The property remediation and restoration industry is booming, yet a persistent shadow looms over its growth: the workforce crunch. Finding and retaining skilled employees has consistently topped the list of challenges for contractors, and 2025 is no exception. An industry-wide survey conducted last year by R&R Magazine reveals the depth of this issue, highlighting the impact on budgets and the strategies companies are employing to cope.   

The survey paints a clear picture: contractors are struggling to find qualified individuals to fill crucial roles. This difficulty in hiring is compounded by equally challenging retention rates. Keeping experienced workers is proving difficult, forcing companies to compete fiercely for Restoration talent. This competition, coupled with the relentless pressure of inflation, has put a significant strain on project budgets.   

Labor costs now consume a substantial portion of Restoration contractor budgets. On average, companies allocate 25-35% of their funds to cover labor expenses. This significant investment underscores the critical importance of a skilled workforce.   

To navigate the complexities of retention and manage labor costs, many contractors are increasingly turning to subcontractors and temporary labor companies. This strategy allows companies to access specialized skills without the long-term commitment and overhead associated with direct employment. While subcontracting offers a degree of flexibility, it also introduces its own set of challenges, including managing multiple contracts and ensuring consistent quality while offering consistent brand experience.

Diversifying the workforce, particularly by actively recruiting younger and middle-aged individuals, can significantly alleviate the current hiring crunch. Expanding recruitment efforts beyond traditional talent pools taps into a wider range of skills and experiences, potentially uncovering qualified candidates who might have been overlooked. Younger workers bring fresh perspectives, tech-savviness, and enthusiasm. Middle-aged individuals often offer valuable experience, stability, and a strong work ethic. By embracing a multi-generational workforce, companies can access a larger pool of qualified applicants, fill open positions more quickly, and create a more dynamic and innovative work environment.

Despite the challenges, contractors recognize the importance of investing in their workforce. The survey revealed that companies allocate an average of 14% of their budgets to employee training. This commitment to development reflects a growing understanding that a well-trained workforce is essential for both project success and long-term business growth. The preferred training methods emphasize practical, hands-on experience and field-based programs. This focus on practical training ensures that employees are equipped with the necessary skills to contribute effectively from day one on the job!

The workforce crunch presents a significant hurdle for our industry. However, by understanding the challenges and implementing effective strategies, we can navigate this difficult landscape by:    

• Prioritizing Employee Retention: Competitive compensation, comprehensive benefits packages, and a positive work environment are crucial for retaining valuable employees.
• Partner With Industry Specific Recruiters: Access a pre-vetted pool of qualified candidates saving you time and resources on sourcing and screening. Their deep industry knowledge ensures they understand your specific needs and can identify candidates with the precise skills and niche experience required, leading to better hiring outcomes and reduced turnover. They also often provide market insights and salary benchmarking, helping you stay competitive in attracting top talent!
• Investing in Training and Development: Robust training programs, especially those focused on hands-on and field experience, are essential for building a skilled workforce.   
• Strategic Use of Subcontractors: Subcontracting can provide flexibility and access to specialized skills, but careful management is essential.   
• Addressing the Root Causes: Industry-wide efforts to promote skilled trades education and attract new talent to the construction sector are crucial for long-term solutions.

The workforce crunch is not a new nor a short-term issue; it represents a fundamental shift in the labor market. By embracing proactive strategies, Remediation and Restoration contractors can position themselves for success!