#USA #Santa Clara #DPR Construction #labor shortage #construction challenges

Labor Shortage Looms as Construction Rebounds

As the construction industry begins to emerge from a turbulent phase of supply chain issues and rising costs, a new challenge now threatens to impede progress: a labor shortage. According to a recent Market Conditions Report released by DPR Construction, which is recognized as one of the foremost technical builders in the United States, the ongoing labor scarcity poses a substantial risk to the momentum that has been regained in various market sectors.

The survey conducted by the Associated General Contractors of America alongside the national Center for Construction Education and Research sheds light on the current state of labor in the construction field. The findings are striking: 88% of firms that are hiring craft workers, along with 80% of companies employing salaried staff, reported having open positions. Alarmingly, nearly all these firms indicated that filling these roles has become progressively more difficult compared to the previous year. Furthermore, 45% of the respondents experienced project delays directly attributed to a lack of available workers, and close to 30% cited immigration enforcement as a significant factor contributing to the labor strain, either directly or indirectly.

Roel Aguilar, the national preconstruction leader at DPR, emphasized that the path to remedying the labor shortage may require a generational commitment. He suggested that property owners aiming for more consistent project outcomes should consider self-performing general contractors and remain open to adopting new methodologies and technologies that could improve project efficiency with the existing workforce. DPR stands out in this regard, boasting a team of over 5,000 self-performing workers and implementing innovative strategies aimed at enhancing productivity.

To combat ongoing labor pressures, DPR is proactive in its approach. The company is leveraging progressive delivery methods that accelerate time-to-market, promoting Lean construction techniques, and sharing best practices across various sectors. Notably, they have initiated pilot programs focused on pioneering technologies to elevate the efficiency and availability of their existing workforce.

Current labor challenges arise while clients across DPR’s key markets advance with projects, having successfully navigated the uncertainties presented by tariffs and supply chain fluctuations. Particularly, the sectors of Advanced Technology and Life Sciences are projected to significantly drive construction demand in 2026. Additionally, developments in Healthcare are prompting clients to rethink their capital construction strategies. New legislation and reimbursement models are influencing these changes, while higher education institutions are adapting to what they term a “new normal,” responding to changing policies and student preferences. Encouragingly, indicators suggest that the Commercial office market is beginning to take a positive turn as well.

For those interested in delving deeper, DPR Construction provides an interactive dashboard featuring comprehensive market conditions data, which can be very insightful for stakeholders in the construction field.

About DPR Construction

Founded in 1990, DPR Construction is a pioneering self-performing general contractor and construction manager specializing in complex and sustainable projects within advanced technology, life sciences, healthcare, higher education, and commercial sectors. The company's extensive portfolio includes everything from large-scale new constructions to small tenant improvements and special projects. Celebrated for its entrepreneurial spirit as a private employee-owned company, DPR has evolved into a multi-billion-dollar enterprise with a global presence. The company actively focuses on generating more predictable outcomes by utilizing virtual design construction, prefabrication techniques, and a robust data-driven approach to enhance learning and improvement across its operations. Currently, DPR employs approximately 11,000 professionals within its network.

For additional information, please visit DPR Construction's website.

For media inquiries, please contact:
Jay Weisberger
DPR Construction
Email: [email protected]