Design and Make industries have struggled in recent years to find skilled talent, and this year, that struggle has become acute enough to hinder growth. Fifty-eight percent of business leaders say that lack of access to skilled talent is a barrier to their company’s growth, up from 43% in 2024.

The skilled talent gap increased in nearly every country surveyed—in some cases, quite significantly. Germany, for example, saw an increase from 28% to 61% in the number of organizations saying skilled talent is difficult to find. In the Nordics, this number jumped from 18% to 51%, representing a 183% year-over-year increase.

When it comes to bridging and filling the skills gap, digitally mature companies are at a distinct advantage. Seventy-seven percent of digitally mature companies will invest more in digital training, compared to 59% of less digitally mature companies. They are also more likely to implement continuous learning programs than less digitally mature companies, at 74% and 55%, respectively. Digitally mature companies also see a boost when it comes to talent. Twenty-seven percent of digitally mature companies report improved talent acquisition and retention as a benefit of digital transformation, compared to only 18% of less digitally mature companies.

Nearly two-thirds of organizations are confronting a skills gap

Percentage of respondents who agree to statements: 1. New employees with the right technical skills are difficult to find. 2. My company has had to let employees go because they lack technical skills. 3. Lack of access to skilled talent is a barrier to my company’s growth. 4. The workforce is rapidly aging. 5. My company is implementing a continuous learning program to mitigate the shortage of skilled workers. 5-point scale. Top two = agree.

Sixty-one percent of business leaders worldwide agree that new employees with the right technical skills are difficult to find, up from 45% the previous year. Moreover, the number of leaders who say they have had to let people go because they lack technical skills has jumped to 49%, up from 35%, compounding labor-shortage problems.

Despite these struggles, leaders are confident in their organization’s ability to tackle talent issues. In the analysis of open-ended survey questions asking respondents how their company is addressing this lack of access to skilled talent, only 5% say their company is not handling the issue, down from 11% last year. These organizations say they are focused on increasing talent acquisition through working with recruiters or using targeted job postings.

Leaders are also much more confident that their organizations are handling the challenge of a rapidly aging workforce; just 5% of leaders think their organizations are not handling the issue, compared to 20% last year.

“Finding the right talent is challenging. They have to know how to work with the software and have a technical understanding of the product we are designing. It can be very hard and very expensive to find people.”

– Christian Ahlers, CAD Systems Administrator, Lindner Group, an interior construction specialist headquartered in Germany

Steelcase: Building a diverse global workforce

Solution spotlight

Steelcase—a furniture manufacturer for offices, hospitals, and classrooms—addresses the skills gap through various initiatives focused on workforce development and inclusion. Recognizing the importance of a diverse and sustainable workforce, Steelcase partners with organizations such as the West Michigan Center for Arts and Technology (WMCAT) to provide hands-on arts and technology programming, gap-year programs, and adult workforce development. Additionally, Steelcase’s Camp Ignite empowers underrepresented teens through leadership training and internships, preparing them for future careers. The company also supports women in manufacturing at its Pune, India, plant through educational programs and flexible work arrangements. These efforts aim to build a diverse talent pipeline, enhance workforce skills, and create a culture of inclusion, ultimately benefiting both the company and the communities it serves.

Despite the skills gap, investment in training is down

Percentage of respondents who agree to the statement: In the next 3 years, my company is planning to invest more in digital skills training. 5-point scale. Top two = agree.

One way to bridge the skills gap is to invest more in workforce training through continuous learning programs, but implementation of continuous learning programs has declined to 64% from 71% in 2024.

Budget aside, training holds other challenges. Nearly half of all respondents (48%) say they do not have the resources to design internal training programs, up 10 points over 2024, indicating that the tight labor market is impacting initiatives across organizations.

Confronted by multiple implementation obstacles, some organizations are turning to third parties to train their employees. While external training programs seem like an ideal solution for those organizations tight on resources, their efficacy remains in doubt, with 52% of leaders saying these do not meet the needs of their organization.

Notably, for companies held back by lack of access to skilled talent, just 9% said they were using AI to fill this gap. Instead, organizations are focused on hiring workers with AI skills.

“I believe that anyone can be developed and trained to excel. Talent development is about providing the right resources and opportunities for growth. It’s crucial for our industry to rethink how we cultivate that talent and equip our people with the necessary skills. By rethinking how we train and upskill our people, we can build a workforce ready to meet the demands of the modern construction industry.”

– Michael Zeppieri, Vice President, Emerging Technology, Skanska, a global project development and construction company headquartered in Sweden
“We do a lot of work with universities, and this has been a great pipeline for new and emerging talent. We have a robust internship program—500 just last year—and we look at the interns as future employees. It ensures they have the technical skills we need, and also that they will already fit into our culture.”

– Jeff Siegel, Digital Infrastructure Solutions Delivery and Organizational Growth Officer, Senior Vice President, and HNTB Fellow, HNTB, a transportation infrastructure design firm headquartered in the US
“Resourcing is the biggest challenge. It’s number one. We can’t replace the human; therefore, resourcing is vital. It’s becoming more difficult as technology is becoming more advanced for people to understand it, get trained for it, and engaged in it. It’s becoming more difficult, and it’s not going to get any less difficult. We’re being asked as practitioners to do more with less time. We’re time poor, and a lot of people don’t have the time to go and upskill.”

– Brad Sonter, Practice Design Technology Lead, Cox Architecture, a design-focused architectural practice headquartered in Australia
“I believe that anyone can be developed and trained to excel. Talent development is about providing the right resources and opportunities for growth. It’s crucial for our industry to rethink how we cultivate that talent and equip our people with the necessary skills. By rethinking how we train and upskill our people, we can build a workforce ready to meet the demands of the modern construction industry.”

– Michael Zeppieri, Vice President, Emerging Technology, Skanska, a global project development and construction company headquartered in Sweden
“We do a lot of work with universities, and this has been a great pipeline for new and emerging talent. We have a robust internship program—500 just last year—and we look at the interns as future employees. It ensures they have the technical skills we need, and also that they will already fit into our culture.”

– Jeff Siegel, Digital Infrastructure Solutions Delivery and Organizational Growth Officer, Senior Vice President, and HNTB Fellow, HNTB, a transportation infrastructure design firm headquartered in the US
“Resourcing is the biggest challenge. It’s number one. We can’t replace the human; therefore, resourcing is vital. It’s becoming more difficult as technology is becoming more advanced for people to understand it, get trained for it, and engaged in it. It’s becoming more difficult, and it’s not going to get any less difficult. We’re being asked as practitioners to do more with less time. We’re time poor, and a lot of people don’t have the time to go and upskill.”

– Brad Sonter, Practice Design Technology Lead, Cox Architecture, a design-focused architectural practice headquartered in Australia
“I believe that anyone can be developed and trained to excel. Talent development is about providing the right resources and opportunities for growth. It’s crucial for our industry to rethink how we cultivate that talent and equip our people with the necessary skills. By rethinking how we train and upskill our people, we can build a workforce ready to meet the demands of the modern construction industry.”

– Michael Zeppieri, Vice President, Emerging Technology, Skanska, a global project development and construction company headquartered in Sweden

AI skills top the list of future hiring priorities

Survey question: What technical or digital skills do you believe your company or organization will be prioritizing when hiring over the next 3 years? Select all that apply.

Forty-six percent of leaders say the ability to work with AI will be their top priority when hiring in the next few years, up from 41% in 2024. This indicates that, despite a more cautious approach to the technology this year, leaders are still dedicated to integrating AI into their organizations.

At the industry level, utilities and telecom see the most need for AI skills, with 58% of leaders saying they are a priority. Considering this industry also sees AI and technology as its top challenge, it makes sense that leaders are prioritizing the tech skills that will ease implementation concerns.

“In the next few years, with the advent of generative AI, we need a different kind of talent. We need artists. We need creative thinkers. We need problem solvers. We don’t need button pushers because those are the tasks that will get automated.”

– Veerendra Patil, Founder and Creative Director, Zebu Animation Studios, an animation studio headquartered in India
“But from the design, construction, and the operation perspective, AI plays a very critical role. From a productivity perspective, we can use different AI processes to help maybe come up with design suggestions in terms of optimizing maybe airflow, optimizing space.”

– Dr. Karen Blay, MCP BSc PgCert MSc PhD FHEA MACM MCIOB MIHEEM, Senior Lecturer in Digital Construction and Quantity Surveying, Loughborough University, a UK-based public research university
“In the next few years, with the advent of generative AI, we need a different kind of talent. We need artists. We need creative thinkers. We need problem solvers. We don’t need button pushers because those are the tasks that will get automated.”

– Veerendra Patil, Founder and Creative Director, Zebu Animation Studios, an animation studio headquartered in India
“But from the design, construction, and the operation perspective, AI plays a very critical role. From a productivity perspective, we can use different AI processes to help maybe come up with design suggestions in terms of optimizing maybe airflow, optimizing space.”

– Dr. Karen Blay, MCP BSc PgCert MSc PhD FHEA MACM MCIOB MIHEEM, Senior Lecturer in Digital Construction and Quantity Surveying, Loughborough University, a UK-based public research university
“In the next few years, with the advent of generative AI, we need a different kind of talent. We need artists. We need creative thinkers. We need problem solvers. We don’t need button pushers because those are the tasks that will get automated.”

– Veerendra Patil, Founder and Creative Director, Zebu Animation Studios, an animation studio headquartered in India
“But from the design, construction, and the operation perspective, AI plays a very critical role. From a productivity perspective, we can use different AI processes to help maybe come up with design suggestions in terms of optimizing maybe airflow, optimizing space.”

– Dr. Karen Blay, MCP BSc PgCert MSc PhD FHEA MACM MCIOB MIHEEM, Senior Lecturer in Digital Construction and Quantity Surveying, Loughborough University, a UK-based public research university