Immigration crackdowns are gutting construction crews
It’s not your imagination. Excessive immigration enforcement really is affecting your construction business. This week, we take a look at new survey data illustrating the impact. We also explore innovation, including materials, software and advice for implementing new technology.
Later this week: Tips for making your business more profitable from construction contractor and business coach John Seaman of JC Property Professionals and Dirt to Dollars Coaching.
But first, meet the people building the last home designed by Frank Lloyd Wright.
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>> Press print. Can 3-D printing solve the housing crisis? One Austin construction technology company seems to think so.
>> It’s not exactly ASMR… But this video of a laser removing rust from rebar is oddly satisfying.
Immigration crackdown worsens labor shortage
Immigration raids are exacerbating the ongoing construction labor shortage. According to a new survey from the Associated General Contractors of America and the National Center for Construction Education and Research, almost all (92%) contractors reported having trouble filling out crews, and more than one-quarter (28%) said immigration enforcement directly or indirectly impacted their projects.
Five percent said they had been visited by immigration agents, but even the possibility of a raid was enough to disrupt operations, with 10% of contractors having crew members leave or stay home because the fear of raids or the potential for them. One-fifth said subcontractors were also missing workers. The South is bearing the brunt of ICE activities, with construction owners in Georgia, Virginia, Alabama and South Carolina reporting the most impact.
The issue is so serious that the AGC is advocating for Congress and the president to create lawful pathways that would allow construction workers to enter and stay in the country, including establishing a construction-specific temporary work visa program. Says AGC Chief Economist Ken Simonson, “Our goal is to make sure the construction industry remains a driver of economic growth in this country. The best way to do that is to ensure it has the workforce and the demand needed to continue building the American economy.”
Why it matters: Last week’s jobs numbers illustrate how tight the market already is. The industry lost 7,000 jobs in August, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. And the construction unemployment rate sank further to 3.2%. When you don’t have enough crew, you’re forced to delay, redesign or cancel projects—and that costs money. Plus, the uncertainty makes it hard to create accurate labor and budget forecasting. Supporting AGC’s efforts to improve the immigration situation is one way to ease the strain. (Finance & Commerce)
Cross-laminated timber delivers multiple upsides
Looking for a replacement for steel and cement? Analysis from researchers at North Carolina State University shows that replacing those materials with cross-laminated timber (CLT) is an effective green building technique that decreases carbon pollution and increases carbon storage. CLT also boosts fire-resistance because when the material’s outer layer is charred by flames, it protects the rest of the wood from damage.
Why it matters: As more clients and communities emphasize carbon capture and storage, spec’ing CLT for projects helps your bid be more competitive. And if you work in fire-prone areas, using CLT adds client value with improved climate-readiness. (The Cool Down)
Multifamily permitting accelerates
While some sectors are still struggling, multifamily permitting continues its rebound from 2023-2024, particularly in cities. Almost half of the top 100 major metros saw increased year-over-year growth, according to research from Arbor Realty Trust and Chandan Economics. Florida had three markets in the top five for per-capita growth (North Port, Cape Coral and Orlando), along with Columbus, Ohio, and Richmond, VA. Des Moines led the pack in annual growth percentage, followed by Baton Rouge and Knoxville.
Why it matters: Even if you don’t operate in one of these locations, you can leverage the trend. Analysts attribute growth to multiple factors, including for-sale market price corrections, rapid population and/or business growth, aging rental inventory, exploding property insurance premiums and growing demand for climate-resilient housing. Watch these metrics in your area so you can get ahead of the competition. (GlobeSt.)
>> Building bust: Wind farm construction company sues Trump
>> Industrial insight: Flynn Bros. looks at 50 years of construction
>> Housing help: How to build sustainable and affordable homes
>> Tech tools: Automating procurement saves time and money
Encouraging tech adoption
"At the end of the day, if our people aren't engaged…and they really don't understand why they're using these solutions, and it's not helpful—truly helpful—in their day to day, it really goes nowhere, right? And it could be any type of innovation whether it's a process or technology."
—Thai Nguyen, Hensel Phelps
Innovation is crucial to staying competitive. But your business only benefits if your team puts the advancements to use. Thai Nguyen, managing director of Diverge, a division of Hensel Phelps, talks about construction technology, implementation and adoption with Susan Lindner on the “Innovation Storytellers” podcast.
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The Level is curated and written by Margot Lester and edited by Bianca Prieto.
