This week at BuildWitt…
I’ll start this newsletter with the classic “WTF do I know?” The answer… Not much, but I do have broader and more intimate access to our industry physically and digitally than just about anyone. I’m merely connecting what I believe to be obvious data points.
I will also say this situation has pissed me off, so I feel extra spicy as I write this.
The Parallels
If you haven’t noticed, US railroads nearly shut down due to rail workers threatening to strike.
While potentially catastrophic for the US economy, I’ve followed the situation closely because I see many parallels to the Dirt World. I think it foreshadows what will come in our industry if we fail to act.
The major railroads have lost or cut 30% of their workforce over the past few years.
Over 40% of the construction industry workforce will retire by 2031, according to NCCER.
However, demand for freight moved by rail has only increased.
With aging infrastructure, rapidly changing cities, housing shortages, domestic manufacturing growth (CHIPS Act), and the latest $1.2T infrastructure bill, demand for construction over the next decade is expected to increase steadily.
The result? Fewer workers to do more work. With such a squeeze, rail workers work longer hours on tighter schedules. It’s so tight that there’s no unapproved sick time allowed. They must request sick time, and if they’re denied and take it anyway, they’re reprimanded.
This sounds extreme and doesn’t apply to the construction industry, right? But as I look around, I see backlogs approaching record highs, weekend and night work becoming increasingly common, and companies who would’ve never thought about working through winter working all winter long.
To avoid a shutdown, the government acted under the Rail Act of 1926 to force a deal and make a strike illegal. They raised pay by 24% (only 4% per year over six years while inflation sits at 8%) and gave workers one more paid day off, but they didn’t budge on sick time.
Every contractor offers sick time, so where’s the parallel? It’s twofold. First, workers are pressured now more than ever before not to call out sick. I hear from people in the field about this all the time. Even if they are sick, they don’t feel like they can use their sick days due to peer pressure, tight schedules, etc.
Second, our industry poorly manages our people’s health, creating more illnesses and doctor’s appointments than necessary. Since we depend on our people’s health to perform, it amazes me that it’s not a bigger focus.
But we have stretch and flex! This means nothing when everyone’s abusing alcohol, food, tobacco, and drugs on their own time. Everyone knows it, too.
What Can We Learn?
Humans aren't machines, and the desire for something greater than money is greater than ever. Here are quotes from a few workers I've spoken to as proof:
"My kids seeing me unhappy every day going to work just wasn't worth the money."
"I wanted more time off over money…"
"I left for more work-life balance. It was not an easy decision as I think highly of the company I left."
Most companies approach the workforce squeeze as a money problem. The rail workers got money, but they still voted the deal down.
Beyond money, our solution lies in caring. I'm not suggesting that companies don't care about their people overall, but they need to care in new ways.
What does caring for your people look like?
- Training not only in skills but life and leadership.
- They spend all their summer money on dumb things! Yes… Because no one's ever taught them how to manage money.
- Trusting your people!
- Companies give workers the keys to half-million dollar haul trucks but not company apparel on day one for fear of them leaving with it. Huh?
- Asking their opinion and giving them the freedom to make decisions.
- Shaking their hands and celebrating them.
- Asking them where they want to go and helping them get there.
- Frequently discussing the impact of your work in the community.
If you care for your people, they will be far more productive. They'll be motivated like never before, work together well, and utilize resources more efficiently.
Vlog
We met up with Trimble Dimensions to see the differing types of automated technology used on machines at their semi-annual Las Vegas trade show!
I’ll see you next week!
