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The Changing Face of Labor

Across the U.S., builders are beginning to feel the ripple effects of a labor force in transition. For decades, small and mid-sized homebuilders have relied on a deep network of subcontractors—many powered by immigrant labor—to frame, roof, and finish their homes. That model to be tested and strained. A combination of subcontractor demographic “aging out of the industry,” tighter immigration enforcement, and rising compliance requirements is reshaping how builders get homes built. Aging Out: The Shrinking Labor Base The construction workforce has been contracting for years. According to the Home Builders Institute’s Spring 2024 Construction Labor Market Report, the U.S. will need roughly 723,000 new construction workers per year just to meet current demand in residential construction. The average age of skilled tradespeople continues to rise, with many nearing retirement and too few younger workers entering the pipeline. Many who exited during the Great Recession never returned. Meanwhile, vocational and technical programs—critical sources of new trades talent—remain underfunded and unable to expand enrollment at the pace required. Immigration: A Critical Pressure Point Immigrants make up about 25% of the national construction workforce, and roughly 31% of trades workers such as carpenters, roofers, and drywall installers are foreign-born, according to the
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