It's not easy to measure construction labor productivity. Factors that determine construction productivity vary by contractor specialty, working conditions, and project type. Unless you have a standardized product to mass-produce, it will be challenging to measure productivity. 

Thanks to studies focusing on the construction industry, there are now ways to overcome challenges in construction labor productivity measurement. Of course, you have various metrics to consider, but research shows that construction labor productivity can be measured and improved. Learn more regarding this matter in this blog post. 

Construction Labor Productivity Statistics

In 2020, there are four construction sectors outlined by the U.S. Bureau of Labor Statistics in its productivity study. These are industrial building construction, multiple-family residential construction, single-family residential construction, and street, highway, bridge construction. 

Employment and output data from the Census of Construction are the primary references of the BLS Statistics. According to this report, a slight increase in productivity in the industrial building construction sector and a decrease in the other three occurred between 2007 and 2019. 

Another study conducted in 2018 by the BLS for the period between 1987 and 2016 shows a different result. The highway construction sector is the only one with a downward trend, while the other three sectors are on the increase during that period. 

A report by Whole Life Consultants Limited published in 2016 for the British Construction Industry Training Board and Experian shows that the United Kingdom’s construction labor productivity increased by nearly 1% from 1998 to 2014. The same study observed similar trends in 1978. 

Factors Impacting Construction Labor Productivity

Since the matter at hand here is about productivity, it’s crucial to ask what are the factors affecting it. Of course, there are different perspectives on this matter, but most experts use output per labor hour as a formula to measure construction productivity. Terms such as financial units or physical quantities can serve as output.

Factors may differ in every sector, but there are several ones that are common across the board. Carnegie Mellon University conducted a study that noted factors in construction productivity in three categories, namely: 

• Work Conditions. Work size and complexity, equipment use, site accessibility, and other factors specific to the project. 

• Labor Characteristics. Skill, age, experience, leadership, and motivation of the workers. 

• Non-Productive Activities. Work stoppages, rework indirect labor, and other tasks that are not productive. 

There are also sub-factors to consider for assessment. For instance, you can assess labor performance in the same way as employee evaluations by looking at factors, including work quantity and quality, work knowledge, communication, judgment, and leadership skills. 

On the other hand, the University of Warsaw developed a mathematical model to assess construction labor productivity. It suggests that the best way to measure productivity at the macro level is to determine the gross value added per labor cost. Then, you divide earned hours by actual hours at the micro level. 

In the study, there are internal productivity factors that are in the control of the contractor. Meanwhile, the external productivity factors are those outside the contracting organization’s control. 

How to Improve Productivity

Now that you know the different factors affecting construction labor productivity, it’s time to determine how to improve each of those areas. 

• Work Conditions. Ensure your workforce can handle the size and complexity of the project. Workers should be working in a safe environment, have easy access to the site, and have the proper equipment. The working hours must be manageable for the worker, and work-life balance is one of the key priorities. 

• Labor Characteristics. Contractors should develop a strategy to retain employees to keep experienced workers in the company. The workforce should enjoy social and financial benefits to retain and motivate them to perform quality work. 

• Weather. Proper planning can mitigate the impacts of bad weather in construction productivity. Use technology to keep updated with weather forecasts and manage daily tasks accordingly. 

• Non-Productive Activities. Train your workforce and address issues such as rework and work stoppage. You should have the right sizing of your employees, especially overhead and indirect labor. 

• Expertise. Explore and discover expertise that may help you build projects with efficiency. For instance, you can study building information management to avoid factors that negatively affect productivity. 

• Technology. Besides utilizing high-quality hardware and equipment, you should also use the latest software to help you manage construction projects efficiently. Consider having a system that enables collaboration and sharing of information. Both your field team and office teams should have access to such technology. 

Final Thoughts

It’s a bit tricky, but it’s possible to measure and improve construction labor productivity. There are studies that developed metrics and models to assess the productivity of your construction workforce. Once you have a working model to measure and improve productivity, you can minimize work stoppages, rework, and other factors resulting in non-productivity.