U.S. contractors wasted between $30 billion and $40 billion in 2022 due to labor inefficiencies, and it appears to be getting worse, according to a new survey from FMI Corp.
Nearly half of respondents (45%) said they saw declining labor productivity on their jobsites in the last 12 to 18 months, compared to 23% who claimed improvements. The report describes labor as “the largest, riskiest, yet most controllable variable cost” in construction and said that these problems could worsen in coming months.
The report emphasizes construction’s already thin labor margins, and respondents estimated the industry could have saved $25 billion of the wasted funds with improved management practices.
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