The Construction Industry Struggles to Rebuild its Worker Ranks – By KRIS HUDSON Sep 11, 2015


While debate rages on about whether demand or supply factors are more to blame for the sluggish home-construction recovery, most industry observers and participants agree on at least one point: Construction labor is in short supply.

Scant availability of skilled construction workers has hampered home construction at various times in the past few years of recovery. But the shortfall seems to have grown more acute of late, as new-home sales are up 21.2% so far this year from the same period last year and commercial construction has increased steadily.

Construction employment isn’t quite keeping pace with that rebound, and workers with certain skills, such as carpenters and sheet-metal installers, are hard to find.

“We are finding a greater failure rate of subcontractors in the industry because they are not able to hire the skilled workers that they need,” said John Finch, chief executive of PBG Builders Inc. in Goodlettsville, Tenn., on a conference call with media on Thursday organized by the Associated General Contractors of America. “That’s resulting in some budget issues and work that has to be redone.”

The Associated General Contractors, the largest U.S. construction-industry association, on Thursday released the results of its survey of 1,358 construction firms about their perspectives on the labor market. Of the respondents, 86% reported difficulty filling jobs for hourly craft workers and salaried supervisors and specialists.

Asked which hourly workers are hardest to find and hire, 73% of respondents cited carpenters, 65% mentioned sheet-metal installers and 63% said concrete workers. In terms of salaried and management employees, 55% of respondents said project managers and supervisors are scarce, 43% mentioned estimating professionals and 34% cited engineers.