DALLAS, Texas — Texas is confronting one of its toughest challenges in years: a widening skilled trade shortage that threatens to disrupt construction timelines even as billions of dollars in new development projects get underway.

Dallas-based EB3 Construction says the state’s booming market—spanning everything from semiconductor plants and data centers in Central Texas to major infrastructure projects along the Gulf Coast—represents, “economic engines reshaping communities and strengthening Texas’ position as a national leader in development and growth.” The Associated General Contractors (AGC) estimates construction contributes nearly 4.5 percent of Texas’ GDP.

But EB3 warns the sector is in “a workforce crisis.”

Shortage Hits Project Delivery

Texas added 5.1 percent more construction jobs between September 2023 and September 2024, but growth is not keeping pace with demand. The shortage is already reshaping the way projects are scheduled.

“The shortage manifests in practical challenges for project delivery,” EB3 says. “Construction timelines in Texas now routinely include buffer periods specifically to account for labor availability issues. This reality translates to approximately 3-4 weeks of additional scheduling time for mid-sized commercial projects—a direct consequence of workforce constraints that ripple through the entire building ecosystem.”

The federal government’s stalled immigration reform and limited investment in career and technical education (CTE) are seen as key reasons for the worker pipeline problem.

Recruitment and Training Efforts

Contractor groups are increasingly recruiting in high schools, junior colleges, and community colleges, highlighting that trade jobs often pay significantly more than entry-level roles in other fields. Many firms are raising base wages, bonuses, and benefits like healthcare and retirement packages to make construction more competitive.

At the same time, trade unions are expanding training opportunities. The Texas State Building & Construction Trades Council promotes the Multi-Craft Core Curriculum Apprentice Readiness Program, which introduces students to different trades before they commit.

Those who advance can enter federally registered apprenticeship programs like those overseen by North America’s Building Trades Unions (NABTU). Apprenticeships typically last four to five years, with participants earning while they learn. Costs are covered jointly by labor and management, and apprentices receive credits for on-the-job hours and coursework.

Yet completion is far from guaranteed. The Houston Gulf Coast Building and Construction Trades Council notes, “A large percentage of those attempting to become an apprentice do not make it past the first year. We only want the best, because that is what our members and employers expect.”

To appeal to younger, tech-oriented recruits, companies are also using virtual reality career demos and training on digital construction tools, hoping to show that modern construction is as much about technology as it is about tools.

Immigration Crackdowns Intensify Shortages

Retention of the existing workforce is proving just as difficult. According to the American Immigration Council, immigrants made up 40 percent of Texas construction workers in 2022—about 500,000 people. Roughly 300,000 were undocumented, equaling nearly a quarter of the industry’s workforce.

Industry leaders warn that aggressive federal immigration raids could devastate the sector. Economist Ray Perryman said that a mass roundup would “wreck the state’s construction industry.”

Already, Alan Hoffmann of the Dallas Builders’ Association told CBS News that enforcement is driving a 30 percent labor shortage in the Dallas-Fort Worth metroplex. To prepare, the National Association of Home Builders has issued guidance called “When ICE Comes Calling”, advising employers on audits and workplace visits.

But political backing for undocumented workers is nearly nonexistent. Texas Governor Greg Abbott has aligned with the enforcement push:

“We just want to make sure that the Trump administration understands we are here to help, whether it be to deny illegal entry, whether it be to arrest those who are here illegally, whether it be to assist in the deportation process.”

Outlook

For now, the industry is caught between surging demand and tightening labor supply. Training programs, wage increases, and technology adoption may help attract new workers, but immigration enforcement remains an unpredictable factor with the potential to disrupt Texas’ construction future on a massive scale.

Originally reported by John Bleasby in Daily Commercial News.