Just as individual market sectors are finding ways to move projects forward after a year of supply chain and cost turbulence, the ongoing labor shortage threatens to bog down construction unless owners and contractors embrace new approaches, according to the latest Market Conditions Report from DPR Construction.
A recent survey by the Associated General Contractors of America and the national Center for Construction Education and Research showed:
88% of firms hiring craft workers and 80% employing salaried staff reported job openings, with similar percentages saying all of those positions are harder to fill than a year ago.
45% of respondents reported project delays due to a shortage of workers.
Nearly 30% of firms cited immigration enforcement actions as contributing to the labor strain directly or indirectly.
Labor pressures come at a moment when customers across DPR’s core markets are moving ahead with projects having successfully navigated tariff and supply chain uncertainties, market fluctuations and more. Projects in advanced technology and life sciences are projected to be significant drivers for construction demand in 2026. Similarly, healthcare customers are shaping their capital construction programs to account for new legislation and reimbursement models. higher education is also adapting to a “new normal” based on policy and student preferences, while signs indicate the commercial office market is beginning to awaken.
To learn more, explore the full report here.
