On the Road with ITR Economics

  • by itradmin - Thu, 03/16/2017 - 07:18

During a recent presentation to a group of CEOs in Texas, I found out about the very tangible and substantial impact that the recent ICE (Immigration and Customs Enforcement) raids are having on the construction sector in the state. Much of the contracted labor used by the construction industry in the region is sourced from a pool of undocumented immigrants, many of whom are from Mexico. When there is an ICE raid, the news spreads like wildfire through text messages and other online media channels like Facebook and Twitter. As a result, on any given day, as much as 70% to 80% of the labor pool may not show up for work due to fear of being rounded up for deportation. This places a severe strain on the supply of labor in Texas and other border states, resulting in project delays and significant costs. Furthermore, it exacerbates an existing labor shortage in the construction industry, and limits the growth potential for the sector in the affected regions.

Alex Chausovsky
Senior Analyst