The Construction Labor Crisis: How Suffolk County Property Owners Can Navigate the 439,000 Worker Shortage in 2025
The construction industry is facing an unprecedented challenge in 2025. The Associated Builders and Contractors (ABC) predicted the industry needed 439,000 more workers in 2025 alone, creating a crisis that’s affecting everything from project timelines to costs across Suffolk County and beyond.
For property owners in Suffolk County, this shortage isn’t just an industry statistic—it’s a reality that could impact your next renovation, addition, or landscaping project. Understanding this challenge and knowing how to work with it can make the difference between a successful project and costly delays.
The Scale of the Problem
The NCCER estimates about 41% of the workforce will retire by 2031, while less than 3% of young people consider construction careers. This demographic shift is creating a perfect storm where experienced workers are leaving faster than new ones are entering the field.
The impact is already visible in Suffolk County. According to Associated General Contractors’ (AGC) 2024 Industry Workforce Analysis, 54% of contractors reported experiencing project delays because of workforce shortages. These delays aren’t just inconveniences—they translate to increased costs and extended timelines for homeowners.
What This Means for Suffolk County Property Owners
The labor shortage is driving up costs across all construction sectors. Average hourly earnings rose 4.4% over the last 12 months, and construction companies have had to continually raise worker wages to help combat the worker shortage. According to research by the Construction Labor Research Council, by the end of the second quarter of 2024, first-year increases in union settlement were at 4.6%.
For property owners planning excavation work, foundation repairs, or major landscaping projects, this means budgeting for higher labor costs. When you need professional Excavation Suffolk County services, working with established local contractors who have retained skilled crews becomes even more valuable.
The Safety Concern
Beyond costs and delays, the labor shortage is creating safety risks. Training new workers takes time. Rushing their training to fill gaps in the workforce exposes them to more significant safety risks. An insurance study by Travelers Insurance found that over half of workers’ compensation claims come from employees with less than one year of experience.
This underscores the importance of choosing contractors who prioritize proper training and safety protocols, even when facing pressure to complete projects quickly.
Strategic Solutions for Property Owners
Plan Ahead: With the gap between project inquiries and signed contracts has widened to nearly seven months, property owners need to start planning projects well in advance. What used to be a three-month timeline might now require six months or more.
Choose Established Local Contractors: Companies with stable, experienced crews are better positioned to deliver quality work on schedule. Local contractors who understand Suffolk County’s specific soil conditions, regulations, and property layouts can work more efficiently than those learning on the job.
Consider Off-Peak Timing: Industry forecasters anticipate that 2025 will bring a slight moderation in construction activity growth – but not enough to resolve labor pressures. The consensus economic forecast projects construction spending will grow less than 3% in 2025. This slower growth might create opportunities for better scheduling during traditionally busy periods.
Invest in Quality: With skilled labor at a premium, it makes more sense than ever to invest in contractors who do the job right the first time. Rework due to poor initial execution becomes exponentially more expensive when skilled workers are scarce.
Technology as a Partial Solution
The industry is responding to labor shortages through technology adoption. Integrating AI-enabled automation and digital tools: These tools can augment workforce productivity by helping workers focus on high-value tasks. While this won’t replace skilled excavation operators or experienced craftsmen, it can help contractors work more efficiently with smaller crews.
The Long-Term Outlook
On the upside, the strong wage growth is drawing more interest to construction jobs, and a growing number of young people may be enticed into the trades by the promise of good pay. However, until that translates into a larger skilled workforce, contractors are likely to keep paying a premium for talent.
For Suffolk County property owners, this means the current challenging environment will likely persist through 2025 and potentially beyond. A decline in inflation and reduced borrowing costs could lead to an uptick in construction activity, which could, in turn, require an even larger workforce—potentially requiring up to 499K new workers by 2026.
Moving Forward
The construction labor shortage isn’t going away anytime soon, but informed property owners can still successfully complete their projects. The key is understanding the new reality: longer lead times, higher costs, and the premium value of working with established, skilled contractors.
By planning ahead, budgeting appropriately, and choosing contractors with proven track records and stable crews, Suffolk County property owners can navigate this challenging period successfully. The projects that get completed on time and on budget will be those where owners understand the market dynamics and work collaboratively with their contractors to find solutions.
In this environment, the relationship between property owner and contractor becomes more important than ever. Choose partners who communicate clearly about timelines and costs, prioritize safety, and have the experience to deliver quality work even under pressure. Your property—and your peace of mind—will be better for it.