Fresh off the most divisive election of our lifetimes, many are wondering what it means for their personal, community, and organizational interests. Building Advantage, which works on behalf of the union commercial construction industry, is in the same boat at these early stages of this historic political transition. What we do know is that the construction industry is driving economic growth, and the Trump administration would be well suited to listen to what and who is driving that progress.
One sector within the construction industry that stands out for its job and economic growth is new energy-related construction. While increased energy demands from projects like the Microsoft Data Center contribute to this rise, the primary drivers are infrastructure upgrades and substantial investments in renewable energy. This past year, the growth rate of energy-related construction jobs nearly doubled overall construction job growth, underscoring the sector’s pivotal role in shaping our industry’s future.
A large part of this growth is related to the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Act (BIL) which passed under the Biden Administration and are having a tremendous impact on the economy. For example, $1 billion will be coming to Wisconsin alone in 2025 for the expansion of broadband statewide. Nationwide, the IRA contains $370 billion in spending and tax breaks that aim to boost clean energy, creating and impacting a countless number of projects in Wisconsin.
Employment growth in the construction industry remains strong, outpacing many other job sectors. This momentum highlights the positive impact of the BIL and IRA, which are effectively stimulating job creation across the union construction industry. These initiatives are not only rebuilding our roads, bridges, water systems, utilities, and broadband networks but are also driving the expansion of new green energy infrastructure.
A local energy company recently announced a $2.1 billion increase in renewable energy projects over the next four years, bringing its total investment to $9 billion. This commitment is aimed at diversifying our energy supply to meet the growing demands of data centers and AI technology. These are staggering figures—yet this investment represents just one energy company in the state. Across Wisconsin, numerous commercial, government, and residential projects are leveraging funds and incentives, many of which are bolstered by tax credits and incentives in the IRA. These historic investments are accelerating our shift to clean energy and supporting sustainable growth statewide.
The economy can be fickle, and the Trump administration would do well to heed the construction industry’s insights and take a thoughtful approach before reconsidering the investments driving current economic growth—particularly those in the green energy sector. This isn’t a partisan issue; many states that supported Trump are experiencing some of the highest construction job growth, including in green energy.
Between September 2023 and September 2024, construction jobs rose in 80% of states, according to the Associated General Contractors of America (AGC). Red states like Texas saw a 5.1% increase, Florida 5.9%, and Ohio 6.9%, while Alaska led with a remarkable 21.1% rise. In contrast, blue state, New York, saw a slight decline of 1.8%. Here in Wisconsin, construction job growth surpassed other sectors, adding nearly 5,000 jobs, a 3.6% increase. These numbers underscore the critical role of federal investment in driving robust construction and energy job growth nationwide.
While many Americans may feel pessimistic about the economy, construction jobs have been on a strong upward trajectory. However, rising interest rates and material costs are significantly impacting construction expenses, leading to noticeable slowdowns, particularly in multifamily projects. Office construction has nearly ground to a halt, reflecting shifts in workplace dynamics.
The bright spot sustaining the industry is the substantial federal investment from the Bipartisan Infrastructure Law (BIL) and Inflation Reduction Act (IRA). These historic commitments are keeping critical projects moving and supporting job growth across the sector. Let’s keep this momentum going and hope the Trump administration understands the long-term benefits of these initiatives.
