Steel Markets
AGC Report Highlights Craft Worker Shortage
Written by Sandy Williams
August 30, 2018
Labor shortages are highlighted in a new survey released by the Associated General Contractors of America and Autodesk.
In a survey of more than 25,000 respondents, 80 percent of firms report they cannot find enough hourly craft workers to fill the positions that make up the bulk of the construction industry. The problem is widespread across the U.S., said AGC.
“Labor shortages in the construction industry remain significant and widespread,” said Ken Simonson, AGC’s chief economist. “The best way to encourage continued economic growth, make it easier to rebuild aging infrastructure and place more young adults into high-paying careers is to address construction workforce shortages.”
Construction demand has expanded in 281 of 358 metro areas between July 2017 and July 2018, according to AGC data. The growing demand means it will continue to be hard to fill craft worker positions this year.
Sarah Hodges, senior director of the construction business line at Autodesk says technology can help to bridge the gap. “More firms are bringing training in-house to implement digital strategies such as building information modeling, or BIM, to ease staffing challenges and train the next generation of industry professionals.”
The report shows that firms are using a combination of wage increases, employee benefits and bonuses to attract and retain craft workers. Sixty-two percent of construction firms surveyed are raising base rates to attract craft workers, 24 percent have improved employee benefits and 25 percent report they are providing incentives and bonuses to attract workers. Use of labor saving equipment and virtual construction methods has increased at 24 percent of firms.
The labor shortage is causing firms to increase their bid prices and add longer completion times into their bids.
A new Workforce Development Plan was also released last week to identify steps that the federal government can take to support construction workforce development. AGC suggests doubling the funding for career and technical education, as well as allowing more skilled foreign construction workers to legally enter and work in the U.S.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Hot-rolled price hikes garner mixed reactions from the market
Several steel market sources say they were blindsided when mills increased spot prices for hot-rolled coils this week.
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.