“Teamwork makes the dream work” may be an overused cliché. But the phrase certainly proves true in Michigan when it comes to addressing the long-running labor shortage facing the commercial construction industry with workforce development efforts and programs.
It is an especially pressing issue in the state, which is undergoing a robust construction boom. From November 2023 to November 2024, Michigan posted a 7.7 percent rise in construction employment. November numbers saw the state jump from being fourth in the nation in construction employment growth to second place (tied with Hawaii), according to Ken Simonson, Chief Economist with the Associated General Contractors (AGC) of America.
“Back in the first decade of this century, Michigan was known as the one-state recession,” Simonson said. “Now it’s just the opposite of that.”
“The No. 1 thing I hear from contractors is that there’s so much work out there,” said Josh Graves, Director, Workforce Development for the AGC of Michigan. “Some of our member’s backlog is bigger than it’s ever been. But the No. 1 issue that has persisted is the amount of talent that's available to do the work. There's a big shortage, especially for the craft positions, but also all of the positions.
“Some of our contractors have turned down jobs they normally would want to do, but they can’t because they are not able to man them. So we are definitely experiencing a lot of those workforce challenges.”
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The boom in projects is not the only factor creating workforce pressures, said Hernando Flowers, Workforce Development Manager with Barton Malow, headquartered in Southfield, Michigan.
“About 41 percent of the current skilled labor in construction should be eligible for retirement by 2035. So that leaves us with a shortage of continuity,” he said. “Here in Michigan, we're heading towards a natural decline, where the birth rate isn't keeping up with the amount of jobs. So there's going to be a lack of labor regardless, even if we employ everyone, and especially with the backlog of projects.”
The good workforce news in Michigan is that a community of involved and interested parties have been working together toward a solution. That includes contractors, trade and craft unions, AGC of Michigan, other professional associations, secondary schools and colleges, trade and technical training institutions, Michigan city and state governments, and the federal Department of Labor, plus public and nonprofit workforce development organizations. Programs range from raising awareness of construction industry opportunities for students with job fairs and career day events to educational and training programs, apprenticeships, internships and mentoring, and outreach and support services.
“There's a huge, huge need for a new generation of skilled construction workers all across the board,” Graves said. “So it's really important to break down those barriers and build those bridges across all of the various stakeholders. We kind of see ourselves as an air traffic controller in the sense that we work with a lot of important stakeholders in the industry: contractors, suppliers, trade unions, and the many workforce agencies.”
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Attracting young people still in school to construction careers faces a number of hurdles. First is that the traditional blue collar, manual labor classification of the work — sometimes done outside in a variety of weather conditions — can be dirty and at times dangerous. But there are also differences from the past that require future potential workers here in the digital age to learn what had once been basic common skills.
“You find a lot of people that don't know how to read a tape measure,” said Andrea Alvarez, Director of Workforce Development for Holly, Michigan-based Fessler & Bowman. “They haven’t raked or shoveled with a family member in their backyard. They don't know how to use a level. Those just aren't things that they were raised doing.”
Conversely, students familiar with computers and modern technologies are often unaware of how much that is increasingly utilized throughout construction work.
“We tell them how we fly drones, and it's not just for fun; it's because they can be used in estimating and project management,” Alvarez added. “And we explain to them how much technology is used in construction. Their eyes really light up when we talk about GPS-controlled heavy equipment.”
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“I think there's like a lack of understanding about how much money you can actually make in construction,” Graves said. “That’s also an educational thing.”
“We help students understand that traditional college is only one path,” Alvarez said. “You can start working in the trades right out of high school at 18, earning a great income with no student loan debt, excellent benefits, and a clear path to career growth and stability.”
One of the state’s primary awareness and recruitment events is the Michigan Construction Career Days, taking place this year on April 30 and May 1 at the Operating Engineers 324 Training Facility in Howell, Michigan. It enables seventh to twelfth grade students to meet with contractors and representatives of college programs relevant to construction careers, plus get hands-on exposure to construction equipment.
Fessler & Bowman also makes their workforce pitches to students at their own schools. "We purchased an enclosed trailer and outfitted the interior with graphics to replicate the look and feel of a real construction site,” Alvarez said. “We take it to high school events, bringing along a variety of team members — project managers, finance and HR staff, and field personnel — to showcase the wide range of opportunities in our industry.”
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The Michigan Regional Council of Carpenters and Millwrights does much of the same with a trailer called Tools to Schools that is filled with equipment.
Graves noted another creative promotional approach. “During National Apprenticeship Week in November, the Iron Workers here in Michigan had a welding competition for high schoolers — 50 to 70 a day from high school welding programs across the state,” he said. “It’s a powerful recruitment tool for them.”
Flowers said that at Barton Malow, “We've done a holistic approach to workforce development, holding programs ourselves to spread as much awareness out there as possible. The company does a construction boot camp, which is geared towards 18- to 24-year-olds. It's a 120-hour program where they get hands-on experience as well as classroom instruction, and it helps to get them ready for opportunities within registered apprenticeships in the skilled trades.”
The firm also has its 12-week summer college internship LEAPS program (LEArning Practicum for Students) to foster future project leaders.
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Fessler & Bowman moved into a new headquarters building last March with its own training center. “We partner with our union trainers, inviting them to our headquarters to conduct training sessions,” Alvarez said. “Our facility also features two heavy equipment simulators, providing hands-on learning opportunities.”
As of the writing of this article, the Trump administration has made large-scale deportations of undocumented and non-resident aliens a centerpiece of its stated policies. A national AGC Data Digest edited by Simonson issued in early December noted studies that show immigrants accounted for 34 percent of those who worked in construction trades in 2023. One study estimated that undocumented workers make up between 28 and 33 percent of the foreign-born workers in certain trades.
“New immigration policies could affect the workforce, making workforce development programs and partnerships especially important,” Graves said.
Alvarez takes a wait-and-see approach toward the foreign-born labor matter in Michigan. “I don't know how it will affect the workforce,” she said. “What I do know is that every member of our team is valued and appreciated for the contributions they bring.”
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“I think in Michigan we do a pretty good job of, ‘Let's take our competition hat off and put our industry hat on, and let's all try to push for what's best for the industry,’” Graves said.
Alvarez believes that the proactive workforce development programs and partnerships can help ensure that the Michigan construction community can effectively address the workforce challenge. “I think as long as companies get creative and keep working at solving it, it's not unsolvable,” she said.
