Workforce pressure for specialty contractors

Workforce pressures are more than a hiring issue for contractors, influencing everything from project timelines, safety outcomes, the ability to take on new work with confidence, and costs.

The latest data shows that the long-drawn challenge persists. Job openings within the industry were close to 300,000 on May 31, a month during which construction firms added 17,000 new jobs and construction pay rose 5% year-over-year.

As technically complex projects continue to expand, especially amid the growing pipeline of major digital infrastructure-related buildouts, specialty contractors must manage a more volatile workforce environment. At a time when finding skilled people is hard, keeping them is harder, and the margin for error is wafer-thin, specialty contractors should consider reviewing their workforce strategy and take steps to align it with today’s realities.

Skilled labor availability remains the central challenge

While labor shortages are not a new phenomenon, the stakes are, in many ways, higher. Many specialty trades are being asked to support larger, more specialized, and more schedule-sensitive projects than in years past. Data center construction is part of that story, as are power, manufacturing, and other large nonresidential builds. These projects can create real opportunities across the market, but they can also pull the same finite pool of skilled labor in many directions.

In response, many contractors are doing more to develop their own talent. Some are expanding in-house training, creating clearer onboarding programs, and investing more deliberately in upskilling. That approach can help, but there’s also a risk that after contractors invest in training, workers are lured away quickly by a higher wage elsewhere. This is especially true for non-union workers, who make up almost 90% of US construction workers.

That is why it can be important to employ retention strategies that are more practical and more human. Contractors should consider looking beyond pay and asking a simple question: What is likely to make people want to stay? In many cases, the answer revolves around improving workplace culture and providing a better day-to-day experience on site, including stronger supervision, visible recognition, and more thoughtful amenities.

Volatility makes planning harder

Even when demand is strong, workforce conditions are far from steady. Specialty contractors often price labor months before crews are mobilized, and that creates exposure when market conditions change in the interim. Cost increases — for both supplies, fuel, and labor — can affect bid assumptions well before work actually starts.

While contractors cannot eliminate volatility, they can work toward reducing the surprise factor by pressure-testing staffing assumptions earlier and being more selective about where they self-perform, where they subcontract, and how aggressively they pursue work in overheated labor markets.

Advancement matters, but so does readiness

Workforce shortages can create opportunities for younger generations. As experienced workers move to other projects or other employers, younger workers can move up faster than they might have in the past.

But early promotion can also expose gaps in experience. When someone with only a few years in the field steps into a role that once went to a much more seasoned employee, they may need more support. For specialty contractors, the question becomes not just who can fill the role, but who is truly prepared for it? The answer often comes back to structured on-the-job training, mentoring, and more intentional development of field leadership.

Career growth still matters in construction. But in this environment, it should be matched with the right support systems so advancement strengthens the workforce rather than stretching it thin.

Benefits affordability is under strain

Rising pay has helped workers, but it has not entirely solved the affordability problem. Contractors are dealing with the same cost pressures everyone else is, while also trying to price work competitively in a market where bid prices may not align with real costs by the time work commences.

Benefits are a major part of that challenge. The average cost per employee of employer-sponsored health insurance went up 6% in 2025, and the underlying cost increase to renew a medical plan is expected to average around 9% for 2026.

For specialty contractors, that creates a difficult balancing act. While benefits are a critical part of retention, higher costs also put pressure on overhead and can limit firms’ ability to make other investments, including in training, technology, and workforce expansion.

This reality underscores the importance of a sound benefits strategy, including taking steps to align benefits with what workers value, balancing that with what the business can sustain.

Safety and well-being contribute to a resilient workforce

Potentially hazardous on-the-job conditions can impact hiring and retention efforts. While creating a safe working environment is absolutely critical, employers need to think beyond physical hazards alone. Long commutes, demanding schedules, time away from family, and fatigue can put a strain on mental health. The construction industry has one of the highest suicide rates among all sectors.

For specialty contractors, that underscores the need for support systems that are visible, accessible, and embedded in the jobsite culture.

It also reinforces a broader truth: workforce resilience is built through connection. Safer tools, ergonomic equipment, better hazard identification, stronger field leadership, and mental health resources matter greatly. And so does experience. When people are moved into bigger roles faster, safety performance can be affected if training and oversight do not keep pace.

A sound workforce strategy can be a competitive differentiator

The firms that handle these pressures best are not treating labor, safety, benefits, and operations as separate conversations. They are looking at the workforce as a whole — how to attract people, prepare them, support them, and retain them.

For specialty contractors, that mindset can become a clear differentiator in an uber-competitive industry. In a market where skilled labor is scarce and expectations keep rising, workforce strategy is no longer a back-office concern. It is part of how resilient firms compete.

Case Study

Workforce pressures reshape contractor strategy

Workforce pressures are more than a hiring issue for contractors, influencing everything from project timelines, safety outcomes, the ability to take on new work with confidence, and costs.

Skilled labor availability remains the central challenge

Volatility makes planning harder

Advancement matters, but so does readiness

Benefits affordability is under strain

Safety and well-being contribute to a resilient workforce

A sound workforce strategy can be a competitive differentiator

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Workforce pressures reshape contractor strategy

Workforce pressures are more than a hiring issue for contractors, influencing everything from project timelines, safety outcomes, the ability to take on new work with confidence, and costs.

Skilled labor availability remains the central challenge

Volatility makes planning harder

Advancement matters, but so does readiness

Benefits affordability is under strain

Safety and well-being contribute to a resilient workforce

A sound workforce strategy can be a competitive differentiator

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Supporting a large automotive manufacturer through complex construction challenges

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