Manufacturer Prepares for 'Things to Slow Down a Little Bit'
Despite solid job growth on the surface, new data reveals construction hiring is slowing sharply — and project delays are mounting
R&D: Acoustic testing equipment inside the Johns Manville Technical Center in Denver, Colorado, where engineers conduct experiments to improve the sound performance of insulation products. (Staff photo)
America’s construction industry is sending mixed signals this spring. On paper, job numbers look solid—the sector added 11,000 jobs in April, and employment is up 143,000 positions year-over-year, according to the Associated Builders and Contractors’ (ABC) analysis of U.S. Bureau of Labor Statistics data. Nonresidential construction, in particular, remains a bright spot, with specialty trades and building segments seeing steady gains. And even as economic headwinds like high interest rates, tighter lending, and trade policy uncertainty swirl, contractors are still broadly optimistic, buoyed by healthy project backlogs.
But dig a little deeper, and the cracks are starting to show. March saw construction job openings plummet by 38,000—the biggest single-month drop in years—while overall hiring slowed to the lowest rate ever recorded. Unfilled jobs stood at just 248,000 on the last day of March, a steep 27% decline from the same time last year. Even more telling, the hiring rate for the sector shrank to just 3.6%, with both quitting and layoff activity subdued—signs that the labor market is tightening and churn has ground to a halt.
“Despite weak construction spending data for March and several economic headwinds, including high interest rates, tight lending standards and trade policy uncertainty, backlog remains sufficiently elevated to keep industry employment growing for the time being,” said Anirban Basu, Chief Economist for ABC. Basu also cautioned that “April is likely the last month of economic data largely unaffected by tariffs and tariff-related uncertainty,” signaling that the coming months may bring even more volatility.
Industry leaders are keeping a close eye on the shifting landscape. At the Berkshire Hathaway Annual Meeting, Johns Manville CEO Bob Wamboldt acknowledged the uncertainty in the market, and said his company is preparing for "things to slow down a little bit."
“We’re all dealing with a little uncertainty, but we’re having a good start to the year,” Wamboldt said, adding that while there are plenty of headlines about what could go wrong, the reality for many customers is that business remains solid. “Some of our areas, particularly on the commercial side, are doing extremely well. Data centers, for example, are set up for a great year.”
Despite contractors’ optimism — most still expect to hire in the coming months — economic headwinds like tariffs and high financing costs are already blunting those plans. HVAC manufacturers like Johns Manville are likewise preparing for a potential slowdown. Major projects are being delayed or canceled: Intel recently postponed construction of its Ohio One semiconductor plant, and Microsoft has paused or axed multiple billion-dollar data center projects, citing rising costs and softer demand. Uncertainty, not just in residential but across commercial and tech-related builds, is putting a visible damper on new development starts and the jobs that come with them.
Preparation and adaptability are central to Johns Manville’s strategy. The company’s experience during COVID — re-evaluating sourcing, dual sourcing, and investing in domestic manufacturing—has left them “in a pretty good spot,” according to Wamboldt. With a footprint in both Europe and North America, the company is positioned to weather global supply chain disruptions.
“That was a good test run. And we find ourselves in a pretty good spot. We’re still bringing material in from overseas, but wherever possible, we dual source and (leverage) domestic manufacturing,” Wamboldt said.
Even as housing starts have slowed, Wamboldt is bullish on the long-term demand for housing and energy-efficient building products.
“Long term demand for housing is very strong, right? So as we look towards this, and we’re in the middle of building a new line that’s significant for construction insulation for housing, and we’re moving forward with that despite this slowdown, because we’re confident the use of energy is going to continue to be challenged,” Wamboldt concluded. “Anything that reduces energy is something that will be a good tailwind for us. And there’s just not enough homes in the country either.”
So it’s not all doom and gloom. But the message from the top is clear: companies that prepare for a slowdown now will be the ones leading when the cycle turns again.
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