Answer extracted from The Think Small Podcast — listen to the full episode below.
How are construction labor market challenges being addressed through wage realignment in the industry?
Construction industry peers are resetting wage standards upward as the primary strategy to attract talent and fill hundreds of thousands of open jobs nationwide. Rather than treating compensation as a fixed cost, contractors now recognize that raising wages has become the essential operating standard required to compete for workers and complete project backlogs.
The labor shortage in construction has forced a fundamental shift in how contractors approach talent acquisition. As discussed in this episode of The Think Small Podcast, the industry can no longer rely on historical wage levels. Companies operating across the 17-county region served by Associated Builders and Contractors Eastern Pennsylvania—stretching from the New York border to the Delaware border—are all facing the same competitive pressure to elevate compensation.
This wage realignment represents more than a temporary adjustment; it reflects a new baseline for how the construction industry operates. Contractors understand that without competitive wages, they cannot fill vacancies, meet project timelines, or retain experienced workers. The strategy is straightforward but requires sustained commitment: higher pay becomes the tool for solving the acute labor shortage that affects projects from FedEx distribution centers to life sciences and pharmaceutical construction throughout the region.
From Fixed Cost to Competitive Necessity
The shift in thinking is profound. Previously, wages were often treated as a line item to minimize; now they are recognized as a strategic investment in workforce stability. Marissa Bankert, President & CEO of Associated Builders and Contractors Eastern Pennsylvania, emphasizes that this mindset change is industry-wide, shared across the 67-chapter ABC network covering the entire United States and territories like Guam.
For individual contractors, this means budgeting for higher labor costs upfront and building that into project bids and timelines. For the industry collectively, it signals that sustainable growth depends on making construction careers attractive enough to draw new workers into the trade and keep experienced ones engaged. As Bankert notes in the episode, the alternative—leaving jobs unfilled and projects incomplete—is far more costly.
"Construction really is the foundation of our nation. Whether you're a laborer or a CEO, you're all helping to weave that fabric that we all walk upon every single day."
Marissa Bankert — President & CEO, Associated Builders and Contractors Eastern Pennsylvania. Marissa has spent her career in association management, beginning as a membership director in a realtors association before transitioning to the construction sector as an executive director working with independent electrical contractors. In her current role for just over a year, she has brought mentorship, volunteer board leadership, and a deep conviction that construction must be positioned as the vital foundation of the nation.
To understand the full scope of how workforce development and apprenticeship programs support this wage realignment strategy, listen to the episode for Marissa Bankert's detailed discussion of how ABC Eastern PA is nurturing the next generation of construction professionals through registered apprenticeship partnerships with the State of Pennsylvania.
Key takeaways
- Contractors are resetting wage standards upward as the primary tactic to attract workers and fill hundreds of thousands of open construction jobs across the United States.
- Wage realignment from a fixed cost to a competitive necessity reflects industry-wide recognition that labor market sustainability depends on higher compensation.
- Associated Builders and Contractors Eastern Pennsylvania, representing 17 counties and part of a 67-chapter national network, treats wage strategy as central to workforce retention and project completion.
- This shift requires contractors to incorporate higher labor costs into project budgets and client bids as a baseline operating standard rather than a temporary measure.
See also
What sectors are driving construction growth in Eastern Pennsylvania through 2026 and beyond?
Data centers are a major driver, with Pennsylvania recently publishing new guidelines welcoming this construction type. Life sciences and pharmaceutical construction also represent significant growth sectors in the region.
What strategies help construction contractors navigate rapid growth and business expansion?
Marissa Bankert emphasizes the importance of coaching resources where business owners can develop plans to manage rapid growth, and peer groups where contractors can share experiences and learn from one another.
How can construction associations support members during periods of industry contraction and uncertainty?
During COVID, ABC Eastern PA served as the voice of members to legislators and government officials, helping them understand industry needs from an advocacy perspective and securing critical support.