Texas tops new index of states under construction labor pressure

Foundation Building Materials says the U.S. construction sector needs 349,000 more workers in 2026 to meet demand, with Texas, Florida and North Carolina facing the heaviest strain. The new index points to tighter labor markets, slower project delivery and added pressure on housing supply as shortages persist.

Why it matters: - The construction labor gap is large enough to affect housing supply, project timelines and costs across the U.S. - FBM says the industry needs about 349,000 additional workers in 2026 just to meet current demand. - The shortage adds strain at a time when the U.S. is still short about 1.5 million homes. - Labor shortages are estimated to cost the homebuilding sector $10.8 billion a year through delays, lower productivity and lost output.

What happened: - Foundation Building Materials released a new Construction Labor Pressure Index ranking the states facing the greatest workforce strain. - Texas ranked first, followed by Florida and North Carolina. - FBM said the index combines residential construction demand, construction employment growth and workforce shortage exposure. - The company identified the top 10 states under the most pressure: Texas, Florida, North Carolina, Ohio, Louisiana, Tennessee, Georgia, South Carolina, Arizona and Nevada.

The details: - U.S. construction employment reached 8.33 million workers this year, near a record. - The industry still has about 298,000 open construction positions nationwide. - Ninety-two percent of contractors report difficulty filling open roles. - Texas scored 90 out of 100 and added 24,800 construction jobs over the last year, the most in the country. - Texas also issued about 12,180 residential building permits in June 2026, the highest total nationally. - Florida scored 69 out of 100 and recorded about 10,940 residential permits, the second-highest figure in the study. - Florida lost 8,800 construction jobs year over year despite continued development activity. - North Carolina scored 52 out of 100, added 15,500 construction jobs year over year and posted 5.6% construction employment growth. - North Carolina issued about 6,240 residential permits. - The study says older workers are adding to the replacement challenge, with employees age 55 and over making up about 22% to 23% of the construction workforce.

Between the lines: - The ranking suggests the pressure is being driven by both demand and capacity, especially in fast-growing states with heavy housing construction. - Strong employment growth in some states has not eliminated shortages, which points to a labor market that is expanding but still underfilled. - FBM also said 80% of residential and commercial contractors and builders report that construction workers are difficult to recruit. - The company said 71% have seen labor shortages affect project completion schedules. - FBM said 89% expect shortages to persist or worsen over the next 12 months. - Joe Saad, regional vice president at FBM's Pacific South Region, said the shortage can delay delivery, reduce housing supply and increase construction costs. - Saad also pointed to the need for long-term workforce development and cited Lowe's Foundation training efforts as an example of the kind of investment needed.

What's next: - The labor squeeze is likely to deepen as more older workers leave the industry. - Employers, training groups and trade programs will need to expand the pipeline of skilled workers to keep up with housing, infrastructure and industrial demand. - The pressure should stay highest in states where population growth and construction activity are both strong.

The bottom line: - FBM's new index says the U.S. construction labor shortage is no longer just a national issue. It is hitting fastest-growing states hardest, and the strain is already reshaping housing supply and project delivery.