Dynamic Modeling for Analyzing Impacts of Skilled Labor Shortage on Construction Project Management

Abstract

In recent years, the shortage in skilled labor was one of the most significant concerns for the construction industry. Previous studies explored the causes and effects of such shortages; however, these efforts featured limited documentation and implemented subjective methods for analysis. This phenomenon is very complex and dynamically responds to the labor market's behavior and its influence on construction projects. The main goal of this study is to provide a simulation-based method for analyzing the causes and impacts of skilled labor shortages. By adopting a system dynamics (SD) approach, an integrated SD model was developed to explain the dynamic interrelationships between the causes and effects of the skilled labor shortage in construction projects. A total of five scenarios were established to simulate shortages and construction project behaviors. Based on statistical regression and sensitivity analysis, this study contributes to a better understanding of the patterns among the causes of shortages, the shortages themselves, and their impacts on labor wages, cost overruns, and scheduling concerns in construction projects.