The Impact of Immigration Crackdowns on Commercial Construction—and How the Industry Can Adapt

May 8, 2025

The ongoing enforcement of immigration laws and crackdowns on undocumented labor have stirred concerns across many industries—none more visibly than construction. With a historically high reliance on immigrant labor, commercial construction firms are facing questions about workforce stability, project timelines, and rising labor costs.

But while the immediate challenges are real, the long-term outlook isn't necessarily bleak. Forward-looking firms are finding ways to adapt through smarter hiring practices, technology integration, and investment in workforce development.

The Current Landscape

The Department of Homeland Security and state-level enforcement agencies have stepped up efforts to verify legal work status, particularly in sectors with high rates of undocumented employment. For commercial construction, this has led to increased scrutiny, labor shortages in certain markets, and added compliance costs.

According to data from the National Association of Home Builders, immigrants make up nearly 30% of the construction workforce, with an even higher concentration in some states. Any significant disruption in this labor pool can impact project schedules and drive up costs.

Minimizing the Impact Through Adaptation

Despite the turbulence, many commercial construction firms are mitigating the impact in several strategic ways:

1. Workforce Legalization and Compliance Programs

Rather than risking penalties, companies are increasingly investing in E-Verify and I-9 compliance systems. Many are also helping existing workers navigate the legal immigration system, offering resources and legal aid to transition workers to authorized status where possible.

2. Recruitment and Training of Domestic Labor

The skilled labor gap has been a well-known issue long before immigration enforcement became a national focus. Today, commercial contractors are partnering with technical schools, veterans' programs, and workforce development initiatives to attract and train local workers.

Some are even offering paid apprenticeships and career progression paths to make the trades more appealing to younger generations.

3. Technology to Offset Labor Shortages

Commercial construction is undergoing a quiet transformation, with technologies like prefabrication, robotics, and construction management software helping reduce dependency on manual labor. While these solutions don't replace labor overnight, they improve efficiency and reduce the workforce needed for repetitive tasks.

4. Cross-Training and Upskilling

Many firms are investing in cross-training existing employees, creating more versatile teams that can fill gaps when labor is tight. Upskilling programs—offering training in areas like electrical systems, welding, or equipment operation—boost productivity without requiring new hires.

A Resilient Industry

While immigration enforcement adds another layer of complexity to an already challenging labor environment, the commercial construction industry has proven resilient time and again. By embracing legal compliance, investing in training, and leveraging innovation, firms can not only withstand the changes—but emerge more efficient and future-ready.