can work toward a high school diploma but also focus their education on a particular economic sector like construction, mining, or agriculture. When they complete the program, they have a high school education and valuable training in their field of interest.
All of this can be very compelling to a young person coming out of high school who doesn’t want to take on excessive debt for education (while the prospects for long-term careers may be less certain than before). Vocational experience can lead to making good money quickly or even while learning. And career progression can move faster because of ongoing demand, with many individuals moving swiftly from a trade worker to a foreperson or project manager.
It is not only younger workers that will keep the construction industry going. There is also a huge, untapped pool of potential workers out there: women. Construction is often considered too heavily male-dominated to attract women to the industry, with men accounting for about 89 percent of the construction workforce in the U.S. The truth is that many women who might otherwise be interested in the field can be put off by accounts of harassment, an environment that is not conducive to family responsibilities, or even the reality that finding basic PPE to fit can be a challenge.
If the industry is serious about bringing in the next generation of workers, it needs to take an intentional approach to stomping out instances of harassment and providing mentorship opportunities to pair newly hired women with experienced workers who can take them through how to best work in a male-dominated environment.
In an opinion piece for the St. Louis Business Journal, Elizabeth Zucker, president of the St. Louis Business Unit, Clayco, talks about the value that women can bring to the construction industry: “Despite the urgent need for talent, women hold just 11 percent of construction jobs, with even fewer women holding leadership roles in both the C-suite and the field,” Zucker writes. “The unfortunate reality is that many women who pursue a career in the construction industry aren’t always put in positions to succeed and advance. A recent study from the Institute for Women’s Policy Research found that more than four in 10 women working in construction have seriously considered leaving their jobs because of discrimination, harassment, and being held to a different standard than their male coworkers.”
Zucker goes on to offer some ways to make the industry a better option for women. One of the most powerful ways to challenge stereotypes and break down barriers is seeing representation in jobs and careers that young people might not normally be exposed to. For example, the Clayco NOW (Network of Women) program supports a host of initiatives geared toward developing the next generation of female construction workers and leaders. Young girls in particular need exposure to the idea that the construction industry and skilled trades are a viable career path and need role models and mentors so they can see what success looks like. “If we want to close the labor gap and attract the next generation of construction workers, we must open the door wider and make women part of the solution,” writes Zucker.
Whether it is attracting women or young people in general, the construction industry needs to take a multifaceted approach to creating a healthy talent pipeline of workers before the impact of the silver tsunami is really felt. That means partnering with schools, using digital innovations to attract more people, and being intentional about mentorship programs to show students where a career in construction can take them. It will also likely take some soul searching to ensure that the work environment is an open one. Otherwise, coming back from a tidal wave could be extremely difficult.
