Workforce Shortage Will Continue to Pose Biggest Construction Challenges

AGCA Economists Tells Charlotte Economists

June 29, 2022

The biggest obstacle in the construction industry will continue to be the labor shortage at a time when the growth outlook for the Carolinas remains strong.

That was one of a number of long-range predictions cited by Ken Simonson, chief economist of AGC of America.

“Finding workers will be a challenge much longer than material costs or supply,” Simonson said. His comments were made at a presentation on June 22 to the Charlotte Economics Club at the Charlotte City Club.

Other observations made by Simonson included:

• Despite solid population growth in the Carolinas continuing, an overall slower population growth nationally in the post-pandemic era means slower demand and growth for most construction.
• Slowing demand for K-12, decline for higher ed construction.
• Permanent shift from retail to e-commerce/distribution structures.
• More specialized and online healthcare facilities, fewer hospitals and nursing homes.
• More wind, solar, battery storage and charging facilities, and related manufacturing.
• Unclear if offices will decentralize or remain in less demand.
• Not clear if recent urban/rural or state-to-state migration will remain or reverse.

For more details of Simonson’s presentation on local and national trends, download his PowerPoint presentation.