The construction industry is a cornerstone of economic development, contributing 4.3% to the U.S. GDP and employing about 8.4 million individuals. However, the industry faces a significant challenge: a persistent shortage of skilled craftworkers. This shortage has led to cost overruns, schedule delays, and lower quality in construction projects. Addressing this issue requires a focus on attracting, hiring, training, and retaining quality craftworkers. This research summarizes key insights from a comprehensive study on craftworker training, its impact on workforce performance, and the broader implications for the industry.

Research in collaboration with Chris Harper and Cecelia Anakor from Colorado State University

Research Report
Research Report (abridged)
Guidance Document
Models of Craft Training White Paper
Performance Metrics White Paper

The ROI of craft worker training in the construction industry has been an important focus due to the industry's persistent labor shortage and the aging workforce. Studies on this topic indicate that investing in craft training yields positive returns for companies through improved productivity, reduced turnover, and lower absenteeism.

Historically, studies by Cox and Issa (1999) and the Construction Industry Institute (RT-231 report) have provided foundational data. For example, Cox and Issa's research suggested that even a small increase in daily productivity—around 11 minutes per day—could justify training investments. Similarly, RT-231 found that a 1% investment of the total labor budget into training could result in up to a 3:1 benefit-to-cost ratio, considering improvements across key factors like productivity, safety, and turnover.

More recent findings, like those from Ramadan et al. (2023), reaffirm that craft training significantly boosts worker performance across productivity, quality, safety, and attendance. The cumulative impact of such improvements translates into tangible economic benefits, encouraging companies to continue investing in technical skill development. However, the diversity of training models and the complexity of calculating a universal ROI remain challenges, leading to calls for a more standardized and replicable ROI measurement framework for the industry.

ROI of Craft Training White Paper
NCCER ROI Craft Training Survey (pdf)
NCCER ROI Craft Training Survey (link to live survey)

Women in construction are increasingly breaking barriers in a traditionally male-dominated industry, taking on roles in both the field and office, including skilled trades and leadership positions.

Fact sheets present relevant, research-based data in a quick and easily transportable format. We welcome their use to support construction industry efforts.

The blog shares perspectives on research and reports in the construction industry.

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