“It is especially heartening to see that the gains were present among all five subsectors of the industry,” said Ken Simonson, chief economist for the Associated General Contractors of America. “The increase in March more than offset the 13,000-position decline that occurred in February.”

Residential construction firms added 14,300 jobs for the month, with 11,200 new jobs among residential specialty contractors – categories that include many HVAC companies.

Wages Rise as Contractors Compete for Talent

Here’s the catch: finding qualified HVAC techs and installers isn’t getting any easier. Average hourly pay for construction workers hit $38.62 in March, up 5% from last year and now more than 20% above the private-sector average. Association officials said this growing wage gap “shows employers in the sector are paying a premium to attract talent.” As Simonson put it, “the fact construction pay continues to be well above other sectors is a sign firms are struggling to find enough qualified workers.”

Industry leaders are pushing for solutions. “Washington officials can help put more people into high-paying careers by boosting funding for construction training and education programs,” said Jeffrey D. Shoaf, AGC’s chief executive officer. “Those investments will take time to make a difference, which is why they also should expand visa opportunities for qualified workers to lawfully enter the country and work in construction in the short-term.”

Economic Uncertainty: Iran Conflict and Rising Fuel Costs

Not all the news is rosy. The construction unemployment rate is now 6.7%, and higher oil and diesel prices (up nearly $2/gallon since January) are squeezing bottom lines – especially for contractors running service fleets. Ongoing conflict in Iran has driven energy costs to levels not seen since 2022, and higher interest rates continue to make borrowing for equipment or business expansion more expensive.

“While contractors were relatively optimistic about the near-term outlook as of February, it remains to be seen how long that optimism can persist under current economic conditions,” warned Anirban Basu, chief economist for Associated Builders and Contractors. “The March jobs data do not capture the detrimental ways in which the conflict in Iran will continue to affect the construction industry.”

DOL Secretary: Construction Growth Proves “America’s Economic Comeback”

Federal officials are pointing to construction as a sign that the country’s economic recovery is picking up steam. “Job growth smashed expectations, with a remarkable 178,000 jobs added in March,” said U.S. Secretary of Labor Lori Chavez-DeRemer. She emphasized that the gains are “evident through strong growth in construction jobs, particularly factory construction, and manufacturing having its first positive quarter in several years – proving that we are bringing production back to the United States.”

Chavez-DeRemer credited recent policies for driving the rebound, saying, “President Trump’s economic policies are working as planned, and Americans are feeling the benefits as we reindustrialize our nation after years of decline under the previous administration.” For HVAC contractors, this means more opportunities tied to new builds and retrofits as the U.S. industry continues to expand.

With most other industries shedding jobs and construction still growing, HVAC contractors have an opportunity – but only if they can find and keep the right talent. Industry groups are urging Congress to boost funding for trade education and to open up more visas for qualified construction workers, but any fix will take time.