If you've heard that construction can't find enough workers, you've heard right. Associated Builders and Contractors estimates the industry needs to attract roughly 349,000 new workers in 2026 just to keep pace with demand. That's actually an improvement over recent years — the gap topped 500,000 in 2023 and 2024 — but the reason it's shrinking isn't all good news.
Retirements are driving the gap
The biggest factor behind this year's shortage isn't a construction boom. It's demographics. A majority of new worker demand in 2026 comes from retirements, as experienced tradespeople leave the industry faster than younger workers replace them. Immigration policy adds another layer of uncertainty, tightening the labor pool in markets that have long depended on it. The result: even in a year of modest construction spending growth, skilled labor remains hard to find — and the crews that are available command a premium.
What this means for your project
For property owners, the labor shortage shows up in three places. Schedules: trades with thin benches — electricians, mechanical crews, finish carpenters — book up months in advance, so late commitments mean waiting in line. Budgets: labor costs continue to rise faster than general inflation, and bids from overstretched subcontractors carry bigger contingencies. Quality: a contractor scrambling to staff a job is a contractor making compromises you'll live with for decades.
How we manage it
There's no magic fix for a workforce gap this size, but there is a reliable strategy: relationships and planning. We've spent years building a network of subcontractors who prioritize our projects because we run organized jobsites, keep schedules realistic, and pay fairly and on time. And through preconstruction, we lock in key trades early — before their calendars fill — instead of shopping for whoever happens to be available when the drawings are done.
Our take
The labor shortage isn't going away; 2027 projections are already higher than this year's. The owners who fare best won't be the ones who find a loophole — they'll be the ones who start conversations with their builder early. If you're planning a project for late 2026 or 2027, now is the right time to talk. Reach out to our team and let's get ahead of it together.