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Worker shortages are top reason for construction delays, study says

Mark Schlinkmann, St. Louis Post-Dispatch on

Published in Business News

ST. LOUIS — A continuing shortage of construction workers is the top reason for project delays across the country, according to a newly issued survey of companies in the field.

The survey also found that the construction industry has been affected by the Trump administration’s actual or proposed tariff increases, with 41% of firms nationally reporting they’ve raised prices in bids amid tariff concerns. The percentages of companies doing that in Missouri and Illinois were 52% and 40%, respectively.

The survey, released last week by two industry groups, also said 28% of construction companies nationally had been affected in the past six months by the administration’s increased enforcement of immigration laws.

However, the percentages of firms in Missouri and Illinois that reported being affected by the immigration-law crackdown were lower — 19% and 12%, respectively.

The 13th annual workforce survey was conducted in late July and early August by the Associated General Contractors of America and the National Center for Construction Education and Research.

More than 1,300 companies responded, including 27 in Missouri and 25 in Illinois.

In Missouri, 54% of companies responding cited a lack of workers as the biggest cause of delays in projects. The figure nationally was 45%.

“Construction projects of all types are being delayed because there aren’t enough qualified workers available for firms to hire,” said Ken Simonson, chief economist for the AGC, in an online briefing Thursday.

Worker shortages also were cited often for project delays by Illinois construction companies. But that cause tied with governmental issues, such as a lack of inspectors, as the leading factor in delays; each was cited by 48% of the Illinois firms.

One reason for the shortage of qualified workers, Simonson said, is the federal government’s failure to pump enough money into education and training programs for prospective workers.

 

He said the industry also is continuing to push Congress to enact a new construction-specific temporary work visa program for people from other countries.

On the tariff issue, 16% nationally said at least one project they were working on has been postponed, canceled or scaled back because of tariff concerns.

The survey said 39% had accelerated purchases in response to actual or proposed tariffs but that only 14% said tariffs spurred them to switch from foreign to domestic suppliers.

The AGC is lobbying the Trump administration to resolve trade disputes with major American trading partners — such as Canada, Mexico and China — as soon as possible to minimize the effect.

“Uncertainty has left owners to hold off on projects,” Simonson said.

On immigration enforcement, the survey said the impacts varied widely by state. Contractors in Georgia, Virginia, Alabama, Nebraska and South Carolina reported the biggest impact, with 75% of companies in Georgia saying they’ve been affected.

Nationally, 10% of respondents said workers left or failed to appear because of immigration actions or rumors they might happen and 20% said subcontractors lost workers.

In Missouri, 7% said workers left or didn’t show up due to real or rumored immigration efforts and 15% had subcontractors lose workers. In Illinois, 12% said their own workers had left or failed to appear but none said any subcontractors lost workers.


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