Preparing the Next Generation of Construction Leaders

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

This year has brought significant challenges for many of our clients. Amid economic shifts, project delays, and labor uncertainty, one concern has become increasingly common in conversations with construction leaders: the difficulty of attracting qualified younger employees and the growing struggle to replace retiring leadership.

The aging workforce in the construction industry is part of a broader trend that has been developing for decades. According to the U.S. Bureau of Labor Statistics (BLS), the median age of construction workers has steadily increased from 38 in 2000, to 41 in 2010, and now 42 in 2024. As experienced professionals near retirement, many companies are facing a critical leadership gap, without a strong pipeline of younger talent to step into those roles.

Not only are there fewer young workers entering the construction industry who can grow into leadership roles over time, but the current aging workforce typically brings increased claim frequency and severity, elevating both operational and insurance costs.

How can construction companies proactively address this issue and build strong, future-ready leadership teams?

• Support a local construction-focused outreach organization
  There are many organizations across the U.S. that are actively working to promote the industry to younger generations. In San Diego, for example, the Future Construction Leaders Foundation (FCLF) provides opportunities for young people to investigate the construction industry as a potential career. Listen to our podcast episode #510 where FCLF talks about their mission to inspire the next generation through hands-on programs, impactful camps and mentorship.

• Educate young people on real earning potential
  Offer to speak at a local high school or community college about the strong wages available in the skilled trades, especially compared to many entry-level roles.

• Promote the advantage of debt-free career paths
  With local students, emphasize the ability to earn while learning, with little or no student loan burden.

• In job posts, position construction as a stable alternative to shrinking remote work opportunities
  As remote work availability declines across many sectors, construction offers reliable, location-based work with long-term security.

• Define clear growth paths within the company
  Young employees need to see what their future looks like if they were to stay with your company, long-term. Invest in mentorship, leadership development, and transparent career progression plans.

Some potential young employees may not see construction as a viable career path. To attract the best of the youth, they need to see construction as a career opportunity. While this is not an easy issue to fix, it is becoming more and more relevant. Staying ahead of this issue is paramount to the strength and viability of your company’s futures.

If you have any questions related to this topic or any other insurance issue, please feel free to reach out to me directly at (619) 438-6900 or email me at ccraig@ranchomesa.com.