The shortage of skilled workers affects the industry’s capacity to operate safely, especially as the demand for complex projects continues to rise.
The construction industry is expected to continue expanding rapidly while simultaneously facing a significant labor shortage of over half a million workers, resulting in an all-time high number of open job positions. Many of those filling these roles are newcomers to the industry, often lacking experience or formal safety training. This exacerbates risks and creates additional challenges for loss prevention.
At the same time, larger projects demand a greater workforce and an increased focus on safety oversight. This is driven by a mix of local, state, and federal regulations, insurance requirements, and contractual stipulations from project owners.
In regions like New York, the Department of Buildings (DOB) is under considerable pressure to approve more educational programs to meet the rising demand for construction training. From 2019 to 2024, the number of training providers has grown from 86 to 161, with 15 more new providers recently announced. However, the rush to meet training demands has led to concerns about the thoroughness of the DOB’s vetting process for new program applicants.
The shortage of skilled labor poses a challenge to the industry’s ability to provide comprehensive safety services, even as a growing number of complex projects requires a well-trained workforce.
The Crucial Role of Safety and Training
Investing in advanced safety and training education is vital to protect construction workers, reduce injuries, and minimize workplace hazards, all while benefiting the project’s financial success. According to the Occupational Safety and Health Administration (OSHA), the majority of construction fatalities fall into four categories:
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Falls
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Being struck by objects or equipment
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Electrocutions
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Being caught in or crushed by collapsing structures, materials, or machinery
Any injury on a construction site can lead to a worker being sidelined, often resulting in workers’ compensation claims. While some accidents are unavoidable, many can be prevented with proper safety training and protocols in place. Expanding safety training programs—such as those for fall prevention, scaffold safety, pre-task meetings, and toolbox talks—helps workers understand safety standards and practices, reducing the likelihood of injuries and fatalities. This, in turn, lowers a company’s Total Cost of Risk (TCOR).
On-site safety professionals are essential in overseeing project safety, ensuring adherence to protocols, and mitigating risks before accidents occur. Recent incidents, such as the preventable death of a worker in New York due to false credentials from a training facility, highlight the importance of partnering with reputable training providers. Ensuring that workers are properly trained on the latest industry standards before they begin any job is crucial. Organizations with industry-recognized certifications and endorsements are a reliable source, confirming their commitment to upholding safety standards and offering up-to-date, compliant training.
Impact of Shifting Jurisdictional Requirements
Cities like New York City (NYC) and Boston have introduced strict regulations mandating increased training for workers and supervisors on job sites. These measures have already shown positive effects. For example, the 2022 NYC Construction Safety Report highlighted a 27% reduction in injuries on building construction sites from 2018 to 2022, following the enforcement of Local Law 196. This law mandates that workers on large projects complete a designated number of hours of safety training before they can work on a site.
However, the focus on safety training should not be limited to areas with stringent regulations. In an industry that operates under tight deadlines, it can be tempting to cut corners by skipping essential safety training and hiring untrained staff. Despite this, the advantages of maintaining a well-trained and safer workforce far outweigh any short-term gains from skipping this critical step. Strengthened safety measures not only reduce the risk of injury or fatality but also improve site conditions, decrease the Total Cost of Risk (TCOR), and reduce liability for general contractors.
Insurance Considerations
With rising insurance premiums and an increase in self-insured risks across the construction sector, the need for robust loss prevention strategies, procedures, and professional services is becoming more critical. Insurers, brokers, and sponsors are looking to collaborate with specialists who can provide the necessary tools and expertise to improve outcomes and manage costs.
Ensuring that all workers complete safety training can help reduce TCOR across the duration of a project. Additionally, certifications from recognized programs could potentially lead to lower insurance premiums.
Contractors and construction firms can greatly benefit from hiring loss prevention consultants with expertise in safety, environmental health, special investigations, and emergency medical services. These professionals can identify operational risks and provide actionable recommendations to improve safety strategies, saving both time and money in the long run.
Achieving Optimal Results
Although the construction industry is experiencing growth, it faces challenges, such as a shortage of skilled labor and increasingly complex projects. To address these challenges while maintaining safety and cost efficiency, the industry must prioritize safety training. By investing in comprehensive safety programs, partnering with reputable training providers, and rigorously following safety protocols, companies can ensure a safer work environment, mitigate risks, and reduce overall costs. By integrating safety and loss prevention into every phase of a project, particularly when working with new employees, construction firms can comply with regulations and achieve better outcomes for both their workforce and their business.
