Jake Howlett

Mar 18, 2024 | ecmweb.com | Michael Keller |Tyler Pare |Jake Howlett

Construction is a labor-intensive business. Despite tremendous advances in design, coordination, and management technologies, the physical installation of work in the field remains reliant on people. Of the nearly $900 billion in construction put in place by labor-intensive contractors in the United States in 2022, FMI research suggests contractors lost approximately $30 billion to $40 billion due to labor inefficiencies.

Sep 27, 2023 | fmicorp.com | Michael Keller |Jake Howlett |Gregg M. Schoppman

Labor productivity is the central economic engine of labor-intensive, self-performing contractors that drives profitability. Our research suggests that contractors lost approximately $30 billion to $40 billion to labor inefficiencies in 2022. These labor productivity deficits translate to significant project and enterprise margin erosion industrywide. Key findings include:Almost half of respondents (45%) saw declining labor productivity.