The CFO's Guide to Labor Cost Control: Insights We'll Share at CFMA's Annual Conference

In the construction industry, labor costs typically represent 30-40% of project budgets, making them the single largest controllable expense for most firms. As economic pressures mount and skilled labor shortages persist, construction financial executives face increasing challenges in maintaining profitability while delivering quality projects on schedule.

Effective labor cost control has become not just a financial necessity but a strategic imperative for construction CFOs looking to strengthen their company's competitive position. At this year's CFMA Annual Conference, industry leaders will present cutting-edge approaches to labor cost management that balance financial discipline with operational excellence.

What is CFMA's Annual Conference & Why Should CFOs Attend?

Overview of CFMA

The Construction Financial Management Association (CFMA) stands as the premier organization dedicated to the specific financial management needs of construction companies. Founded in 1981, CFMA has grown to over 8,500 members across 99 chapters nationwide, representing construction companies of all sizes and specialties. The association focuses on providing education, networking, and resources that address the unique financial challenges of the construction industry.

CFMA Annual Conference Highlights

The CFMA Annual Conference represents the pinnacle of knowledge sharing in construction financial management. This five-day event brings together CFOs, controllers, financial managers, and other construction finance professionals for intensive learning and networking. The conference features over 50 educational sessions, keynote presentations from industry thought leaders and exhibits showcasing the latest financial management solutions.

The 2025 conference agenda includes specialized tracks such as Basic (BAS), Intermediate (INT), and Advanced (ADV) sessions, catering to professionals at all career stages. Attendees gain valuable CPE credits while learning best practices directly applicable to their daily challenges.

Opportunities at CFMA's 2025 Annual Conference

The 2025 CFMA Annual Conference, scheduled for May 17-21, 2025, in Orlando, Florida, promises exceptional learning and networking opportunities.

The comprehensive agenda includes sessions specifically focused on workforce management and cost control, such as "Aligning People & Pay: 2025 Compensation Practices" and "People, Projects, Profit: The Workforce Equation."

The conference also features specialized roundtables for small-firm CFOs ($1-25 million), medium-firm CFOs ($25-100 million), and large-firm CFOs (over $100 million), allowing for targeted discussions of labor-management strategies appropriate to different company sizes.

The exhibition hall will be open for nine dedicated hours across multiple days, providing ample opportunity to explore innovative workforce management solutions. Pre-conference workshops like "HR Maze: Employee Risk Management for Specialty Trade" offer deep dives into critical labor management topics.

Meet the Lumber team at Booth 309 at CFMA Conference | Book a meeting in advance

Why It's Essential for CFOs

For construction CFOs, the CFMA Annual Conference offers unparalleled value through access to industry-specific knowledge and a network of peers facing similar challenges. The specialized focus on construction finance—unlike general accounting or financial conferences—ensures that all content is directly relevant to the unique challenges of the industry.

The 2025 conference will feature renowned speakers including Anirban Basu, Chairman and CEO of Sage Policy Group, who will provide economic insights critical for labor forecasting; James Benham, CEO of JBKnowledge, addressing technology's impact on workforce management; and Nikki Greenberg, a world-leading futurist discussing the future of work in construction. Additional industry experts like Justin Adams (Director of Operational Finance at Granite Construction) and Christian Geismann (CFO of MacDonald-Miller) will share practical insights from their experience implementing successful labor cost control strategies.

CFOs who attend consistently report implementing strategies that yield measurable financial improvements upon returning to their companies. In an industry where margins are tight and competition is fierce, the insights gained at CFMA can provide a critical competitive advantage.

Why Labor Cost Control is Critical in Construction

Labor cost control stands at the heart of construction financial management for several compelling reasons. First, labor typically represents the largest controllable expense in construction projects, often accounting for 30-40% of total project costs. Unlike materials or equipment, which have more predictable pricing and usage patterns, labor costs are subject to significant variability based on productivity, scheduling, and unforeseen circumstances.

Second, the construction industry faces persistent skilled labor shortages, driving up wages and competition for quality workers. The Bureau of Labor Statistics reports that construction wages have increased at nearly twice the rate of general inflation over the past three years, creating significant pressure on project budgets.

Third, labor productivity directly impacts project timelines, which in turn affects financing costs, penalty clauses, and resource allocation across a company's entire project portfolio. Even small improvements in labor efficiency can generate substantial financial benefits across multiple projects.

Finally, effective labor cost control requires sophisticated integration between field operations and financial management—precisely the intersection where construction CFOs operate. By mastering labor cost control, CFOs can deliver significant value to their organizations beyond traditional financial reporting and compliance functions.

Strategies for Labor Cost Control CFOs Can Implement

Progressive construction CFOs are implementing several proven strategies to optimize labor costs while maintaining project quality and schedule performance:

Integrated workforce planning aligns project schedules with labor availability to minimize costly overtime and reduce idle time. Leading companies develop rolling 12-month workforce plans for projected project timelines, seasonal factors, and regional labor market conditions. This approach allows for more strategic hiring and resource allocation.

Data-driven productivity measurement establishes baseline performance metrics and identifies opportunities for improvement.

Advanced contractors are now tracking productivity at the task level rather than just the project level, allowing for more precise identification of inefficiencies. Mobile data collection tools enable real-time reporting from the field, eliminating delays in recognizing productivity issues.

Strategic subcontractor management balances in-house labor with specialized subcontractors to optimize project costs. Forward-thinking CFOs are implementing sophisticated subcontractor evaluation systems that consider both bid prices and historical performance, schedule adherence, and quality metrics to identify the true "best value" partners.

Technology adoption in workforce management software allows for more precise labor tracking and forecasting. Leading contractors are implementing systems integrating time tracking, scheduling, and productivity monitoring to provide comprehensive workforce visibility across all projects.

Performance-based compensation structures align worker incentives with company financial goals. Innovative companies are moving beyond traditional hourly wages to incorporate production bonuses, quality incentives, and project completion rewards that motivate workers to maximize efficiency.

Lean construction principles eliminate waste in construction processes, resulting in more efficient use of labor resources. CFOs are increasingly partnering with operations teams to implement pull planning, just-in-time material delivery, and other lean methodologies that reduce downtime and improve labor utilization.

Lumber's Contribution to Labor Cost Management at CFMA

Lumber's Role

Lumber - a construction workforce management platform, has emerged as a leader in integrated workforce management solutions specifically designed for the construction industry. Lumber provides comprehensive labor tracking, scheduling, and productivity analysis in a single platform along with payroll, job costing, hiring and benefits management as well.

Why Visit Lumber at the CFMA 2025 Conference

Attendees at the CFMA 2025 Conference should make a point to visit Lumber's booth 309 during the exhibition hours to experience firsthand how their solutions address the specific labor cost challenges discussed throughout the conference. Lumber representatives will provide personalized demonstrations showing how their system integrates with popular construction accounting software to provide a complete financial and operational picture of labor costs.

The opportunity to speak with Lumber's implementation specialists will be particularly valuable about the practical aspects of deploying workforce management technology. These experts can provide insights on change management strategies, user adoption techniques, and integration approaches that have proven successful with other construction companies.

Special Offers

Lumber will be offering CFMA conference attendees exclusive benefits, including a complimentary labor cost analysis to identify potential savings opportunities within their organizations. Additionally, companies that schedule a post-conference demo will receive a 15% discount on implementation services and extended support during the critical first three months of deployment.

In an industry where margins are tight, and labor represents the largest controllable expense, effective labor cost management can be the difference between profitability and financial distress. The CFMA Annual Conference, with its robust agenda of over 50 educational sessions and access to industry leaders like Anirban Basu, James Benham, and Nikki Greenberg, provides construction CFOs with the knowledge, tools, and connections needed to implement sophisticated labor cost control strategies.

By attending the 2025 conference in Orlando from May 17-21, financial executives will gain actionable insights that can be immediately applied to strengthen their companies' financial position. The combination of expert presentations, peer networking opportunities through specialized roundtables, and exposure to innovative solutions like those offered by Lumber creates an unparalleled opportunity for professional development and business improvement.

Sessions like "Aligning People & Pay: 2025 Compensation Practices" and "People, Projects, Profit: The Workforce Equation" will directly address the labor cost challenges that keep CFOs awake at night. The nine hours of dedicated exhibition time will provide ample opportunity to explore technological solutions that can transform workforce management practices.

As the construction industry continues to evolve, those who master labor cost control will position their companies for sustainable growth and competitive advantage. The journey to excellence in this critical area begins with the insights and connections you'll make at the CFMA Annual Conference.