You’d have to be living on the moon not to know that hourly construction workers are getting scarcer. But the magnitude of this labor shortage is writ large in a recent survey, released this week by Autodesk and the Associated General Contractors of America (AGC), which found that 80% of 1,935 respondents in 23 states report having a hard time filling hourly craft positions.
More concerning are the findings that nearly three-quarters of the construction firms polled don’t expect shortages to abate over the next year, and could, in fact, get worse. And the training and skill level of the labor that is available are deemed “poor” by 45% of those polled.
It remains to be seen whether and how soon the industry can dig itself out of this hole. To attract workers, two-thirds of the survey’s respondents say they’ve boosted base pay rates, and 29% are offering incentives and bonuses. A longer-term play finds nearly half of the firms polled—46%—having launched or expanded their training programs. Half of the respondents also say their companies are involved in career-building programs.
Labor shortage problems are hitting construction firms of all sizes, and are having a deleterious effect on companies' abilities to expand their businesses. Image: AGC-Autodesk
The labor shortage is shoving a perennially tech-phobic construction industry into the 21st Century. One-quarter of respondents are using tools like drones, 3D printers, and robots. Another 23% are relying on lean construction techniques, BIM, and prefabrication.
The disruption being caused by labor shortages is also manifesting itself in costlier projects that take longer to complete. Forty-four percent of the firms polled are increasing their construction prices, and 29% are factoring longer lead times into their bids.
“Workforce shortages remain one of the most significant threats to the construction industry,” said Stephen E. Sandherr, AGC’s chief executive officer. “However, construction labor shortages are a challenge that can be fixed, and this association will continue to do everything in its power to make sure that happens.”
This chart, based on 964 responses from firms with $50 million or less in work results, shows how contractors are struggling to find salaried, as well as hourly, workers. Image: AGC-Autodesk
Over the past two years, AGC has secured $145 million in federal funding for career and technical education programs. It is urging the federal government to increase that funding, and to allow construction students to qualify for federal Pell Grants, which would make it easier for firms to establish apprenticeship programs.
More quixotic—given the Trump Administration’s virulent anti-immigration stance—is AGC’s call for the government to let more immigrants into the U.S. to work construction.
Related Stories
Market Data | Jul 24, 2023
Leading economists call for 2% increase in building construction spending in 2024
Following a 19.7% surge in spending for commercial, institutional, and industrial buildings in 2023, leading construction industry economists expect spending growth to come back to earth in 2024, according to the July 2023 AIA Consensus Construction Forecast Panel.
Codes and Standards | Jul 17, 2023
Outdated federal rainfall analysis impacting infrastructure projects, flood insurance
Severe rainstorms, sometimes described as “atmospheric rivers” or “torrential thunderstorms,” are making the concept of a “1-in-100-year flood event” obsolete, according to a report from First Street Foundation, an organization focused on weather risk research.
Multifamily Housing | Jul 13, 2023
Walkable neighborhoods encourage stronger sense of community
Adults who live in walkable neighborhoods are more likely to interact with their neighbors and have a stronger sense of community than people who live in car-dependent communities, according to a report by the Herbert Wertheim School of Public Health and Human Longevity Science at University of California San Diego.
Multifamily Housing | Jun 29, 2023
5 ways to rethink the future of multifamily development and design
The Gensler Research Institute’s investigation into the residential experience indicates a need for fresh perspectives on residential design and development, challenging norms, and raising the bar.
Apartments | Jun 27, 2023
Average U.S. apartment rent reached all-time high in May, at $1,716
Multifamily rents continued to increase through the first half of 2023, despite challenges for the sector and continuing economic uncertainty. But job growth has remained robust and new households keep forming, creating apartment demand and ongoing rent growth. The average U.S. apartment rent reached an all-time high of $1,716 in May.
Contractors | Jun 26, 2023
Most top U.S. contractors rarely deliver projects on time: new study
About 63% of leading U.S. contractors are delivering projects out of schedule, according to a survey of over 300 C-suite executives and owners in the construction industry by XYZ Reality. The study implies that the industry is struggling with significant backlogs due, in part, to avoidable defects, scan, and rework.
Industry Research | Jun 15, 2023
Exurbs and emerging suburbs having fastest population growth, says Cushman & Wakefield
Recently released county and metro-level population growth data by the U.S. Census Bureau shows that the fastest growing areas are found in exurbs and emerging suburbs.
Contractors | Jun 13, 2023
The average U.S. contractor has 8.9 months worth of construction work in the pipeline, as of May 2023
Associated Builders and Contractors reported that its Construction Backlog Indicator remained unchanged at 8.9 months in May, according to an ABC member survey conducted May 20 to June 7. The reading is 0.1 months lower than in May 2022. Backlog in the infrastructure category ticked up again and has now returned to May 2022 levels. On a regional basis, backlog increased in every region but the Northeast.
Industry Research | Jun 13, 2023
Two new surveys track how the construction industry, in the U.S. and globally, is navigating market disruption and volatility
The surveys, conducted by XYZ Reality and KPMG International, found greater willingness to embrace technology, workplace diversity, and ESG precepts.
| Jun 5, 2023
Communication is the key to AEC firms’ mental health programs and training
The core of recent awareness efforts—and their greatest challenge—is getting workers to come forward and share stories.