South Carolina Construction News staff writer
Demand for workers on data center projects is contributing to construction workforce shortages across the Carolinas and the United States, even as broader construction market conditions soften, according to a new workforce survey.
The Associated General Contractors of America and NCCER survey found that 87 per cent of construction firms have openings for hourly craft positions, while 82 per cent have openings for salaried positions.
Half of respondents said available candidates lacked the skills, certificates or licences needed for construction positions. Workforce shortages were also cited as a major cause of project delays, with 42 per cent of firms reporting delays because of shortages among their own workers or those employed by subcontractors.
“The need for people to work on new data centers is keeping labor conditions tight even as demand for many other types of projects remains relatively soft,” said Ken Simonson, AGC’s chief economist, during a virtual media briefing to release the survey results.
“Meanwhile, the nation is not producing enough qualified workers, even as federal immigration policies are impacting nearly one-third of firms.”
The survey found that immigration enforcement is affecting labour availability in the South, with 42 per cent of Southern respondents reporting at least one direct or indirect workforce impact, compared with 29 per cent nationally.
Carolinas Associated General Contractors and the CAGC Foundation said the findings reinforce the need to expand workforce development efforts in North and South Carolina.
North Carolina contractors continue to report difficulty filling craft and salaried positions, with qualifications and credentials among the leading hiring barriers. Employers are responding by increasing recruitment, training and relationships with high schools, community colleges and career and technical education programs.
South Carolina contractors face similar challenges as firms compete for skilled workers.
“The national survey highlights what we know locally: you can’t build South Carolina’s future without investing in home-grown talent,” said Leslie Clark, CAGC’s chief operating officer and vice-president of South Carolina external affairs.
“With federal immigration policy tightening labor supply across the South, our state’s priority must be expanding Career and Technical Education (CTE) in high schools and technical colleges.”
The survey found that nearly half of construction firms have increased their engagement with high schools, colleges and career and technical education programs.
CAGC and its foundation are pursuing similar strategies through several workforce initiatives.
Construction Bootcamp partnerships with North Carolina community colleges provide hands-on training, NCCER Core and OSHA 10 credentials, while connecting graduates with construction employers. The organizations also introduce students to construction careers through high school student chapters, Be Pro Be Proud and Lane the Loader programs.
Additional initiatives include safety training, certifications, continuing education, professional development and scholarships for students pursuing construction-related education and careers.
CAGC said the combination of strong demand for workers on data centre projects, limited availability of qualified candidates and labour-market pressures reinforces the need for continued recruitment, training and retention efforts.
The survey comes as contractors contend with uneven demand across construction sectors. While some project types are experiencing softer conditions, the need for workers on large data centre developments is keeping competition for skilled labour elevated.
