{"id":31718,"date":"2025-08-07T07:35:39","date_gmt":"2025-08-07T14:35:39","guid":{"rendered":"https:\/\/essential.construction\/news\/ice-raids-worsen-constructions-labor-shortage-contractors-must-respond\/"},"modified":"2025-08-07T07:35:39","modified_gmt":"2025-08-07T14:35:39","slug":"ice-raids-worsen-constructions-labor-shortage-contractors-must-respond","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/ice-raids-worsen-constructions-labor-shortage-contractors-must-respond\/","title":{"rendered":"ICE raids worsen construction\u2019s labor shortage. Contractors must respond."},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">5 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1754576877\/news\/text_to_speech\/construction-labor-ice-raids_cusubc.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<div class=\"editor-note\">\n<p>Chris Coleman is partner-in-charge of St. Louis-based accounting firm RubinBrown\u2019s Construction Services Group. Opinions are the author\u2019s own.<\/p>\n<\/div>\n<p><span><span><span><span><span><span>In an already tight construction labor market, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.tallahassee.com\/story\/news\/local\/2025\/06\/02\/tallahassee-ice-raid-sparks-chilling-effect-in-construction-industry\/83951035007\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>raids by U.S. Immigration and Customs Enforcement<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> at jobsites threaten to deepen workforce shortages, drive up costs and create serious financial risks for contractors. In dealing with the fallout of these raids, construction companies will have to rethink their talent strategy to succeed.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"Chris Coleman is an accountant at RubinBrown.\" data-imagemodel=\"184070\" src=\"https:\/\/imgproxy.divecdn.com\/bwAue7ojflhJlYMUrXt79DeN_vI3FM_quD8WlGFKpfY\/g:ce\/rs:fit:1600:0\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9DaHJpc0NvbGVtYW5fUnViaW5Ccm93bi5qcGc=.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Chris Coleman<\/p>\n<p>Courtesy of RubinBrown<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>The U.S. construction industry has faced chronic labor shortages for decades, with a shortfall of <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/abc-construction-industry-must-attract-439000-workers-in-2025\" target=\"_blank\"><span><span><span><span><span><span><span><span>439,000 workers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. Immigrant workers have helped close the gap and now make up a considerable part of the workforce.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nationally, an estimated <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.bls.gov\/news.release\/pdf\/forbrn.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>19% of all workers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> are foreign-born, according to the Bureau of Labor Statistics. But in construction, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.nahb.org\/-\/media\/NAHB\/news-and-economics\/docs\/housing-economics-plus\/special-studies\/2020\/special-study-immigrant-workers-in-the-construction-labor-force-march-2020.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>34% of workers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> are immigrants, the National Association of Home Builders reports. In some trades \u2014 think drywall installers or plasterers \u2014 that number<\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/eyeonhousing.org\/2024\/12\/states-and-construction-trades-most-reliant-on-immigrant-workers-2023\/\" target=\"_blank\"><span><span><span><span><span><span><span><span> skyrockets to over 60%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Given those numbers, construction projects have become a <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/ice-raids-uncertainty-labor-impact\/756263\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>popular target for immigration raids<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. Construction owners are rightly concerned; reports of indiscriminate arrests and detainments are creating an environment of fear at job sites, even among <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/ice-raids-jobsites-impact-construction-workers\/749786\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>legal workers and citizens<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>While several industry groups have lobbied the Trump administration to take a more nuanced approach to immigration enforcement, construction companies have to respond now, managing their projects with a smaller and potentially less reliable workforce.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Steps for contractors<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The simplest thing companies can do is to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-prepare-trump-immigration-policy\/734487\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>audit themselves to ensure that employment<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> verification and I-9 processes have been properly followed. Managers and leadership should also be adequately trained on the law.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But even then, these raids will still happen. When they do, they\u2019re going to cost companies time and money on projects that have long been budgeted out. To avoid exposure to potential contract penalties, construction companies need alternative labor they can turn to in a pinch.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In the short term, construction companies can lean on local industry groups to quickly source workers. So long as these relationships have been cultivated, a labor union, a merit group, an industry association or specialty trade organization can offer direct connection to the skilled laborers these projects need. Similarly, a contractor may opt to sub out work instead of self-perform to avoid labor challenges.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>While third-party labor groups can be valuable sources of skilled talent, they are not a comprehensive solution for every project. Accordingly, it is essential to invest in building a more resilient internal workforce \u2014 one characterized by higher retention and greater operational flexibility. <\/span><\/span><\/span><\/span><\/span><\/span><span><span><span><span><span><span><span><span>In light of ongoing volatility in the construction labor market, strategic investments in cross-training initiatives for the employees you already have offer meaningful long-term value.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>These programs enable employees to acquire complementary skill sets through on-the-job learning, thereby enhancing workforce agility and reducing reliance on specialized labor. A cross-trained workforce can be deployed more efficiently across various phases of a project, ensuring continuity and minimizing productivity loss in the face of turnover or unexpected disruptions.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Pay for it<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The other option is, of course, spending more money.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>It\u2019s something many stakeholders don\u2019t want to hear, but as the market tightens, owners are finding themselves paying more for talent, even eating those costs to ensure project timelines stay on track. It\u2019s an offensive play as much as it\u2019s a defensive one: In an industry where talented craftspeople regularly get poached by competitors, paying above-market premiums may be the only solution companies have to solidify their talent bench.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The risk for construction firms is that paying more reduces the margins they\u2019re expecting on a given project, something that can have serious consequences to the overall health of a company. A disruption on one project creates a cascading effect for a company\u2019s future projects and can seriously damage a company\u2019s reputation.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Negotiate with owners <\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>As much as a strong, diverse labor pool can mitigate these issues, if the contract price for projects doesn\u2019t cover the cost of last-minute labor overages, the bottom line is going to suffer no matter what. Given the realities of the current marketplace, it\u2019s worth pursuing favorable contract terms so that these unexpected labor premiums are covered.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Getting fully-flexible labor costs built into a contract is unlikely, but partial cost-plus provisions can help cover some of the labor costs that companies are facing. Because these contracts are based on forecasts happening months in advance, they are critical to limiting cost exposures.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Workforce issues are nothing new for construction companies, but the uncertainty that ICE raids are causing creates fresh urgency for businesses to find solutions. Labor is a fundamental building block of construction, and it needs to be a building block of company strategy, too.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-labor-ice-raids\/756989\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 5 min This audio is auto-generated. Please let us know if you have feedback. Chris &#8230; <a title=\"ICE raids worsen construction\u2019s labor shortage. Contractors must respond.\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/ice-raids-worsen-constructions-labor-shortage-contractors-must-respond\/\" aria-label=\"Read more about ICE raids worsen construction\u2019s labor shortage. Contractors must respond.\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-31718","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=31718"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31718\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=31718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=31718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=31718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}