Construction activity across South Texas is slowing as increased Immigration and Customs Enforcement (ICE) arrests create fear among workers and disrupt job sites, according to builders and suppliers in the Rio Grande Valley. Industry leaders say labor shortages tied to enforcement actions are delaying projects and creating ripple effects across the regional economy.
Mario Guerrero, executive director of the South Texas Builders Association, said concerns intensified after videos surfaced showing ICE agents detaining workers at construction sites. Arrests have caused many laborers to stay home, leaving contractors without the workforce needed to keep projects moving.
“I would like to start off this video by saying that I am an American citizen, and it’s crazy that we’re living in times where you actually have to state that,” Guerrero said in a video posted to the association’s Facebook page.
While Guerrero acknowledged the role of law enforcement, he raised concerns about enforcement tactics and their impact on authorized workers and businesses.
“It’s what’s happening across the Rio Grande Valley at construction sites,” he said.
Labor shortages have already translated into slower construction timelines, with economists warning that reduced supply could push housing costs higher. Federal Reserve Bank of Dallas data shows construction employment in the region fell 5% in the third quarter of 2025, the largest decline among local industries.
At a mid-November meeting in Pharr attended by more than 380 industry stakeholders, business owners shared firsthand accounts of declining activity and growing financial strain.
“Business is down significantly,” Ronnie Cavazos, board president of the South Texas Builders Association, told attendees. “If we continue on this trajectory, we will see a lot of businesses fail.”
Material suppliers are also feeling the impact. Isaac Smith, co-owner of Matt’s Building Materials, said raids at job sites have stalled projects and hurt sales.
“If job sites are getting raided, at any level, the construction can’t continue,” Smith told the Tribune. “It’s not a fun situation to be in.”
Smith reported double-digit sales declines and an increase in late payments, straining cash flow.
“That takes an adverse effect on our cash flow and how we operate, how we manage expenses, and money coming in, and money going out,” he said.
Industry leaders also emphasized the human toll on workers and families. Cavazos urged attendees to recognize the role immigrant labor plays in the construction sector.
“Let me tell you about immigrants in this country. Nobody believes in the American dream more than them,” Cavazos said in his remarks. “The immigrant should be celebrated, treated with dignity and allowed to work and provide for their families.”
Workers echoed those concerns. Jesus, a construction laborer who requested anonymity, said fear of arrest has drastically reduced his ability to find work.
“We hardly work anymore; we’re afraid to go out into the street,” he said. “We don’t look for work because we’re scared.”
As a result, he estimates his income has fallen by about 60%.
“We wish it would stop, but we don’t control these things,” Jesus said. “The government does.”
Researchers note that similar enforcement policies in past administrations led to labor shortages, reduced housing construction, and higher home prices. Economists warn current deportation levels could create even greater disruptions if enforcement continues at the same pace.
Guerrero has since met with state and federal officials to raise awareness, including U.S. Rep. Henry Cuellar and Gov. Greg Abbott, and plans to continue convening industry meetings in early 2026.
“People maybe don’t understand the magnitude of what’s happening,” Guerrero said. “But that’s where we have to come together as human beings, and we need to be a little cognizant about the real situation that we’re facing.”
Originally reported by Berenice Garcia in Texas Tribune.
