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How to Solve Your Construction Labor Shortage

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Still looking for the proverbial easy button to fill your talent pipeline? We hate to break it to you: there isn’t one.

“If you’re in this industry and not being the biggest promoter of it, you’re part of the problem,” says Benjamin Holmgren, president of Buildwitt Jobs. “You’re not going to solve it for the industry. Solve it for you.”

Holmgren was joined by Natasha Sherwood, executive director of the Independent Electrical Contractors Florida West Coast Chapter, and Steve Cona III, president and CEO of the Associated Builders and Contractors Florida Gulf Coast Chapter, in a recent panel discussion led by Autumn Sullivan, director of marketing and experience for Mobilization Funding.

The panel explored the issue of why skilled trade workers are leaving the industry, the impact of culture on recruitment and retention, and what companies can do to increase their talent pipeline.

Recruiting and retaining the next generation

So, can everyone stop blaming millennials already? Continuing to drone on about how millennials lack worth ethic is so 2010. Older millennials, those born in the 1980s, are established and in positions of power in their careers. Where the industry needs to focus its attention is Gen Z and Gen Alpha. 

“I don’t believe it’s so much a labor shortage, as a shortage of leaders who know how to lead the next generation,” said Holmgren. “Kids my age want to have a mission to get behind. They want to have a vision. They want to be led, trained and developed.”

The companies that have solved this understand this workforce development crisis is not about millennials. “Taking ownership of solving this for your company is the elixir,” said Holmgren.

Shop class makes its comeback

Getting in front of Gen Z and Gen Alpha starts in school. Trade education in middle school and high school was nearly extinct but is slowly making a comeback. Until there is wider support for the curriculum at a state and district level, getting involved at an individual level is critical.

Construction companies can help through apprenticeships and mentor programs. Contractors involved in mentorship see better hiring success because they already have name recognition with students, panelists said.

“The greatest benefit to our industry would be a solid pipeline out of high school and into the trades,” said Cona. “It has to be a statewide effort in our educational system to promote opportunities in all occupations that don’t necessarily require a four-year degree. The average age of our apprentice is 26-27 years old, and we have to get that lower to 21-22 years old. It can’t be an afterthought.”

Outside of local efforts, Holmgren suggests meeting the younger generation where they are online.

“It’s one thing to put on a trade show or job fair, but what about Instagram? TikTok? One thing you can start doing today is using social media to tell the story of your business and show people what it’s really like to work in your industry. It’s not that you have to make it look cool; the trades are already cool. Come join us – that’s what we need to be telling people.”

Work culture in construction 

Taking ownership of the construction recruitment and retention problem also means taking a hard look at company culture. For better or worse, every company has a culture. How that culture has evolved depends on how it is emulated and nurtured daily.

Work culture has been cited as a major factor in many skilled-trade veterans leaving their employer or the industry entirely. While culture is a hot topic in the construction industry, and often framed as something only young people are pushing for, it has a significant impact on retention across the board.

“You can tell that no matter the age of the employee, they are all looking for a culture that has a family atmosphere, opportunities for advancement, flexible hours and good benefits,” said Sherwood. “I just helped a fourth-year apprentice graduate who had an opportunity to go anywhere. He took a job at a company that paid $2 less an hour because it was a good fit. There’s that level of appreciation that is sometimes more important than the dollar bottom line.”

Alternative talent pipelines

Beyond young people, there are many other viable talent pools and untapped markets to help fill the skilled-worker pipeline. Correctional institutions, foster care systems and the military are just a few options.

“We’re looking for all sorts of avenues to fill that pipeline, and one of those is folks coming out of corrections,” said Cona. “We’re getting asked by state leaders and politicians to work with them to help develop skills while people are still incarcerated. So whenever they get out, they can get plugged back into society. If you can give people opportunities and jobs when they get out of being incarcerated, their chances of going back are very slim.”

“The military does a great job recruiting kids, with ROTC officers and billboard campaigns,” said Sullivan. “The trades need to be seen as a viable option. You can feed your family, you can travel around the country – there’s a lot of opportunity depending on where you want to go with it.”

Continuing education for retention

While there are required continuing education credits in the construction industry, employers should also consider training that provides employees with a path toward a goal they value, such as moving from apprentice to superintendent.

“In this day and age in this economy, you have to invest in training your workforce. There are no unemployed electricians and plumbers sitting on the sideline,” said Cona. “You have to build your pipeline by investing in people who might not necessarily have the skills that you need at that time. Invest in your employees, train them, put them in apprenticeship programs and maintain it through their lifecycle as an employee.”

An engaged employee is someone who stays with you.

Changing the narrative

While the narrative that construction is a dead-end job is a systemic problem, individual companies can start making strides today to reframe the conversation and illuminate the opportunities.

“This country was built because people learned skills, created things and built things. No one can say this country was built because people went to college. That’s what we need to continue to push,” said Cona. “As parents, as an industry, we need to be better at pushing the narrative that this is a viable option.”

“Don’t people get tired of talking about finding good help?” adds Holmgren. “We know you can’t find good help. Do something.”

“I’m not interested in solving the industry’s labor-shortage challenge, but if there is one person who can take something from this and it lights a spark and they can solve it for them, that’s a win.”

Watch the full webinar here.

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Cat’s Next Generation 255 and 265 Get More Power, Lift Height

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Caterpillar is bidding farewell to its 259D3, 279D3 and 289D3 compact track loaders with the introduction of its new, next-generation 255 and 266 models.

The completely redesigned models debuted at media and customer events at Caterpillar’s Edwards, Illinois, Demonstration and Learning Center last week. The 255 and 265 offer improved engine performance, more lift height, a roomier cab and more standard technology than their predecessors.

“We kept the DNA of the D3 series while reimagining the possibilities of loader performance using voice of customer feedback to lead the way,” says Trevor Chase, product application specialist for Caterpillar. “Both next-generation models leverage the many benefits offered by the vertical lift design. The new Cat 255 replaces the 259D3, while the 265 replaces both the 279D3 and 289D3 machines.”

The CTLs are the last of Cat’s building and construction products to get the next-generation treatment and simplified nomenclature. The first number (2) represents the skid steer loader and compact track loader machine family; the middle number (5 or 6) designates the machine size; and the ending number (5) is the compact track loader identifier. Skid steers will be identified by a 0 end number. Additional new models will roll out in the coming months, the company says.

Caterpillar 265 compact track loader carrying a blockCaterpillarMore power and torque

Cat equipped the 255 with a C2.8T engine and the 265 with a C2.8TA engine, both at 74 horsepower. This gives the new machines a significant boost in torque – 13% for the 255 and 43% for the 256 – over their D3-Series predecessors. The engine and cooling package are mounted lower in the frame for added visibility out the rear window and stability while lifting heavy loads.

Customers attest that the added lift height makes truck loading easier. The 255 offers 10 feet 4 inches of lift height, while the 265 can reach 11 feet high.

“The lift height has made a big difference when loading trucks,” said Derrick Roger, owner of Coast to Coast Lawnscapes, who spent several months testing the 255. “You can get on top of that truck now and empty the bucket; whereas, before you would have to shake the bucket to try to get the material to fall out.”

The 255 delivers 36% more tilt breakout, 26% higher lift breakout force and a 24% increase in rated operating capacity (ROC). The 265 also delivers 19% higher tilt breakout force and 22% higher lift breakout force.

Standard hydraulic pressure has been increased to 3,500 psi, allowing the 255 and 265 to operate all Cat Smart Attachments with the standard auxiliary hydraulics provided.

If demanding attachments require additional hydraulic flow, customers can have their Cat dealer activate the high flow functionality on the machine or remotely via software update. This makes it possible for the CTLs to hit 30 gallons per minute of flow at the standard system pressure.

A High Flow XPS factory option increases auxiliary hydraulic system pressure to 4,061 psi for both models, while also increasing the hydraulic flow to 30 gallons per minute for the 255 and 34 gallons per minute for the 265.

The torsion suspension undercarriage delivers better operator comfort, track wear and material retention, plus the stiffer design results in smoother graded surfaces, Cat says. A new 12.6-inch bar-tread narrow track option is available on the 255.

A more spacious cab

Cat says it has increased the cab width by 2.75 inches without making the machines wider and the footwell-to-ceiling height by 1.8 inches. The larger cab gives operators an additional 1.5 inches of hip room and 1.1 inches more width between the joysticks.

A range of new mechanical and air-ride suspension seat options are available, including a ventilated and heated seat. A new automatic temperature control allows operators to set a specific temperature. Relocated vents help cool or heat the machine quickly.

The standard package includes the same 5-inch LCD monitor as the D3 Series CTLs, which offers Bluetooth connectivity and functionality for the rearview camera feed, creep, job clock, and maintenance reminders.

Customers can upgrade to a new 8-inch advanced touchscreen monitor, like the display found in Cat’s next-generation mini excavators and small loaders. It delivers advanced radio control and supports the 270-degree multicamera option. The advanced monitor pairs with the advanced joysticks for integrated control of all machine functions and adjustments.

“You can adjust the movement – or the aggressiveness or the conservativeness – of how your tracks and lift arms work through your advanced touchscreen display,” Dante Thomas, skid steer and CTL marketing manager, said. “And you can control of all of your display functions from the advanced joysticks. There are buttons with enter and select functions on those joysticks that you’re able to change any functionality that is possible.”

Cat also redesigned the entry, making the 255 and 265 easier to enter and exit. The cab door can be opened even when the lift arms are not fully lowered to the frame stops. It can be removed without tools in less than one minute.

Advanced technologies

Calling the 255 and 265 “one of the most attachment-friendly machines on the market,” Thomas says both the standard and advanced monitors can run Cat Smart Attachments, such as the dozer and grader blades and backhoe.

“It has attachment recognition that when you plug the attachment into the machine, it recognizes which attachment is connected. It adjusts your joystick pattern, so it gives you intuitive and simple control,” says Thomas.

The available Cat Product Link Elite system tracks machine hours, location, asset utilization, provides fault code details and delivers advanced monitoring and machine health, that is remotely accessible via VisionLink. In addition, Product Link Elite provides remote flash and troubleshooting capabilities and quickly enables the remote activation of the SEA High Flow feature.

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Quick Data: 2023 Top-Selling Wheel Loaders and Auction Trends

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Quick Data is a snapshot of new and used wheel loader sales trends from Randall Reilly’s EDA equipment financing data, TopBid auction price service and EquipmentWatch market trend reports.

Demand for wheel loaders has softened with new and used financed wheel loader sales down year-over-year from August 1, 2022 to July 31, 2023 according to Randall Reilly’s EDA equipment financing data.

Financed new wheel loader sales dropped 10%, while used financed wheel loader sales fell by 15% compared to the same period last year.

Cat (22.4%), Deere (21.0%) and Komatsu (12.4%) held their positions year-over-year as the top three sellers of new financed wheel loaders. Top models sold included the Deere 544 P-Tier (401), Deere 624 P-Tier (380) and the Komatsu WA270-8 (364).

[Watch: “A Really Solid Machine” – Test Run of Komatsu’s WA475-10 Wheel Loader]

Cat (28.5%) and Deere (22.9%) also snagged the No. 1 and 2 positions for the highest number of financed used units sold, with Case (14.7%) claiming the third spot. On the date we examined the data, the top-selling models were the Case 321F (340), Cat 926M (164) and the Case 621G (159). 

During this period, there were more buyers of new loaders in Florida (955) than in any other state. Buyers of new wheel loaders were also prevalent in Texas (893) and Illinois (665). Those states were also top buyers of used financed machines, with 712 units sold in Texas, 413 in Florida, and 412 in Illinois.

EDA data is compiled from state UCC-1 filings on financed construction equipment. EDA continually updates this data as information comes in from each state.

[Related Content: A Rundown of the Latest Wheel Loaders for 2023]

Used Wheel Loader Market

Used wheel loader prices rose 10.1% for the 12-month period from August 1, 2022 to July 31, 2023, according to Randall Reilly’s EquipmentWatch market trend data.

The average price for a used wheel loader was $137,465 in July 2022 compared to $151,367 in July 2023. The average age of used wheel loaders fell slightly during the period, dropping from 8.8 years to 8.3 years.

EquipmentWatch Used wheel loader price and age chartEquipmentWatchThe average age and price were calculated on 153,356 resale listings during the period in the EquipmentWatch database.

Over the last 12 months, prices for used wheel loaders have in general increased, with the largest gains in October 2022 (6.5%) and February 2023 (2.9%).

EquipmentWatch defines fair market value (FMV) as the monetary value of an asset that can be expected in a transaction with a single seller and single buyer, neither of whom is under any compulsion or time restriction to complete the transaction. FMV for heavy equipment is most closely associated with the private resale market, as opposed to the public auction market.

Wheel Loader Auction Prices

Caterpillar also dominated the auction charts, accounting for 18 of the top 20 wheel loaders sold in terms of price for the 12-month period of September 1, 2022 to August 31, 2023. Deere and Komatsu were the only other manufacturers to appear on the list.

The top auction price spot went to a 2021 Cat 966M with 2,188 hours. It sold for $400,000 at a Ritchie Bros. auction in Orlando, Fla., on September 21, 2022. The second-highest price paid was $315,000 for a 2019 Cat 980M with 7,836 hours at another Ritchie Bros. sale in Atlanta, on December 1, 2022. Rounding out the top three was a 2018 Deere 944K with 8,941 hours. It sold for $290,00 at a J.M. Wood Auction Co. sale in Montgomery, Ala., on March 21, 2023.

In total, there were 358 wheel loaders sold at auctions tracked by Top Bid during this time, with an average price of $99,747. (This does not include any units sold for less than $5,000.)

EDA, Top Bid and EquipmentWatch are owned by Randall Reilly, parent of Equipment World.

[Related Content: Heavy Equipment Auctions Set for Second Half of 2023

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Video: A closer look at Rokbak articulated dump trucks

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Volvo Construction Equipment bought Terex’s off-road truck line in 2014, and six years later, it rebranded its articulated haulers under the Rokbak name.

On this episode of The Dirt, we hear from Paul Douglas, Volvo vice president of rigid haulers, who explains the differences between the old Terex line and the Rokbak trucks. He also gives a hint at some of the new things coming from Rokbak, including redesigned cabs and replacing the current trucks with new models. There’s also the possibility of a new size truck to hit the market.

Rokbak, as with other construction equipment brands, is working toward a zero-emissions future. On this episode, he explains where the articulated dump truck market is heading in terms of alternative fuel. He adds that customers will see big changes in emissions and engines in the next five years, with the ultimate goal of reaching zero emissions within 10 years.

So to learn more about Rokbak and what the brand has in store for the future, check out this episode of The Dirt.  

Equipment World serves up weekly videos on the latest in construction equipment, work trucks and pickup trucks – everything contractors need to get their work done. Subscribe and visit us at equipmentworld.com!

In This Episode:

  • 00:00 – Rokbak Articulated Haulers
  • 00:30 – Is Rokbak More Reliable Than Terex?
  • 03:22 – Brand New Cab
  • 06:10 – More Changes to Upcoming Rokbak Trucks
  • 09:20 – What Will Rokbak Do in the Next 2-5 Years?
  • 11:24 – What Alternative Fuel Will Rokbak Haulers Use in the Future?
  • 14:53 – Final Thoughts

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