Construction executives are keeping a close eye on how President Donald Trump’s second term might address key industry challenges. The Associated General Contractors of America (AGC) recently outlined five areas where the incoming administration can help stimulate the construction industry. These recommendations were highlighted during a webinar on January 8, 2025.

Tackle Workforce Shortages

‍AGC highlighted that the industry continues to face workforce challenges. They urge the new administration to collaborate with Congress to introduce new temporary work visa programs focused specifically on the construction sector.
“In the short term, we are urging the new administration to work with Congress to establish new programs for temporary work visas that are dedicated to the construction industry,” said Ken Simonson, AGC’s chief economist.

Large-scale projects in places like Kansas City illustrate the pressure caused by workforce shortages. “We do have a lot of labor pressure, not only for the frontline trade worker but also for professional staff,” said Andy Heitmann, vice president of operations at Turner Construction.

AGC also recommended investing in post-secondary and high school training programs to address long-term workforce development.

Avoid Tariffs

‍Tariffs on construction materials remain a significant concern. AGC CEO Jeffrey Shoaf expressed concerns about how tariffs could impact key elements of construction projects in the U.S., especially specialty equipment.
“The new conversation by the incoming administration about tariffs has really got people worried about what that does to critical elements of construction projects in the U.S.,” Shoaf said.

Heitmann and Norbert Schulz, vice president of marketing at Filanc, echoed these concerns, stressing that tariffs on materials like pumps and valves could increase costs and disrupt projects.

Accelerate Permitting

‍Permitting delays have been stalling critical projects. AGC called for Trump to leverage his authority to streamline the permitting process, which could help many delayed projects begin construction quickly.
“If President Trump moves quickly to streamline the permitting process, many delayed projects should see a rapid start to construction,” said Simonson.

Broaden Participation on Federal Projects

‍AGC also called for the removal of restrictions on who can work on federal construction projects. Specifically, they want Trump to reverse President Joe Biden’s executive order mandating project labor agreements for federal projects over $35 million, which they argue limits participation.
“President Trump should take immediate steps to remove limits on who can work on federal construction projects,” said Simonson.

Support Infrastructure Projects

‍Infrastructure investment is another crucial area for construction growth. AGC members remain optimistic about the future of infrastructure projects, following significant investments by both the Trump and Biden administrations.
“There’s a lot of talk about cutting spending, but it doesn’t seem to be in the infrastructure space,” said Shoaf. He noted that Florida, in particular, is seeing a surge in public sector and infrastructure projects, such as school renovations.

These five areas—workforce development, tariff management, permitting acceleration, workforce participation, and infrastructure investment—are seen as vital steps for ensuring continued growth and success in the U.S. construction industry under the Trump administration.