NORFOLK, Va. (WAVY) — Progress takes people, and an association representing construction firms says currently, the industry doesn’t have enough people for the work that lies ahead.
The U.S. Bureau of Labor Statistics estimates there are 288,000 unfilled construction jobs across the country.
While the exact shortage in Virginia isn’t known, the local CEO for the Associated General Contractors of America (AGC) estimates the commonwealth will need nearly 270,000 craft professionals working by 2026. Current estimates place Virginia’s construction workforce at roughly 207,000.
The increase in infrastructure projects across the country alongside the retirement wave of baby boomers is helping to create the need for rapid hiring.
Ken Simonson, the chief economist for AGC, is hopeful doubling down on efforts to attract more people to construction careers will help bridge the current gap.
“With the federal government investing billions in new industrial institutional and infrastructure projects here and across the country, it is essential to take steps now to prepare the next generation of workers,” Simonson said.
A new survey from the Virginia chapter of the AGC, found 98% of construction firms said they were having trouble finding qualified employees.
Several cities have reported sending projects out to bid, and receiving no bids back.
“We’ve already seen the impact of unfilled jobs that projects take longer to complete,” Simonson said. “The costs are higher for construction firms and therefore in their next bid, they’re likely to be higher than either private owners or public agencies had expected. In some cases, that means that institutions that had a fixed budget, they may have to go out for further fund raising, delaying the start of a job.”
Simonson places blame for the lack of interest in the industry on education funding.
“Robust vocational education programs have been dismantled across the country,” Simonson said. “For every dollar that the federal government currently invests in career and technical education, it invests $4 in encouraging students to go to college and work in office jobs.”
To combat this, AGC of Virginia is launching its own targeted digital advertising campaigns, investing in workforce development programs in grade schools as well as assisting companies with employee retention.
“Culture of care provides firms with a range of materials and toolkits to help them create more welcoming, inclusive, job site environments and encourage people to stay with construction,” Brandon Robinson, AGC Virginia’s CEO, said.
Hampton Roads is making strides in the labor shortage, outpacing every other market in Virginia and many in the country.
Tuesday, the AGC released new findings that found the market added 4,500 new construction jobs between September 2023 and September 2024, representing an 11% increase from 41,300 workers to 45,800.
Ron Lauster, president of W.M Joradan, one of the largest construction companies in the region, believes they can keep that momentum going through teamwork.
“We talk very much about regionalism and growing this region,” Lauster said. “The way we’re going to do that is bring people to this region and give them jobs and give them opportunities … when people are out there looking for jobs, the construction industry is a great way to have an entire career, they earn a great wage with benefits and support themselves and their families.”
