Americas Office Fit Out Cost Guide 2024

OFFICE FIT OUT COST GUIDE 2024

DLA PIPER, HOUSTON

LABOR CONSTRAINTS IN THE U.S. CONTINUE TO IMPACT CONSTRUCTION PROJECTS AND COSTS

The construction sector has consistently raised wages and increased benefits packages in the last few years to retain and attract talent. Average hourly wages have grown 21% since January 2020 and grew 5.9% year-over-year in 2023, much higher than the 4.3% increase in private wages in 2023. Wages are expected to see another year of above historical average growth in 2024, further impacting construction costs. For the construction sector to attract more talent, several steps need to be taken, including: > Providing existing workers with opportunities to train for high-skill, in-demand positions. > Creating programs, including apprenticeships, to attract a younger generation to the sector. > Improving legal immigration programs that attract and place workers in construction.

An aging workforce has begun to have implications on labor and no industry feels the impact more than the construction sector. While hiring has been robust, many open positions go unfilled as the underlying talent pool continues to decrease due to the aging of the existing workforce and lower immigration rates in recent years. Based on an analysis from Associated Builders and Contractors (ABC), the construction industry—including both residential and non-residential—will need an additional 501,000 workers in 2024 5 . That estimate is on top of the normal hiring the sector does each year. Their estimate is based on expected construction projects in the U.S. for 2024 and the staffing levels required to complete those projects. Hiring for construction projects will continue to face headwinds in 2024. One-fourth (21%) of construction workers are 55 and older, representing a large portion of the workforce that is nearing retirement. Unfortunately, not as many young people are looking to enter the sector, with only 7% of workers aged 20-35 currently working in construction. Young workers are more likely to be in the health, education, and retail sectors.

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