HVAC & Plumbing Contractors NAICS 238220

Apr 17, 2026 - Lead Time for HVAC Hiring Exceeds that of Software Developer

• A surge in U.S. data center growth is intensifying skilled labor shortages, creating longer hiring times for HVAC contractors and electricians than for software developers, according to Randstad North America and reporting by Facilities Dive. The average hiring period for skilled trades has reached 56 days, compared with 54 days for tech roles, underscoring rising demand for HVAC expertise as AI-driven infrastructure expands. Retirements and limited career development are shrinking the talent pool, while more than 30% of Gen Z workers have left jobs due to a lack of advancement. For HVAC contractors, this tight labor market threatens project timelines, service capacity, and operational continuity. Randstad urges firms to adopt strategic hiring, invest in upskilling, and offer predictable schedules and work-life balance to attract and retain technicians, while using contract labor to address urgent workforce gaps.
• The aging of the US housing stock is likely to support continued remodeling spending, including plumbing and HVAC work. The median age of US homes has reached a record 44 years, driving up maintenance and modernization costs as aging properties require major repairs, according to Harvard researchers and The Wall Street Journal. Much of the housing stock dates to building booms in the 1920s, postwar years, and 1970s, and has not been replaced by new construction. Experts now recommend homeowners budget 2% to 3% of a home’s value annually for upkeep, rather than the traditional 1%. Aging homes also raise insurance risks, limit resale options, and increase financial strain, especially as nearly half of renovation spending now goes to essential replacements.

• The total value of private US construction put in place dropped by 0.6% in January 2026 compared to the prior month, according to the US Census Bureau. Residential spending fell 0.8%, as multifamily spending dropped 0.7% and single-family construction spending declined 0.2%. Nonresidential spending decreased 0.4%. Only four subsegments of the nonresidential building sector saw growth in January compared to December 2025: office (+1.1%), healthcare (+0.4%), communication (+0.2%), and lodging (+0.1%). The remaining nonresidential building categories posted flat or negative growth in January 2026, including commercial (-0.1% from December), educational (-1.1%), religious (-1.1%), amusement and recreation (-0.9%), transportation (-0.2%), manufacturing (-2%), and power (0%).
• North American construction and engineering spending is expected to remain flat in 2026 after declining by 1% in 2025, according to FMI’s second-quarter 2026 North American Engineering and Construction Outlook. Within building segments, office construction is projected to grow 6% in 2026, driven by strong data center demand, while health care (+2%) also expands amid large hospital projects. Education, and amusement and recreation are expected to remain stable but notch flat spending growth in 2026. Several segments will decline, including lodging (-4%), commercial (-6%), and public safety (-2%), reflecting financing constraints and uneven demand, while manufacturing construction is also projected to fall (-2%) following a surge in prior years. Residential building activity continues to weaken, with single-family construction forecast to drop 2% due to affordability pressures and elevated mortgage rates. Multifamily spending is projected to be down 1% as high supply levels weigh on rent growth and new development.