Why the Building Materials Industry Must Prioritize Succession Planning: Part 3
Posted on December 20, 2024
Introduction
While headed to the NRLA Show this week, a long-time friend and colleague remarked, “This is my 20th trip to that show, and man, the number of old guys like us keeps growing every year.” As an official “Old Guy” in the industry, I’ve become increasingly aware of the urgent need for succession planning in the building materials sector.
2024 has seen more retirements than any of my last 20 years as a recruiter in this field. Initially, I thought I was noticing this trend because I’m beginning my own succession and retirement planning. But after observing the past 11 months, it’s clear that this is a widespread industry shift. This is the final installment of my three-part series on succession planning.
Practical Strategies for Succession Planning
Building a solid succession plan might seem overwhelming, but it becomes manageable with a clear, step-by-step approach. Here are practical strategies tailored to the building materials industry:
1. Identify Key Roles and Skills
Start by pinpointing the roles essential to your operations and overall business goals. Assess the skills required for these positions and identify team members who demonstrate the potential to step into greater responsibilities.
2. Implement Mentorship Programs
Pair seasoned employees with younger or less-experienced staff. This direct knowledge-sharing approach transfers critical expertise and encourages professional relationships that strengthen your organization.
3. Offer Leadership Training
Invest in leadership development programs tailored to the unique demands of the building materials industry. Equip employees with the tools they need to confidently step into leadership roles, addressing industry-specific challenges along the way.
4. Document Processes and Knowledge
Establish a system for capturing and recording standard operating procedures, technical insights, and other essential information. This ensures institutional knowledge remains accessible and doesn’t retire along with senior employees.
Build the Foundation for the Future
The building materials industry is at a pivotal moment. With an aging workforce, it’s critical to act now and prepare for the transitions ahead. Succession planning is more than just a response to retirements; it’s a strategy for ensuring long-term stability and growth.
Through mentorship, leadership training, and the thoughtful transfer of knowledge, businesses can:
- Protect operations from disruption.
- Preserve valuable expertise.
- Position themselves for innovative growth.
The time to act isn’t tomorrow—it’s today. Securing the future of the building materials industry begins with investing in its people. By creating opportunities for continuity and leadership development, we lay the groundwork for a thriving, sustainable future.