The last 12 months have further exposed a critical vulnerability in the construction industry: persistent labor shortages throughout the supply chain. From warehouses and distribution centers to delivery drivers and jobsite crews, the construction ecosystem continues to grapple with a talent gap that affects everything from project timelines to product availability.
These shortages have reshaped how businesses plan, hire, and serve customers — and while some short-term adjustments have worked, long-term strategy is now more important than ever.
Here’s what we’ve learned from the past year of navigating labor shortages in the construction supply chain — and how distributors and suppliers are adapting.
1. Labor Gaps Are Now a Systemic Challenge — Not a Temporary Disruption
Twelve months of data confirm what many feared: labor shortages are here to stay, especially in skilled trades and supply chain logistics.
Key Observations:
Open positions for warehouse workers, CDL drivers, and yard crews have remained high, with turnover rates exceeding 20–30% in some regions.
Skilled trades — especially framing, roofing, and concrete crews — continue to face a generational talent gap as older workers retire.
Automation, recruiting incentives, and outsourcing haven’t fully closed the gap.
What We Learned:
This is no longer a temporary issue — long-term workforce strategy must be built into business planning.
2. Labor Shortages Are Increasing Lead Times and Delivery Variability
With fewer hands in the yard, on the road, or in the warehouse, materials are taking longer to pick, load, and deliver — even when inventory is available.
Key Observations:
Delivery delays increased by an average of 1.2 to 2.4 days in regions facing acute labor constraints.
Missed time windows due to staffing shortages frustrated contractors and led to increased churn.
Partial shipments became more common due to under-resourced fulfillment teams.
What We Learned:
Distributors that proactively communicated delivery timelines and capacity limitations saw better customer retention than those who overpromised.
3. Flexible Scheduling and Cross-Training Became Key Retention Tools
Retention was just as critical as hiring. The most resilient companies improved workforce stability by offering flexible hours and investing in cross-functional training.
Key Observations:
Distributors that cross-trained employees across warehouse, customer service, and dispatch functions maintained smoother operations.
Flexible shift options helped attract younger workers and reduced burnout.
Employee engagement programs correlated directly with reduced turnover.
What We Learned:
Retention strategy matters as much as recruiting. Keeping good people is cheaper — and smarter — than constantly refilling roles.
4. Technology Adoption Accelerated Out of Necessity
To offset labor shortages, many firms doubled down on technology — from inventory automation to delivery routing software and mobile jobsite tools.
Key Observations:
Use of warehouse scanning tools, digital load tickets, and mobile driver apps increased significantly.
Quoting, order tracking, and customer service portals saw higher usage as inside sales teams faced bandwidth issues.
AI-powered demand planning tools helped reduce overstock and last-minute replenishment needs.
What We Learned:
Technology isn’t replacing people — it’s enabling leaner teams to perform at a higher level.
5. Labor Shortages Drove a Shift in Product Mix and Packaging
Some suppliers responded by adjusting product offerings to reduce labor intensity, both in handling and on the jobsite.
Key Observations:
Pre-assembled, pre-cut, or palletized product bundles gained popularity among contractors.
Light-weight alternatives and easier-to-handle packaging were preferred over labor-intensive materials.
Customers increasingly asked about products that reduce install time and jobsite labor.
What We Learned:
Product innovation that saves labor — in the warehouse or on-site — is now a competitive differentiator.
6. Customer Expectations Shifted Toward Transparency Over Speed
Contractors understood the labor issue — as long as they were kept informed. Companies that practiced transparent, proactive communication maintained trust.
Key Observations:
Customers preferred a realistic, consistent delivery promise over a fast but unreliable one.
Portals showing live order status helped reduce inbound service calls.
“Silent delays” led to lost business more than extended timelines with updates.
What We Learned:
Communication is a service metric. The distributors who communicated well kept their customers.
7. Hiring Now Requires New Channels and Employer Branding
Traditional recruiting channels haven’t kept up with labor demand. Distributors are now tapping into social media, community partnerships, and employer branding to attract new talent.
Key Observations:
Job postings with clear paths to advancement and training incentives attracted more qualified candidates.
Employee referral programs delivered higher-quality hires than third-party job boards.
Younger candidates responded better to mission-driven messaging and workplace culture than job duties alone.
What We Learned:
To win the labor war, distributors must think like marketers — and sell the opportunity, not just the job.
Conclusion
The last 12 months have proven that labor shortages in the construction supply chain are a strategic issue, not a short-term inconvenience. Companies that approached the challenge with flexibility, technology, and workforce-first thinking emerged stronger, more resilient, and more trusted by their customers.
The lesson is clear: Building a modern supply chain isn’t just about inventory or infrastructure — it’s about investing in people, processes, and adaptability.
