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News Aug. 30, 2018

Eighty percent of construction firms struggle with finding craft workers

Results of an industrywide survey released by Autodesk and the Associated General Contractors of America (AGC) show 80 percent of construction firms are having difficulty filling hourly craft positions that represent much of the construction workforce, according to www.agc.org.

"Labor shortages in the construction industry remain significant and widespread," says Ken Simonson, AGC's chief economist. "The best way to encourage continued economic growth, make it easier to rebuild aging infrastructure and place more young adults into high-paying careers is to address construction workforce shortages."

Craft worker shortages are severe in all four regions of the U.S., with 81 percent of contractors in the West and South reporting difficulty filling hourly craft positions; 80 percent in the Midwest; and 77 percent in the Northeast.

Additionally, 81 percent of the more than 2,500 survey respondents report it will continue to be difficult, or get more difficult, to find hourly craft workers this year. Sixty-two percent of construction firms report increasing base pay rates for craft workers because of difficulty filling positions. Twenty-four percent have improved employee benefits, and 25 percent are providing incentives and bonuses to attract workers.

Twenty-five percent of respondents report they are increasing their use of labor-saving equipment, and 25 percent are using virtual construction methods, such as building information modeling. However, 47 percent of firms have put higher prices on their bids, and 44 percent report that in-progress projects cost more because of labor shortages. Forty-six percent say it takes longer than originally scheduled to complete projects, and 27 percent are including longer completion times in their bids because of workforce shortages.

AGC released a new Workforce Development Plan that identifies steps federal officials should take to support construction workforce development, including doubling the funding for career and technical education over five years and allowing more people with construction skills to legally enter the U.S. The plan also outlines new recruiting steps the association is taking.

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