2026 REPORT
State of Workforce Planning
With no end in sight for labor challenges, construction leaders go all in on AI.
every leader surveyed
100%
say the labor shortage impacts how they operate
using ai in workforce planning
80%
already use AI in workforce planning
INTRODUCTION
There’s no hiding from the labor shortage.
When we first published this annual report in 2025, some construction leaders could still say the labor shortage hadn’t fully impacted their operations. That all changed in 2026.
To understand the complete story around how top construction leaders are managing their workforce, 91¶¶Òõ surveyed 250 construction leaders across operations, project management, and field operations, all at firms generating $100 million or more in annual revenue.
-
250
construction leaders surveyed -
63%
Director level, 37% VP or above -
$100M+
in revenue at every firm
01 — THE PROBLEM
The labor shortage got worse, and so did the costs
Most general contractors have some version of the same story: there is simply more work to do than there are people to do it well. What changed this year is that this pressure has officially reached everyone.
How the labor shortage has hit operations
Every impact grew compared with last year. The share reporting no impact fell to zero.
-
Increased costs
-
Burnout / extended hours
-
Decreased productivity
-
Delayed projects / missed
deadlines -
Decreased quality
- 2025
- 2026
-
When bidding
98%
weigh availability and capacity when deciding what to bid, up from 60%. -
Building a strong team
84%
name previous experience working together as a top factor, up from 44%.
02 — THE RESPONSE
Leaders are turning to technology, and a growing number say it’s working
Faced with a problem that hiring alone cannot fix, construction leaders are doubling down on technology to improve efficiency and reduce costs. Many are confident it will pay off.
86%
say workforce planning software can effectively address labor shortages
100%
now use dedicated workforce planning software
99%
consider HRIS integration essential
75%
want Al agents that can carry out planning tasks
03 — THE EDGE
Leaders are
loosening the reins
on AI
AI has graduated well beyond the experimental stage. What stands out now is not how many firms are using AI, but how much they are prepared to let it do.
-
AI adoption
80%
already use AI in workforce planning. -
Autonomy
38%
are open to AI acting on its own. -
Investment
98%
will invest at least $25K in AI tools next year.
How much should AI handle automatically?
Nearly all (99%) want AI doing real work. 38% would let it act on its own.
-
Draft recommendations — I review & approve
-
Handle routine decisions, escalate complex
-
Fully automate as much as possible
-
Just surface insights — I decide
-
Biggest barrier
52%
name lack of trust in AI recommendations as the top barrier, ahead of cost (37%).
KEY FINDINGS
Where construction leaders go next
The three main findings from the 2026 State of Workforce Planning tell a clear story.
-
01
The labor shortage is worse and more expensive than a year ago, and it shows no signs of improving. -
02
Leaders are responding by investing in purpose-built workforce planning tools, and their confidence remains high. -
03
AI has quickly graduated from a passive resource to an active team member, with many leaders ready to let it take real work off their plate.
THE TAKEAWAY
The firms that pull ahead will be the ones who use AI-powered workforce planning tools to access and act upon their workforce data.
GET THE FULL REPORT
Download the 2026 State of Workforce Planning
Findings from 250 constructions leaders across the US, Canada, the UK and Australia, all at firms generating $100 million or more in annual revenue.
