PORTLAND, Ore. — A new industry survey reveals that construction firms in Oregon, as well as nationwide, continue to grapple with unfilled positions, despite a slowdown in overall project activity. The shortages are proving to be one of the biggest causes of delays, creating ripple effects across the industry.

The annual Workforce Survey from the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research highlights ongoing workforce challenges while also pointing to broader impacts from recent Trump administration policies on tariffs and immigration.

Survey results show that more than 80% of firms still report difficulty hiring workers, roughly the same rate as a year ago. Nationally, 49% of construction companies reported adding staff over the past year, while 21% stayed level and 30% reduced their workforce. In Oregon, the numbers closely mirror national averages.

When asked why positions remain unfilled, firms overwhelmingly cited the lack of qualified applicants. Candidates frequently lack necessary skills, certifications, or licenses. The survey noted that while many companies are increasing pay and investing more in workforce training, federal investment in construction education remains insufficient. The sponsors criticized Washington for failing to “properly invest in construction workforce training and education.”

Immigration policy shifts have also played a role. While most Oregon firms reported relatively limited impacts, contractors in other states saw greater disruption. Nationally, 72% of firms said immigration policy changes had not affected them directly, but many reported that subcontractors lost workers or employees left due to fear of enforcement. At the extreme, 75% of Georgia firms reported impacts, compared with just 8% in Idaho.

Tariffs, however, have had a far more widespread effect on construction activity. According to the survey, 16% of firms nationally said projects were postponed, canceled, or scaled back due to tariffs, while 41% raised prices and 39% accelerated purchasing to hedge against cost increases. In Oregon, the impact was more severe: 21% reported project cancellations or changes, and 54% reported accelerating purchases.

The report also shows that Oregon firms are being hit harder than most states when it comes to overall project cancellations and delays. Nationally, about a third of firms said they avoided cancellations in the past year, but in Oregon only 14% could say the same. Rising material costs, uncertain timelines, tariff pressures, shifting policies, and financing challenges all ranked higher among Oregon firms compared to the national average.

The findings underscore the precarious position of the construction industry, where demand for skilled workers remains intense even as project viability is increasingly shaped by policy and market turbulence.

Originally reported by Anthony Macuk in KGW8 News.