Chris Price: Where there’s smoke … construction industry needs data

We all know it’s unethical to yell “Fire!” in a crowded theater if there is no fire. But what if you know a fire could break out soon? You don’t want to cause a panic, but you also don’t want to keep your mouth shut if something is smoldering.

That’s one way you could describe the dilemma we face in Indiana with the construction workforce. Something might be smoldering, but we’re not sure how serious it is. Why? Because we don’t have the data we need to assess the situation. I believe we need to make gathering that data a top priority.

The dilemma is this: As more businesses decide to move to Indiana, we need more workers to keep up with the resulting construction demand. But if we put out an urgent call for workers, and if we make too big of a deal about a “worker shortage,” we run the risk of turning away businesses that worry we don’t have the workforce needed to complete their projects on schedule. In other words, we could cause a panic.

I’m acutely aware of this dilemma because I’m often asked if we’re short on workers and, if so, by how much. Unfortunately, it’s hard to provide perfectly accurate answers to those questions because the data about Indiana’s construction workforce need is limited and flawed. For example, one calculation that’s bandied about is based on the workforce needed to cover all promised projects, even though many announced projects never materialize. Another calculation looks at proposed projects but assumes—somewhat arbitrarily—that about half of them will come to fruition. Others use different approaches.

These various calculations from reputable research firms suggest the state needs somewhere between 10,000 and 250,000 additional workers over the next three years. That’s a huge gap. You could say it’s the difference between complete calm and outright panic.

Here’s what we know: Indiana is attracting record investment. In the last two years, the state secured some $50 billion in commitments from companies planning to locate or expand here, which is more than the state secured in the previous 10 years combined.

It’s no secret why businesses come to Indiana. We offer things like a reasonable cost of living, a famously productive workforce, good infrastructure, a reasonable tax climate and a strong network of colleges and community colleges. Combine that with strong state leadership that’s willing to work with industry, and you get big growth.

The good news is that I’m not hearing of any projects being delayed by labor shortages. We seem to be meeting current needs. On the other hand, I know industry is having a hard time finding the qualified workers it needs. Plus, we know a lot of current workers are approaching retirement age, so we’re on the verge of losing a strong cohort of experienced workers—but we don’t know how many.

Everybody who’s ever run a business knows you can’t operate without data. You can’t tell where you stand, and you can’t project your needs. Right now, the state’s construction industry is essentially operating without essential workforce data.

The state is doing a good job of making workforce development a priority. Let’s complement that good work with a collaborative process—involving the construction industry, the state and higher education—to identify sound predictive workforce models that can give us a solid grasp of where we stand and what we need to do. Let’s engage best practices and the newest tools, including artificial intelligence, to get to the best numbers we can.

Then, once we know what we really need, let’s make sure we’ve got programs in place in our K-12 schools, colleges and communities to meet that demand, ensuring that the only thing on fire in Indiana is the state’s ability to attract—and meet the construction needs of—business.•

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Price is president of the Indiana Construction Roundtable Foundation.