General Contractors have been around for decades and are depended upon by homeowners, but recent changes in government are bringing pre-existing issues to light. Since 2009, the Construction industry has been facing a lot of challenges following the recession era. In 2009, federal spending on residential construction plummeted 56%, according to Bureau of Labor statistics. 

Homeowners with a lack of knowledge of the construction needed for their homes have been finding it extremely difficult to find reliable contractors who will not take advantage of them or get them caught up in trouble.

In replacement of licensed independent contractors and subcontractors, General Contractors and Employers often employ illegal immigrants and classify them as independent contractors to avoid higher wages and claims for work accidents rather than actually employing licensed workers.

To combat this The Department of Labor (DOL) Statistics revised the standards that classify workers and independent contractors in 2024. With this revised rule, the DOL hopes to increase federal wages, however they are facing legal challenges to keep the rule in act. 

With Trump in office and the government cracking down on illegal immigration, many companies are being exposed for their roles in the ongoing issue. For example, a North Texas Construction Company is being forced to pay the US government $3 million for its role in a scheme employing “illegal aliens” according to US customs enforcement.

The question becomes: what does this look like for the industry in the next decade? 

These challenges provide a huge opportunity for the next generation. The trades are a fulfilling and financially rewarding job, and are especially popular among young men. 

Larger companies may replace General Contractors in remodeling work or General Contractors will face difficulties hiring new employees who are licensed and may be forced to provide 401ks and licensing programs for tradesmen.