As Construction Employment Rises, Shortages Threaten the Industry

Published: Aug 29, 2014
Federal employment data, analyzed by the Associated General Contractors (AGC), reveals that “construction employment expanded in 223 metro areas, declined in 72 and was stagnant in 44 between July 2013 and July 2014.”

At the same time a SmartBrief survey found that a staggering two-thirds of companies are affected by the shortage of skilled workers and that as much as 25 percent of construction firms had to turn down business because of it. Many companies, set back by the extremely tight labor market, are in danger of falling behind on their construction schedules.

Naturally, labor shortages mean more payroll expenses too. 70 percent of surveyed firms said they had to increase salaries to find or retain laborers and for 13 percent of them the increases were “significant”.

The hardest positions to fill are carpenters, supervisors and project managers. The shortages are more prevalent in the South and the Midwest.

Read the full press release on AGC’s website.

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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.

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