AGC leaders said unfavorable federal education, training and immigration policies exacerbated hiring challenges. The government’s lack of investment in construction workforce programs “is having a real, measurable impact on the country’s ability to build infrastructure and other construction projects,” Jeff Shoaf, AGC of America CEO, said during a webinar on the survey results. “These impacts include higher costs, longer construction schedules and a significant number of delayed or canceled projects.”

AGC surveyed nearly 1,500 members in July and August from firms across building, federal, transportation and infrastructure construction sectors, representing a mix of sizes in terms of revenue and both union and open-shop contractors. Many of the hiring challenges were similar across market segments. 

Most craft positions are hard to fill, but contractors reported the most difficulty finding mechanics and cement masons, followed by plumbers, carpenters, electricians and pipefitters/welders. 

62% attributed their hiring difficulties not just to a dearth of candidates, but also a lack of candidates who are qualified. Half said new hires either failed to show up or quit shortly after starting. Other candidates lacked required credentials, failed to pass a drug test or could not find reliable transportation to a jobsite. 

Boosting Recruitment

About 57% of those surveyed said they have begun using online strategies, such as social media posting or targeted digital advertising, to find new workers, and 51% engaged with career-building programs at high schools, colleges or technical education programs. 

In Kansas City, Mo., Latoya Goree Smith, principal at Rhys Ivy Construction, said her firm will recruit for a specific project and offer paid workforce training programs for three to five weeks to introduce participants to the trades. Participants gain certifications such as CPR, first aid and OSHA 10-Hour, as well as basic skills lessons in math, financial literacy and career readiness. 

“What some might fail to realize is that, not only are we bringing people into the industry for the trade, but we are also bringing individuals who might not have those basic skills to be effective in the workplace,” she said. “And so, you have to realize it’s not just workforce training, it's more of a holistic approach to supporting these individuals gaining entry into the skilled trades.”

About 61% of respondents said their firms increased base pay rates or their portion of benefit contributions in the past year for hourly craft workers, with 42% saying they had started training and professional development, or increased their spending in those areas. The practice was more common at large firms with at least $500 million in annual revenue, as opposed to smaller contractors with $50 million or less in revenue. 

Jami Klomp, human resources manager at Ludington, Mich.-based Hardman Construction, said the contractor started to notice a slowdown in available workers a few years ago. They focused on forming good relationships with their union partners, and also created a mentorship and training program.

“We started focusing more on retaining those individuals that are coming into our organization,” she said. “We will train you, we will give you all the support that you might need to get you where you need to be.”

The craft labor shortages appear set to continue for the next 12 months, when 73% of firms said they expected to add employees. That would be up from just 51% that added employees in the past 12 months.