The construction industry is facing a growing labor shortage that is beginning to affect both project timelines and overall sector performance. Despite the industry’s role as a key economic driver and its importance for housing and infrastructure development, workforce availability continues to decline. A recent analysis by McKinsey & Company warns that if productivity stagnation and labor shortages persist, the global construction sector could face a shortfall of up to $40 trillion by 2040. In the Czech Republic, this issue is shaped by global and local factors. A survey by PlanRadar indicates that 63% of construction companies believe the sector is no longer appealing to younger generations. The decline in interest in technical careers is contributing to a shrinking pipeline of new workers. Compounding the problem, many companies lack effective systems for transferring knowledge from experienced professionals to younger employees. As older workers retire, their expertise is often lost, placing greater strain on the remaining workforce and making the sector less attractive to new entrants. According to Adam Heres Vostarek, regional manager at PlanRadar for the Czech Republic, the situation is further complicated by rising personnel costs and delays related to permitting processes. Restrictive immigration policies are also a factor; nearly one-fifth of Czech respondents in the survey cited limited access to skilled foreign labor as a major challenge. Despite these constraints, Czech construction companies have so far managed to maintain project schedules better than their counterparts in other countries, with nearly 43% reporting no delays. However, this may indicate that the sector is operating at maximum capacity, leaving little room for flexibility or unexpected disruptions. Globally, 75% of construction companies reported delays due to workforce shortages, and while the Czech Republic has avoided the worst effects for now, the risk of broader disruption is growing. With demand for new construction rising and timelines tightening, the need for long-term, systemic solutions is becoming more urgent. Vostarek argues that immediate steps must focus on increasing efficiency rather than waiting for broader labor market changes. Digitization is seen as a key enabler. Technologies that streamline workflows, improve communication, and provide real-time project visibility can help companies do more with fewer people. These tools can support higher productivity without increasing workload, allowing firms to manage demand more sustainably. In addition to addressing current labor constraints, digital solutions may help attract younger workers. Vostarek points out that modern professionals expect a technology-enabled work environment that reflects their skills and ambitions. A clear structure, meaningful tasks, and digital tools that enhance creativity are central to meeting these expectations. Without adapting to these needs, construction companies may struggle to compete for talent. The labor shortage in construction is unlikely to resolve quickly, but strategic investments in technology and a shift in how the sector presents itself to future workers could help stabilize the situation. In the Czech market, where resilience remains strong, these steps may be essential to sustaining performance in the years ahead.