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Vermont’s Construction Sector Faces Labor Shortage Amid Growth

Construction workers at a site in Burlington, Vermont

News Summary

The construction industry in Vermont is experiencing significant growth, with a 12% increase in volume due to federal and state funding. However, challenges persist, particularly a shortage of skilled labor and rising material costs. Key projects like Cambrian Rise in Burlington and Finney Crossing in Williston are underway, though many contractors struggle to meet demand for skilled workers. Rising housing prices and inflation further complicate the labor market landscape, emphasizing the need for strategic workforce development and investment in training programs.

Burlington, Vermont – The construction landscape in Vermont is experiencing a remarkable surge, yet the sector faces significant challenges, particularly a shortage of skilled labor and rising costs. With various housing developments and flood recovery projects underway, including the Cambrian Rise in Burlington and Finney Crossing in Williston, the need for skilled workers has never been more pressing.

This year, Vermont’s construction volume has increased by approximately 12%, driven by one-time federal and state funding, particularly from FEMA for flood recovery efforts. The Cambrian Rise project, led by DEW Construction, is expected to deliver 1,050 housing units by this fall. In Williston, the Finney Crossing development is expanding its offerings, adding new hotels and commercial spaces that are anticipated to stimulate local economic growth.

Key infrastructure upgrades are also in motion, including improvements at the Swanton wastewater treatment plant and a new sewer project in Colchester, developed by Kingsbury Companies. These initiatives are crucial to supporting the growing population and ensuring adequate resources for residents and businesses alike.

Despite the booming construction projects, Vermont’s construction workforce comprises approximately 15,000 individuals, which is not enough to meet the current demand. Contractors report an uptick in business, yet many are unable to operate at full capacity due to a lack of skilled labor. This shortage raises questions about the future workforce and where these workers have disappeared.

Many construction companies, such as HELM Construction Solutions, are actively recruiting for various roles, particularly carpenters, project managers, and office staff. However, the rising costs of housing complicate the situation further, making it increasingly difficult for workers to afford living near job sites. The median home price in Vermont reached $422,000, signaling a critical issue in the housing market that impacts labor availability.

In addition to housing costs, inflation and heightened material costs are pressuring construction budgets. Contractors are facing various challenges, including some bids exceeding project budgets, which often leads to scaling back or even shelving proposed projects. Compounding these issues are potential federal tariffs, such as a proposed 25% increase on goods imported from Canada and Mexico, further complicating material sourcing.

Despite the adversities, there are still opportunities in the construction sector, with project owners continuing to initiate new projects. Workforce development programs are being implemented to help bridge the labor gap. Initiatives like Vermont Works for Women and the development of a new simulator training center by the Associated General Contractors of Vermont (AGC/VT) aim to provide scholarships and hands-on training for individuals pursuing careers in construction.

Personal success stories, such as that of Lily Lukaszevicz, highlight the potential for individuals to carve out careers in the construction industry, showcasing the opportunity that exists amidst the struggles. However, many local builders express frustration regarding the number of projects that have been turned down due to labor shortages. This underscores the ongoing recruitment challenges that the industry must overcome to fulfill its burgeoning potential.

As the president of AGC/VT emphasizes, strategic investments and robust training programs are vital for laying a solid foundation for the future of Vermont’s construction industry. Addressing these issues will be essential to ensure that the state can continue to grow and thrive in the housing and infrastructure sectors.

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