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An Optimization Model to Address the Skilled Labor Shortage in the Construction Industry

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Abstract

An optimization problem is formulated in this study to optimize the total investment in education, apprenticeship, and financial incentive to address the skilled labor shortages in the construction industry. Three separate mathematical models, namely linear programming (LP) models, fuzzy mathematical models, and structural equation models are compared for their accuracy, robustness, and ease of application in solving the optimization problem. LP models are found to be the best fit for solving the optimization problem. Relevant data on construction budget and investment preferences in education, apprenticeship, and financial incentive are obtained through a survey questionnaire from construction firms engaged in commercial and residential construction. The survey response suggests that more apprentices lean toward electrical and plumbing over carpentry due to the higher pay scale in both trade fields, thus reducing the skilled labor shortage in both areas when compared to carpentry. The optimization results indicate that apprenticeship and financial incentives play a significant role in reducing short-term labor shortages. Education, on the other hand, plays a significant role in reducing the labor shortage in the long run. A sensitivity analysis shows different optimal investments for the optimal allocation of labor shortages to be overcome by investments in education, apprenticeship, and financial incentives. A more robust analysis using additional data can be performed in future works to further investigate the relative effectiveness of investments in education, apprenticeship, and financial incentives in reducing skilled labor shortage.

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Availability of Data and Materials

Survey data is available from the corresponding author upon request.

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Acknowledgements

This research is part of the first author’s dissertation research and is self-funded.

Author information

Authors and Affiliations

  1. Coakley Williams Construction, 535 Potomac Road, Joppa, MD, 21085, USA

    Olawale Adekunle

  2. Department of Information Technology, University of Maryland Global Campus, Adelphi, MD, 20783, USA

    Manoj K. Jha

Authors
  1. Olawale Adekunle
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  2. Manoj K. Jha
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Contributions

OA and MJ developed the concept of the paper. Both authors developed the methodology and mathematical formulation. OA conducted the survey and analyzed the survey data. MJ wrote the manuscript. Both authors approved the final version of the manuscript for publication.

Author’s Information

Dr. Manoj K. Jha is adjunct professor of civil and environmental engineering at George Washington University, USA. He is also adjunct associate professor of information technology with data science focus at the University of Maryland Global Campus, USA. He works full-time as the Director of Advanced Analytics and Data Science at the Brite Group in Leesburg, VA, USA (https://www.thebritegroup.com/). Dr. Olawale (Kenny) Adekunle is project executive at Coakley & Williams Construction in the Washington, DC area, USA. He received a Doctor of Engineering degree in civil Engineering from Morgan State University, USA. The research presented here was part of his doctoral dissertation.

Corresponding author

Correspondence to Manoj K. Jha.

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Conflict of interest

The authors have no conflict of interest.

Appendix: Sample Survey Questionnaire

Appendix: Sample Survey Questionnaire

Sample survey questionnaire

 

Timestamp

 

Email address

 

What type of construction projects is this? (Circle the correct answer)

 

What is the total-estimated budget (in dollars) for the construction project?

 

What is the total-estimated budget (in dollars) for carpentry on the project?

 

What is the total-estimated budget (in dollars) for plumbing on the project?

 

What is the total-estimated budget (in dollars) for electrical work on the project?

 

What is the total-estimated budget (in dollars) for other skilled labor/trades on the project?

 

What is the estimated time (in months) to complete the construction project (from the beginning)

 

Have there been any scheduling adjustment/delay since the beginning of the project? If the answer is yes then please explain the reasons of delay

 

Have there been any adjustment in the estimate of the original budget since the beginning? If the answer is yes then please explain the reasons of budget adjustment

 

Have there been a skilled labor shortage in meeting the schedule and budget?

 

If the answer to Question 10 above is yes then please select the trade in which it has been difficult to attract potential employees for the project. Circle the correct answer

 

Can investment toward education, apprenticeship, and financial incentives attract potential skilled employees in short supply?

 

To meet the demand for skilled labor, what is your order of preference among investment toward education, apprenticeship, and financial incentives? Write 1, 2, or 3 next to your preference with 1 being the highest preference and 3 being the lowest. [Education]

 

To meet the demand for skilled labor, what is your order of preference among investment toward education, apprenticeship, and financial incentives? Write 1, 2, or 3 next to your preference with 1 being the highest preference and 3 being the lowest. [Apprenticeship]

 

tTo meet the demand for skilled labor, what is your order of preference among investment toward education, apprenticeship, and financial incentives? Write 1, 2, or 3 next to your preference with 1 being the highest preference and 3 being the lowest. [Financial Incentive]

 

To meet the demand for skilled labor, what is your order of preference among investment toward education, apprenticeship, and financial incentives? Write 1, 2, or 3 next to your preference with 1 being the highest preference and 3 being the lowest. [No preference]

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “EDUCATION” required to meet the demand shortage in carpenters? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “APPRENTICESHIP” required to meet the demand shortage in carpenters? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “FINANCIAL INCENTIVE” required to meet the demand shortage in carpenters? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “EDUCATION” required to meet the demand shortage in electricians? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “APPRENTICESHIP” required to meet the demand shortage in electricians? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “FINANCIAL INCENTIVE” required to meet the demand shortage in electricians? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “EDUCATION” required to meet the demand shortage in plumbers? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “APPRENTICESHIP” required to meet the demand shortage in plumbers? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “FINANCIAL INCENTIVE” required to meet the demand shortage in plumbers? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “EDUCATION” required to meet the demand shortage in other skilled labors not covered in Questions 14–22 above? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “APPRENTICESHIP” required to meet the demand shortage in other skilled labors not covered in Questions 14–22 above? Please write the percentage below the three categories in the right columns

 

In your opinion, what percentage of the budget is a reasonable estimate of the investment in “FINANCIAL INCENTIVE” required to meet the demand shortage in other skilled labors not covered in Questions 14–22 above? Please write the percentage below the three categories in the right columns

 

Do you think investment toward education and apprenticeship can reduce the skilled labor shortage in the long term?

 

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Adekunle, O., Jha, M.K. An Optimization Model to Address the Skilled Labor Shortage in the Construction Industry. Int J Civ Eng (2024). https://doi.org/10.1007/s40999-024-00941-w

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