According to the results of a recent industry-wide survey, 70 percent of construction firms report having a hard time filling hourly craft positions representing the bulk of the construction workforce. The survey by Associated General Contractors of America (AGC) and Autodesk showed many firms are now changing the way they operate, recruit and compensate.
Craft worker shortages are the most severe in the West, where 75 percent of contractors are having a hard time filling those positions, followed by the Midwest with 72 percent, 70 percent in the South and 63 percent in the Northeast.
The labor shortages come as demand for construction continues to grow. Construction employment expanded in 258 out of 358 metro areas AGC tracked between July 2016 and July 2017, according to a new analysis of federal construction employment data the association also released. Growing demand for construction workers helps explain why 67 percent of firms report it will continue to be hard, or get harder, to find hourly craft workers this year.
Most firms report making special efforts to recruit and retain veterans (79 percent), women (70 percent) and African Americans (64 percent). Meanwhile, half of construction firms report increasing base pay rates for craft workers because of the difficulty in filling positions. Twenty percent have improved employee benefits for craft workers, and 24 percent are providing incentives and bonuses to attract workers.
Forty-six percent of firms also hold more in-house training to cope with workforce shortages, while 47 percent are increasing overtime hours and 41 percent are increasing their use of subcontractors.
AGC called on federal, state and local officials to act on the measures in the association's Workforce Development Plan to address the growing worker shortages, particularly urging the Senate to pass legislation to reform and increase funding for the Perkins Career and Technical Education Act.
For more information, visit www.Agc.org or call (703) 548-3118.