Labor shortage is major constraint for construction industry growth

Most respondents to Prairie Capital Advisors’ 6th Annual ESOP construction survey report stable backlogs and healthy demand despite higher interest rates, labor scarcity, and increased competitive pressure.

Workforce depth remains the primary constraint, as companies face challenges recruiting experienced tradespeople, supervisors, and office leadership to support growth. 

Technology adoption continues to accelerate, with AI-enabled tools that enhance estimating, scheduling, job costing, and decision-making gaining popularity.

Leadership development and succession planning are increasingly strategic as companies invest in internal talent pipelines to support long-term growth. ESOP sustainability and governance planning are rising priorities, with more firms conducting or planning repurchase liability and sustainability studies.

Employee ownership strengthens culture, accountability and retention, especially among long-tenured employees, Prairie Capital says.