America’s infrastructure has earned a ‘C’ grade—hardly cause for celebration. This national assessment offers a sobering reminder that while improvements have been made, the systems we rely on daily are still aging, underfunded, and vulnerable to climate events.
The state of U.S. infrastructure
The American Society of Civil Engineers (ASCE) releases an Infrastructure Report Card every four years, evaluating 18 major categories like roads, bridges, water systems, energy grids, and public transit. Here is a quick summary of America’s infrastructure report card:
Overall grade: C
Categories with improvement: Ports, drinking water
Challenges ahead: Deferred maintenance, climate adaptation, aging systems
Key legislation: Infrastructure Investment and Jobs Act (IIJA)
The grading scale—from A to F—is based on capacity, condition, funding, future need, operation and maintenance, public safety, and resilience. A ‘C grade’ means the nation’s infrastructure is in mediocre condition, showing signs of deterioration but still functioning, though often inefficiently and at higher long-term costs.
So why the ‘C’ grade?
Increased federal funding through IIJA (also known as H.R.3684) and other state-level investments helped halt many systems’ downward slide. Projects that have been on hold for decades are now moving forward. According to ASCE, some areas, like ports and drinking water, have seen noticeable progress thanks to these recent investments. However, most categories still grapple with deferred maintenance backlogs, outdated technology, and growing demand.
Much of the U.S. infrastructure was built in the mid-20th century, with a 50 to 75-year service life. That timeline is expiring, and without sustained and strategic funding, the country risks slipping backward. As climate risks intensify, building resilience into every project—a highway, a power plant, or a wastewater system—has to become standard, not optional.
For the AEC industry, this grade is a wake-up call and an opportunity. Contractors, engineers, and planners will play a central role in shaping the next generation of infrastructure—one that is more durable, sustainable, climate-resilient, and technologically advanced.
A ‘C’ may reflect progress, but it’s only a checkpoint. Continued investment, smarter planning, and forward-thinking design will keep our infrastructure supporting future generations, not just current ones.
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Tech companies across the U.S. are racing to develop smarter and faster AI models after China’s own Deepseek AI model shocked the world. Billed as a more energy-efficient large language model, Deepseek AI promises to reduce the power and computing costs typically associated with training and running advanced AI.
At first glance, that sounds like a win for sustainability. But there is a problem. Making AI development more accessible and less expensive doesn’t shrink demand—it fuels it. As more players enter the space and build their own models, the need for data centers to power AI will skyrocket.
Quick look:
Deepseek AI offers energy-efficient performance lowering entry barriers for AI development.
The model’s lean architecture enables GPT-4-level capabilities with fewer resources, attracting startups and non-tech players to build their own AI tools.
As AI becomes more accessible, total infrastructure needs rise, fueling a surge in data center construction across the U.S.
The “efficiency paradox” means cleaner models like Deepseek may in fact accelerate the growth of AI-powered infrastructure leading to more energy demand.
What is Deepseek AI?
Deepseek AI is a new player in the large language model space, and it’s already making waves. Developed by Chinese startup DeepSeek, the model is designed to compete with industry giants like OpenAI and Google, but with a focus on efficiency. Their flagship release, Deepseek-V2, is an open-source, general-purpose model that excels in language, reasoning, and advanced coding tasks. It’s trained on over 2 trillion tokens across multiple languages and domains, making it one of the most robust open models currently available.
At its core, Deepseek-V2 is built on transformer architecture, the same foundational tech behind models like GPT-4 and LLaMA. The company has optimized everything from training methods to token handling to reduce computational overhead while delivering impressive results across various tasks.
What does that mean in real terms?
In tests like MMLU (Massive Multitask Language Understanding) and HumanEval, Deepseek-V2 performs at a level comparable to OpenAI’s GPT-4 Turbo and Google’s Gemini 1.5, but with significantly fewer compute requirements. That balance of powerful performance with leaner processing is getting people’s attention.
In a world where computing costs and energy consumption are becoming major bottlenecks for AI, Deepseek’s efficiency-focused design is a massive step forward.
How Deepseek AI uses less power
One of the biggest selling points of Deepseek-V2 is its ability to do more with less. While many large language models chase performance at any cost, Deepseek’s approach has streamlined and optimized its architecture for efficiency, without sacrificing accuracy or speed.
So, how exactly does it use less power?
The team behind Deepseek focused heavily on token efficiency and parameter tuning. With 236 billion parameters and training done on 2 trillion tokens, Deepseek-V2 hits a sweet spot: large enough to compete with top-tier models like GPT-4, but trained in a way that minimizes redundant processing. The model supports a context length of 128K tokens and incorporates innovative architectures such as Multi-head Latent Attention (MLA) and DeepSeekMoE.
By contrast, OpenAI’s GPT-4 is a closed model with an undisclosed number of parameters, but it’s widely believed to require substantially more energy and hardware to train and operate. Even Meta’s LLaMA 2 70B model, which is often seen as a more lightweight alternative, still demands considerable infrastructure to match Deepseek’s benchmark performance.
This balance between high performance and lower compute needs is why Deepseek is being hailed as an energy-efficiency breakthrough. This will ultimately make AI architecture and models more accessible to researchers, startups, and companies without the massive cloud budgets of Big Tech.
Why data center power use is a concern
Behind every AI breakthrough is a massive data center humming with thousands of servers, pulling in power around the clock. These facilities are the backbone of AI training and deployment but are also under increasing scrutiny for how much energy they consume.
Training traditional AI models, especially large ones like GPT-4 or Gemini, can require hundreds of megawatt-hours of electricity. A single training run for a large language model can emit as much carbon as five cars over their lifetimes, and that’s just the training phase. Once a model is deployed, it still requires constant processing power to handle user queries, updates, and ongoing refinement, demanding persistent access to massive data center infrastructure.
That level of consumption has prompted environmental concerns and regulatory pressure, especially in regions with already strained energy grids. For example, 60 data centers in Virginia’s “Data Center Alley” abruptly switched to backup generators last summer, not because of a power outage but as a protective response to voltage fluctuations.
This automatic fail-safe is standard across the industry, designed to prevent damage to sensitive equipment. However, the coordinated switch-off created a massive surge of unused electricity, raising concerns among federal regulators and utility providers. With Data Center Alley consuming as much power as the entire city of Boston, events like this highlight just how critical and delicate data center energy management has become.
Much of that energy goes to keeping the hardware cool. Cooling systems are responsible for up to 40% of a data center’s total energy use, especially in older or poorly optimized facilities. Add in rising temperatures and greater server density, and it’s easy to see why location matters. Data centers are increasingly being built in cooler climates or near renewable energy sources, but that’s not always feasible, especially as demand continues to rise.
The efficiency paradox — more usage, not less
At first glance, a model like Deepseek-V2—one that delivers powerful performance with less energy—sounds like a win for sustainability. But here’s the catch: making AI development cheaper and more accessible doesn’t reduce demand. It fuels it.
This is where the efficiency paradox kicks in.
When technology becomes more efficient, the cost to use it drops. And when costs fall, more people start using it, which can lead to even higher total usage than before. This is precisely what we’re starting to see in the AI space.
With models like Deepseek, startups and smaller companies that previously couldn’t afford the sky-high computing requirements of AI training can now get into the game. That opens the door to more experimentation, custom models, and widespread AI integration across industries. From e-commerce and healthcare to education and logistics, companies that once had no shot at developing their own AI tools are now eyeing the possibilities.
This concept isn’t new. It’s known as the Jevons Paradox, first introduced in the 19th century when economist William Stanley Jevons observed that improved coal efficiency led to more coal consumption, not less. The same principle now applies to AI: the more efficient the tools become, the more widespread—and resource-hungry—their use becomes.
Data center usage has already been climbing
Even before the generative AI boom, data center usage in the U.S. had been growing steadily and rapidly. Over the past decade, the rise of cloud computing, video streaming, e-commerce, and social media has fueled massive demand for server space and processing power. With AI models becoming more prevalent, that trend is shifting into overdrive.
According to the U.S. Department of Energy, data centers already account for about 2% of total electricity use in the United States. That number is expected to grow significantly as AI adoption increases. By 2030, global data center electricity consumption could double, driven mainly by the computing demands of AI, according to a recent analysis by the International Energy Agency.
Source: International Energy Agency.
Cloud giants like Amazon Web Services, Microsoft Azure, and Google Cloud have been expanding their infrastructure at a breakneck pace to keep up with the surge in data needs. And it’s not just Big Tech. Businesses across all sectors—from finance to agriculture—increasingly rely on cloud-based services and AI tools that require robust backend infrastructure.
In the U.S., this growth has created a hotbed of data center construction, especially in regions offering tax incentives, lower land costs, and access to reliable energy. The top data center clusters include:
Northern Virginia (Ashburn and Loudoun County): As mentioned, Data Center Alley hosts more than 275 data centers and is home to the world’s highest concentration of cloud infrastructure.
Dallas–Fort Worth: Known for its central location and affordable power, this area has become a preferred location for large-scale data centers.
Phoenix, Arizona: With a dry climate, cheap land, and growing solar infrastructure, Phoenix is quickly becoming a significant data center hub.
These areas are already feeling the pressure from increased demand, adding new facilities as fast as local grids and permitting systems can keep up. And with more efficient AI models lowering the barrier to entry, the demand isn’t likely to taper off anytime soon.
The future of data center construction
Even with energy-efficient models like Deepseek entering the scene, the demand for data centers shows no signs of slowing down. As AI adoption grows across industries and businesses rush to develop or deploy their own models, the infrastructure race is heating up, pushing data center construction to new heights.
One major trend shaping the future is the rise of hyperscale data centers—massive facilities designed to support thousands of servers and handle the heavy workloads of AI and cloud computing. According to Data Center Frontier, the number of hyperscale data centers globally reached 992 in 2023, with the U.S. accounting for over half of them.
We’re also seeing growth in modular and prefabricated data centers, which can be deployed faster and customized to specific use cases. These modular builds are instrumental in emerging AI markets or rural areas where traditional infrastructure might take years to establish. Some companies are even exploring AI-optimized data centers, tailored specifically for the needs of training and running large language models.
This growth comes with serious challenges. Real estate costs in popular data center hubs are climbing, power grids in high-demand areas are under pressure, and sustainability concerns are becoming harder to ignore. Balancing the need for energy with environmental responsibility is becoming a key issue, especially as more municipalities push for greener building standards and stricter emissions rules.
That’s why location matters more than ever. States like Virginia, Texas, and Arizona continue to attract data center projects due to favorable tax incentives, lower energy prices, and access to renewable power sources like solar and wind. Some companies even locate facilities near hydroelectric plants or develop partnerships with utilities to secure long-term green energy contracts.
Bottom line
Energy-efficient AI models like Deepseek significantly reduce the computational cost of building and running large language models. However, by lowering the barriers to entry, more companies—big and small—can jump into AI development, increasing overall demand for the infrastructure needed to support it. The challenge ahead is learning how to build more efficient and sustainable data centers to support this demand. Long-term success will depend on innovation, smart infrastructure planning, expanding access to clean energy, and designing more sustainable facilities to keep up with technological change.
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Mexican workers have helped shape skylines, raise homes, and keep the construction industry moving across North America. From California to New York, their hands have built communities. On Cinco de Mayo, it’s worth taking a moment to celebrate their incredible contributions and acknowledge the road still ahead.
Quick look:
Mexican laborers have been a major part of North American construction for over a century, from building railroads to raising skylines today.
Hispanic workers, particularly those of Mexican origin, now make up over a third of the U.S. construction workforce, helping to fill critical labor shortages.
Their presence drives productivity and keeps projects on schedule, but they face challenges like workplace safety risks and underrepresentation in leadership.
This Cinco de Mayo, the industry is called to celebrate its employees’ contributions and invest in safer, more inclusive career paths.
The presence of Mexican workers in North American construction
Walk onto almost any construction site in the U.S., chances are, you’ll find a strong, skilled crew with deep Mexican roots. Today, Hispanic workers make up nearly 34% of the American construction workforce, and in states like California, Texas, and New Mexico, that number is even higher. Mexican immigrants, in particular, form a large part of this group, bringing expertise and a strong work ethic that’s become a backbone to the industry.
Historical contributions of Mexican workers
Long before they became a major part of today’s construction workforce, Mexican laborers were laying the groundwork. In the late 19th and early 20th centuries, they built railroads, roads, and critical infrastructure across the U.S. Their work helped connect cities and support the country’s rapid industrial expansion.
During World War II, the Bracero Program brought millions of Mexican workers to the U.S. to meet labor shortages, particularly in agriculture and infrastructure. Many of these workers transitioned into construction jobs, helping shape postwar America from the ground up. Though often left out of mainstream historical narratives, their contributions were vital to the country’s growth, and they deserve recognition not just for what they built, but for how they helped create a better future.
Economic impact of immigrant workers on the industry
With fewer younger workers entering the trades, immigrant labor has helped bridge the gap. Their impact is especially clear in residential construction, where Hispanic workers, many of Mexican origin, make up a large share of the crews building homes and multi-unit developments. The highest percentages of hispanic workers are found in the southwest states such as California, Arizona, New Mexico, and Texas. These states have over 40% of an hispanic workforce.
Challenges faced by Mexican workers
While Mexican workers have helped build the backbone of the industry, they often face serious challenges on the job. One of the biggest concerns is workplace safety. Hispanic construction workers experience higher rates of fatal injuries than their non-Hispanic peers. Language barriers, limited access to safety training, and high-risk assignments all contribute to these alarming numbers.
Another issue is representation in leadership. Despite making up a large portion of the workforce, Mexican and Hispanic workers remain underrepresented in management and supervisory roles. This gap limits not only individual career growth but also the industry’s ability to benefit from diverse perspectives.
The current political climate under President Trump’s administration has introduced additional hurdles. Policies emphasizing mass deportations and increased immigration enforcement have created an atmosphere of fear and uncertainty among immigrant workers. Reports indicate that heightened ICE raids and the threat of deportation have led to absenteeism and decreased workforce participation in the construction sector, exacerbating existing labor shortages. In states like Texas, where the construction industry heavily relies on immigrant labor, industry leaders have expressed concerns that mass deportations could devastate the sector, leading to unfinished projects and increased housing costs.
Bottom line
Mexican workers have helped shape the construction industry for generations. Their contributions run deep, but so do the challenges they continue to face, from unsafe job conditions and language barriers to underrepresentation in leadership.
This Cinco de Mayo, recognizing their impact means standing up for safer job sites, fairer policies, and opportunities that empower all workers, regardless of where they’re from. When the people who build our communities are protected and respected, the entire industry stands on stronger ground.
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The British Columbia construction industry is thriving, with hundreds of public- and private-sector construction projects underway with a value of over $15 million. The construction projects in British Columbia include the Burnaby Hospital Redevelopment Project Phase 2, the Port Alberni Trans-Shipment Hub, and the Ksi Lisims LNG project.
Top BC projects in 2025 to keep an eye on
1. Port Alberni Trans-Shipment Hub (PATH)
Location: Port Alberni, BC
Date: TBD
Builders/contractors: TBD
The Port Alberni Port Authority has proposed building a new container shipping terminal in the Alberni Inlet, 12 miles from the Pacific Ocean. If completed, the project—called the Port Alberni Trans-shipment Hub (PATH)—would become one of Canada’s largest container shipping terminals. The project would include a fully automated container yard with 43 automated stacking cranes and eight automated gate cranes capable of handling ultra-large container ships with up to 22,000 twenty-foot equivalent units (TEUs).
PATH’s estimated cost is $1.78 billion. When it reaches 50% operational capacity, it is expected to employ 500 full-time employees.
Construction of the Keith and Betty Beedie Acute Care Tower, with 160 private rooms, a new medical imaging department, two CT scanners, public spaces, a spiritual care suite, and hospital support services
Renovations to the endoscopy and laboratory components
The project budget is $1.7 billion, and construction is expected to be completed in 2030.
Sapperton Green Mixed-Use Development is a massive construction project in British Columbia with plans for several residential housing types. It contains 4.45 million square feet of residential floor space for almost 10,000 residents, 1.12 million square feet of secured market rental housing, and at least 255,000 square feet of affordable housing.
Sapperton Green also includes plans for:
750,000-1.5 million square feet of office space
100,000-150,000 square feet of retail and commercial floor space
A 35,000-square-foot community center and childcare facility
3.2 hectares of publicly accessible open space
The Sapperton Green Mixed-Use Development is expected to take 20-30 years to complete. However, the $1.97 billion project is temporarily on hold pending a dispute between the landowner and the city of New Westminster.
4. Roberts Bank Terminal 2 Project
Location: Delta, BC
Date: Construction is expected to begin in the late 2020s and be completed mid-2030s
The Roberts Bank Terminal 2 Project is a proposed marine container terminal project in Delta, BC, led by the Vancouver Fraser Port Authority. The project proposes constructing a three-berth marine container terminal to increase Canada’s West Coast terminal capacity by over 30%. Construction will provide 18,050 person-years of employment and, when operational, will provide 17,300 jobs yearly. The project website also details the steps it’s undertaken towards environmental resiliency, including:
Developing 94 hectares of restored and enhanced fish habitat credits and offsetting projects in collaboration with First Nations groups.
Contributing $30 million to prey abundance initiatives and supporting the recovery of Chinook salmon—one of the primary food sources for resident killer whales.
Completing over 100 technical, environmental, and engineering studies and over 59,000 hours of fieldwork to develop environmental programs designed to conserve and protect species and surrounding habitats.
5. Arbutus to UBC Skytrain – Millennium Line UBC Extension
Location: Vancouver, BC
Date: 2050
Builders/contractors: TBD
Construction on the Skytrain’s Arbutus extension is expected to be completed in 2027, spurring TransLink to propose continuing the SkyTrain expansion to the University of British Columbia (UBC) campus. The Arbutus to UBC Skytrain proposal is still in its infancy. The Regional Base Scope, which included initial concepts of station locations, was presented to and endorsed by the Mayors’ Council. While the project’s budget and completion date are unclear, the Millennium Line UBC Extension has been identified as a priority project in TransLink’s “Transport 2050: 10-Year Priorities” document.
6. Garibaldi at Squamish Ski Resort
Location: Squamish, BC
Date: Construction is scheduled to begin in 2025, with an estimated completion in 2028
The Garibaldi at Squamish Ski Resort is a proposed recreational ski area built at the top of Brohm Ridge, eight miles north of Squamish, BC. The resort, with an initial budget of $3.5 billion, will cover 2,759 hectares, with a base mountain development area of 524 hectares.
Development highlights:
Garibaldi at Squamish will provide an estimated 2000 construction jobs
When completed, Garibaldi at Squamish will provide 4,000 long-term operational jobs
Ski hill plans propose 21 chairlifts and 120 runs
7. Cedar LNG Project
Location: Kitimat, BC
Date: Peak construction anticipated in 2026, with substantial completion by 2028
Cedar LNG is a floating liquified natural gas (LNG) project by The Haisla Nation and Pembina Pipeline Corporation. The project will have a maximum capacity of 3.3 million tonnes per year and be powered by renewable electricity from BC Hydro. Cedar LNG will be the world’s first LNG project that’s Indigenous majority-owned and offers one of the shortest shipping routes to Asian markets.
8. Fraser River Tunnel Project
Location: Delta, BC
Date: Construction begins in 2026 and is projected to complete in 2030
The $4.15 billion Fraser River Tunnel Project involves constructing a tunnel on Highway 99 to replace the existing George Massey Tunnel, which runs beneath the Fraser River. The tunnel will have eight lanes—three vehicle lanes and a transit lane running in each direction—divided by a separated corridor for pedestrians and cyclists.
9. Prince Rupert Natural Gas Transmission Pipeline
The proposed Prince Rupert Natural Gas Transmission Pipeline is a joint project from Western LNG and the Nisga’a Nation. The $6 billion pipeline project would run from the northeast of BC to the planned Ksi Lisims LNG facility, a distance of almost 500 miles, with a capacity of 2-3.6 billion cubic feet daily. The scheduled construction start date was August 24, 2024.
Together with Ksi Lisims LNG, the Prince Rupert Natural Gas Transmission Pipeline is expected to create $55 billion over 30 years while creating 4000 construction jobs.
10. Ksi Lisims LNG Project
Location: Nisga’a, BC
Date: Construction to begin in 2025 and be completed by 2029
The Ksi Lisims LNG project has an estimated budget of $10 billion to create a floating LNG facility on the northwest coast of BC. When completed, the project will have a maximum capacity of 12 million tonnes of liquefied natural gas annually. The Ksi Lisims LNG aims to be “net-zero ready by 2030” by:
Use technology to reduce facility emissions to the lowest level possible
Offset hard to reduce emissions by purchasing credible, preferably local, and nature-based offsets
Pursue continuous improvement through ongoing analysis of new technologies and approaches
The Ksi Lisims LNG project is a collaboration between the Nisga’a Nation, Rockies LNG, and Western LNG.
Final thoughts
There is no shortage of construction projects in British Columbia as the industry continues to expand with hopes these infrastructure and energy initiatives will shape the province for decades to come. From large-scale infrastructure investments like the Fraser River Tunnel Project and Millennium Line UBC Extension to energy projects like Cedar LNG and Ksi Lisims LNG, BC is setting an example of how to lead with innovation.
With the Trump administration come tariffs, strained trade relationships, and an uncertain economy. Experts are predicting a recession in 2025 is near, with a mild-to-moderate impact on the US and Canadian economies until 2026, at the very least. To best recession-proof construction businesses, diversified services, strategic spending, and a tech-driven approach are key.
Experts predict a recession will start in 2025 after Trump’s tariffs
CNBC recently conducted its CFO council survey, recording the opinions of chief financial officers at large enterprises across sectors of the U.S., and the findings were largely pessimistic. According to the survey, the biggest contributor is the U.S. trade policy, with inflation and consumer confidence in income following closely behind. Business and job prospects are hitting a 12-year low.
90 percent of CFOs express that tariffs will create “resurgent inflation,” and 95 percent reported that policy uncertainty impacts their business decision-making. The responses regarding the severity of the recession mostly land in the “likely to be mild” or “likely to be moderate” camp, with some respondents stating things might even stabilize after about 100 days or so.
CFOs worldwide predict that we’ll see the full effects of the recession in late 2025 to early 2026. Expect a significant decline in stock prices and the economic activity in the global economy.
Why Canada is even more likely to fall into a recession than the United States
The new US tariffs, which were the primary concern in the CFO survey, combined with new trade policy uncertainty, are likely to impact Canadian business exports and investment this year. Oxford economists expect roughly 180,000 layoffs and a new spike in the unemployment rate, up to 8% by 2026.
Their forecast also suggests that the impact of President Trump’s 25% tariffs on Canadian products and 10% tariff on energy will begin in Q2 of 2025. This, they predict, will lead to negative economic growth for at least a year afterward. Ultimately, the probability of a recession in Canada comes down to the tariffs and heightened strain on the trade agreement between Canada and the U.S.
Experts expect the Canadian economy to stabilize in mid-2026, assuming that most tariffs will be lifted after a USMCA trade agreement renegotiation with president Donald Trump. However, given the fractured state of affairs between the countries, including Trump’s recent annexation threats, the assumption remains flimsy at best.
How to know if the US economy is in a recession
While there’s no concrete definition of a recession internationally recognized, generally, two consecutive quarters of decline in a country’s Gross Domestic Product (GDP) is the rule of thumb. The GDP reports the value of all goods and services a country produces. Aside from the GDP marker, an increase in unemployment and a decrease in consumer spending also indicate a potential recession.
What this could mean for builders
With a decline in GDP for both the United States and Canada, chief economists expect a decline in spending and demand. This will likely lead to a stagnant period for builders in the construction space. A recession has a ripple effect on all industries, and the main markers the construction industry could see include:
Cash flow issues
Decreased project demand
Higher prices
Tax increase
Disruptions in the supply chain
Stalls in material delivery
Credit card debt
Labor challenges
Depending on the length of the recession, these issues could compound over time. Contractors should anticipate project delays, financial instability, and job cuts for workers.
How contractors can prepare for an upcoming global recession
The good news to a recession in 2025 is twofold. One, it’s not going to last forever. The financial markets do recover, and your small business could thrive as it once did. And two, there are ways you can prepare your business and absorb minimal impact.
Diversify your services: If you build in a niche sector, it might be time to expand and diversify your offerings. As demand decreases, your business might need all the inquiries it can get.
Be strategic with spending: Consider shifting to a prefab strategy so you’re only spending on the exact material you require. Also, audit your overhead spending and determine where you can cut costs.
Reduce your debt: If your business has high-interest debts, you should prioritize paying them off before cash flow slows.
Build strong relationships: Support other businesses in the industry that also have your back. Keeping the relationships with shared contracts close will help your business stay afloat.
Integrate technology:AI products and estimation software tools can help teams better manage their operations in a recession. Accurate deadlines, scheduling, and material use will save your company time and money at the end of the day.
Final thoughts
A recession in 2025 means an economic downturn for every industry, including construction. As the world’s economists predict it will start as early as this year, contractors should prioritize preparedness now.
Your organization could experience cash flow issues, decreased consumer demand, supply chain disruptions, and even credit card debt. But by diversifying your services, being more strategic with your personal finances, and leaning into your relationships, you might see your business stay afloat more easily into the next quarter of economic growth.
Skilled construction workers are in short supply across the U.S., making building homes, roads, and infrastructure more challenging and expensive. With demand for projects rising and fewer domestic workers entering the trades, the industry is leaning heavily on international labor to keep things moving. Immigrant workers play a huge role in keeping job sites staffed, but current policies aren’t always set up to support them.
Quick look:
Immigrant workers make up nearly 30% of the U.S. construction workforce, filling critical gaps as the industry faces labor shortages and an aging workforce.
As younger generations opt out of trades, immigrant labor, especially from Hispanic and Asian communities, has become a cornerstone to keeping projects on schedule.
Immigration policies are slow and restrictive, making it difficult for qualified workers and employers to connect efficiently.
Reforming visa processes and expanding employment-based options could stabilize the workforce and accelerate infrastructure development across the country
Trends in the construction workforce in the U.S.
The construction industry has been short on workers for years, and the gap keeps widening. As of early 2025, it’s estimated that the industry needs around 439,000 additional workers to keep up with demand. That number isn’t surprising when you look at what’s happening behind the scenes.
A large chunk of the workforce is nearing retirement. In 2003, only 11.5% of construction workers were 55 or older. By 2020, that number had nearly doubled to 22.7%. Experienced workers are aging out, and fewer younger workers are stepping in to replace them.
The share of construction workers under 35 dropped from 45% in 2007 to 36% by 2012, and it’s stayed there ever since. A lot of younger people just aren’t considering careers in the trades. One National Association of Home Builders survey found that only 3% of young adults were interested in construction work.
As a result, projects are taking longer, labor costs are climbing, and prices are increasing. This is one reason why housing has become so expensive and is unlikely to change without a profound shift in how we build and who we hire.
The role of international workers and immigrants in construction
Immigrant workers make up a considerable part of the construction workforce. About 30% of all construction workers in the U.S. are immigrants, according to the National Immigration Forum. That’s nearly one in three workers on any given job site.
In some trades, that number is even higher. For example, more than half of drywall installers and nearly 47% of painters are foreign-born. In places like California, Texas, and Florida, immigrants make up closer to 40% of the total construction workforce, showing just how critical they are in keeping things moving.
As the domestic labor pool continues to shrink, the role of international workers will only grow.
Demographic breakdown
When we talk about immigrant workers in construction, the numbers paint a clear picture of who’s keeping the industry running.
Hispanic immigrants make up the largest share by far. Nearly 70% of immigrant construction workers are Hispanic, and over two-thirds of all Hispanic construction workers in the U.S. are foreign-born. This group is especially prominent in labor-intensive trades like concrete, roofing, and framing.
Asian immigrants also represent a notable portion of the workforce—about 62.5% of Asian construction workers are foreign-born, with many working in specialized or technical trades.
Meanwhile, Black workers make up about 5.5% of the construction workforce, but only around 17% of them are immigrants.
And while it’s a sensitive topic, it’s important to note that undocumented workers make up an estimated 13% of the total construction workforce, though estimates vary depending on the source. In many cases, these are skilled, experienced workers doing the same jobs as everyone else, but without the same protections or stability.
With fewer young people entering the trades and older workers aging out, many construction companies couldn’t meet deadlines without the help of immigrant workers. This demand will likely continue to rise, requiring better labor policies that support the construction sector.
Current immigration and labor policy in the U.S.
The need for international labor in construction is clear, but the policies that govern it are often slow, confusing, and out of step with what the industry needs. Between long wait times, paperwork-heavy application processes, and strict annual visa caps, it’s challenging for workers and employers to navigate the system.
That said, there are a few key pathways that allow immigrants to work in construction legally:
H-2B Temporary Non-Agricultural Worker Visa: This is commonly used for seasonal or short-term labor needs, like during construction booms. However, spots are limited, and competition is fierce.
Employment-Based Green Card (EB-3): This is a more permanent option that allows both skilled and unskilled workers to live and work in the U.S. long-term. It is ideal for full-time, ongoing construction roles.
DACA (Deferred Action for Childhood Arrivals) or TPS (Temporary Protected Status): These programs for immigrants already living in the U.S. allow them to stay and work legally, often filling critical labor gaps.
While these options exist, they’re not always easy to access. The process can take months—or even years—and many qualified workers are left out simply because of red tape or quota limits.
What needs to change
If the construction industry is going to keep up with demand, immigration policy needs some serious upgrades. The current system isn’t built for speed or flexibility, and that’s a problem when projects stall due to labor shortages. Here’s what would make a real difference:
Cut down visa processing times so qualified workers can get to job sites faster instead of getting stuck in bureaucratic limbo.
Raise the cap on employment-based visas specifically for construction roles, especially in areas facing the most severe shortages.
Develop targeted programs that connect employers with international workers in high-demand trades, streamlining the hiring process for both sides.
Bottom line
Immigrants are a driving force behind the construction industry with nearly one in three construction jobs held by international workers. It’s clear the industry depends on their skills to finish job sites nationwide.
To keep building, the system needs to evolve. Faster visa processing, higher employment caps, and smarter policies can have a big impact on workers, businesses, communities, and U.S. infrastructure.
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Japanese machinery manufacturer Komatsu made a splash at its first CES Las Vegas appearance, debuting a concept model for a remote-controlled amphibious bulldozer capable of working up to 160 feet underwater.While the idea might seem futuristic, Komatsu is revitalizing a machine that was first developed almost 50 years ago.
In 1971, Komatsu manufactured and sold 36 amphibious bulldozers. The D155W machines seem like something out of a science-fiction comic book—radio-controlled machines capable of operating up to 23 feet underwater, thanks to a watertight engine housing and high stack that pulls in air and expels engine exhaust. Five of Komatsu’s original amphibious bulldozers remain in operation today, and their role in post-disaster repair applications has inspired Komatuso to revisit its deep-sea-dozer design.
Collaborating with Asunaro Aoki Construction, Komatsu debuted its concept design for an amphibious bulldozer at CES Las Vegas. The concept model boasted significant upgrades, like a maximum dig depth of 160 feet—over seven times its predecessor’s. The bulldozer is equipped with 450 kWh and a four-hour run time.
Operators can stay dry by remaining on land and controlling the machine remotely, thanks to antennas that receive the remote-control signal and data-mapping visualization technology that allows operators to see the ocean floor or sea bed.
Underwater bulldozers are incredibly useful in ecological restoration, climate disaster prevention, and relief. Komatsu’s original design has been used in over 1,200 underwater construction projects.
Features:
Max dig depth of 160 ft
450 kWh battery capacity
4-hour battery charge
Data-mapping visualization technology
The Komatsu amphibious dozer is being tested and refined and is expected to be released at Expo 2025 in Osaka, Japan.
Autodesk is laying off 1,350 employees, a significant workforce reduction for the company that powers much of the AEC industry. The move raises questions about the broader economic landscape: Are these layoffs isolated, or could they signal a downsizing trend across construction technology and related industries?
Why Autodesk cut 9% of its workforce
The company cited a need to restructure operations and focus on key growth areas. Autodesk CEO Andrew Anagnost says the company’s go-to-market model is evolving to better align with customer and partner needs. In a memo to employees, he wrote, “Our GTM model has evolved significantly—from the transition to subscription and multi-year contracts billed annually to self-service enablement, the adoption of direct billing, and more.”
He added that these changes are designed “to better meet the evolving needs of our customers and channel partners.” As part of that shift, Autodesk is now transforming its GTM organization to “increase customer satisfaction and Autodesk’s productivity.”
The decision follows a pattern across tech-heavy industries facing post-pandemic shifts and economic slowdowns. Meta announced it would lay off 5% of its workforce in January. Workday followed with an 8.5% reduction, and just this week, Google made cuts to its HR and cloud teams. HP also filed plans to reduce its headcount by up to 2,000 employees—roughly 4% of its total workforce.
While Autodesk remains financially strong, this kind of workforce reduction hints at potential instability in the sector, particularly as companies reassess their workforce needs in a changing market.
The impact is immediate for workers—thousands of skilled professionals are now seeking new jobs, some of whom are specialists in construction software, design, and engineering tech. This could lead to an influx of talent in the job market, increasing competition for roles at rival firms or adjacent industries.
For construction companies relying on Autodesk’s software suite, there’s concern over whether the layoffs will impact customer support or future innovation. While the company insists it remains committed to its customers, job cuts often lead to service slowdowns and shifting priorities.
An industry trend?
The construction sector—particularly companies involved in large-scale infrastructure and urban projects—has felt the economic pressure coming from the tariff wars. However, demand for new developments continues to exist even with the raised costs, suggesting that opportunities still exist while the industry faces challenges. As long as infrastructure spending and urban development remain strong, the sector may avoid widespread layoffs.
On the positive side, companies seeking skilled professionals may find a larger talent pool available thanks to Autodesk cutting 9% of its workforce, potentially benefiting the broader industry in the long run. Areas like AI-driven design, sustainable construction, and project automation are in high demand for workers, so while Autodesk may have laid off a significant number of its employees, the labor force and demand remain strong in the technology field.
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Construction is one of the most hazardous industries in the United States, accounting for nearly one in five workplace fatalities. Despite safety regulations and advancements in protective equipment, deaths and injuries in the construction industry remain a pressing issue. The leading causes of fatalities include falls, struck-by incidents, electrocutions, and caught-in/between accidents—often referred to as the “Fatal Four.”
This article will explore the latest statistics, the causes of construction fatalities, injury rates, demographic disparities, financial costs to the industry, and whether safety improvements are making a difference.
How many construction workers die each year?
Total construction-related fatalities in 2023:1,075 deaths, the highest number recorded since 2011.
Fatal injury rate: 9.6 deaths per 100,000 full-time workers in 2023.
Falls accounted for 39.2% of all construction worker deaths.
Transportation-related incidents caused 240 deaths in 2023, making it the second leading cause.
Contact with objects and equipment caused 148 fatalities, often due to heavy machinery or falling materials.
Harmful substance exposure led to 820 fatalities in 2023, including toxic chemicals and carbon monoxide poisoning.
Small construction companies (1-10 workers) accounted for 57% of fatal injuries, showing a lack of enforcement in smaller operations.
Older workers (55-64) had the highest fatality rate, often due to reduced reaction time and the severity of injuries.
Men accounted for 91.5% of all workplace deaths, reflecting the male-dominated nature of the construction workforce.
Most common causes of death in construction
Falls
Falls remain the number one cause of construction worker deaths, responsible for nearly 40% of fatalities. Workers frequently fall from scaffolding, ladders, roofs, and unfinished structures due to improper or missing fall protection. In many cases, safety harnesses are not provided or are used incorrectly, leading to catastrophic injuries. Wet surfaces, unguarded edges, and loose materials increase the risk. Regular safety training and enforcing OSHA’s fall protection rules could prevent the majority of these deaths, yet violations remain widespread.
Struck-by incidents
Workers are often struck by heavy equipment or construction vehicles. This is especially dangerous in crowded job sites where large machinery operates in close proximity to workers on foot. Struck-by incidents also occur in highway construction zones, where passing cars pose a serious risk. Many accidents happen because of blind spots, lack of high-visibility clothing, and poor communication between workers and machine operators. Proper signaling procedures and restricting pedestrian access to equipment zones can significantly reduce these fatalities.
Electrocutions
Electrical hazards kill hundreds of construction workers every year, primarily due to exposed wiring, faulty power tools, and contact with overhead power lines. Many incidents occur because workers assume wires are not live or fail to de-energize circuits before working. Wet conditions, metal scaffolding, and damaged extension cords increase the risk of electrocution. OSHA mandates lockout/tagout procedures, but non-compliance remains a significant problem, particularly on smaller job sites.
Caught-in/between incidents
Workers can be crushed by collapsing trenches, heavy machinery, or shifting building materials. Excavation work is especially hazardous, with trench collapses suffocating workers within seconds. Machinery like forklifts, cranes, and compactors pose additional dangers if proper lockout procedures aren’t followed. Employers are required to provide protective trench boxes and machine guarding, but lack of enforcement leads to preventable fatalities.
How many construction workers get injured per year?
Non-fatal injuries are far more common than fatalities, affecting hundreds of thousands of construction workers each year.
169,600 construction-related injuries were reported in 2022, making it one of the most dangerous industries.
11 days is the average time off work due to construction injuries.
Hand and finger injuries account for 25% of all construction-related injuries, often from power tools and sharp materials.
Back injuries are one of the most common long-term disabilities in construction.
Roofing contractors have one of the highest injury rates, with 79.5 injuries per 10,000 workers.
Knee injuries result in an average of 19 lost workdays per incident.
56% of construction workers have hearing impairment by the time they reach retirement age.
Most common body parts injured in construction
Hands and fingers: Construction work involves constant use of tools and machinery, making hands and fingers especially vulnerable. Crush injuries from power tools, saws, and heavy materials are common. Lacerations and amputations occur when proper hand protection is not used.
Back and spine: Heavy lifting, bending, and repetitive motions put construction workers at risk for back injuries. Herniated discs and muscle strains are common, especially when workers do not use proper lifting techniques. In more severe cases, falls from heights can lead to spinal cord injuries and paralysis.
Knees and legs: Frequent kneeling, climbing, and working on uneven surfaces leads to knee and leg injuries. Torn ligaments, fractures, and joint problems often develop over time. Falls from ladders and scaffolding also contribute to serious leg injuries that can require surgery and months of recovery.
Head and brain: Head injuries are a major concern in construction due to falling objects and slips. A single impact can cause concussions or traumatic brain injuries. In some cases, workers suffer permanent cognitive damage or loss of motor skills. Hard hats are required on most job sites, but enforcement is still inconsistent in some areas.
Demographic breakdown: Who is more at risk?
Construction fatalities are not evenly distributed across all workers. Some demographics face a higher risk than others.
Hispanic and Latino workers have a higher fatality rate than other racial groups. Many work in high-risk jobs with less access to safety training.
Older workers are more likely to suffer fatal injuries due to slower reaction times and pre-existing health conditions.
Male workers account for the vast majority of construction deaths, as the industry remains male-dominated.
Biggest costs of construction deaths on the industry
Medical and compensation costs: Fatalities and serious injuries result in high medical bills and workers’ compensation claims. Employers often pay millions in settlements when safety violations lead to preventable deaths.
Lost productivity: When a worker is injured or killed, job site productivity takes a hit. Projects can be delayed for investigations, and employers must find replacements.
OSHA fines and legal fees: Companies that fail to follow safety regulations face steep fines from OSHA. In cases of extreme negligence, legal fees and lawsuits can cost companies even more.
Is site safety actually improving?
Despite advancements in safety equipment, stricter regulations, and increased awareness, construction fatalities have not seen a significant decline. Many job sites still struggle with enforcing safety protocols consistently. In some cases, safety violations go unreported, and inspections may not be frequent enough to catch dangerous conditions before accidents happen. Even with OSHA regulations in place, compliance varies widely across different companies and projects.
One major factor is the pressure to complete projects on time and within budget. Tight deadlines often lead to safety being deprioritized in favor of productivity. Some companies, particularly smaller contractors, may avoid investing in expensive safety programs or training due to financial constraints. Workers may also feel pressured to take risks, either to meet expectations or because they fear job loss if they slow down operations. This can lead to ignoring proper fall protection, working in hazardous conditions, or skipping crucial safety checks.
Another ongoing challenge is worker resistance to safety protocols. Some workers view personal protective equipment (PPE) as uncomfortable or inconvenient, while others believe experience alone is enough to keep them safe. This mindset is especially dangerous when dealing with unpredictable hazards. Safety training programs can help, but their effectiveness depends on whether workers and employers take them seriously.
OSHA penalties have increased over the years, yet some companies still treat fines as a cost of doing business rather than a deterrent. Raising fines and enforcing penalties more aggressively may encourage compliance. Additionally, implementing more frequent and unannounced site inspections could help catch safety violations before they lead to serious accidents.
However, real progress requires a cultural shift within the industry. Safety needs to be prioritized over speed and cost savings at every level, from management to the workers on-site. This means embedding safety into the planning stages, making sure every worker understands the risks. Without this change, construction will remain one of the most dangerous industries to work in.
Bottom line
Construction deaths and injuries continue at alarming rates, largely due to falls, electrocutions, struck-by incidents, and caught-in accidents. The statistics highlight the urgent need for improved safety enforcement. Workers, employers, and regulators will all need to a play a role in changing the perception of safety to make lasting change.
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Construction developerRelated Midwest has resumed construction on the new skyscraper at 400 Lake Shore in Chicago after experiencing more than 10 years of delays and revisions. Sitting alongside the Chicago River on Lake Michigan for almost 20 years, the site has been left with just the foundation hole. Construction commenced in the spring of 2024, and by the start of 2025, the new tower had finally reached street level.
The ill-fated tower on the Chicago waterfront was initially meant to host The Spire, a tall, thin skyscraper from architect Santiago Calatrava. The project was canceled due to financial and logistical problems on the developer’s side. Construction plans were thrown out in 2016 after years of legal disputes. If completed, it would have been the tallest building in the world at that time.
A creditor on the original project, Related Midwest has restarted construction following a redesign in 2020 that included a significant reduction in tower height. The new project will feature a pair of twin skyscrapers, with the taller reaching 76 stories, as authorized by the local planning commission. The two towers on the Chicago waterfront will mirror each other and have a large gap to thoughtfully frame Chicago’s downtown core from the water.
The north tower is the first objective, with the foundation already laid and construction picking up after reaching street level. This tower is projected to be complete in 2027. From there, the construction of the second tower will break ground.
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