Why Builders Must Embrace AI for Recruiting and Beyond

We sat down with Paul Sanneman, founder of Contractor Staffing Source and a straight-shooting industry veteran. Paul shared some tough love about where most builders are missing the mark on recruiting and how the industry is evolving with AI.

Recruiting in construction isn’t what it used to be — just ask Paul Sanneman. In the latest episode of Builders, Budgets, and Beers, we had the pleasure of chatting with Paul, founder of Contractor Staffing Source an industry veteran with over three decades of experience helping more than 400 companies. Known for his sharp wit and appreciation for new tech, Paul has seen it all, from the days of pagers on the job site to the rise of AI. If you’re struggling to find skilled labor or keep up with the changing times, his insights might just be the advice you need.

Grab a coffee (or maybe a beer) and settle in!

The Reluctant Tech Adopters

Paul’s seen a lot of resistance to change in his time. He jokes about contractors who once scoffed at cell phones, calling them “a disturbance to their peace of mind.” Email was “a fad,” and websites? “Who needs one when your reputation speaks for itself?” Yet, here we are, in an era where those same skeptics are relying on project management software and, more recently, embracing AI.

And here’s the thing: AI isn’t just another shiny object. It’s the backhoe to your shovel, the nail gun to your hammer. Paul believes we’re at a turning point where AI will revolutionize construction in ways we can’t yet fully grasp. We’re already seeing its impact in back-office functions like accounting, marketing, and recruiting. Paul’s advice is simple: Don’t resist.

Recruiting: Not Just When You Need It, But Always

One of the biggest mistakes Paul sees contractors make is treating recruiting like a fire drill — only pulling out the hoses when the flames are already licking at the walls. “You wouldn’t market your business only when you’re desperate for sales, so why do that with hiring?” Paul asks. He argues that recruiting should be an ongoing process, as integral to your business as marketing or accounting.

It’s a mindset shift that many contractors struggle with. They wait until they’re down a project manager or a skilled carpenter before they start scrambling to fill the role, often hiring in a rush and paying the price later. But Paul has a solution: Keep a steady pipeline of potential hires and be in touch with the talent pool, even when you don’t have an immediate need. It’s like building a bench of top draft picks ready to jump in when you need them most.

He also dispels the myth that employees are too expensive. You can’t make money without good people. If you’re hesitating to pay top dollar for a qualified hire, you’re missing the bigger picture. The cost of a bad hire — in lost productivity, project delays, and potential legal issues — can easily top $50,000. It’s the kind of math that makes you rethink your perspective on recruiting.

Stubborn Beliefs and Outdated Habits

Paul wasn’t shy about pointing out the main obstacle holding many builders back: the belief that you can do it all manually and still keep up in today’s fast-paced environment. Contractors often think they can handle everything the same way they always have, whether it’s recruiting, accounting, or project management.

In reality, this mindset is a recipe for burnout and missed opportunities. Paul shared that one of the most common mistakes he sees is contractors relying solely on word-of-mouth recruiting. Instead, builders should treat recruiting like marketing: it’s an ongoing process, not a one-time task.

The same goes for back-office operations. Many contractors still use basic tools like spreadsheets and QuickBooks alone, not realizing the time and accuracy they’re sacrificing and the power of tools that are purpose built for the construction industry. Paul emphasized that the cost of not adopting new technology is far greater than the price of the tools themselves.

In Paul’s view, the builders who succeed will be the ones who actively seek out ways to automate the mundane and repetitive, delegate, and streamline their operations. It’s not just a matter adopting new technology, it’s also letting go of old ways of doing work that are no longer serving your business.

The Bottom Line: Adapt to Thrive

Paul’s approach to recruiting and technology adoption might seem blunt, but it’s born from decades of watching the industry evolve. His advice is simple yet profound: Don’t let outdated beliefs hold you back. Use technology to your advantage, hire smarter, and stay competitive. The tools you need are already here, you just have to be willing to use them.

At Adaptive, we’re right there with you on this journey. We’ve built our platform to help you make the most of AI and modern technology without the hassle of complicated software to simplify your finances and bring you clarity.

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