NASHVILLE, Tenn. (WTVF) — Tennessee's construction industry is experiencing unprecedented growth with some of the most optimistic projections in the country, but immigration enforcement policies are creating staffing challenges that could slow down the building boom across the state.
Chances are no matter where you go in Middle Tennessee you've seen construction. New data shows Tennessee's boom in building could hit a roadblock, and it's happening right now on job sites across the state.
Industry leaders say immigration enforcement policies are creating serious staffing challenges, keeping people from showing up to sites across the state.
A new survey from the Associated General Contractors of America on the 2026 Construction Industry Outlook reveals 45% of Tennessee construction firms are being directly impacted. Eighteen percent of Tennessee contractors say workers have failed to show up or left jobs due to actual or rumored immigration actions. Another 32% report their subcontractors have lost workers to enforcement activities.
This is happening as the industry already struggles to fill positions. Eighty-eight percent of Tennessee firms say they're having trouble hiring hourly craft workers.
"So it's already stressing an already tight labor supply. The firms have always had difficulty hiring qualified workers. In Tennessee, specifically, is what was reflected in the data is that immigration enforcement is negatively impacting them," Marina Wilkins said.
Wilkins is a senior research analyst with the Associated General Contractors of America.
"Any environment that creates a degree of fear mongering is, you know, not going to be conducive to any growth," Wilkins said.
Despite these challenges, Tennessee construction companies are significantly more upbeat than businesses in other states. Forty-five percent of Tennessee construction firms say they have bigger backlogs of work lined up compared to last year. Fifty-nine percent are confident about their upcoming projects, and 64% plan to hire more workers in the coming year.
Data centers are the big winner with 67% of companies expecting more projects there. Water and sewer work is up 50%, and hospital construction is growing 38%. Companies building roads, bridges, and factories are also seeing more business ahead. Forty-five percent of Tennessee construction firms say they have more work lined up now than they did last year.
"It's an early indicator as to whether or not there's growth. You're seeing an increase in construction spending or construction employment. You're building facilities to facilitate the growth of a region," Wilkins said.
While construction nationally is struggling with five different sectors seeing declines, Tennessee only has three areas slowing down: college buildings, office space, and retail stores.
This construction activity signals Tennessee's economy is attracting new businesses and residents who need more buildings, roads, and infrastructure.
The timing of this comes as many companies are trying to expand. With Republican legislators announcing plans for even stricter enforcement measures, construction leaders say this labor shortage could slow down the construction boom.
Sixty-four percent of Tennessee construction companies plan to hire more people, so while dealing with growing pains around town might be frustrating, it's a sign that Tennessee's economy is doing well.
Want to see the construction boom happening across Middle Tennessee and hear directly from industry experts about these workforce challenges? Watch our full report from a downtown Nashville construction site. Want to share your experiences with local building projects? Contact Eric.Pointer@NewsChannel5.com
This story was reported by Eric Pointer and has been converted to this platform with the assistance of AI. Eric Pointer and our editorial team verifies all reporting on all platforms for fairness and accuracy.
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