Construction makes up one in every 20 jobs in Minnesota (CareerForce, 2025). But what other trends are shaping the industry? We asked Peter Hilger, faculty director of the Construction Management program, to share how the construction industry is evolving and how the University of Minnesota is helping students gain the in-demand skills, expertise, and professional insight to meet workforce needs.
How is the construction industry changing across Minnesota?
If it is possible to have both feet on the gas and hovering closely over the brake at the same time, that would best describe the current construction industry climate. The demand for labor stemming from the COVID crisis remains high and has not reached prepandemic levels in certain sectors. Coupled with the overall labor shortage, immigration concerns have driven away a significant section of the construction labor pool. Despite this, Minnesota has a strong labor market. The Minnesota Department of Employment and Economic Development projects a 7.6% labor growth rate for the industry through 2032, compared to only 4.6% for all other industries. The labor shortage has also boosted wages to an average of $85,000 in 2024, which is about 16% higher than in other industry sectors in Minnesota.
That said, the fear of slipping into a recession has firms worried about their backlog. Uncertainty in interest rates, immigration policy, market stability, and reliable government data keep the industry’s foot ready to depress the brake.
Where do you see the most exciting career opportunities emerging in construction?
Innovation. It’s just a matter of time. Drones and robots are increasingly common in the community for deliveries, at airports, and even on construction sites. And the applications of artificial intelligence are just now barely touching the industry in terms of usable applications. The industry needs smart people to design and implement these solutions, as it has historically lagged behind other industries in technological innovation.
Does Minnesota have the workforce to meet modern construction needs?
No, construction still suffers from the “dirty jobs” syndrome, and it takes a special person to want to work in the field. Despite rising pay, which is higher on average than in all other industry sectors measured, the industry still struggles to meet demand. The labor shortage forces construction costs upward, too, leading to lengthy and delayed schedules. In my view, Minnesota has a very strong and reliable workforce, thanks in large part to union training facilities and robust technical training programs. We just need more to fulfill demand.
What are the biggest challenges impacting the industry today?
Labor and market uncertainty. What is on economists’ minds, and my mind as an educator, is revisiting a 2008 Great Recession scenario that is largely a manufactured outcome. When you have an economy that wildly changes the rules of engagement—from canceling large infrastructure or energy projects midstream to the wide swings in tariffs—planning becomes extremely difficult. We need to get back to a steady state, where project planning can account for less uncertainty in future market supply, demand, and pricing.
How does your work at the University of Minnesota help support our state’s construction economy?
I tell anyone who asks that I am in the workforce development business, with a side hustle in construction management training—and now, a new real estate minor and certificate program. For over 15 years, since the Great Recession, we have been able to place nearly 100% of our students into industry positions upon graduation. The really interesting part is that the jobs are so varied across the entire industry. It is really easy to find a personal niche, whether in the field or in an office, whether for a construction company, a subcontractor or supplier, as an owner’s representative, or even into parallel sectors like software development tied to industry needs. As boomers retire, we are developing their replacements.
This story was originally published as Talking Construction Industry Trends with University of Minnesota.
