Construction workers in Nebraska are voicing concerns over potential tariff increases and workforce shortages as 2025 approaches. The latest annual survey by the Associated General Contractors of America (AGC) reveals that many Nebraska firms are worried about an economic slowdown, the rising cost of materials, and the ongoing shortage of skilled labor.

“I see us still struggling to get labor for quite a while,” said Andy Heitmann of Turner Construction in Kansas City, highlighting labor challenges not only in Kansas City but also in surrounding regions such as Denver, St. Louis, Des Moines, and Omaha. According to the survey, 64% of construction firms in Nebraska are facing difficulties in filling positions.

The National Association of Home Builders notes that the construction sector heavily relies on immigrant workers. Rex Kirby, president of Verdex Construction in Florida, confirmed this concern, stating, "There’s definitely some, some call it fear, in the market, among the workforce because we do have a largely, call it, immigrant workforce." He added that workers often ask, "Hey, what’s going to happen here? Are they going to try to send me home?"

Concerns about tariffs and deportations have intensified following President-elect Trump’s promises. AGC Chief Economist Ken Simonson noted that the potential for a 25% tax on imports from Mexico and China is particularly troubling for the industry. “I think this year of calm that we’ve seen may be about to end, and certainly will if we get widespread tariffs,” Simonson said.

If tariffs are implemented, construction firms warn that these costs could be passed on to consumers. Additionally, increased competition for projects and fluctuating project values in Nebraska are adding to the uncertainty.

Heitmann emphasized the impact tariffs could have on construction costs: "If the cost of construction gets to a point that building something doesn't pencil from an economic standpoint, it can certainly shut down a job, or we might have some work not even start because of the cost of that construction."

Despite these challenges, AGC CEO Jeffrey Shoaf highlighted positive developments in technology, noting that AI and technology adoption could improve efficiency in the construction industry. Many Nebraska firms are looking to use these technologies to streamline daily operations, project reporting, and time tracking for employees.