GROUP OF VOTERS IN OUR STATE REMAINS UNAFFILIATED. NEW DATA JUST RELEASED GIVES US A GLIMPSE OF THE CHALLENGES CONTRACTORS ACROSS NORTH CAROLINA ARE FACING. WXII 12 SERRA SOWERS IS IN THE STUDIO NOW TO BREAK IT ALL DOWN FOR US. SARAH, WHAT CAN YOU TELL US? CHRISTINE KENNY, THE ASSOCIATED GENERAL CONTRACTORS OF AMERICA, RELEASED DATA TODAY THAT REVEALED THAT 72% OF RESPONSES THEY RECEIVED FROM NORTH CAROLINA FIRMS ARE WORRIED ABOUT BEING ABLE TO RETAIN AND HIRE SKILLED WORKERS. ALL OF THIS IS ABOUT PEOPLE. AND SO HOW CAN WE PUT TOGETHER A WORKFORCE THAT IS EAGER, GROWING AND TRAINED? NATIONWIDE, 80% OF GENERAL CONTRACTORS WHO WORK IN CONSTRUCTION SAY THEY ARE HAVING A HARD TIME FILLING POSITIONS FOR SKILLED HOURLY WORKERS, AND EXPERTS SAY THAT’S JUST ONE FACTOR CONTRIBUTING TO CONSTRUCTION PROJECTS BEING BEHIND SCHEDULE OR NOT STARTED. ONE THIRD OF CONTRACTOR FIRMS, BOTH IN NORTH CAROLINA AND NATIONWIDE, REPORT FEELING THE EFFECTS OF IMMIGRATION ENFORCEMENT ACTIONS IN THE LAST SIX MONTHS, MORE THAN 30%, 40% OF OUR WORKFORCE IS IS NOT NATIVE BORN IN AMERICA, BUT THEY’RE THE BACKBONE OF OUR INDUSTRY, ALONG WITH THE REST OF OUR BLUE COLLAR WORKERS. AND WHATEVER POLICY GETS PUT IN PLACE, WE HAVE TO FIGURE OUT A WAY TO IMPLEMENT AND EXECUTE THAT POLICY SO THAT WE’RE NOT INTIMIDATING THE WORKFORCE OR DRIVING PEOPLE OUT OF THE INDUSTRY, FIRMS SAID. IN RESPONSE TO TARIFFS, 38% HAD TO RAISE BID PRICES, PURCHASE MATERIALS FASTER AND PASS COSTS ON TO THEIR PROJECT OWNERS. BUT THERE ARE SOME POSITIVES TO LOOK FORWARD TO. THE GROWTH THAT’S EXPECTED IN DATA CENTER CONSTRUCTION IS A DIRECT REFLECTION OF THE AI BOOM WE’VE SEEN IN JUST ABOUT EVERY INDUSTRY NATIONWIDE. 57% OF THOSE SURVEYED SAID THEY ANTICIPATE MORE DATA CENTERS AND HEALTH CARE RELATED PROJECTS IN 2026, AREAS THE AGC EXPECTS TO SEE EVEN MORE OF IN COMING YEARS. BUT IN TERMS OF CONSTRUCTION, I THINK THE DATA CENTER CONSTRUCTION IS VERY SOLID FOR 2026, AND BECAUSE THESE PROJECTS ARE SO MASSIVE, THEY’RE GOING TO KEEP GOING IN 2027, THE ASSOCIATION ADDED THAT PUBLIC WORKS PROJECTS LIKE WASTEWATER TREATMENT, ROADS AND ELECTRIC INFRASTRUCTURE ARE ALSO EXPECTED TO GROW IN SUPPORT
American contractors fear recession, access to labor may delay construction projects in 2026
Updated: 7:02 PM EST Jan 8, 2026
The Associated General Contractors of America released data today that revealed that 72% of responses they received from North Carolina construction firms are worried about being able to retain and hire skilled workers in 2026.Contractors overall are less optimistic about 2026 outcomes because of backlog, loss of workers and rising costs.In North Carolina, a small sample size of 29 firms made up the responses. The majority of the construction companies said they make between $51 million and $500 million in business per year.95% said they were having a hard time filling positions for hourly workers, with a similar statistic at 92% for salaried workers38% said they raised bid prices, purchased materials faster, and passed on most/all costs to project owner given rumored or actual tariffs in 202531% said they had workers leave or fail to show up for the job because of immigration actions72% said they were worried about supply of workers or contractors, 66% said they fear an economic slowdown or recession in 2026 Read the full report on North Carolina-specific data here.The survey showed that hiring expectations are high for 2026, but obstacles are high as well. Nationwide, 63% of respondents said they plan to increase their workforce headcount. However, more than 50% expect it to be difficult to find skilled hourly workers. In 2025, more than 80% said they had difficulty filling hourly and salaried positions.The Associated General Contractors of America also stated that they need more support from the federal government to expand and expedite public works projects.”The Associated General Contractors of America is pushing Congress and the Trump administration to act quickly to extend and expand current levels of funding for key infrastructure projects. In particular, the association is launching a new, nationwide campaign in 2026 to urge federal officials to pass new legislation funding improvements to the nation’s highway and transit systems before current legislation expires at the end of September. Enacting a new surface transportation bill will help sustain demand for a range of public-sector construction segments,” a statement said. The organization also added that it is seeking help from government officials to help it retain labor.”In the near term, federal officials should work with Congress to expand lawful, temporary work visa pathways dedicated to construction, allowing firms to access needed workers while domestic training pipelines are rebuilt. Stabilizing the lawful workforce is especially important given the labor-intensive and highly specialized nature of data center and power projects. In addition, the administration should focus its immigration enforcement activities on undocumented immigrants who are engaged in additional unlawful activities, instead of those who are otherwise responsibly engaged in economic activity,” a statement said.
The Associated General Contractors of America released data today that revealed that 72% of responses they received from North Carolina construction firms are worried about being able to retain and hire skilled workers in 2026.
Contractors overall are less optimistic about 2026 outcomes because of backlog, loss of workers and rising costs.
In North Carolina, a small sample size of 29 firms made up the responses. The majority of the construction companies said they make between $51 million and $500 million in business per year.
- 95% said they were having a hard time filling positions for hourly workers, with a similar statistic at 92% for salaried workers
- 38% said they raised bid prices, purchased materials faster, and passed on most/all costs to project owner given rumored or actual tariffs in 2025
- 31% said they had workers leave or fail to show up for the job because of immigration actions
- 72% said they were worried about supply of workers or contractors, 66% said they fear an economic slowdown or recession in 2026
Read the full report on North Carolina-specific data here.
The survey showed that hiring expectations are high for 2026, but obstacles are high as well. Nationwide, 63% of respondents said they plan to increase their workforce headcount. However, more than 50% expect it to be difficult to find skilled hourly workers. In 2025, more than 80% said they had difficulty filling hourly and salaried positions.
The Associated General Contractors of America also stated that they need more support from the federal government to expand and expedite public works projects.
“The Associated General Contractors of America is pushing Congress and the Trump administration to act quickly to extend and expand current levels of funding for key infrastructure projects. In particular, the association is launching a new, nationwide campaign in 2026 to urge federal officials to pass new legislation funding improvements to the nation’s highway and transit systems before current legislation expires at the end of September. Enacting a new surface transportation bill will help sustain demand for a range of public-sector construction segments,” a statement said.
The organization also added that it is seeking help from government officials to help it retain labor.
“In the near term, federal officials should work with Congress to expand lawful, temporary work visa pathways dedicated to construction, allowing firms to access needed workers while domestic training pipelines are rebuilt. Stabilizing the lawful workforce is especially important given the labor-intensive and highly specialized nature of data center and power projects. In addition, the administration should focus its immigration enforcement activities on undocumented immigrants who are engaged in additional unlawful activities, instead of those who are otherwise responsibly engaged in economic activity,” a statement said.