Economic Forecast CSIA csiaonline.org 13 CENTRAL STATES INSULATION ASSOCIATION prospective industry growth, a majority of new worker demand in 2026 will be attributable to retirement rather than increased demand for construction services, despite the ongoing boom in artificial intelligence infrastructure buildout. “The industry will need even more workers than the model predicts should current spending projections prove overly conservative,” said Basu. “That is a distinct possibility, especially if project financing costs decline unexpectedly or if lingering policy uncertainty resolves itself quickly and favorably. It is also important to note that nonresidential specialty trade contractors have added 95,000 jobs since August 2024, according to ABC analysis of BLS employment data, demonstrating that certain sectors of nonresidential construction hiring are going strong.” “ABC’s 2026 workforce shortage analysis shows a series of macrodynamics at play in the industry,” said Michael Bellaman, ABC president and CEO. “These include an aging and retiring workforce, immigration enforcement, high materials prices, tariffs, office vacancies and rapidly evolving technologies and innovation. Despite these variables, the analysis shows the construction industry still faces an urgent need for talent to build and rebuild America’s infrastructure.” “Even if construction spending fails to exceed expectations this year and next, contractors will continue to struggle to fill open positions, especially in certain occupations and regions,” said Basu. “For instance, demand for electricians capable of precision wiring has surged due to the rapid increase in data center construction. Recent industry efforts to accelerate skilled worker development have helped, but the industry is effectively swimming upstream. Approximately one- fifth of all electricians are over 55. Worker shortages also remain more severe in areas associated with industrial megaprojects, including semiconductor fabrication facilities. “The effects of immigration policy represent another potential wildcard for the industry’s labor force dynamics,” said Basu. “While the extent to which undocumented workers have exited the workforce remains unclear, data regarding border encounters indicate that the flow of undocumented workers into the country fell precipitously in 2025 while voluntary deportations accelerated.” “This slight dip in the industry’s chronic, massive worker shortage offers practical lessons,” said Bellaman. “These include federal lawmakers introducing a market-based worker visa system; reskilling and upskilling workers on new tech and innovation; and deploying ABC’s all-of-the-above workforce development strategy to bring new workers into the industry and educate them through both industry-driven and government- registered apprenticeship programs. “The construction industry does not have to fall off the workforce shortage cliff,” said Bellaman. “To avoid this outcome and shore up the talent pipeline, now is the time for action—not complacency—to reaffirm that the construction industry offers careers of choice in today’s complex job market.” Associated Builders and Contractors is a national construction industry trade association established in 1950 with 67 chapters and more than 24,000 members. Founded on the merit shop philosophy, ABC helps members offer a robust employee value proposition, develop people, win work and deliver that work safely, ethically and profitably for the betterment of the communities in which ABC and its members work.
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