Ask the Expert: The State of the Construction Labor Market with Greg Dunkle
In this Building Conversations Ask the Expert episode, Greg Dunkle—Chief Operating Officer at STO Building Group—answers listener questions on one of the industry’s toughest challenges: the national labor shortage. From the 500,000-worker gap to rising wages and shifting demographics, Greg breaks down how today’s workforce trends impact project cost, schedule, quality, and safety—and what clients should be asking when selecting a contractor.
HOST
Greg Dunkle
Chief Operating Officer,STO Building Group
View Bio
Ask The Expert:
The State of the Construction Labor Market with Greg Dunkle
Episode Highlights
[00:30] Key Labor Market Trends
2025 brought an explosion of mega-projects across the U.S., Europe, and Canada—and a severe labor shortage to match. The industry is facing a 430,000–500,000 worker deficit, rising wages, a retiring workforce (“silver tsunami”), and a growing need for skilled technical labor. Sectors like AI and data centers are accelerating the demand even faster than expected.
[02:00] How Labor Shortages Impact Projects
Labor accounts for 35–50% of project cost, so shortages directly affect schedules, budgets, quality, and safety. In some markets, the need for certain trades massively outpaces availability (e.g., 15,000 electricians needed, only 10 available). The lack of experienced workers increases risk, lowers craftsmanship, and creates safety hazards as new or inexperienced workers enter job sites.
[03:30] What Clients Should Look for in a Contractor
Before awarding a project, clients should ensure the contractor has committed internal staff AND qualified trade partners. Key questions:
- Does the GC have the skilled team to staff the project?
- Do the trade contractors have capacity, quality, and relevant experience?
- Are safety records strong and consistent?
- Can the workforce travel if the project is remote?
A strong preconstruction plan—staffing, labor strategy, schedule, and trade lineup—is essential.
[05:30] Questions Clients Should Ask During Procurement
Clients should dig into workforce planning early. Critical areas include:
Who is the actual team, and are they fully committed to your project?
How will the contractor manage workforce logistics (housing, travel, onboarding)?
How will peaks and valleys in labor demands be handled?
What training, development, and safety programs are in place?
How has the firm handled labor shortages on past projects?
A robust trade contractor prequalification process helps avoid mid-project failures and safety issues.
[08:20] Safety, Culture & Compliance
STOBG emphasizes a “Safety 360” culture—every person on site is responsible for safety. Training, open communication, and strong oversight are required from day one. Clients should look for firms that can clearly articulate their safety culture, regulatory approach, and how they ensure consistent compliance across teams.
[09:40] How Leading Firms Approach Recruitment
Recruitment starts early, including partnerships with ACE mentoring programs, high school pipelines, internships, and college outreach. STOBG focuses heavily on early engagement to build a reliable long-term talent pool.
[10:30] How Firms Develop Talent Internally
STOBG uses a multi-tier system designed to support career growth from day one:
- Rotational Project Engineering Program for new grads and field talent
- Superintendent Academy for focused field leadership development
- Emerging Leaders Program for advancing future managers
- Ascend & Horizon Programs to prepare high-potential employees for senior leadership roles
Alongside these, on-site training and Safety 360 reinforce performance, competency, and culture across all job sites.
[12:30] The Role of Training in Jobsite Success
From fall-protection courses to vendor-supported technical training, STOBG emphasizes consistent education. The goal: ensure every worker is informed, capable, and aligned with site expectations to reduce incidents and strengthen project outcomes.
Key Takeaways
- The construction industry is facing a severe labor shortage—up to 500,000 workers—driven by retirements, rising demand, and rapid growth in sectors like AI and data centers.
- Labor constraints directly affect schedules, budgets, safety, and overall project quality.
- Clients should evaluate both the GC’s internal team and their trade partners early, ensuring capacity, safety, and workforce mobility.
- Robust preconstruction planning and strong trade prequalification reduce risks and improve predictability.
- Workforce planning questions should start during procurement to assess bench strength and staffing strategy.
- Training, mentorship, and multi-tier professional development programs are essential to building future industry leaders.
- Firms with strong safety cultures and structured talent pipelines will be best positioned to deliver work reliably despite the labor crisis.