Talent shortages have affected engineering, construction and EPC companies for years, but the challenge should be separated into two different problems: workforce capacity and leadership capacity.
The construction industry needs enough skilled workers, supervisors and project professionals to deliver increasingly complex projects. At the same time, companies need senior leaders capable of scaling operations, allocating resources, developing future executives and managing succession as experienced leaders retire or ownership changes.
Associated Builders and Contractors estimates that the U.S. construction industry needs to attract approximately 349,000 net new workers in 2026 to meet demand. ABC notes that a significant share of this requirement is connected to retirement rather than simply increased construction activity.
Source: Associated Builders and Contractors, Construction Industry Must Attract 349,000 Workers in 2026.
| Construction Talent Signal | Leadership Implication |
|---|---|
| 349,000 workers needed in 2026 | A structurally constrained workforce increases the importance of productivity, workforce planning and leadership development. |
| 80% struggle to fill salaried openings | Talent pressure extends beyond craft workers into professional and managerial positions. |
| 58% lack an ownership transition plan | Succession risk can become a business-continuity problem when leadership transition is addressed too late. |
| 61% use AI or plan greater investment | Construction leadership increasingly needs to combine operational expertise with technology and transformation capability. |
Understanding Construction Talent Shortages
Construction remains unusually dependent on physical, project-based work that cannot simply be transferred to remote environments or replaced rapidly through automation.
However, the difficulty is not limited to hourly or craft positions. The Associated General Contractors of America and Sage reported that in their 2026 industry outlook, 82% of firms were having difficulty filling hourly craft positions and 80% were having difficulty filling salaried openings.
Source: Associated General Contractors of America & Sage, 2026 Construction Hiring and Business Outlook.
This salaried figure is not an executive-only measure, but it shows that hiring pressure extends into professional, managerial and technical roles that form the pipeline from which future construction leaders are developed.
At the same time, demand is uneven across the industry. AGC’s 2026 outlook found particularly strong expectations around data centers and power projects, while several other construction segments showed weaker expectations.
This creates a more complicated Executive Search environment: talent shortages can become concentrated in particular project types, functions and geographies rather than affecting every construction company equally.
1. Succession Planning in Construction
Succession remains one of the most important leadership risks in engineering and construction because senior executives often carry years of commercial relationships, project knowledge, technical judgment and organizational experience that cannot be transferred immediately.
FMI’s 2024 Ownership Transfer and Management Succession Study, based on responses from nearly 300 construction industry leaders, found that 58% of respondents did not have an ownership transition plan.
Source: FMI, 2024 Ownership Transfer and Management Succession Study.
Ownership succession and management succession are not identical, but they frequently intersect in privately held construction and EPC companies. When an owner or senior executive prepares to leave, the organization needs to determine both who will hold responsibility and whether the next generation is ready to operate at the required scale.
FMI’s more recent leadership work argues that many construction companies have grown faster than their leadership capacity. Preparing successors therefore involves more than identifying strong performers. Future executives need to develop the skills, decision-making patterns and enterprise perspective required at the next level.
Sources: FMI, Developing Your Leadership Pipeline, 2025 and FMI, The Leadership Gap in Construction, 2026.
2. Attracting and Retaining Construction Leadership Talent
Compensation remains important, but construction companies compete for senior talent on more than salary.
Experienced executives also evaluate the quality of the project portfolio, decision-making authority, ownership structure, geographical responsibilities, succession opportunities, organizational culture and the company’s willingness to invest in technology and innovation.
This is particularly relevant when recruiting executives from adjacent sectors. A leader considering a move into construction or infrastructure may compare the role with industries offering different working models, incentive structures or technology environments.
Organizations therefore need a clear leadership proposition: why is this project portfolio strategically meaningful, what will the executive own and how will the position develop over time?
Culture Still Matters, but It Needs to Be Observable
The original article correctly highlighted culture as part of attraction and retention. However, Executive Search should move beyond generic claims about having a “strong culture”.
Senior candidates are more likely to evaluate practical questions: how decisions are made, how project problems are escalated, how much autonomy leaders receive, whether executives collaborate across divisions and how the organization responds when performance falls below expectations.
These operating behaviours are usually more informative than employer-brand statements alone.
3. Construction Leadership Roles Are Becoming More Complex
Construction executives have traditionally required strong operational and commercial judgment. Those capabilities remain essential, but the mandate is becoming broader.
Large projects can involve complex financing, regulation, supply-chain volatility, public stakeholders, new technologies, sustainability requirements and several layers of contractors and partners.
Technology is becoming a more visible part of that change. In AGC and Sage’s 2026 outlook, 61% of respondents said their company was already using artificial intelligence or planned to increase investment in it, up from 44% one year earlier.
Source: Associated General Contractors of America & Sage, 2026 Construction Hiring and Business Outlook.
This does not mean every construction executive needs to be a technology specialist. It does mean leaders increasingly need enough technological fluency to decide where automation, AI and digital tools can improve estimating, preconstruction, project controls, productivity or risk management.
4. Why High Performers Do Not Automatically Become Strong Executives
One of the biggest succession risks in construction is assuming that excellent project performance automatically predicts executive readiness.
Project managers and operational leaders may build their careers by solving problems directly, staying close to projects and personally controlling execution. Senior executive roles require a different allocation of time and attention.
FMI’s 2025 work on leadership pipelines argues that transitions between leadership levels require changes not only in skills but also in how leaders spend their time and how they think about their role.
Source: FMI, Developing Your Leadership Pipeline: Preparing the Next Generation of Leaders.
Executive readiness may therefore require evidence of strategic planning, talent development, financial judgment, cross-functional leadership and the ability to delegate operational decisions rather than simply a record of successful projects.
5. When Executive Search Becomes Necessary
Internal succession should be considered wherever the organization has credible future leaders. However, development requires time and not every capability can be built before the business needs it.
Executive Search becomes particularly relevant when:
- No internal successor is ready for a critical role.
- The business is entering a new construction or infrastructure segment.
- The company needs experience from a different geography or project model.
- Ownership or leadership transition requires an external benchmark.
- A new strategic direction requires capabilities not currently present in the leadership team.
- The strongest candidates are already employed and unlikely to respond to conventional recruitment channels.
The objective is not to replace internal development with external recruitment. A stronger leadership strategy uses both: develop people who can realistically assume future responsibilities and use Executive Search where external experience adds capability that the organization cannot build quickly enough.
Executive Search as a Strategic Response to Construction Talent Shortages
Executive Search cannot solve the construction industry’s broader shortage of skilled workers. It can, however, address the leadership risks that become more important when workforce capacity is constrained.
The right executive can strengthen workforce planning, accelerate development of field and project leaders, improve resource allocation and create clearer succession pathways.
For construction and EPC companies, the search should therefore evaluate candidates not only on technical knowledge or the value of projects they have managed, but also on their ability to build leadership capacity around them.
Zavala Civitas Executive Search for Construction and EPC
Zavala Civitas conducts specialised Executive Search assignments across construction, EPC, infrastructure and renewable energy.
The search begins by defining the business environment, responsibilities and critical success factors before determining whether the relevant candidate market sits inside direct competitors, adjacent sectors or other geographies.
Our Executive Search methodology includes:
- In-depth client briefing and definition of critical success factors.
- Market mapping and direct contact with more than 100 candidates per search.
- Regular candidate and market reporting throughout the assignment.
- Interviews conducted by at least two consultants.
- Quantitative and qualitative executive evaluation.
- 360º professional reference checks.
- Support during offer negotiation and executive integration.
For construction leadership mandates, this process can be used to assess both operational track record and the executive’s ability to manage succession, technology, organizational complexity and future project requirements.
Frequently Asked Questions About Construction Executive Talent Shortages
Is there still a construction talent shortage in 2026?
Yes, although the pressure varies significantly by occupation, geography and construction segment. Associated Builders and Contractors estimates that the U.S. industry needs to attract approximately 349,000 new workers in 2026 to meet demand and replace workforce exits.
Does the construction workforce shortage also affect management positions?
Yes. AGC and Sage reported that 80% of construction firms with salaried openings in their 2026 outlook were having difficulty filling those positions. This is not exclusively an executive statistic, but it shows that talent pressure extends beyond hourly craft roles.
Why is succession planning important in construction?
Construction executives often accumulate substantial project, client, technical and organizational knowledge over long careers. Succession planning gives companies time to identify future leaders, develop missing capabilities and determine where external recruitment may be necessary before a critical departure occurs.
Should construction companies promote internally or use Executive Search?
Both approaches can be appropriate. Internal development preserves company knowledge and creates career opportunities, while Executive Search can provide experience or capabilities that do not currently exist inside the organization. The decision should be based on the future requirements of the role and the readiness of potential successors.
What should Executive Search assess in a construction leader?
Assessment should consider project and operational experience, commercial judgment, financial understanding, stakeholder management, talent development, succession capability, technology fluency and evidence that the executive can lead at the scale and complexity required by the company’s future portfolio.
How does Zavala Civitas conduct Executive Search for construction and EPC companies?
Zavala Civitas begins by defining the mandate and critical success factors before mapping the relevant executive market. The process includes direct candidate identification, structured assessment, interviews by at least two consultants, 360º reference checks and support through appointment and integration.
Learn more about our Construction and EPC Executive Search practice, review our Executive Search methodology or contact us to discuss a construction leadership requirement.
