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Construction leaders warn of labor shortages, inflation and permitting delays slowing infrastructure delivery
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Summary
Representatives of the Associated General Contractors and Williams Brothers Construction told the committee rising construction costs, workforce shortages and slow permitting are shrinking the purchasing power of federal infrastructure funding and delaying projects.
Seth Shulgin, vice president at Williams Brothers Construction and speaking for the Associated General Contractors of America, told the committee construction firms face sustained workforce shortages, sharp cost increases and permitting delays that together reduce the effective reach of federal infrastructure dollars.
Shulgin cited industry data that highway construction costs rose roughly 70% since 2020 and estimated an industry purchasing‑power loss in the tens of billions of dollars because of cost inflation. He said more than 90% of contractors report difficulty hiring qualified workers, such as equipment operators and CDL drivers, and urged stronger career and technical education funding and apprenticeship programs to rebuild the trades pipeline.
On permitting, Shulgin said NEPA-assignment states can deliver projects faster, citing Texas as an example where a delegated environmental-review process cut review times cited in discussion from about 36 months to roughly 16 months, producing predictability that helps contractors plan capital investments and bid effectively. He advocated completing reforms and fully implementing the permit and review changes in existing law to reduce delays while maintaining environmental protections.
Shulgin also recommended predictable formula funding to give state DOTs stability for project planning; he warned that sudden retractions in funding would force contractors to bid on fewer projects, slow work and create layoffs. The Associated General Contractors urged that reauthorization preserve or exceed IIJA funding levels to avoid disruption and job losses.
