Unlocking Competitive Advantages: Talent Planning for Construction in 2026 and Beyond

By Adam Cosola & Jason Epstein, CTC – Talent Partners

What should you do when your workforce is shrinking, your project backlog is increasing, and you’re competing for the same limited pool of talent?

In the Midwest’s construction industry, these are no longer hypothetical questions; they are a reality. As recruiters specializing in the Architecture, Engineering, and Construction (AEC) and Real Estate sectors, we’ve noticed a growing urgency among our clients to prepare for the future. Consequently, they are planning their hiring strategies as far out as 2026. This evolution in traditional talent planning has led us to explore the underlying reasons for this shift in forward-thinking strategy.

In this article, we’ll share key insights gathered from industry leaders, including the reasons behind this shift and the roles that are becoming more competitive to fill. Through collaborations with our clients, we have identified several factors driving this change.

1. Tackling Workforce Gaps Amid Retirement Projections

The National Center for Construction Education and Research (NCCER) estimates that about 41% of the construction workforce may retire by 2031. As a result, the need to fill positions at all organizational levels is becoming increasingly urgent.

What companies can do:
To prepare for potential retirements, companies can take the following proactive steps:

• Identify critical roles within the company and begin finding possible successors.
• Develop strategies such as mentoring programs or detailed policies, procedures, and other documentation to ensure that knowledge and skills are transferred from retiring employees.
• Invest in training to equip employees with the necessary skills to assume new responsibilities.
  
  

2. Proactive Hiring to Tackle Project Backlogs

Some contractors are managing backlogs that stretch up to three years. These contractors are dedicated to proactively engaging with potential candidates early, recognizing the importance of creating a strong talent pipeline for the future.

What companies can do:

• Understand and budget for the costs associated with salaries and onboarding future hires.
• Review the organizational chart to identify any missing roles or positions needed for upcoming projects. Create a plan to define these roles and establish an appropriate timeline for hiring.
  
  

3. Securing Top Talent for High-Demand, Hard-to-Fill Roles

Positions in Preconstruction/Estimating, Sales, and essential back-office functions such as Accounting, Finance, and HR continue to be especially challenging to fill. Given the difficulty in hiring for these roles, contractors have become increasingly eager to interview qualified candidates.

What companies can do:

• Engage proactively with potential future hires to build relationships, understand their skills, and evaluate how these align with your short- and long-term strategic goals.
  
  

Why Talent Planning Matters: Clear Competitive Advantage

Talent planning isn’t merely about filling roles; it’s about actively cultivating relationships. With waves of retirements approaching and demand rising, companies that adopt a strategic, proactive approach to recruiting will gain a clear competitive advantage.