North Carolina Builders Worry as Immigration Rules Tighten

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Key Takeaways

• The repeal of the “sensitive locations” policy on February 6, 2025, exposes immigrant workers to enforcement in schools, churches, and hospitals.
• Senate Bill 153 passed in North Carolina mandates state entities to cooperate fully with federal immigration enforcement, heightening risks for undocumented workers.
• North Carolina’s construction industry faces a severe workforce gap, with contractors struggling to fill 87% of positions amid stricter immigration policies.

The North Carolina 🇺🇸 construction industry finds itself facing significant challenges due to a strict immigration crackdown and an already dire labor shortage. A large portion of the state’s construction workforce, which heavily depends on immigrant labor, is now at risk of being affected by recent federal and state policy changes. With the stakes high, the immediate and long-term implications could reshape the industry and impact the broader economy.

North Carolina Builders Worry as Immigration Rules Tighten

Immigrant Labor and Its Role in Construction

Immigrant workers have always been essential to North Carolina’s construction industry. These workers often fill roles that require specialized skills or involve physically demanding tasks, which many employers find difficult to fill through native-born labor alone. According to the Pew Research Center, approximately 35% of construction workers in North Carolina are undocumented. This staggering figure underscores just how intertwined immigrants are with the workforce.

The construction industry’s reliance on immigrant labor isn’t just a North Carolina-specific issue. The Associated Builders and Contractors (ABC) estimates that, nationwide, around 439,000 new workers will be needed in 2025 to meet industry demands. The situation is especially critical in North Carolina, where the U.S. Chamber of Commerce reports just 55 available workers for every 100 job openings across all industries. These labor shortages, compounded by immigration restrictions, could present a perfect storm for the state.

Key Immigration Policy Changes

In a decision that has sparked widespread concern, President Trump issued a directive on February 6, 2025, reversing what is known as the “sensitive locations” policy. For years, this rule prevented immigration officials from carrying out enforcement actions in schools, churches, and hospitals. However, the removal of these restrictions has left immigrant communities and industries that rely on them feeling vulnerable.

At the state level, measures are also being tightened. On February 11, 2025, North Carolina lawmakers introduced the North Carolina Border Protection Act, or Senate Bill 153. This legislation instructs state and local authorities, as well as the University of North Carolina (UNC) System, to fully cooperate with federal immigration enforcement efforts. For undocumented workers in the construction industry, the combination of federal and state crackdowns adds layers of risk and uncertainty.

Implications for the North Carolina Construction Sector

The intersection of this immigration crackdown and existing labor shortages could be catastrophic for the construction sector. As stricter immigration policies roll out, construction firms worry about losing the skilled workforce they desperately need. Dave Simpson, the President & CEO of Carolinas AGC, reflected this concern while remaining cautiously hopeful, saying, “While we have concerns about the workforce shortage and drawing good talented people into excellent careers in construction, look for good times ahead for the next few years for the commercial construction industry in the Carolinas.”

While optimism for growth exists in some quarters, surveys paint a grimmer picture. A recent report by the Associated General Contractors of America (AGC) highlighted that nearly 87% of surveyed North Carolina contractors struggle to fill positions. Worse yet, 76% noted that “insufficient supply of workers or subcontractors” was their top concern for 2025. With a tightening labor pool, the construction sector could experience further delays and rising project costs.

Economic Ripple Effect

The strain from losing a significant part of the workforce would not only affect the construction sector but could also have far-reaching consequences for the North Carolina economy. Many contractors entered 2025 planning to grow their teams; 88% of firms said they intended to increase their headcount. However, meeting these projections now seems difficult, and the gap between available workers and open positions could widen.

Rising labor costs have already been a concern. Anirban Basu, the chief economist for ABC, remarked in January 2025 that wages in the construction industry had risen 4.4% over the past year, far outpacing pay growth across all job sectors. Without a solution to its labor challenges, these costs are expected to rise further, potentially driving up prices for housing and infrastructure projects statewide.

The knock-on effects hit particularly hard when looking at North Carolina’s economic growth goals. With the construction industry’s ability to meet housing and commercial project demands in serious question, delays and higher costs could hold back local development.

How the Industry Plans to Adapt

With so much at stake, North Carolina’s construction industry is not passively accepting the situation. Leaders are exploring various strategies to mitigate the workforce crisis while continuing to advocate for reforms that address immigration issues.

Training Local Workers: Organizations such as Carolinas AGC are focusing efforts on workforce development programs like Construction Bootcamps and Construction Business Academies. These initiatives train local talent to step into roles vacated by skilled immigrant workers.
Investing in Technology: As labor becomes scarcer, construction companies are increasingly looking toward automation and other technologies. Tools like drones, digital modeling, and automated machinery are being seen as ways to reduce dependence on manual labor. However, technology adoption comes with its own challenges—26% of North Carolina contractors expressed concerns about keeping up with these advancements.
Diversifying the Workforce: Efforts to include under-represented groups are gaining traction as the industry seeks to fill labor gaps. For example, women currently make up just 11.2% of construction workers across the U.S., and leaders are working to change that. To promote diversity, Governor Josh Stein declared March 3–8, 2025, as “Women In Construction Week” in North Carolina.
Policy Advocacy: Industry organizations like the AGC continue to push policymakers to consider new visa programs specific to construction. These targeted programs could provide temporary work visas, allowing skilled foreign workers to legally contribute without fear of deportation.

Legal Pushback and Grassroots Efforts

Not everyone is standing by as stricter policies take root. On February 11, 2025, a coalition of religious organizations, including the North Carolina Council of Churches, sued the Trump administration. Their lawsuit, filed in U.S. District Court, challenges the repeal of the sensitive locations policy, arguing that it unnecessarily endangers vulnerable people.

Grassroots organizations in North Carolina are also playing a key role. Nonprofits are organizing public information campaigns to dispel fear among immigrant communities and encourage them to access essential services. They’re striving to strike a balance between ensuring safety and assuring affected individuals that they remain valued contributors to the state’s economy.

The Long Road Ahead

The full impact of the recent immigration crackdown is yet to unfold, but it signals potentially transformative effects for both North Carolina’s construction industry and its economy. Workforce shortages are unlikely to ease in the short term unless significant reforms are introduced.

The immediate task for industry leaders is to remain flexible. Creative workforce development initiatives and accelerated adoption of technology might provide temporary relief. Still, long-term success will depend on achieving balanced immigration policies that allow a sustained level of skilled labor entry into the industry.

The North Carolina construction sector stands as a case study for the national debate on immigration reform. As reported by VisaVerge.com, industries like construction that depend heavily on immigrant labor are proving especially vulnerable to sweeping policy shifts. For those shaping North Carolina’s future, it’s clear that any sustainable solution will need to include input from contractors, the immigrant workforce, and policymakers alike.

For further guidance on immigration policy updates and enforcement changes, individuals and businesses can refer to the official U.S. Citizenship and Immigration Services (USCIS) website. This provides access to reliable and up-to-date information critical for navigating these uncertainties.

As North Carolina’s construction industry adapts to these testing times, it finds itself at the intersection of labor issues, economic pressures, and political challenges. Whether or not it can weather this storm and meet its growing demand depends on the combined resilience of its key stakeholders.

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Immigration Crackdown → Strict enforcement measures aimed at reducing illegal immigration by tightening policies and increasing deportations.
Undocumented Workers → Individuals employed without legal authorization to work in the country, often lacking necessary immigration documents.
Sensitive Locations Policy → A former restriction preventing immigration enforcement in schools, churches, and hospitals to protect vulnerable populations.
Construction Bootcamps → Intensive training programs designed to quickly equip workers with skills needed for construction industry roles.
Automation → Use of technology, such as machinery or software, to perform tasks traditionally done by human workers, reducing labor reliance.

This Article in a Nutshell

North Carolina’s Construction Crisis

North Carolina’s construction industry faces a dual challenge: stricter immigration policies and a worsening labor shortage. With 35% of workers undocumented, projects risk delays and higher costs. Industry leaders are turning to local workforce development, technology, and policy advocacy. A balanced approach is critical to sustaining the state’s economic growth.