Findings from a recently issued report show four straight quarters with more than 90 percent of contractors concerned over U.S. labor shortages.
Concerns increased quarter-over-quarter, with 47 percent of respondents expecting problems finding skilled workers to worsen in the next six months, the U.S. Chamber of Commerce said.
“Contractors’ pipelines for new business are consistently healthy, however, that optimism is challenged by a growing shortage of workers – a trend that’s persisted for more than a year,” said Jennifer Scanlon, president and chief executive officer of USG Corporation.
“In order to sustain the strong pipeline of work, it’s important that industry leaders think about process and product innovations that can help complete projects on-time and advance the industry.”
The percentage of contractors concerned about fluctuations in steel prices jumped significantly this quarter, according to the USG Corporation + U.S. Chamber of Commerce Commercial Construction Index.
Two-thirds (63 percent) of contractors identified steel fluctuations as their top material of concern.
, a sharp increase from the 30 percent of contractors who expressed concerns in the second quarter of 2017 and the largest fluctuation in contractor sentiment to date. Most (86 percent) contractors also feel the recently-imposed tariffs will have at least a moderate impact on their business.
“The commercial construction industry is vital to the growth of the U.S. economy. Steel and aluminum tariffs and continued workforce shortages threaten to slow the industry’s growth and job creation,” said Thomas J. Donohue, president and CEO of the U.S. Chamber. “We must embrace free enterprise, rather than undermine the competitiveness of American business, as well as invest in a skilled and motivated workforce to ensure our companies and job seekers alike have the platforms to compete on a global scale.”
Overall, contractors maintained a strong national economic outlook in the second quarter, with a steady level of new business confidence and revenue expectations.