Labor shortages in the home improvement industry are nothing new, but lately, they’ve been hitting harder than ever. As we look toward the next few years, one thing’s clear: skilled workers are going to be key to the success of contractors, installers, and businesses in this space. But with fewer people entering the field, it’s getting tougher to find the right talent to grow and keep up with demand. So, what can you do about it? Let’s take a closer look at what’s causing the problem—and how businesses can work around it.
The Current Labor Shortage Market
Labor shortages in the home improvement and moving industries are significant. We’ve seen this issue play out before—remember back in 2021, when you couldn’t find a contractor and had to be placed on long waiting lists for services? It was a challenging time for installation companies, with rising demand and fewer skilled workers available. Unfortunately, this trend is not going away.
As the principal of Zonda research group, Todd Tomalak shared some forecasts during a recent webinar, that professional labor in the remodeling sector will fall at least 15% below demand by 2030. Many factors are contributing to this labor shortage:
Aging Workforce: A significant portion of the skilled labor in the industry is over the age of 55, with many nearing retirements. As these workers leave the industry, there aren’t enough younger workers coming up to replace them.
Fewer Young Workers Entering the Trades: With many young people opting for four-year college degrees, fewer are choosing to enter the trades, which have historically offered rewarding and well-paying careers.
COVID-19 Impact: The pandemic led to many contractors leaving the market early, which disrupted the flow of labor back into the industry, compounding the labor shortage.
Solutions to Overcome Labor Shortages
Even though the shortage is real, there are still ways to keep your business running smoothly. Here are a few strategies that can help.
1. Investing in Workforce Development
One of the most effective ways to overcome the labor shortage is through workforce development programs. Apprenticeships and partnerships with trade schools can help build a skilled workforce and ensure that young workers are trained to meet the demands of the industry.
Apprenticeships: These programs allow newcomers to earn while they learn, providing hands-on training that ensures workers have the skills needed for the job. By offering apprenticeship opportunities, companies can introduce young people to the benefits and opportunities in the trades and create long-term employees.
Trade Schools: Companies can also partner with trade schools to provide specialized training that is directly relevant to the needs of industry. These schools focus on giving students the skills they need to succeed in the trades, and a partnership could ensure that businesses have access to a skilled workforce. Most have “career day” type networking events that you can get involved in.
2. Think Out of the Box
New and creative approaches to solving old problems can prove valuable in building your team.
Incentives for employee referrals: Often the best source of new labor is current labor. Encourage them to recruit friends or acquaintances. Provide a partial monetary reward when they are hired, and another when the new hire stays past the 6–12-month mark.
Catch them early: High school vocational education, also known as career and technical education (CTE), helps students develop skills for specific jobs after graduation. Learn what programs are active in your area and meet with the organizers. This networking can go a long way in helping find potential future talent.
Recruit from outside your Industry: We’ve all been shopping out in our local communities and at some point, witnessed standout service or someone really working a couple gears faster than their peers. This could be at a fast-food restaurant, grocery store, hardware store, etc. Introduce yourself and invite them to spend a couple of hours working with you. Then, buy them some lunch and see where it goes. You can teach them trade skills, but hire for work ethic, personality, and the traits you CAN’T train!
3. Leveraging Technology to Maximize Existing Workforce
While developing new labor resources is key, companies can also wisely use their existing workforce by leveraging technology. As a popular field service software, Cilio’s powerful features, such as route optimization and auto-scheduling, can make a significant difference.
Route Optimization: With fewer workers available, installation companies need to make the most of their labor resources. Cilio’s route optimization ensures that each worker’s day is as efficient as possible by helping book jobs closer together geographically. You’d be surprised how often you can make another stop or two each day by minimizing travel time, allowing you to boost productivity without needing additional labor.
Auto-Scheduling is basically your software looking at all the variables of scheduling a customer, often doing it faster and more consistently than your best scheduler. This could allow a customer to schedule their own appointments online, or it can arm your scheduling team with the options to make the best possible use of your crew’s time. Over 2 dozen variables can be considered in moments like which crews are qualified for the job, what their work capacity is, where their other scheduled work is so you’re not driving them all over town, and so much more. This automation reduces the chance of human error, scheduling conflicts, or wasted time. Field crews are assigned to the jobs that make the most sense for their day, and now the “busy season” doesn’t FEEL quite as hectic as you’re now working smarter not harder.
By using route optimization and auto-scheduling tools like those used by Cilio Technologies, businesses can keep up with demand without overwhelming their labor force.
The Bottom Line: Getting Ready for the Future
The labor shortage is a serious challenge, but it’s not one that can’t be managed. By focusing on developing your workforce—whether through apprenticeships, trade school partnerships, or creative recruiting—you can set your business up for success. And by using technology like Cilio to streamline operations, you can make the most of your current workforce and stay ahead of the curve.
So, don’t wait for the shortage to hit hard. Start building your talent pipeline today, and consider tools like Cilio to make your operations smoother. The future’s bright for businesses that take action now!
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