Labor Shortages Cause Project Delays in North Carolina

Labor Shortages Cause Project Delays in North Carolina

This summer in beautiful North Carolina, construction projects are hitting unexpected speed bumps, and the main culprit? You guessed it — a lack of available workers. According to a recent survey by the Associated General Contractors of America, over half—about 59%—of the 27 contractors in the state reported that difficulties finding workers have led to significant delays in their projects.

A Study in Numbers

The annual workforce survey conducted over July and August reveals that most of the North Carolina companies surveyed employ more than 50 workers, and several even have workforces over 500. Yet, they still face a daunting task: finding enough people for hourly and salaried roles. Nearly every contractor reported they have job openings, with a staggering four out of five companies indicating they’re looking not just for hourly workers, but also for salaried positions.

A Persistent Problem

This struggle isn’t just a passing phase; the challenges of hiring have been ongoing. Remarkably, around 75% of these firms indicated that they had similar difficulties finding talent in 2023. So, what’s behind this hiring headache? Contractors pointed to two main issues. First, many new hires are quitting before they’ve even had a chance to get settled and, second, there is simply a lack of qualified workers ready and willing to step in and complete these projects.

Echoes of a National Dilemma

This isn’t just a local issue; the national survey of 1,496 U.S. contractors showed similar results. Jeff Shoaf, the CEO of the association, emphasized the need for new policies from the federal government. He stated, “The most likely path to addressing construction workforce shortages is for the federal government to adopt better workforce policies.”

Why We Need Change

According to the analysis, failures in workforce policies have led to increased costs, project delays, and uncertainty when it comes to starting construction projects on time. The lack of focus on encouraging students to pursue careers in construction and the limited opportunities for legal immigration to fill these roles are key factors in this growing problem.

The Federal Government’s Role

In a bid for change, the Associated General Contractors of America is urging the White House and Congress to increase funding for the Workforce Innovation and Opportunity Act when they reauthorize the program this year. They are also calling for more investments in “in-school construction education programs” through the Perkins Vocational and Technical Education Act to inspire future talent.

The Shift in Education Priorities

There’s an interesting point made in a report from the association and the Progressive Policy Institute, highlighting that federal and state funding often favors students pursuing four-year degrees, leaving vocational training by the wayside. Many Americans who may not earn bachelor’s degrees could greatly benefit from more hands-on training in fields like construction.

As the report suggests, “In days past, Americans could get good jobs that paid a family-sustaining wage with just a high school diploma.” However, in our modern, tech-driven economy, most jobs now demand at least some level of college or vocational training.

What’s Next for North Carolina?

As North Carolina tackles these challenges, the hope is that more attention will be given to developing a skilled workforce capable of fulfilling the varied demands of the construction industry. Consumers, workers, and contractors alike are eager to see improvement in hiring practices and overall project progress.

While the sunny days of summer may be dwindling, there’s a bright future ahead if efforts are made to address these pressing issues. Everyone has a stake in ensuring that the state’s infrastructure continues to develop smoothly and efficiently.