U.S. and Canadian public sector industries, participating in transport and construction, are seeing critical projects hindered due to labor shortages. The lack of skilled workers threatens timely project completion and daily road-safety measures.
Labor shortages in the U.S.
The U.S. construction industry is experiencing gradual impacts. With the industry's unemployment rate averaging 4.6% and job openings remaining historically high at 377,000 per month, 88% of construction firms report difficulty finding workers[1][2]. This risks a delay in project timelines, which can directly affect road repairs and—importantly—motorist safety. The American Society of Civil Engineers (ASCE) graded U.S. road conditions with a "D," indicating that conditions are in steady decline in infrastructure quality, exacerbated by these labor gaps[3].
Labor shortages in Canada
The situation is equally concerning north of the border. In Canada—specifically Ontario—40% of organizations, private and public, report labor shortages in construction and transportation[4]. There are one million vacant jobs in 2022 and 59% of employers struggled to find qualified workers[5]. This pressure forces municipalities to seek innovative solutions to meet operational standards.
Driving outcomes with A.I.
Municipalities are turning to A.I. technology as a solution. A.I. mimics human thinking to process large amounts of data and solve problems with limited human help, thus directly addressing labor shortages. Adopting A.I. technology in municipal operations has been shown to offer benefits such as cost savings of up to 30%, faster response times and improved safety outcomes[6]. Currently 35% of construction companies worldwide are using A.I. to improve project management efficiency, and municipalities are increasingly turning to it for higher accuracy and faster turnaround times[7]. Technologies like those offered by iris are at the forefront of this transformation, providing municipalities with A.I.-driven tools to detect defects like potholes, cracks and damaged assets such as traffic signs and streetlights.
Results from municipalities
A.I. yielded significant results for three regions in North America. The City of Greeley in the state of Colorado was able to reallocate their road staff to other needed tasks because they automated their road patrol operation. The Public Works team was able to reduce the number of staff required for road patrols and additionally recorded a drop in resident service calls. This helps them measure the quality of their residents' experience and service levels, along with how responsive they are to road defects.
Vaughan and Grey County in Ontario have seen remarkable improvements: a 25% increase in compliance reporting currently, and a 50% reduction in pavement inspection time, respectively.
A.I. technology presents a promising avenue to enhance efficiency and reduce the strain on limited resources.
References
- 1.Associated Builders and Contractors (ABC). (2024). Construction workforce shortage tops half a million. https://www.abc.org/News-Media/News-Releases/abc-2024-construction-workforce-shortage-tops-half-a-million
- 2.ConstructConnect. Labor shortage in construction. https://www.constructconnect.com/blog/labor-shortage-in-construction
- 3.American Society of Civil Engineers (ASCE). (2021). 2021 Report Card for America's Infrastructure: Grades reveal widening investment gap. https://www.asce.org/publications-and-news/civil-engineering-source/article/2021/03/03/2021-report-card-for-americas-infrastructure-grades-reveal-widening-investment-gap
- 4.Ontario Chamber of Commerce. (2024). 2024 Ontario Economic Report. https://occ.ca/wp-content/uploads/2024-Ontario-Economic-Report-1.pdf
- 5.Statistics Canada. https://www.statcan.gc.ca/en/start
- 6.McKinsey Global Institute. Help wanted: The long-term labor tightening trend by country. https://www.mckinsey.com/mgi/our-research/help-wanted-the-long-term-labor-tightening-trend-by-country
- 7.WorldMetrics. A.I. in the construction industry statistics. https://www.mckinsey.com/mgi/our-research/help-wanted-the-long-term-labor-tightening-trend-by-country




