A new analysis from the Roosevelt Institute suggests that pro-labor industrial policies tied to clean energy investments are helping improve outcomes on large-scale construction and infrastructure projects, countering criticism that such requirements slow development.
.jpg)
The report, authored by senior fellow Betony Jones and fellow Joe Peck, examines how workforce-focused incentives — including union partnerships and apprenticeship programs — are addressing one of the industry’s most persistent challenges: labor shortages and skills gaps.
A central finding is that integrating labor standards into industrial policy can enhance project delivery by ensuring access to trained, reliable workers.
The report highlights how workforce development initiatives tied to federal funding have helped projects overcome steep learning curves, particularly in emerging sectors like hydrogen and clean energy infrastructure.
“[Unions] can guarantee the safety and the operationability of a high-stakes industry that requires multiyear training. So, having [our company] integrated into the union apprenticeship programs is what we needed . . . that’s where we were getting the skilled labor from,” one private-sector project participant said.
According to the analysis, these programs not only improve safety and operational efficiency but also create a more stable pipeline of skilled workers — a key factor for construction owners managing complex, long-term builds.
The findings come as developers across the U.S. continue to grapple with workforce shortages that can delay timelines and increase costs, particularly in specialized industrial and energy projects.
The report places recent federal industrial policy within a broader historical context, referencing long-standing labor protections such as the Davis-Bacon Act. Researchers argue that incorporating labor standards into funding frameworks is not a barrier to growth but rather a mechanism for ensuring project success and community benefits.
In a related commentary, Roosevelt Institute fellow Todd N. Tucker noted that global institutions like the World Bank are increasingly recognizing the value of industrial policy — a concept once viewed skeptically by organizations such as the International Monetary Fund.
Beyond construction and infrastructure, the institute also pointed to broader economic implications. Fellows emphasized that targeted tax policies and public investment strategies can help stabilize markets, reduce inequality and support long-term growth.
The report also connects workforce development to wider social outcomes, including economic mobility and community resilience. By aligning labor policy with industrial investment, researchers argue that governments can deliver both economic and social returns.
While debate continues over the pace and cost of implementing labor-focused requirements, the Roosevelt Institute’s findings suggest that such policies may ultimately strengthen project performance rather than hinder it.
For construction owners and developers, the takeaway is clear: investing in workforce development and labor partnerships may be as critical to project success as financing and design.
Originally reported by Roosevelt Institute.
.png)
.png)
