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United States Construction & Infrastructure Location Strategy & Site Selection Index 2025: Talent Supply, Hiring Trends, and Workforce Benchmarking (2025 Edition)

By Florian Marthaler ,

Publish Date : 2026-02-19

At a Glance

Job Demand & Supply Dynamics

The construction and infrastructure sector in the United States is currently navigating a complex landscape characterized by significant job demand and supply dynamics. As of 2023, the construction industry is experiencing a notable vacancy trend, particularly in specialized roles such as skilled trades, engineering, and project management. The overall job vacancy rate in the construction industry hovers around 8%, which is substantially higher than the national average of 4.5%. This disparity indicates a pressing need for talent acquisition strategies that not only attract but also retain skilled professionals in an increasingly competitive market. In terms of graduate supply, data from the National Center for Education Statistics (NCES) reveals that approximately 150,000 engineering graduates enter the workforce annually. However, with the projected demand for engineering roles expected to increase by 15% by 2025, there is a looming shortfall. This shortfall is exacerbated by the fact that many graduates lack the practical experience and specialized skills that employers are seeking, particularly in areas such as sustainable design and advanced construction technologies. Furthermore, the construction sector is witnessing a demographic shift, with a significant portion of the workforce approaching retirement age, further intensifying the demand for new talent. Shortfall numbers indicate that while the supply of graduates is high, the specific skills required for modern construction projects are not being met. Estimates suggest a potential shortfall of 200,000 skilled workers across various roles by 2025, which poses a significant challenge for the industry. Employers are increasingly compelled to invest in training and development programs to bridge this gap, emphasizing the importance of aligning educational outcomes with industry needs. As the sector continues to evolve, strategic workforce planning will be paramount in addressing these dynamics and ensuring a sustainable talent pipeline.

Salary Benchmarking

Figure 1

Salary Benchmarking Overview

Benchmark salaries, growth rates, and compensation trends across roles.

Explore Salary Insights
Role Junior Salary Senior Salary Variance Trend
Construction Engineer $65,000 $95,000 $30,000 Increasing
Data Analyst $70,000 $110,000 $40,000 Stable
Cybersecurity Specialist $80,000 $120,000 $40,000 Increasing
Project Manager $75,000 $115,000 $40,000 Increasing
Product Manager $85,000 $130,000 $45,000 Increasing
The salary benchmarking data presented above illustrates the significant variance between junior and senior salaries across various roles within the construction and infrastructure sector. The role of Construction Engineer, for instance, showcases a variance of $30,000, reflecting the value placed on experience and expertise in a field that is becoming increasingly complex due to technological advancements and regulatory requirements. Similarly, the Data Analyst role highlights a stable trend in salaries, with junior positions starting at $70,000 and senior roles reaching $110,000, indicating sustained demand for data-driven decision-making capabilities. Cybersecurity Specialists command higher starting salaries, reflecting the pressing need for security in an industry that is increasingly reliant on digital solutions. The variance of $40,000 in this role underscores the critical importance of safeguarding sensitive information and infrastructure from cyber threats. Project Managers and Product Managers also exhibit increasing salary trends, with variances of $40,000 and $45,000, respectively, as organizations recognize the need for skilled leadership to navigate complex projects and product integrations. This data suggests that as the demand for skilled professionals continues to rise, organizations will need to remain competitive in their compensation strategies to attract and retain top talent.

HR Challenges & Organisational Demands

The construction and infrastructure sector is currently grappling with a myriad of HR challenges that are intricately linked to organizational demands. One of the most pressing issues is attrition, which has escalated to concerning levels, particularly among younger professionals. The industry is witnessing a turnover rate that exceeds 20% annually, driven by factors such as job dissatisfaction, lack of career advancement opportunities, and the allure of more lucrative positions in adjacent sectors such as technology and finance. This attrition poses significant challenges for organizations, as the loss of skilled workers not only disrupts project timelines but also incurs substantial costs associated with recruitment and training of new hires. Moreover, the shift towards hybrid governance models has introduced complexities in workforce management. With an increasing number of firms adopting flexible work arrangements, organizations must navigate the challenges of maintaining productivity and collaboration among remote and on-site teams. The hybrid model necessitates a re-evaluation of traditional HR practices, including performance management, employee engagement, and communication strategies, to ensure that all employees, regardless of their work location, feel valued and connected to the organization's mission. Additionally, the demand for legacy skills is becoming increasingly pronounced as organizations strive to balance the integration of new technologies with the preservation of traditional construction practices. Many existing employees possess invaluable experience and knowledge that are critical to the success of projects, yet there is a growing concern that the influx of new technologies may render these legacy skills obsolete. Organizations are thus faced with the dual challenge of upskilling their workforce to meet modern demands while also recognizing and leveraging the expertise of seasoned professionals. This delicate balance will be crucial for sustaining competitiveness and innovation within the construction and infrastructure sector.

Future-Oriented Roles & Skills (2030 Horizon)

As the construction and infrastructure sectors evolve in response to technological advancements and shifting economic landscapes, the identification of future-oriented roles becomes paramount for strategic workforce planning. By 2030, the industry will likely require a suite of innovative roles that not only embrace traditional construction skills but also integrate advanced technological competencies. Among these, **Digital Construction Manager** will emerge as a pivotal role, necessitating proficiency in Building Information Modeling (BIM) and project management software. Additionally, the position of **Sustainability Engineer** will gain traction, demanding expertise in green building practices and renewable energy technologies, reflecting the industry's commitment to sustainable development. The **Data Analyst** role will also be crucial, as the ability to interpret vast amounts of project data will drive efficiency and cost-effectiveness. Furthermore, the rise of **Smart Infrastructure Specialist** will require professionals adept in IoT and smart city technologies, facilitating the integration of advanced systems into urban planning. The **Cybersecurity Specialist** will become indispensable as the sector increasingly relies on digital tools, necessitating robust security measures to protect sensitive data. Lastly, the **Workforce Development Coordinator** will play a key role in bridging the skills gap by designing targeted training programs that align with the evolving needs of the industry. These roles will collectively require skill clusters that encompass digital literacy, project management, sustainability practices, data analysis, and workforce development strategies, ensuring a holistic approach to workforce readiness in the coming decade.

Automation Outlook & Workforce Impact

Figure 2

Salary vs YoY Growth (Scatter Plot)

Understand how automation is shaping workforce efficiency and job demand.

View Automation Insights

The ongoing automation revolution is poised to significantly reshape the construction and infrastructure sectors, with an estimated 47% of current jobs at risk of automation by 2030. Functions such as site surveying and manual labor tasks are projected to be the most automatable, with approximately 65% of these roles susceptible to replacement by robotics and automated technologies. Conversely, roles that require complex decision-making, interpersonal skills, and advanced problem-solving, such as project management and design engineering, will experience a lower automation risk, estimated at around 20%. This differential impact underscores the necessity for strategic workforce augmentation rather than outright replacement. Workers in roles identified for automation will increasingly transition into augmented positions, where human oversight and technological tools will coalesce to enhance productivity. For instance, the role of a construction laborer may evolve to include operating advanced machinery equipped with AI-driven analytics, thus requiring retraining and upskilling initiatives. Furthermore, the integration of automation is anticipated to lead to a net creation of jobs, particularly in sectors related to technology development and maintenance, which will require a skilled workforce adept at managing and optimizing automated systems. This transition necessitates a comprehensive approach to workforce development, emphasizing reskilling and upskilling to mitigate the adverse effects of automation while capitalizing on the opportunities it presents.

Macroeconomic & Investment Outlook

The macroeconomic landscape for the United States construction and infrastructure sectors is set against a backdrop of fluctuating GDP growth, anticipated to stabilize at approximately 2.1% annually through 2025, driven by increased public and private investment in infrastructure projects. The recent Inflation Reduction Act and the Bipartisan Infrastructure Law are projected to inject over $1 trillion into the economy, fostering job creation and stimulating demand across various construction sub-sectors. Inflation, however, poses a challenge, with rates expected to hover around 3.5% in the near term, impacting material costs and labor wages. The intersection of these economic factors suggests a robust environment for job creation, with an estimated 1.5 million new construction jobs anticipated by 2025, primarily in sectors focused on sustainable building and advanced infrastructure technologies. Additionally, the federal government’s commitment to infrastructure investment is expected to catalyze regional economic growth, particularly in urban centers and historically underserved areas, thereby enhancing local labor markets. Such investments will not only bolster the construction sector but also create ancillary opportunities in related fields, including logistics, technology services, and environmental consulting, thereby fostering a comprehensive ecosystem of economic activity.

Skillset Analysis

Figure 3

Salary Distribution by Role

Explore which skills and roles are most in demand across industries.

Discover Skill Trends

In the rapidly evolving landscape of the construction and infrastructure sectors, a nuanced skillset analysis reveals a critical need for a multifaceted approach to workforce development. Technical skills remain foundational, with competencies in areas such as structural engineering, project management, and construction technology being paramount. However, as the industry increasingly integrates digital tools, the demand for proficiency in software applications, data analytics, and BIM is surging. Business skills are equally crucial; professionals must exhibit strong financial acumen, strategic planning capabilities, and an understanding of regulatory compliance to navigate the complexities of modern construction projects effectively. Emerging skills, particularly in sustainability and resilience planning, are becoming non-negotiable as firms strive to meet environmental standards and societal expectations. Moreover, the ability to adapt to new technologies, such as artificial intelligence and machine learning applications in construction processes, will distinguish successful candidates in the labor market. The convergence of these skill categories underscores the importance of continuous learning and professional development, as industry stakeholders must prioritize training initiatives that foster both technical and soft skills to ensure a competent and agile workforce capable of meeting future challenges.

Talent Migration Patterns

Talent migration patterns within the United States construction and infrastructure sectors are increasingly influenced by economic opportunities, quality of life factors, and regional investment initiatives. Inbound migration is notably pronounced in metropolitan areas that are experiencing significant infrastructure investments, with cities such as Austin, Texas, and Nashville, Tennessee, witnessing a surge in skilled labor attracted by robust job prospects and favorable living conditions. Conversely, outbound migration trends reveal a concerning exodus from regions with stagnant economic growth or declining job opportunities, particularly in rural areas and regions heavily reliant on traditional manufacturing. Internal hubs of talent are emerging as strategic focal points; for instance, the Northeast Corridor and the Pacific Northwest are becoming magnets for skilled professionals due to their concentration of infrastructure projects and innovative construction practices. This dynamic creates an intricate web of talent distribution, necessitating a proactive approach from regional policymakers and industry leaders to attract and retain skilled workers. Strategies such as investment in local training programs, incentives for relocation, and the promotion of work-life balance will be essential in addressing the challenges posed by talent shortages and ensuring a sustainable workforce capable of supporting the nation's infrastructure ambitions.

University & Academic Pipeline

The criticality of a robust university and academic pipeline in the construction and infrastructure sectors cannot be overstated, particularly as the industry grapples with evolving technological demands and a shifting labor landscape. Institutions such as the Massachusetts Institute of Technology (MIT), Stanford University, and the University of California, Berkeley, have established themselves as frontrunners in engineering and construction management programs. These universities not only offer comprehensive curricula but also foster industry partnerships that facilitate internships and job placements, thereby enhancing the employability of their graduates. Moreover, specialized bootcamps like the Ironhack and General Assembly have emerged, providing intensive, skill-focused training in areas such as project management, digital construction technologies, and sustainable building practices. These bootcamps are particularly adept at addressing the skills gap by offering flexible, accelerated learning pathways that align with current industry needs. The integration of real-world projects into academic programs has proven effective in bridging the gap between theoretical knowledge and practical application, ensuring that graduates are well-equipped to meet the demands of modern construction and infrastructure projects. Furthermore, universities are increasingly adopting interdisciplinary approaches, incorporating insights from data analytics, environmental science, and urban planning into their engineering curricula. This holistic educational framework is essential as the industry moves toward more integrated, technology-driven solutions. The collaboration between academia and industry stakeholders is vital for the continuous evolution of the workforce, ensuring that the talent pipeline remains robust and responsive to the dynamic challenges facing the construction and infrastructure sectors.

Largest Hiring Companies & Competitive Landscape

The competitive landscape within the construction and infrastructure sectors is characterized by a diverse array of companies, each vying for market share while simultaneously seeking to attract top talent. Major players such as Bechtel, Fluor Corporation, and Turner Construction dominate the hiring landscape, with extensive portfolios that span various sectors including commercial, residential, and civil engineering projects. These companies not only lead in terms of project volume but also set benchmarks for workforce development initiatives, often establishing training programs that enhance skill acquisition among new hires. In addition to these industry giants, regional firms and niche players are increasingly gaining traction by specializing in sustainable construction practices and innovative technologies. For instance, companies like Skanska and Mortenson Construction have differentiated themselves through their commitment to green building and sustainable practices, appealing to a workforce that is increasingly conscious of environmental impacts. The competition for talent is further exacerbated by the rise of technology firms entering the construction space, leveraging digital tools and data analytics to optimize project delivery and management. This influx of new entrants has intensified the competition for skilled labor, compelling traditional construction firms to innovate their hiring strategies and workforce engagement practices. As the industry continues to evolve, companies that prioritize employee development and adapt to changing workforce expectations will be better positioned to thrive in this competitive environment.

Location Analysis (Quantified)

City Workforce Vacancies Supply Ratio Duration CAGR Dominant Roles
New York, NY 150,000 25,000 6:1 3 months 4.5% Project Managers, Civil Engineers
Los Angeles, CA 120,000 20,000 6:1 4 months 3.8% Architects, Construction Managers
Chicago, IL 100,000 15,000 6.7:1 5 months 4.0% Structural Engineers, Estimators
Houston, TX 90,000 10,000 9:1 6 months 3.5% Safety Officers, Site Supervisors
Miami, FL 70,000 8,000 8.75:1 4 months 4.2% Project Coordinators, Quantity Surveyors

Demand Pressure

The construction and infrastructure sectors are currently experiencing significant demand pressure, driven by a confluence of factors including increased public and private investment, urbanization, and the urgent need for infrastructure modernization. The demand/supply ratio has shifted dramatically, with many regions reporting vacancies that far exceed the available skilled workforce. This imbalance not only exacerbates hiring challenges but also inflates wage expectations, as employers are compelled to offer competitive compensation packages to attract and retain talent. The ongoing push for infrastructure improvement, particularly in the wake of federal initiatives aimed at revitalizing aging transportation networks and enhancing energy efficiency, has further intensified demand for skilled labor. Moreover, the rapid advancement of construction technologies, such as Building Information Modeling (BIM) and modular construction, necessitates a workforce that is not only numerically sufficient but also proficient in these emerging methodologies. As a result, companies are increasingly investing in training programs and partnerships with educational institutions to cultivate a pipeline of skilled workers capable of navigating these complex demands. The repercussions of this demand pressure are multifaceted, impacting project timelines, operational costs, and overall productivity within the sector. As the industry adapts to these challenges, strategic workforce planning and investment in talent development will be paramount to ensuring sustainable growth and competitiveness.

Coverage

Geographic Coverage

The geographic distribution of the construction workforce in the United States is uneven, with urban centers experiencing higher concentrations of skilled labor compared to rural areas. This urban-centric workforce distribution poses challenges for companies operating in less populated regions, where attracting talent may require additional incentives or relocation assistance. Moreover, states with burgeoning construction projects, such as Texas and California, are witnessing accelerated hiring trends, further straining the available talent pool. The regional disparities in workforce availability necessitate targeted recruitment strategies that consider local market conditions and labor availability.

Industry Coverage

The construction and infrastructure sectors encompass a broad range of industries, including residential, commercial, and civil engineering. Each of these segments has distinct workforce requirements, influenced by project scale, complexity, and regulatory considerations. For instance, the residential construction sector is currently experiencing a surge in demand for skilled tradespeople, such as electricians and plumbers, driven by a robust housing market. Conversely, the civil engineering sector is grappling with a shortage of specialized engineers capable of managing large-scale infrastructure projects. This divergence in industry needs underscores the importance of tailored workforce development initiatives that align with specific sector demands.

Role Coverage

Within the construction and infrastructure sectors, the demand for various roles is evolving in response to technological advancements and changing project requirements. Traditional roles, such as carpenters and masons, remain essential; however, there is a marked increase in demand for positions that require technical expertise, such as data analysts and project coordinators proficient in digital tools. The emergence of new roles, driven by innovations in construction technologies, necessitates ongoing training and upskilling efforts to ensure that the workforce remains competitive and capable of meeting future challenges.

Horizon Coverage

Looking ahead, the horizon for the construction and infrastructure sectors is characterized by both opportunities and challenges. The anticipated growth in infrastructure spending, fueled by federal investments and public-private partnerships, presents a significant opportunity for workforce expansion. However, this growth must be tempered by the realities of a constrained labor supply and the need for continuous skill development. Companies will need to adopt proactive workforce strategies that not only address current hiring needs but also anticipate future labor market trends. Emphasizing adaptability, resilience, and a commitment to lifelong learning will be essential for navigating the complexities of the evolving construction landscape.

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