History Construction New England Stone Walls reflects a region where building traditions run deep. Yet as New England and New York construction markets continue their recovery from economic downturns, contractors across the region face a growing challenge: finding skilled workers and reliable subcontractors. The January 1997 JLC New England Update captured this trend at a pivotal moment, documenting how a tightening labor market was reshaping contractor strategies. What was described as an emerging shortage then has become a defining characteristic of the industry today. Understanding the dynamics behind this labor squeeze and the approaches successful contractors use to navigate it remains essential for anyone building in the Northeast.
The Scope of the Labor Shortage in New England Construction
The labor shortage documented in the New England Update was not an isolated phenomenon. It represented a convergence of national demographic trends and region-specific circumstances that together created a persistent gap between the supply of skilled tradespeople and the demand for their services.
National Trends Meeting Local Realities
Economists had been predicting for years that as the construction industry entered the 21st century, a relative lack of entry-age workers combined with the growing appeal of service and high-tech fields would shrink the pool of interested, skilled people available to construction. A national survey of more than 1,000 contractors by the Construction Financial Management Association found that most cited hiring concerns as their top problem, ranking above workers compensation insurance costs and safety regulations.
In New England and New York, the challenge was intensified by the emigration of tradespeople during the recession years. In a region where some areas lost a third of their construction jobs, many workers, particularly the more skilled and motivated, left for opportunities elsewhere. As Darcy Burke of the Albany-based Home Builders Association of New York put it: contractors searching for framers often found they had moved to Las Vegas or Colorado.
Quantifying the Hiring Gap
The numbers from the field were striking. Chuck Huizenga, executive director of the Associated General Contractors (AGC) of Vermont, reported that member companies were interviewing 25 people to fill entry-level positions. One company went through 200 temporary employees to fill just six permanent positions. These figures illustrate the depth of the mismatch between available workers and the quality standards contractors need to maintain.
Unemployment data from the period shows the disparity between New England and the national average. The table below illustrates how regional unemployment tracked below the U.S. average during the recovery, creating a tighter labor market:
| Period | New England Unemployment (%) | United States Unemployment (%) | Gap |
|---|---|---|---|
| Sept 1995 | 5.2 | 5.7 | -0.5 |
| Dec 1995 | 5.0 | 5.6 | -0.6 |
| Mar 1996 | 5.3 | 5.6 | -0.3 |
| Jun 1996 | 5.0 | 5.5 | -0.5 |
| Sept 1996 | 4.8 | 5.2 | -0.4 |
Consistently lower unemployment in New England meant fewer available workers for every open position, compounding the difficulty of finding qualified candidates.
Regional Variations in Labor Availability
Not all parts of New England and New York experienced the labor shortage with the same intensity. Local economic conditions varied widely, creating a patchwork of tight and slack markets that contractors had to navigate.
Upstate New York: Still Recovering
Contractors in upstate New York had not felt the labor loss as keenly, largely because their markets were still depressed. As Burke commented, they were still waiting for a full recovery. The relatively slow pace of new work meant that the shortage of skilled workers, while real, had not yet become a critical constraint on operations.
Long Island and Coastal Markets: Feeling the Squeeze
In busier locations, the shortage was acute. Bob Weibold, executive director of the Long Island Builders Institute (LIBI), described a market where contractors who had good subs were guarding them jealously while others were trying to steal them. LIBI offered a sold-out seminar on finding and keeping good subcontractors and employees, a clear sign that the issue had reached crisis proportions among Long Island builders.
The contrast between these markets highlights an important lesson: labor shortages become visible first in the most active construction markets, and the severity of the problem correlates directly with local economic growth rates.
Maine: Loyalty as a Strategy
In Maine, custom home builder and remodeler Glenn Farrell of Cape Neddick demonstrated a different approach. Having built his business since the mid-1980s, he maintained his relationships with subcontractors through the recession by keeping them busy when possible, not pushing hard on price, and maintaining reliable schedules. When the market recovered, he had no trouble getting subs to show up while others struggled. As Farrell put it: you beat your subs up, you pay later.
His approach extended to his own employees as well. Though it was a struggle at times, Farrell kept his four finish carpenters employed through the recession. They rewarded him with good work and loyalty. This case study offers a direct parallel to lessons found in Preparing Historic Homes Exterior Paint Field Lessons Coastal, where long-term attention to craft and relationships produces superior results.
Strategies for Attracting and Retaining Skilled Workers
Contractors who successfully navigated the tightening labor market employed a range of strategies, from formal benefits programs to intangible cultural practices. The common thread was a recognition that the old approach of treating workers as interchangeable was no longer viable.
Compensation Beyond the Paycheck
While wages matter, successful retention strategies went beyond hourly rates. Key approaches included:
- Offering health insurance plans, even if partially subsidized
- Providing paid vacation and holiday time
- Creating formalized advancement schedules with clear wage progression
- Offering educational opportunities and trade skills development
- Giving workers access to tools, equipment, and training that make their jobs easier and safer
In larger metropolitan areas like Long Island, contractors increasingly adopted formal benefits packages. Weibold noted that members were seeing the need to offer health insurance and structured career paths as a competitive necessity rather than an optional perk.
Respect, Recognition, and Flexibility
According to Weibold, the most important shift was attitudinal. Contractors were learning that good workers want respect, recognition for their work, and flexibility when personal demands arise. Offering these in addition to a good paycheck meant they did not necessarily have to increase wages dramatically. The result was a more motivated workforce and, ultimately, more satisfied customers.
Jack Mandel, a consultant and professor of business who taught LIBI’s seminar on keeping good help, argued that contractors too seldom paid attention to employee retention and motivation. In his view, this was a serious error. Many of the principles he taught were simply basic personnel management, but something contractors often neglected until circumstances forced them to pay attention.
The recognition factor should not be underestimated. Tradespeople who feel valued for their craftsmanship are far more likely to stay with an employer. This is particularly relevant in New England, where building traditions run deep. The design philosophy seen in an Open Floor Plan for New England Farmhouse reflects the same principle: respecting the existing fabric while adding thoughtful improvements creates lasting value.
Intangible Benefits That Build Loyalty
Not every contractor can afford comprehensive benefits. Farrell’s approach offers a model for smaller operations. Though he could not provide health insurance, he offered:
- Smooth, stress-free job sites where he took problems on himself
- Pay slightly above the going rate
- Occasional use of a vacation property
- Consistent scheduling that respected workers’ time
As Farrell observed, these are little things, but they count. In a small town, word gets around. Contractors who treat their people well build a reputation that attracts better workers over time.
Industry-Wide Solutions and Future Outlook
Individual contractor efforts alone could not solve a structural labor shortage. Industry organizations recognized the need for coordinated, long-term solutions to rebuild the pipeline of skilled workers entering construction trades.
The Vermont Construction Career Council
The Vermont AGC joined with other state contractor and subcontractor groups to form the Vermont Construction Career Council. This umbrella organization set three core objectives:
- Increase public awareness of career opportunities in construction, targeting schools, career counselors, and community organizations
- Support training programs at regional vo-tech schools by helping them develop curricula relevant to current industry needs
- Create mentoring and apprenticeship relationships between training programs and member companies, ensuring students have clear pathways into employment
Huizenga reported a strong response to the program from both people looking for work and contractors looking for employees. Though he acknowledged that the response was premature since he was not running a hiring hall, it showed how serious the problem had become.
Lessons for Today’s Contractors
The dynamics documented in this 1997 report remain relevant today. Contractors facing labor shortages can draw several practical lessons:
- Build relationships early. The contractors who fared best during the recovery were those who maintained ties with their subs and employees through slow periods. Short-term savings from cutting ties during downturns are outweighed by long-term costs of rebuilding a crew when work picks up.
- Invest in training. Waiting for the market to produce skilled workers is a losing strategy. Contractors who participate in training programs, offer apprenticeships, and mentor new entrants help create the workforce they need.
- Think beyond the paycheck. Respect, recognition, flexibility, and a positive job site culture differentiate employers in a competitive labor market. These factors cost little but produce outsized retention benefits.
- Plan for cyclicality. Labor markets tighten during recoveries and loosen during downturns. Smart contractors plan staffing strategies that can flex with market conditions without burning bridges.
The principles that helped New England contractors navigate the post-1991 recovery remain equally applicable. Modern renovation approaches, such as those seen in Open Floor Plan for a New England Farmhouse Renovation, depend on the same skilled tradespeople who were in short supply then and remain scarce today.
The Bottom Line
The labor shortage documented in the New England Update was not a temporary inconvenience. It was a structural shift driven by demographic trends, regional economic migration, and changing perceptions of construction careers. Contractors who recognized this reality and adapted their hiring, training, and retention practices positioned themselves to thrive. Those who waited for conditions to return to normal found themselves perpetually short-handed.
For builders in New England today, the lessons of this period are clear: invest in your people, build your reputation as an employer of choice, and participate in the broader effort to attract new talent to the trades. The contractors who do will build not just better homes but more resilient businesses.