The construction industry in America is currently facing an extreme labor shortage, with roughly 650,000 unfilled job positions. This shortage is causing delays in construction projects across various sectors, including residential homes, infrastructure, and hospitals. The pandemic, along with shifts in American cultural values and workforce demographics, are identified as the main causes of the labor shortage. Experts suggest that a balance between immigration policy, greater use of technology, and efforts to raise the profile of construction as a career path could help alleviate the problem. However, the shortage is expected to persist in the near future, despite increased interest rates and higher pay in the construction industry. The lack of workers is hindering the growth of the U.S. economy and impacting sectors such as housing. To address the shortage, construction firms are seeking to build stronger relationships with schools to attract students to the industry and are also exploring initiatives to bring in more women and justice-involved individuals. The industry is also considering immigration policy reforms to allow more workers to enter the country. However, additional investment in training and bringing more people into the construction industry is crucial to ensure that infrastructure projects can be completed successfully in the future.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Construction industry in America facing extreme labor shortage | Shortage of construction workers | Increased use of technology, immigration policy | Labor market challenges, cultural shifts |
| Construction firms need to attract additional workers | Need for more workers in the construction industry | Increased efforts in training and recruitment | Aging labor force, cultural perceptions |
| Construction sector experiencing supply headwinds | Challenges in material availability and prices | Improved supply chain management, increased investment | Disruptions from the pandemic, inflation |
| Construction workers experiencing higher pay | Increased wages for construction workers | Attractive compensation and overtime opportunities | Labor shortage, high demand for construction jobs |
| Efforts to attract new workers through education programs | Shift in recruitment strategies and demographics | Increased diversity in the construction workforce | Changing work culture, immigration policies |
| Technology helping to address labor shortage in construction | Increased use of technology in construction | Greater automation and efficiency in construction projects | Labor shortage, need for productivity improvement |