The 2025 Dodge Construction Workforce Survey confirms what many of us already feel: this is no longer just a labor shortage — it’s a workforce disconnect. And for small to mid-sized construction companies (between $1M–$100M in revenue), this gap is becoming a serious barrier to growth, profitability, and long-term sustainability.
But the problem isn’t simply a lack of people.
It’s that the industry is solving yesterday’s problem with yesterday’s tools — while a new generation of workers expects clarity, mobility, culture, and meaning.
The Hard Numbers Contractors Can’t Ignore
- 73% of contractors report that labor shortages will continue to negatively impact business in 2025.
- Fewer than 1 in 10 workers outside the industry are actively pursuing a job in construction — even though over half say they’re open to it.
- Contractors rank “compensation” as the top way to attract workers, but workers rank “culture, safety, and development” even higher.
The biggest disconnect?
Contractors underestimate the importance of work-life balance, safety, and career growth. Workers say these are non-negotiables.
What This Means for SMB Contractors
Small to mid-sized firms may not have the brand clout or resources of national players, but they have a critical advantage: agility. You can reposition faster, invest more intentionally, and build loyalty more deeply than a giant GC or developer.
Here’s what that looks like in real terms:
1. Fix the Frontline Culture First
Many business owners assume recruiting is the problem — but in reality, retention starts on the jobsite.
- 57% of potential workers cite unsafe working conditions as a reason for avoiding construction.
- But only 15% of contractors see safety as a primary concern for attracting talent.
If your foremen don’t lead well, if your team ignores PPE rules, or if your worksite feels chaotic, word spreads — fast.
Action: Conduct a “culture audit” of your crews. Survey new hires anonymously. Ask: Would you refer a friend to work here?
2. Modernize the Recruitment Funnel
The new generation doesn’t find work through word-of-mouth or union halls alone.
- Jobseekers aged 18–34 rely on Google, YouTube, and social media to research career options.
- Only 4% of contractors use social platforms to actively recruit.
Action: Post behind-the-scenes jobsite content. Show “a day in the life” of your crew. List career paths (not just wages). And optimize your Google Business profile — not just your website.
3. Offer Structured Skill Development — and Market It
Only 29% of workers believe construction offers clear career progression, even though many companies do offer training. The issue? You’re not communicating it clearly.
Action:
- Name your internal training levels or skill bands (“Level 1 Carpenter,” “Crew Lead Trainee,” etc.)
- Build a visual growth map that connects skills to pay — and use it in recruiting
- Track training hours and promote from within
4. Reframe Flexibility Without Sacrificing Output
No, you can’t offer remote work — but you can offer flexibility:
- Compressed workweeks
- Rotating days off
- Light-duty transitions for injured workers
The myth that construction is “all-or-nothing” keeps many great candidates away.
Action: Pilot a flexibility policy on 1–2 crews. Track morale and productivity.
5. Redesign How You Tell the Construction Story
The Dodge report made this painfully clear: the public doesn’t see the construction industry the way we see it.
They think it’s low-tech, physically punishing, unsafe, and transactional.
We know it’s innovative, essential, and career-building.
But if you’re not actively shaping the narrative, someone else is.
Action:
- Share real stories of workers buying homes, leading crews, or learning skills
- Talk about your safety culture, tech adoption, and family atmosphere
- Partner with high schools and trade programs to present live demos or mentorship
Bottom Line: The Labor Problem Is a Leadership Opportunity
The Dodge report gives us clear data — but it’s what we do with it that matters. SMB construction companies that modernize their messaging, upgrade their culture, and systematize skill-building will thrive.
Those that ignore the shift?
They may still win bids — but they’ll struggle to staff them.
You don’t need a bigger workforce. You need a better strategy for attracting and keeping the right one.
If you’re a small to mid-size contractor and want help designing a recruitment or workforce development strategy that fits your scale, let’s connect.
