Infrastructure Ramp-Up Demands Collaboration on Workforce
Date Posted: January 19, 2023
Posted In: News, Organizations, Projects, Workforce,
by Jeremy Bennett, SITE Improvement Association
The $2.3 trillion Infrastructure Investment and Jobs Act (IIJA) passed by Congress last October promises $621 billion in new transportation infrastructure construction work and $689 billion for buildings and utilities projects for contractors across the country. While the exact amount coming to Missouri may not be known for at least another year, it is no surprise that many private-sector contractors are interested in grabbing a share of any upcoming publicly funded work. And this federal money is in addition to several state and local public infrastructure improvement programs already in place.
While this steady stream of new projects over the next decade is good news for many contractors in our region, it will also exacerbate the industry’s existing labor shortage and drive costs up for the governmental agencies and public utilities that will own these projects. New solutions for these challenges must be developed through greater collaboration across the entire infrastructure construction industry.
More than 40 percent of our current construction workforce is expected to retire over the next decade. The new jobs created by the IIJA, state and local projects will further escalate local labor demand while also increasing the demand for construction materials and supplies. A shortage of labor at any point during these projects may cause delays, drive up costs, and result in projects being scaled back or scrapped altogether. This also creates a challenge for the owners of these projects as they seek to ensure the best stewardship possible of the taxpayer money funding these projects.
Most of these labor shortages are in contracting, meaning contractors must build capacity. In addition, Missouri is a net importer of construction materials. The increased demand for such materials primarily exported from other states could also strain costs for IIJA and other projects in the St. Louis Region.
To overcome these challenges, companies from across the construction labor and materials supply chains in the St. Louis region should come together to research and cultivate strong new working relationships with industry partners to serve as resources that can help them grow and sustain their businesses. Locating these potential partners and developing numerous meaningful connections can be a time-consuming and long-term process requiring dedicated resources.
The upcoming 2023 Investment in Infrastructure EXPO on February 28 provides a valuable opportunity for contractors and at least 20 governments and utilities serving our area to come together to establish valuable relationships and begin meaningful conversations about workforce and contracting issues in a timely and effective manner. Sponsored by SITE Improvement Association, this trade show floor networking event provides a comfortable way for contractors and owners to get to know one another, discuss upcoming projects, and begin the conversations that can lead to long-term solutions to help address our labor and materials contracting challenges. The event is open to the public and all contractors, suppliers and industry professionals are invited to attend.
The saying “it’s not about what you know, it’s about who you know” has long been used by contractors and others to describe how to get and stay ahead. As contractors and owners plan for the new wave of IIJA projects coming to our region, active participation at this year’s EXPO provides the opportunity to meet the right people and learn what it will take to thrive in the new era of infrastructure investments.
Jeremy Bennett is Executive Director of SITE Improvement Association, which advances the construction industry in eastern Missouri through public policy advocacy, labor relations support, safety, leadership training and professional networking.