Tile and Terrazzo Contractors NAICS 238340

Sep 7, 2025 - Ramped-up Immigration Enforcement Increases Project Delays

• Nearly a third of US construction firms have been impacted by intensified immigration enforcement in the last six months, according to a recent report by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER). More stringent enforcement has slowed project delivery and left 88% of firms with craft worker vacancies. One-fifth of construction firms surveyed reported that subcontractors had lost workers, 10% reported increases in absenteeism due to actual or rumored enforcement actions, and 5% said jobsites had been visited by immigration agents. Only 10% of firms use visa programs like H-2B due to approval challenges, leaving many vulnerable to enforcement actions. Industry leaders are urging Congress to increase funding for career and technical education and to create a construction-specific visa program to stabilize the workforce and support long-term growth.
• Home remodeling spending growth is expected to remain flat in 2025 and the first half of 2026, according to the Leading Indicator of Remodeling Activity (LIRA) report by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 2% to $509 billion in the third quarter of 2025 compared to Q3 2024. In the fourth quarter of 2025, remodeling spending will rise quarter-over-quarter to $511 billion, up 1.8% from Q4 2024. Spending will increase to $524 billion in Q1 2026, up 2.2% from Q1 2025. In the second quarter of 2026, year-over-year spending is forecast to rise 1.2% to $518 billion. Joint Center expects a weak housing market to put downward pressure on remodeling spending. However, recent federal cuts to incentives for efficiency improvements may spur short-term growth as homeowners make upgrades before benefits expire at the end of the year.

• Construction spending for nonresidential buildings is expected to remain sluggish in 2025 and 2026, according to the American Institute of Architects’ (AIA) most recent Consensus Construction Forecast. Total spending for nonresidential building construction is expected to rise 1.7% in 2025 and 2% in 2026 after increasing 2% in 2024. For the next two years, growth will be led by data centers. Spending on institutional projects should remain steady as they are less susceptible to cyclical factors. AIA Chief Economist Kermit Baker said, “A multitude of factors are preventing substantive growth in nonresidential construction. Stubbornly high long-term interest rates, falling consumer confidence scores, rising tariff rates for many inputs to construction and construction labor shortages exacerbated by restrictive immigration policies are limiting prospects for positive sustained growth.”
• New single-family home sales fell 0.6% month-over-month and were down 8.2% year-over-year in July 2025, according to the US Census Bureau. July’s total new home sales reached 652,000 units. However, home sales beat analysts’ outlook; economists polled by Reuters had expected July sales to reach only 630,000 units. The Chairman of the Federal Reserve has hinted at a possible rate cut during the central bank’s meeting in September. However, Fed rate policy will likely depend heavily on August employment and inflation data due in September. High mortgage rates continue to outpace wage growth, keeping home purchases out of reach for many would-be buyers. Some industry watchers expect new home sales to remain under pressure from interest rates through the end of the year.