As Colorado’s construction sector continues to evolve, companies across the state are facing familiar challenges with new urgency—especially around labor availability, workforce retention, and project delivery. While many of these issues reflect national pressures, specific dynamics in the Centennial State are creating both hurdles and opportunities.

In a recent industry update, DPR Construction shared its perspective on how workforce trends are shaping not just Colorado, but the national construction environment. These insights point to how firms can position themselves to better weather economic uncertainty, talent shortages, and the scale of modern project demands.

1. Labor Shortages Persist, But Collaboration Offers Hope

The nationwide labor crunch is hitting nearly every sector, but the construction industry has felt it particularly acutely. With older workers retiring and fewer young people entering the trades, the gap in skilled labor continues to grow.

“The good news is that Colorado is faring better than other markets,” the article states. Skilled professionals have helped stabilize the region’s workforce, but DPR warns that progress could be fragile. “Comprehensive immigration reform could be one potential solution that could meaningfully address the ongoing labor gap. As an industry, it’s important that we come together to push for labor policies to help support the industry.”

2. Investing in Self-Perform Work and In-House Training

DPR has increasingly focused on strengthening its self-perform capabilities—meaning it directly hires craft workers instead of relying solely on subcontractors. This approach gives contractors more control over labor availability, timelines, and project quality.

“Creating as many ‘knowns’ as possible is critical in the current market,” DPR noted. “When it comes to labor, the more you’re able to self-perform and the more you understand your workforce’s skills and availability, the better.”

To address this, DPR employs more than 5,000 craft workers across union and non-union markets and operates its own NCCER-certified training and apprenticeship programs. “The average tenure for our skilled workers at DPR is around seven years, which is significantly higher than the industry average,” the article says. “When workers feel like they have a future with a company (not just a job), they stay longer and perform better.”

3. Mega Projects Demand Better Workforce Experience

Billion-dollar projects—once a rarity—are now increasingly common, even in Colorado. As projects grow in scale and complexity, competition for skilled workers intensifies.

“Attracting and retaining skilled workers isn’t just about offering higher wages, it’s about creating a better work experience,” the article says. DPR highlights how small but meaningful jobsite improvements like air-conditioned break areas, updated bathroom facilities, and fair per diem policies can make a major difference.

“If I’ve learned anything over the years, it’s when workers feel valued and supported, they are more likely to deliver high-quality work and stay with a company through future projects,” the author shared.

4. Remote Data Center Projects Require Strategic Labor Solutions

Colorado and other Western states are experiencing a construction boom driven by data centers and AI infrastructure—many of which are being built in rural or remote areas. That’s adding new logistical challenges to an already stressed labor environment.

“Workers aren’t going to stick around if they’re housed in subpar conditions or must travel hours to the job site,” the article states. “Providing comfortable accommodations and on-site amenities will be critical to attracting and retaining skilled labor on large-scale remote projects.”

Companies with strong self-perform teams, mobility programs, and logistical support systems are better equipped to deliver reliable outcomes in these challenging locations. “When it comes to building remotely, the workforce model can make or break a project,” DPR warned.

5. Prefabrication is Growing—But It’s Not a Silver Bullet

Technology is playing a larger role in construction delivery, particularly through prefabrication and modular construction. These methods offer project owners faster timelines, more predictability, and greater control over cost and labor requirements.

“Prefabrication alone is simply never going to completely solve the labor shortage,” the article states. “Instead, we see it as a complement to traditional labor, enhancing efficiency, safety and quality while reducing onsite labor demands.”

DPR continues to expand its prefab capabilities using tools like Digital Building Components and SurePods. Finding the right balance between automation and skilled human labor will be key to meeting customer demands going forward.

Looking Ahead: Investing in People and Resilience

As construction companies look to navigate a complex and shifting landscape, long-term success may depend on how well they invest in their workforce—through training, better working conditions, and long-term career support.

“Addressing today’s labor challenges isn’t just about navigating current uncertainties; it’s about proactively shaping a more resilient workforce capable of thriving despite them,” said Ryan Romanchuk, DPR’s Central Region leader. “Companies that invest now in their people, technology, and practices will emerge stronger, better positioned to lead in the evolving landscape of construction.”

Originally reported by Mile High.