86% of Construction Firms Report Trouble Filling Craft, Professional Positions

That's a 3% increase from 2014 and more than a 10% increase from firms reporting back in 2013

Sep 11, 2015

Associated General Contractors of America (AGC)

An overwhelming majority of construction firms report trouble finding qualified craft workers to fill key spots as demand for construction continues to rebound in many parts of the country, according to the results of an industry-wide Associated General Contractors of America survey. Association officials called for new career and technical school programs, as well as other workforce measures to offset the labor shortages that are forcing firms to change how they operate and pose risks to workplace safety.

What is Your State Doing to Develop the Construction Workforce?

Of the 1,358 survey respondents, 86% said they are having difficulty filling hourly craft or salaried professional positions. That's more than a 10% increase from the 74% of firms that reported difficulty filling positions in 2013 and a 3% increase from the 83% of firms that reported trouble filling positions in 2014.

Seventy-nine percent of responding firms nationwide are having a hard time filling one or more of the 21 hourly craft professional positions, particularly carpenters (73% of firms that employ carpenters report difficulty), sheet metal installers (65%) and concrete workers (63%). In addition, 52% of firms are having a hard time filling salaried professional positions, especially project managers/supervisors (listed by 55% of firms that employ them), estimators (43%) and engineers (34%), noted AGC’s chief economist, Ken Simonson.

Apprenticeships are Still a Viable Source of Construction Workforce Development

As labor shortages grow more severe, competition for workers is heating up, Simonson added. He noted that 36% of firms report losing hourly craft professionals to other local construction firms, and 21% to other industries locally. Thirteen percent of responding firms report losing workers to construction firms in other locations.

Nationwide Initiatives Work to Recruit Construction Laborers

Growing competition for workers is prompting 56% of firms to increase base pay rates for hourly craft professionals. Moreover, 43% of firms have increased their reliance on subcontractors because of tight labor conditions. And worker shortages also appear to be impacting safety, with 15% of firms reporting an increase in injuries and illnesses because of worker shortages, Simonson added.

Hands-on Training Opportunities Create Interest in Construction Jobs

“Few firms across the country have been immune from growing labor shortages in the construction industry,” said Stephen Sandherr, chief executive officer for the Associated General Contractors. “The sad fact is too few students are being exposed to construction careers or provided with the basic skills needed to prepare for such a career path.”

Education is Key to Recruit, Develop the New Construction Workforce

The association has updated its Preparing the Next Generation of Skilled Construction Workers: A Workforce Development Plan to address the growing worker shortages, Sandherr noted. The plan outlines steps, such as increasing funding for vocational education and making it easier to establish construction-focused schools, to reinvigorate the pipeline for new construction workers. The plan also calls for comprehensive immigration reform and measures to make it easier to hire veterans.

The survey was conducted in July and August.