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: (00:00) Ken Simonson - the current construction market environment (03:54) AGC survey reveals contractor sentiment across 17 construction segments (06:30) Breaking down wage increases and labor cost trends (09:03) Is there really a labor shortage in construction (14:04) Regional variations and which states are leading or lagging (18:10) How inflation interest rates and tariffs affect project starts (22:29) Immigration enforcement as a major disruptor for construction sites (25:14) Why the Architecture Billings Index is a misleading indicator (29:24) What leading indicators contractors should watch going forward Share with someone who would be interested, like, and subscribe now so you don’t miss an episode! Resources:Associated General Contractors of America (AGC): www.agc.org (28,000+ member companies across 87 chapters nationwide) American Institute of Archite...