MONTGOMERY, Ala. — Construction activity across Alabama is facing mounting delays as labor shortages deepen, with nearly half of the state’s firms reporting disruptions linked to stepped-up immigration enforcement. A new workforce survey conducted by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER) reveals that the crisis is hitting both short- and long-term project planning.
"The construction workforce challenge is both a short term and a long term one," said Ken Simonson, chief economist for AGC.
According to the survey, 90 percent of contractors in Alabama are struggling to fill open positions, a trend mirrored nationwide. Simonson explained during a virtual media briefing, "Construction projects of all types are being delayed here in Alabama and across the country because there aren’t enough qualified workers available for firms to hire."
The labor gaps extend across roles, with 83 percent of firms reporting unfilled craft positions and a similar percentage struggling to recruit salaried staff. Nearly half of firms noted applicants lacked critical skills or the necessary certifications, which Simonson tied to chronic underinvestment in construction-focused workforce education.
Immigration enforcement has added another layer of pressure. The survey found that 46 percent of Alabama firms have been directly or indirectly affected in the past six months. Thirteen percent reported visits from federal immigration agents, while nearly one-third said workers either quit or failed to show up due to enforcement actions. Despite heavy reliance on immigrant labor in the construction industry, just 12 percent of Alabama firms use H-2B visas or other temporary work programs.
Simonson argued for policy changes, emphasizing the importance of lawful pathways for immigrant labor. He urged the creation of a construction-specific visa program, saying it could help stabilize the workforce and address long-standing shortages.
Tariffs also remain a concern for builders, with 12 percent of firms reporting they’ve had to cancel, postpone, or downsize projects due to rising costs. Thirty-six percent said they were forced to raise prices, while 40 percent stockpiled materials in anticipation of new tariffs.
Industry leaders stressed that solving the crisis requires federal action on multiple fronts. "The survey makes clear what our industry has known for years: We can’t build the future without investing in people," said Boyd Worsham, president and CEO of NCCER.
The AGC is calling on Congress and the Trump administration to double federal investment in career and technical education at the high school level and to pass a new Workforce Innovation and Opportunity Act. Simonson also highlighted the importance of resolving trade disputes with key U.S. partners to reduce market uncertainty and encourage new project starts.
The survey, conducted between late July and early August, drew responses from more than 1,300 firms nationwide, including 25 in Alabama. For many, the shortage of skilled labor has shifted from being a background concern to a pressing threat to the state’s economy and infrastructure pipeline.
Originally reported by Olivia Gauthier in ABC 3340 News.
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