Though the U.S. construction industry is poised for continuous growth, it faces several pressing challenges that could threaten its potential. The ongoing labor shortage, safety concerns, and outdated, inefficient processes are all issues that construction companies must address if they want to maintain productivity and scale for the future.  Let’s explore the top challenges in the construction industry today—and potential solutions to keep your construction competitive in this ever-evolving market. 

1. Labor Shortage

The construction industry is suffering from an ongoing labor shortage, needing to attract an estimated 439,000 net new workers in 2025 in addition to normal hiring to meet demand. An aging workforce, a lack of skilled labor, and the difficulties of attracting new talent are all contributing factors. But regardless of its causes, a shortage of labor at any construction company has the potential to cause the same immense challenges: slower project timelines, reduced quality, increase of safety risks, and more. 

Solution: Offer Meaningful Benefits To the Next Generation

The median age of a construction worker is currently 42 years old, indicating that the industry has fewer young workers lining up for construction jobs. Anything you can do to create a better work experience for the next generation will be important—from streamlining the onboarding process to ensuring a fast, flexible payments experience.

With ¾ of Americans wanting to be paid every day, it’s clear that payment speed and ease should be a priority to any company looking to retain more workers—especially Gen Z workers, who are used to fast, digital processes.

In addition, providing access to financial services like digital banking with fee-free options and fast, flexible payments may go farther than you might think. According to the latest FDIC survey there are roughly–5.6 million U.S. households that are unbanked; meaning they lack a bank or credit union account. Particularly for younger workers entering the industry, it’s crucial to think of what your construction company can do to provide meaningful benefits that can improve their lives—helping boost hiring and retention in the process. 

2. Safety Concerns

Safety concerns have always been one of the biggest issues in construction, since workers are often exposed to risks such as falls, machinery accidents, electrical hazards, and exposure to harmful materials. But in addition to putting people in unnecessary danger, these risks can lead to injuries—and legal liabilities—which can damage a company’s reputation, employee morale, and even bottom line. 

Solution: Invest in Comprehensive Training & Safety Monitoring

Making sure your company properly addresses this challenge is all about prioritizing safety above all else. Ensuring you have regularly scheduled training programs that are comprehensive about educating workers on potential hazards and proper safety protocols is crucial. Implementing strict regulations, using protective gear, and ensuring regular site inspections can also help mitigate risks.

In addition, investing in advanced technologies, such as wearable safety devices and AI-driven monitoring systems, can further enhance safety by providing real-time data on worker health and environmental conditions, enabling proactive measures to prevent accidents. One such technology, called “Smart Helmets” include sensors that can provide data on a worker’s surroundings and identify potential hazards in real-time.

3. Outdated, Inefficient Processes

Due to the ongoing labor shortage, it’s been reported that the construction industry must not only focus on attracting and retaining more workers, but also on significantly boosting productivity. Unfortunately, some companies are so reluctant to embrace new ways of doing things that they can overlook modern tools that could improve efficiency. 

If your operations are reliant on outdated systems and processes, it doesn’t just lead to inefficiencies, but could be draining your budget, too. 

For example, let’s go back to how you pay your workers. Antiquated payment methods like paper checks can be both inefficient and costly. If you’re still cutting paper checks, you could be spending a significant amount of time issuing those checks, verifying that checks have been sent or tracking them down, and scrambling to re-issue checks if there have been errors or you have an off-cycle payment need. Overnighting off-cycle checks can also add an unnecessary line item in your budget. 

Even some paycards create additional hassle and spend; for example, some paycards charge excessive fees for both your company and your workers. And  many require pre-funded accounts that mean you need to tie up capital in a separate account to pay your workers. In an industry where cashflow is especially important, this could create unnecessary financial stress for your business. 

Solution: Embrace Modern Tech

There’s nothing wrong with standing by tried-and-true ways of doing things. But if there are opportunities to streamline existing processes in order to boost productivity, safety, or even employee morale,  construction companies would be wise to seize those opportunities in order to stay competitive.

Let’s go back to the example of workforce payments. Switching to a digital payments platform allows you to send payments at any time alleviates the stress and eliminates hours of administrative hassle. Plus, these platforms help ensure workers are paid accurately and on-time, providing peace of mind and eliminating the need for constant verification and manual follow-up. 

Embracing modern tech like a workforce payments platform has the potential to boost productivity and accelerate day-to-day operations for construction companies looking to prioritize growth in the years to come. 

Build a Better Payday with Branch

To address the critical issues facing construction, industry leaders will need to focus on prioritizing the needs of a younger workforce, investing in stricter safety protocols and monitoring, and embracing modern tech—particuarly modern payments technology—to keep costs low and efficiency high.

For construction companies that are willing to innovate and find beneficial and efficient processes for their workforce, the future looks brighter than ever. 

Get a free demo today.