The impact of an aging workforce on the construction industry

Chee, Yin Yee (2025) The impact of an aging workforce on the construction industry. Final Year Project, UTAR.

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Abstract

Malaysia’s construction industry is increasingly influenced by the aging workforce, a demographic shift with implications for productivity, innovation, and workplace safety. While extensive research has examined the implications of an aging workforce and explored mitigation strategies across various contexts, research in Malaysia is still lacking. Hence, this study aimed to (i) examine the effects of an aging workforce on the construction industry, (ii) identify the challenges faced by construction companies, and (iii) propose strategies for effective adaptation. A quantitative survey was distributed to construction professionals in the Klang Valley. 113 responses were obtained then examined using Cronbach’s Alpha, mean ranking, Mann–Whitney U, Kruskal–Wallis, and Spearman’s correlation tests. The results revealed that aged and experienced workers consistently rated positive effects more highly, particularly in relation to organisational learning, stronger work ethic, and safety, while also acknowledging key challenges such as the need for health promotion, workforce imbalance, lack of innovation, and mentoring pressures. Significant differences were observed across age, years of experience, position, and organisational size, with senior professionals and medium-sized firms perceiving innovation gaps and technology adoption as more critical. Strategies such as mentoring and knowledge transfer, safety measures, wellness programs, and skill development emerged as the most effective, with Spearman’s correlation highlighting strong relationships between flexible work arrangements, refined HR practices, and improved working environments. Overall, the findings suggest that while the aging workforce presents notable challenges for Malaysia’s construction sector, it also offers opportunities to leverage the strengths of aging professionals. This study supports policymakers, industry stakeholders, and construction firms in developing inclusive strategies for aging workers, fostering workforce resilience and ensuring alignment with national development agendas such as the Twelfth Malaysia Plan and Malaysia Madani. Keywords: Aging workforce; Construction industry; Effect; Challenge; Strategy Subject Area: HQ1060–1064: Aged. Gerontology (Social aspects). Retirement

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