The construction industry in North American is at a turning point. After growing 4.5% in 2024, the United States construction sector now expects a sharp slowdown with forecasted growth of only 1-2% in 2025. At the same time, Canada’s construction sector shrank by 1.8% in 2024 but shows signs of bouncing back. These different paths reveal deeper challenges that are changing how successful contractors plan their workforce.

In a recent video, Bridgit’s co-founder Lauren Lake shared insights from talks with dozens of top contractors across North America about handling this uncertainty. What emerged wasn’t a story of companies simply waiting for better times. These contractors see uncertainty as a chance to innovate. They’re using proactive workforce strategies that build strength and create advantages over competitors.

The new reality of construction uncertainty

Multiple forces create today’s volatility in construction. Proposed tariffs on steel, aluminum, and lumber imports could significantly raise construction costs. Interest rates have stayed high, with mortgage rates expected to remain between 6-7% through 2026, keeping residential construction under pressure. The freezing of major infrastructure programs creates project uncertainty, potentially pulling back billions in committed funding.

But contractors face a bigger challenge than economic problems or regulatory changes. It’s the workforce crisis. The United States needs 439,000 additional workers in 2025 to meet demand, while Canada faces a recruiting gap of over 85,000 workers by 2033. With 41% of the current workforce set to retire by 2031, contractors face an unprecedented talent squeeze. Good workforce management isn’t just helpful anymore. It’s necessary for survival.

This mix of economic uncertainty and worker shortage creates a perfect storm for contractors. Old approaches to workforce planning, built upon spreadsheets and quarterly reviews, can’t keep up with today’s rapid changes. The contractors who succeed see uncertainty differently. They don’t see it as a threat to survive, but as a chance to improve their operations.

Strategy one: Expanding markets through hidden expertise

In the video, Lauren explained how contractors in markets like Seattle and Chicago have faced slowdowns in high-rise work. They’re switching to special projects, public work, or moving into growing sectors like industrial or mission-critical construction. But many firms make a mistake here in thinking they lack the experience to compete in new markets. This causes them to miss opportunities.

Most companies have much more relevant internal experience than they think. It’s just hidden. As one contractor shared: “We didn’t bid this project because we didn’t think we had someone with the right experience, and then we realized a week later that so-and-so down the hall actually worked on a project just like this one at their past employer.”

This knowledge gap costs companies money. When construction firms don’t know what skills exist in their workforce, they miss out. They pass on profitable projects, miss growth opportunities, and fail to use their full competitive potential. Employees with valuable experience feel underused. This leads to lower job satisfaction and more people leaving.

Smart contractors fix this by getting serious about finding workforce information. They create complete profiles that capture more than current roles. They include past project experience, special training, career goals, and client relationships. This change from reactive to proactive talent management helps firms spot expansion opportunities with confidence. According to Bridgit’s 2025 State of Workforce Planning report, 73% of construction leaders consider a project team’s collective experience “very significant” in creating successful project outcomes.

Think about a mid-sized general contractor wanting to build data centers. Through workforce planning, they find that three project managers have relevant experience from past employers. Two superintendents completed special mission-critical training. Several team members have existing relationships with key data center clients. What seemed impossible at first soon becomes a strategic opportunity for their firm.

The benefits go beyond chasing projects. When employees see their full range of skills recognized and used, they become more engaged. They feel valued for everything they bring, not just their current job. This recognition keeps people around, which matters even more as construction robotics and automation will only handle repetitive tasks. Experienced human talent becomes even more valuable for solving complex problems and building relationships.

Strategy two: From quarterly to real-time forecasting

The second major change from the video involves how often companies forecast. Project timelines face unprecedented volatility with cancellations, delays, and scope changes. The old quarterly forecasting model doesn’t work anymore. Leading contractors now update their forecasts weekly or even daily. Workforce planning has evolved from an “as-needed” task into an ongoing strategic function.

This shift needs more than just meeting more often. It requires rethinking how construction firms capture and use project pipeline data. The video stressed one key factor: CRM hygiene. When pursuit data only exists in people’s heads or scattered spreadsheets, rapid forecasting becomes impossible. Teams need centralized, accurate, and accessible data to make smart decisions quickly.

Agile forecasting does more than help avoid layoffs. Research shows that construction firms using advanced workforce management systems report up to 80% reduction in scheduling time. This frees management time for strategic activities. This efficiency becomes crucial when markets demand rapid changes.

Scenario planning shows another step forward in forecasting. Rather than creating one “most likely” forecast, leading contractors can develop multiple scenarios for different market conditions. They test these plans against various assumptions about project wins, timeline shifts, and worker availability. This approach turns forecasting from a compliance task into a strategic advantage.

A contractor might develop three scenarios: An aggressive growth plan if certain pursuits come through, a steady plan that maintains current operations, and a defensive plan that accounts for a potential downturn. By keeping tabs on all three scenarios at once, leadership can make faster, more confident decisions.

The psychological impact matters too. When teams clearly see various futures and understand what triggers different scenarios, uncertainty becomes less scary. Employees gain confidence knowing their leadership planned for multiple possibilities. This transparency reduces worry and helps keep top talent who might otherwise look for more stable jobs.

Strategy three: Breaking down silos for enterprise-wide agility

The third strategy might be the biggest cultural shift. It treats workforce planning as a company-wide capability rather than a market-by-market function. The video noted that companies with multiple offices face a common problem: Some regions boom while others slow. Traditional organizational structures prevent efficient resource sharing.

The numbers support this approach. Construction companies using complete workforce management strategies achieved 10.6% improvements in labor utilization, saving nearly $1 million during implementation. These gains don’t come from working people harder. They come from working smarter through strategic resource deployment.

The challenge isn’t mainly technological. It’s cultural. Regional managers naturally want to keep their best people close. This creates organizational silos that prevent the best resource allocation. The video showed how the fastest-adapting companies operate like well-coached teams. They break down territorial behaviors to make strategic plays with existing talent.

This shift requires new metrics and incentives. Rather than judging regional managers only on local performance, progressive firms include company-wide utilization metrics. They reward leaders who share resources strategically, even if it temporarily reduces their local capacity. Aligning incentives with organizational goals drives the cultural change needed for true workforce agility.

The benefits grow over time. When employees work in different markets, project types, and teams, they develop broader skills and stronger internal networks. This cross-pollination of expertise strengthens the whole organization. A superintendent who splits time between residential projects in Chicago and commercial work in Dallas brings insights that help both markets.

Technology plays a key supporting role. Modern workforce management platforms provide real-time visibility into resource availability across all offices. They support smooth handoffs, maintain project continuity, and make sure institutional knowledge travels with relocated team members. This technological foundation makes company-wide workforce planning practical.

Gaining a competitive edge with an integrated workforce strategy

These three strategies work together to create competitive advantages beyond surviving uncertainty. Companies that effectively find hidden expertise can confidently pursue new markets. Those with agile forecasting can optimize resources across their whole company. Firms that break down silos can use their full workforce potential regardless of location.

The impact on business development stands out. When contractors see their workforce capabilities and availability completely, they can pursue opportunities more strategically. They know exactly which projects they can deliver successfully and which would stretch resources too thin. This precision in pursuit strategy improves win rates while reducing overcommitment risk.

The results can be substantial: Financial performance improves measurably. Beyond direct labor savings from better utilization, contractors report fewer project delays, less rework, and happier clients. These operational improvements create stronger margins and more predictable cash flows. This provides stability even in volatile markets.

These strategies position contractors for long-term success in a changing industry. As construction technology keeps advancing, firms that already modernized their workforce planning will best integrate new innovations. They’ll have the data foundation, cultural readiness, and operational flexibility to adopt new technologies that further improve their competitive position.

Moving forward with strategic workforce planning

The construction industry’s current uncertainty is real, but it doesn’t have to paralyze companies. Contractors thriving now show that volatility can drive positive transformation. By using strategic workforce planning that finds hidden expertise, allows agile forecasting, and promotes company-wide resource sharing, firms turn market challenges into competitive advantages.

For contractors ready for this transformation, solutions like Bridgit’s experience tracking capability offer a practical start. By automatically capturing and organizing workforce experience data from project assignments, firms unlock the hidden expertise in their organizations. This creates the foundation for confident market expansion, strategic team composition, and data-driven decisions that separate industry leaders from those just trying to survive.

The path forward is clear. In an industry facing unprecedented workforce challenges and market volatility, strategic workforce planning has changed from nice-to-have to competitive necessity. In fact, Bridgit’s research reveals that 98% of construction leaders plan to invest in workforce planning technology within the next 12 months, with 99% planning to invest at least $100,000. The contractors who recognize this shift and act today will shape the industry’s future tomorrow.