Biscayne Beach condominium in Downtown Miami's East Edgewater neighborhood

MIAMI—With massive transformation underway in key Florida metros, the shortage of manpower—specifically skilled labor—is becoming increasingly costly and problematic. A recent report from the Associated General Contractors of America sheds some light on the situation.

Construction employment increased in 245 out of 358 metro areas between May 2016 and May 2017, declined in 59 and stagnated in 54, according the ACGA. Association officials noted that construction employment gains in many parts of the country are occurring even as most firms report having a hard time finding qualified workers to hire.

According to the ACGA, one of the key reasons for construction workforce shortages is the lack of career and technical education programs available, particularly at the secondary level. New legislation to renew the federal Perkins Act, which funds career and technical education programs, would help by giving education officials new flexibility and funding to establishing construction-focused programs, the group reported.

GlobeSt.com caught up with Conrad Lazo, a board certified construction attorney and a shareholder at Becker & Poliakoff, to get some insights into this issue in part one of this exclusive interview. Stay tuned for part two, in which he will discuss Practical steps, including ways to structure bids and contracts, to protect your best interest in the event of cost overruns and delays.

GlobeSt.com: What is the industry's reaction to the shrinking pool of skilled laborers?

Lazoz: The larger construction companies are now establishing in-house recruitment departments, and paying signing bonuses to prospective construction workers who are in the most needed of work trades. Construction companies are working with labor unions and trade organizations to find, recruit and train people for construction positions.

GlobeSt.com: What is the impact of Trump administration's immigration policy on available manpower?

Lazoz: There are three impacts. First, the administration's immigration policy is having a negative impact on available construction labor.

Second, the construction industry is having a difficult time finding US citizens to perform the less desirable of the construction trades. For example, US construction companies have relied on immigrant labor for performing roofing, landscaping, earthwork and road paving. With immigrant labor on the decline, US construction companies will have to pay US citizen higher wages to get the same performance as that obtained through immigrant labor.

Third, as higher wages are paid to US citizens, the costs of construction increase. Eventually, projects may price themselves out of the market. Ultimately, construction projects may have to be scrapped due to excessive costs.

This Florida banker has strong views on President Trump's impact. Is Trump's presidency bad for Florida real estate?

GlobeSt.com: What is the industry's reaction to the shrinking pool of skilled laborers?

GlobeSt.com: What is the impact of Trump administration's immigration policy on available manpower?

Lazoz: There are three impacts. First, the administration's immigration policy is having a negative impact on available construction labor.

This Florida banker has strong views on President Trump's impact. Is Trump's presidency bad for Florida real estate?

Instant Insights /

How Trump's Immigration Policy Is Impacting Construction Pool

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