Workforce challenges in engineering: navigating a path forward

The engineering industry, a cornerstone of technological innovation and infrastructure development, is facing significant labor shortages. Demand for civil engineers is expected to surge in the coming decade, driven by large-scale infrastructure projects. However, the number of new graduates entering the workforce is insufficient to meet this growing need. The U.S. Bureau of Labor Statistics estimates that 25,000 new civil engineers will be required annually throughout this decade, primarily to replace retiring workers — an estimate that does not fully account for the additional demand created by the Infrastructure Investment and Jobs Act (IIJA) passed by Congress in 2021.

Beyond civil engineering, the broader engineering workforce is also confronting severe shortages. According to SAE International, approximately one-third of engineering positions will remain unfilled each year through at least 2030. This shortfall is exacerbated by the rapid advancement of technology and automation, which demand continuous upskilling and reskilling — efforts that often fail to keep pace with the evolving needs of the industry.

How can engineering firms navigate these challenges?

Reimagining talent management

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Innovative talent management practices are essential to overcoming workforce challenges. A recent Grant Thornton survey revealed that 81% of respondents identified employee retention as a key concern over the next 12 months, while 43% cited budget constraints as a top challenge. To address these issues, traditional recruitment approaches may need to be rethought. For instance, fostering a pipeline of future engineers through enhanced STEM (science, technology, engineering and mathematics) education initiatives is one solution. Partnerships between educational institutions and industry can create targeted programs that align curricula with current and future industry needs, ensuring graduates possess the necessary skills. Also, offering remote and flexible work arrangements can significantly boost employee satisfaction and productivity; a trend not as widely embraced among the engineering field. Firms would be able to attract a wider talent pool, including those who may not be able to commute or relocate, thereby enhancing diversity within the workforce. “Embracing flexible, remote and hybrid work arrangements, is not just about adapting to the present; it’s about future-proofing your organization. By offering employees the autonomy to choose where and when they work, engineering firms can foster a more engaged and productive workforce. Flexibility is no longer a perk — it’s a strategic imperative for attracting and retaining top talent in today’s competitive market,” says Rob Ginzel, Talent & Culture Director in Grant Thornton’s Growth Advisory practice.

In addition to developing future talent, organizations must focus on upskilling and reskilling their current workforce. Greg Kowalewski, Talent & Culture Senior Manager in Grant Thornton’s Growth Advisory Practice, says that “It is essential to prioritize skill development across all levels of an organization. Firms must invest in continuous learning if they want to keep their existing employees while having a workforce that can meet their client’s expectations. Upskilling and reskilling are no longer optional — they are essential.” Offering continuous learning opportunities and professional development can bridge the gap between existing skills and emerging demands. Enhanced mentorship programs and well-defined career progression pathways can further improve employee retention by providing clear career goals and support for professional growth.

Harnessing emerging technology and automation

Technology and automation play a pivotal role in alleviating labor shortages by improving efficiency and reducing the need for manual labor. Key technological advancements include:

Automation & AI: Automation tools and AI can handle repetitive tasks, such as drafting, data analysis and simulations, freeing engineers to focus on more complex, creative work.

Building Information Modeling (BIM) & Digital Twins: BIM software enables detailed 3D models of infrastructure projects, improving collaboration and reducing errors. Digital twins allow real-time monitoring and simulation of physical assets, optimizing project management and minimizing the need for on-site personnel.

Remote Collaboration Tools: Cloud-based platforms and collaborative software facilitate teamwork across multiple locations, enabling access to a global talent pool and reducing reliance on local, on-site workers.

Robotics & Drones: In construction and inspection tasks, robotics and drones can take on physically demanding or hazardous work, enhancing operational efficiency and reducing the need for manual labor in dangerous environments.

Upskilling & Training with VR/AR: Virtual Reality (VR) and Augmented Reality (AR) provide immersive training experiences, helping engineers quickly acquire new skills and adapt to emerging technologies.

Creating a sustainable operating model

To build a sustainable operating model, engineering firms must address labor shortages while ensuring long-term resilience. Overcoming talent shortages requires a robust internal governance model that integrates workforce planning, clear roles and accountability throughout the organization. Effective governance ensures that employees possess the right skills and are aligned with the company’s long-term goals, while leadership communicates these objectives clearly, securing support across all levels.

An efficient operating model should be strategically aligned with the firm’s overall business objectives. This alignment ensures that every component of the organization supports the goal of overcoming talent shortages and maintaining operational efficiency. A well-defined governance structure establishes clear roles, responsibilities and decision-making authority, which is essential in managing and optimizing the workforce. By clearly defining these elements, firms can better allocate resources, streamline processes and reduce the strain caused by labor shortages. Neima Golnabi, Managing Director in Grant Thornton’s Growth Advisory practice, says, “An effective operating model is like a well-tuned engine. Every part — cylinders, pistons, spark plugs and fuel systems — must work together seamlessly to generate power and drive performance. Similarly, in an operating model, the alignment of strategy, people, technology and process is crucial. When all components are in sync, the organization runs smoothly and efficiently, propelling it toward its goals.”

In summation, talent retention strategies, such as offering flexible work arrangements and remote work options, are critical in this model. These strategies help increase employee tenure and reduce costs associated with attrition and training. Moreover, fostering a strong connection with employees through an improved workplace environment and a focus on community engagement enhances job satisfaction and loyalty, further addressing talent retention challenges.

Incorporating lean and agile methodologies into the operating model ensures that processes remain efficient, even with limited labor. A robust governance model also emphasizes the integration of technology — such as automation, data analytics and digital tools — to streamline operations and foster innovation. These technologies must be scalable and aligned with strategic goals, providing the flexibility needed to adapt to changing market conditions.