AGC (The Associated General Contractors of America) Economist Ken Simonson recently reported on the AGC’s Craft Worker Compensation Report , prepared by the consulting firm FMI.
FMI concludes that compensation is a major factor in labor shortages. While the construction industry does compensate workers at a higher rate than the other industries, the gap between wage rates as a percentage of total wages is decreasing. Without enough effort to reduce the risk (safety, work/life, job security, etc.) and provide alternative rewards (career pathing, training, perks, etc.), the overall attractiveness of the construction industry is diminishing. In addition to the industry’s image issues, construction wages have historically failed to keep pace with inflation.
- The construction industry has failed to adjust wage rates adequately over the past 30 years to match the rate of inflation.
- The wage gap between the construction industry and other industries has been declining steadily since its largest point (as a percentage of construction wages) in 1971‐1973.
- Construction union wage and benefit rates vary considerably by region and, for the most part, far exceed open shop levels. Compared to other industries, the construction industry has a significantly larger gap between union and non‐union wages.
Click here to read the full study.
Non-union Construction wage rates for Region 8 (which includes Colorado - see page 45
Comparison of union vs. non-union wages by craft and region (Region 8 includes CO) - See pthe table of contents for your craft