Are you a business owner, entrepreneur, or high-level executive in the construction industry feeling the impacts of the current labour shortage challenge? Have you observed how it’s affecting your productivity and cost efficiency?
In this blog, we’ll explore the ripple effects of the labour shortage on businesses in the construction industry and delve into how offshoring to the Philippines can be a strategic solution to help you navigate these currents.
Manpower Shortages in Construction
Numerous industries, including construction, are grappling with the ongoing labour shortage. Several factors have contributed to this current challenge, including the lingering effects of the recent pandemic. It is anticipated that this crisis will persist until 2030, with reports estimating approximately 85 trillion job openings will remain unfilled due to a shortage of qualified candidates.
The Associated Builders and Contractors (ABC) reported a data analysis released by the US Bureau of Labor Statistics, that the construction industry had 423,000 job openings on the last day of October 2023.
By the definition provided by the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS), a ‘job opening‘ is any unfilled position actively being recruited by an employer. They further reported that industry job openings decreased by 4,000 in October but are up by 25,000 from the same time last year.
These recent developments have triggered a ripple effect that may impact your company’s overall profitability. In the effort to attract and retain employees for sustained business operations, production costs have increased. Productivity has declined to accommodate worker’s compensation claims. Reports indicate delays in project completion and challenges with quality control. The reduction in manpower also necessitates a more selective approach to projects, resulting in higher costs to retain the existing workforce.
The Power of Outsourcing to the Philippines
In addressing the challenges of labour shortages in the construction industry, outsourcing to strategic locations – such as the Philippines – emerges as a crucial solution. Its versatility becomes a key asset, offering a dynamic approach to tackle manpower shortages. By strategically delegating tasks to specialised external partner BPO companies in the Philippines and maintaining an onshore champion to align your business with your team, construction companies can optimise operations and enhance profitability.
Outsourcing also allows companies to maintain focus on core competencies while efficiently managing workforce limitations. This not only mitigates immediate challenges but also positions construction businesses for sustained success in the face of a changing labour landscape.
You Can Benefit from Outsourcing to the Philippines
Offshoring to the Philippines offers significant advantages for Construction companies, leading to heightened efficiency and profitability. Key benefits include:
- Focusing on the core competencies of team members both on and offshore : leveraging a skilled workforce of architects, engineers, and project managers.
- Accessing a large pool of candidates across the globe.
- Onshore teams can focus on strategic high value tasks as routine lower value tasks are handle by offshore professionals.
- Offshoring allows companies to set up processes, through strategic task outsourcing
- Attaining efficient budget management
- Teams are agile and flexible, allowing companies to leverage resources according to their needs.
- The diligent work ethic of Filipino professionals contributes to increased productivity and quick project turnaround times.
Let us help you with your offshore strategy.
At optiBPO, we recognize the significance of overcoming manpower challenges in the global construction industry. The good news is that we bring a wealth of experience in guiding construction leaders through the intricacies of their offshore strategies — a fact substantiated by the number of our current clients within this industry. This way, we facilitate enhanced cost management without compromising on quality. Our proven strategies span the entire project lifecycle — from meticulous planning and effective management to streamlined business processes.
Partnering with optiBPO empowers you to confidently navigate the complexities of implementing offshore strategies – ensuring sustained profitability and successful business outcomes. Your success is our commitment at every stage.
Contact us today to learn how you can get started.