Vermont Faces Construction Labor Shortages and Rising Costs Amid Ongoing Development Projects

Vermont Faces Construction Labor Shortages and Rising Costs Amid Ongoing Development Projects

Burlington, Vermont – The state of Vermont is currently experiencing a surge in construction activity, driven by various housing developments and flood recovery projects. However, the construction industry is grappling with significant labor shortages and rising material costs that pose challenges to meeting the increasing demand.

One of the major housing initiatives underway is the Cambrian Rise project in Burlington, which is being developed by DEW Construction. This project is set to deliver 1,050 residential units and is anticipated to wrap up by this fall. In addition, the Finney Crossing expansion in Williston is set to bolster the local economy through the development of new hotels and commercial spaces, highlighting Vermont’s commitment to growth in the construction sector.

According to the Associated General Contractors of Vermont (AGC/VT), construction volume has risen by about 12% over the last year, fueled by one-time federal and state funding, including financial aid from FEMA aimed at flood recovery efforts. Key infrastructure upgrades are also underway, such as renovations at the Swanton wastewater treatment plant and a new sewer project in Colchester, conducted by Kingsbury Companies.

Despite this growth, Vermont’s construction workforce, which comprises roughly 15,000 individuals, is insufficient to meet current labor demands. Contractors throughout the state have reported being busy with work but struggling to operate at full capacity due to a shortage of skilled labor. Many firms, including HELM Construction Solutions, are actively seeking to fill open positions, particularly for roles like carpenters, project managers, and office staff.

The challenge of rising housing costs is further complicating the situation, with the median home price in Vermont now at $422,000. This creates difficulties for construction workers who need to live near job sites, underscoring the importance of affordable housing in maintaining a robust workforce. Inflation and escalating material costs are also creating strain on project budgets, resulting in many bids surpassing expected costs and forcing some projects to be scaled back or shelved altogether.

Furthermore, proposed federal tariff increases, which include a potential 25% rise on imports from Canada and Mexico, are making it more difficult for contractors to source necessary materials. Despite these hurdles, there are still opportunities for new developments, as project owners continue to initiate and release new ventures.

In an effort to address the laborgap, various workforce development programs are being implemented, such as Vermont Works for Women, which aims to provide training and scholarships for individuals looking to enter the construction field. Additionally, AGC/VT has established a new simulator training center designed to facilitate hands-on training, which is critical for preparing a skilled workforce.

There are success stories emerging within the industry, exemplified by individuals like Lily Lukaszevicz, whose journey highlights the potential for fulfilling careers in construction. Local builders have expressed frustration over the continual turnover of projects due to labor shortages, emphasizing the pressing recruitment challenges the sector faces.

John Casella, the President of AGC/VT, underscores the importance of strategic investments and strong training programs as essential elements for fostering a robust construction future in Vermont. As the state navigates through these complexities, the outlook remains focused on enhancing workforce capabilities while pursuing continued construction growth fueled by both demand and community investment.