Hawaiʻi's construction industry is facing significant challenges. A recent report indicates that the state ranks among the worst in the nation for construction, which has implications for local businesses and the overall economy. This situation presents both obstacles and opportunities for entrepreneurs, investors, and professionals in the islands.
According to KHON2's analysis, Hawaiʻi ranks ninth amongst states where the construction industry is struggling the most. Compounding the issue, ABC Hawaii's Construction Industry Outlook 2025 highlights ongoing labor shortages, which contributes to increased labor costs, putting pressure on project budgets and timelines. This can make it difficult for local businesses to compete and hinder new development.
However, there are signs of potential growth. Maui Now's report indicates that despite challenges, Hawaiʻi's construction payroll jobs are at record levels. The demand for skilled labor remains high, creating opportunities for workers and businesses that can adapt to the changing landscape. This demand could also foster innovation in construction, as companies seek ways to improve efficiency and reduce costs.
The challenges facing the construction industry may be partially offset by the overall economic growth. KHON2 notes that the state's economy is projected to grow, driven by sectors like construction and real estate. Moreover, addressing the labor shortage by attracting and retaining skilled workers is crucial for ensuring that the construction industry can contribute to the state's long-term economic recovery and development.
The rising cost of labor and the need to import workers, as detailed in a Civil Beat article, further complicate the situation. Understanding these dynamics is essential for investors and developers, who must carefully assess project feasibility amidst these fluctuations. Furthermore, the state's challenges in high-tech employment, as highlighted by KHON2, suggest a need to diversify and attract businesses and talent to strengthen the economy.
