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Why Construction Feels Slower — Even With Strong Demand
What's the real impact of immigration enforcement on construction sites—and why are a third of contractors already affected?
In this episode of Talk the TAUC, host Kirk Westwood sits down with Ken Simonson, Chief Economist for the Associated General Contractors of America, to discuss why construction feels more constrained despite strong demand and investment. Ken, widely cited by national and trade media for his economic analysis, helps unpack the market forces creating this paradox—from the low-hire, low-fire environment and regional employment variations to policy uncertainty around tariffs, interest rates, and immigration enforcement. The conversation covers data center and power construction booms, labor cost trends across four different measures, and why the Architecture Billings Index can be misleading. "There are huge parts of construction for which the ABI is a misleading indicator, not a leading indicator," Ken explains, offering practical context for planning in uncertain times.
Ken Simonson is the Chief Economist for the Associated General Contractors of America, where he analyzes economic trends affecting the construction industry, including labor markets, costs, regional activity, and investment patterns. Widely cited by national and trade media, Ken is known for translating complex economic data into clear, practical insight for construction leaders. He regularly surveys AGC's 28,000+ member companies across 87 chapters on market conditions, workforce challenges, and policy impacts, providing contractors with data-driven context to navigate an increasingly complex business environment. His economic analysis helps industry leaders make more informed decisions in uncertain markets.
Subscribe now so you don’t miss an episode!
Talk the TAUC podcast is brought to you by The Association of Union Constructors (TAUC). Your host, Kirk Westwood, is Director of Marketing for TAUC. In each episode, we’ll explore the latest labor trends, industry insights, and important issues in the world of construction. Our guests are industry leaders, subject matter experts, and innovative visionaries discussing how we are building the ‘world of tomorrow.’ TAUC is made up of more than 1,800 contractor companies that utilize union labor for their projects, as well as local contractor associations and vendors in the industrial maintenance and construction fields. TAUC’s mission is to act as an advocate for union contractors and enhance cooperation between all parties to achieve the successful completion of construction projects.
Discussion points:
Resources:
Associated General Contractors of America (AGC): www.agc.org (28,000+ member companies across 87 chapters nationwide)
American Institute of Architects (AIA) - Architecture Billings Index (ABI): www.aia.org
Construction Labor Research Council (CLRC) - supported by AGC and TAUC: www.clrcconsulting.org
Bureau of Labor Statistics (BLS): www.bls.gov
Job Openings and Labor Turnover Survey (JOLTS): www.bls.gov/jlt
Architecture Billings Index (ABI): www.aia.org/aia-architecture-billings-index
TAUC Calendar of Events
TAUC Website
Kirk Westwood TAUC
The Construction User Magazine back issues
The Construction User podcast archive
View all episodes
By Kirk WestwoodWhat's the real impact of immigration enforcement on construction sites—and why are a third of contractors already affected?
In this episode of Talk the TAUC, host Kirk Westwood sits down with Ken Simonson, Chief Economist for the Associated General Contractors of America, to discuss why construction feels more constrained despite strong demand and investment. Ken, widely cited by national and trade media for his economic analysis, helps unpack the market forces creating this paradox—from the low-hire, low-fire environment and regional employment variations to policy uncertainty around tariffs, interest rates, and immigration enforcement. The conversation covers data center and power construction booms, labor cost trends across four different measures, and why the Architecture Billings Index can be misleading. "There are huge parts of construction for which the ABI is a misleading indicator, not a leading indicator," Ken explains, offering practical context for planning in uncertain times.
Ken Simonson is the Chief Economist for the Associated General Contractors of America, where he analyzes economic trends affecting the construction industry, including labor markets, costs, regional activity, and investment patterns. Widely cited by national and trade media, Ken is known for translating complex economic data into clear, practical insight for construction leaders. He regularly surveys AGC's 28,000+ member companies across 87 chapters on market conditions, workforce challenges, and policy impacts, providing contractors with data-driven context to navigate an increasingly complex business environment. His economic analysis helps industry leaders make more informed decisions in uncertain markets.
Subscribe now so you don’t miss an episode!
Talk the TAUC podcast is brought to you by The Association of Union Constructors (TAUC). Your host, Kirk Westwood, is Director of Marketing for TAUC. In each episode, we’ll explore the latest labor trends, industry insights, and important issues in the world of construction. Our guests are industry leaders, subject matter experts, and innovative visionaries discussing how we are building the ‘world of tomorrow.’ TAUC is made up of more than 1,800 contractor companies that utilize union labor for their projects, as well as local contractor associations and vendors in the industrial maintenance and construction fields. TAUC’s mission is to act as an advocate for union contractors and enhance cooperation between all parties to achieve the successful completion of construction projects.
Discussion points:
Resources:
Associated General Contractors of America (AGC): www.agc.org (28,000+ member companies across 87 chapters nationwide)
American Institute of Architects (AIA) - Architecture Billings Index (ABI): www.aia.org
Construction Labor Research Council (CLRC) - supported by AGC and TAUC: www.clrcconsulting.org
Bureau of Labor Statistics (BLS): www.bls.gov
Job Openings and Labor Turnover Survey (JOLTS): www.bls.gov/jlt
Architecture Billings Index (ABI): www.aia.org/aia-architecture-billings-index
TAUC Calendar of Events
TAUC Website
Kirk Westwood TAUC
The Construction User Magazine back issues
The Construction User podcast archive