CHATTANOOGA, Tenn. — Construction industry leaders across Tennessee say heightened Immigration and Customs Enforcement (ICE) activity is intensifying workforce challenges, with growing fears among workers leading to absenteeism and project delays.
Industry representatives shared their concerns Thursday during a meeting of the Associated General Contractors of America (AGC) in Chattanooga, where leaders discussed the compounding impact of labor shortages and immigration enforcement on construction operations.
Officials acknowledged that undocumented workers make up a portion of the construction workforce in many regions. When ICE conducts targeted searches or broader enforcement sweeps, jobsite attendance often drops sharply, even when enforcement activity occurs nearby rather than directly on site.
Construction experts said fear spreads quickly among workers when ICE is present in the area, leading some crews to stay away for days at a time. That uncertainty, they say, disrupts scheduling, slows productivity and creates ripple effects across multiple projects.
Local immigrant advocacy organization La Paz said the impact extends beyond undocumented workers. Lily Sanchez, La Paz’s Director of Communication and Development, warned that enforcement activity affects entire communities.
“Regardless of the documentation status of a community member, they are at increasingly high risk of being targeted simply by the way they look.”
AGC spokesperson Brian Turmail said the workforce impact is widespread, estimating that nearly half of construction job sites nationwide have been affected by immigration enforcement activity.
“ICE will come in. They're looking for a specific individual, and they'll show up on a job site, or they'll show up at an adjacent job site, and then a percentage of the workforce doesn't show for three or four days because they're worried.”
Turmail said the ongoing labor shortage requires long-term policy solutions rather than short-term enforcement measures.
“Invest in domestic workforce development. Allow more people to lawfully come to the country.”
Federal enforcement funding has expanded significantly in recent years. President Donald Trump’s major spending legislation allocated $170 billion to ICE over several years to increase enforcement efforts nationwide.
Sanchez argued that increased funding alone does not address public safety concerns and urged local officials to take a more measured approach.
“We also call on local law enforcement and government officials to commit to public safety protocols and procedures that are in service of actually protecting and keeping our communities safe.”
According to Turmail, when workers avoid job sites due to enforcement fears, the consequences can extend well beyond short-term labor gaps.
“We've kind of starved our domestic workforce development, we don't allow a lot of people to come into this country lawfully to work in construction, but we want to build a lot of things because they're important pieces of economic development.”
Local law enforcement data highlights the broader enforcement environment. The Hamilton County Sheriff’s Office reported that during November and December, 86 arrestees had unknown or unlawful citizenship status. During that same period, 70 individuals were placed on ICE holds and 87 people were released into ICE custody.
Construction leaders warned that without expanded workforce development initiatives and legal pathways to employment, labor disruptions could continue to delay infrastructure projects and slow economic growth across the region.
Originally reported by Ray Collado in News Channel 9.
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