Ways to Overcome Rising Costs and Labor Shortage Without Sacrificing Quality


The labor shortage in the trades has increased costs and prolonged building projects for many of our clients. Increases in material costs have only aggravated the problem for the construction industry, making profit margins narrow even further. This is largely due to an increase in energy costs, as well as tariffs on raw materials. Being proactive and finding ways to reduce the cost of materials and being more efficient with labor will increase your bottom line! Here are some of the ways to do just that:

Utilize Modular and Off-Site Constructions

The costs can go down significantly with all of the efficiencies of modular construction. Bulk buying for supplies becomes more feasible because there can be multiple builds done in a warehouse all at once. Ultimately, this leads to a decline in both material and labor costs. In fact, the DODGE Smart Market Report found that 65% of companies using some sort of modularization or prefabrication say their budget went down because of it!

Hire Apprentices

With new allowances in apprenticeship programs, you can hire an apprentice without starting your own training program. Now you can access a registered apprenticeship program that’s managed by Madden in partnership with PCC. This means you can hire your needed craftsmen from a pool of apprentices, only when you need it to get a job done – and pay at different experience levels depending upon your budget.

Utilize Lean Construction

Lean Construction is essentially a workflow system that involves doing more pre-planning so that your building work is more efficient with higher productivity and less waste. When done right, all parties involved with the project will aim to finish project with as little energy use as possible. One of the side effects of this method is that there is more teamwork and accountability, which ultimately results in higher quality as well. Studies show that companies could reduce material waste by as much as 64% when implementing Lean Construction practices. And less waste means less material costs for you!

Implement Incentive Programs

Incentive programs have shown to increase employee satisfaction and get people excited about your company – which ultimately makes them more efficient and productive on the job. Research, in fact, shows that appreciation increases productivity by up to 50% and business outcomes up to 20%! Implement your own to make your craftsmen feel that they are a respected and valuable part of the team.

Use Tech to Improve Communication

There are a variety of field management software that can greatly increase efficiencies in both labor and materials with vast improvements in communication. Especially those that allow cloud-based storage so that anyone can access and collaborate on a project, with instant updates in real time. This enables you to better detect errors, instantly adjust labor and material needs, make quick decision-making on site, and overall improve your safety and building quality.


Don’t forget that Madden makes it easy for you to outsource any craftsmen, which helps reduce your in-house hiring and recruiting costs. Whether you need someone on staff permanently, or just temporarily for times when you don’t need a full-time position in-house, and you just need someone fast! Contact us to help you hire the talent you need to get the job done.