Embracing Gig Labor: A Solution to the Construction Industry’s Labor Shortage

The Labor Shortage Crisis: Contractors’ Pain Points

Contractors face mounting pressure to deliver projects on time and within budget. The labor shortage exacerbates challenges like project delays, with 61% of firms reporting delays due to staffing issues, according to a 2024 OpenAsset survey. Variable labor offers a lifeline:

• Addressing Project Delays: When a project falls behind—due to unexpected issues, such as a key worker injury or rework—contractors need immediate access to skilled labor.

• Cost Efficiency: Hiring full-time workers for fluctuating project demands can strain budgets. Gig labor allows contractors to scale their workforce dynamically, reducing overhead while accessing specialized tradespeople, who are in high demand for specialized skills

• Mitigating Risks: Labor shortages increase risks like OSHA violations and construction defects due to rushed or understaffed work. A 2023 Kahana Feld report highlights a rise in workers’ compensation claims and defect claims linked to labor shortages. Gig workers can fill critical roles, ensuring compliance and quality.

Tradespeople’s Struggle: Flexibility and Skill Matching

Tradespeople face barriers to flexible, skill-matched gigs. Younger workers seek work-life balance for childcare and other interests, while retiring contractors want to use their mastery-level skills without full-time roles.

• Childcare Challenges: Childcare concerns block workforce reentry, especially for women (14% of construction workers), per McKinsey (2022).

• Skill Mismatch: The gig economy allows professionals to specialize in niche areas… on a flexible basis. Yet, many lack access to skill-matched gigs.

• Economic Needs: 62% of firms report skill shortages (Arcoro), but tradespeople struggle to find upskilling gigs.

“The very nature of the construction industry is that projects start and stop, and that’s a gig,” notes CONEXPO-CON/AGG (August 19, 2024). Without flexible options, many tradespeople are stuck.

How CREDS Solves the Crisis

CREDS technology connects contractors with vetted tradespeople for residential construction. Here’s how:

• For Contractors:

  • Instant Access: Connect with reliable tradespeople who are a ready and suitable match for your specific scopes of work. Skilled tradespeople when and where you need them. CREDS offers Connections You Can Trust!

  • Cost Savings: Your labor costs vary with your workload. Contract with just the right level of skills for the exact amount of work at hand. Entry level workers for the easy stuff, master level for the complex.

  • Quality: Vetted workers ensure compliance and fewer defects.

• For Tradespeople:

  • Flexible Gigs: Access to projects matching your skills and schedule.

  • Fair Pay: Transparent rates support financial goals.

  • Upskilling: Gain experience in a variety of settings and situations. Prove yourself ready for the next level!

Join CREDS in the Twin Cities

CREDS is leading this change in the Twin Cities, launching Fall 2025. Our platform tackles labor shortages by delivering reliable, skilled tradespeople to contractors and flexible, skill-matched gigs to workers. Be the first to try it!

(Research assistance for this blog provided by Grok)

Contact us to find out more about CREDS, including being a beta tester this summer: