ECONOMIC UPDATE
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.
“nonresidential specialty trade   	
  contractors have added 95,000 	
  jobs since August 2024”
“Even if construction spending 	
  fails to exceed expectations 	
  this year and next, contractors 	
  will continue to struggle to fill 	
  open positions”
www.mrca.org  —  Midwest Roofer
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