Possible Solutions to Lagging Productivity in the Construction Industry
Date Posted: January 23, 2025
Posted In: Discussion, Ideas,
From Building Design + Construction: From 2000 to 2022, productivity in the global construction industry improved only 10%, just one-fifth the rate of the overall economy, according to an article by McKinsey & Co. executives.
Lagging productivity will be an increasing problem as the industry confronts a skilled labor shortage in many markets, along with the impending retirement of a large cohort of workers. In the U.S., job vacancies in construction doubled between 2017 and 2023.
3 productivity solutions for the construction industry
The management consulting firm has three recommendations for the industry to improve productivity:
1. Embrace upskilling.
The industry needs to foster more skill-building and create attractive career paths for potential workers. This can be accomplished through technology-supported learning journeys, apprenticeships, and project academies.
Partnerships with universities, community colleges, and high schools could make more young people aware of the advantages of a construction career, while helping them develop skills.