Tennessee construction companies are feeling the impact of the Trump administration immigration crackdown as workers failed to show up at job sites due to fears of enforcement activity, according to a survey by the Associated General Contractors of America.
The survey of all 50 states included responses from 22 commercial construction firms and contractors in Tennessee. Nearly a third of those surveyed reported annual revenues between $50 and $500 million; the majority were mid-sized firms, employing between 20 and 100 workers.
Over the past six months, 9% of Tennessee construction companies surveyed reported a jobsite was visited by immigration agents; 18% reported that workers failed to appear at work or left job sites “because of actual or rumored immigration actions”; and 32% reported their subcontractors had lost workers as a result of immigration enforcement actions.
Nearly one in four companies said they had adjusted project schedules or scopes due to labor or material shortages linked to immigration enforcement and other Trump policy changes.
A majority of companies listed economic worries as their biggest concerns for 2026, including fears of an economic slowdown or recession and the rising costs of labor and materials.
The concerns of Tennessee businesses were echoed in other states.
“One reason for their lowered expectations is that contractors are increasingly worried about the broader economy, the possibility of a recession, and the outlook for materials costs amid ongoing uncertainty around tariffs and trade policy,” the survey concluded. “At the same time, many firms remain concerned about persistent labor shortages and also report plans to boost investments in artificial intelligence to improve efficiency.”
This story was originally published by the Tennessee Lookout.
