An electrical contractor has initiated an aggressive recruitment campaign to help them develop Texas’ digital and energy infrastructure.
San, Jose, California-based Rosendin is aiming to hire 700 tradeworkers for their teams in Dallas-Fort Worth, Temple, Abilene, and Austin, according to a recent Construction Dive article.
Workers in these markets have contributed to projects such as the Austin-Bergstrom International Airport terminal expansion and infrastructure upgrades at Texas A&M and the University of Texas. The company is currently hiring commercial electricians, journeymen, and solar panel installers for various Texas-based projects, including offsite manufacturing, aviation, transportation, semiconductor facilities, commercial, education, data centers, and renewable energy projects.
“Our growth in Texas catapulted in 2023, with contract awards in biomedical, transportation, semiconductor and mission-critical,” said Rosendin Operations Manager, Shaun Mahan. “The momentum of 2023 has continued throughout 2024 and we expect it to extend well beyond 2025. We continue to see tremendous growth in the data center market to support the growing demand for AI, cloud resources, and data analytics. The demand for skilled tradespeople and project leadership continues to exceed the labor supply.”
Construction Dive’s reporting notes that Rosendin has developed a strategy to separate itself from the competition to find the workers it needs despite the ongoing skilled labor shortage.
The company partnered with local branches of the International Brotherhood of Electrical Workers and the National Electrical Contractors Association to establish the Electrical Training Alliance, Mahan explained.
“This program combines classroom and online learning to improve the apprenticeship experience and offer flexibility,” he added.
Along with collaborating with local union halls to recruit men and women interested in pursuing careers as electricians, Mahan said the company aims to strengthen the workforce for the long term by partnering with local school districts to inform students, parents, and teachers about opportunities in the field.
To support this effort, the company has intensified its recruitment efforts in Texas, including launching a hiring website to attract craftworkers in the region.
Mahan told Construction Dive that Rosendin’s hiring initiative is going “extremely well” so far, but most of the onboarding will come next spring. The firm expects to hire approximately 500 electricians by April.
“We foresee the new hires in Texas becoming valuable assets to the Rosendin team and potential conduits for future leadership, innovations and award-winning work,” Mahan said. “We’re a culture of learning and development, so it’s always exciting to see what the next generation of craft workers will do with their legacies.”
Ongoing Construction Trends at Odds
Rosendin’s hiring spree speaks to two ongoing trends: the boom in construction projects centered around artificial intelligence and data centers, and their extraordinary power needs, and the dearth of skilled tradespeople to complete these projects.
In recent years, the United States has experienced a substantial increase in data center construction, fueled by the ever-growing demand for data processing and storage. This surge reflects not only the rising consumption of digital services by consumers and businesses but also a strategic effort by tech giants and investors to strengthen infrastructure for an increasingly digital future.
Several key factors contribute to the rapid expansion of data center construction in the U.S.:
- Digital Transformation: As more businesses undergo digital transformations, the need for robust IT infrastructure to support cloud computing, big data analytics, and online services has skyrocketed
- Internet of Things (IoT) and AI: The proliferation of IoT devices and the advancement in AI technologies have created vast amounts of data that need processing and storage, further fueling the demand for data centers
- Remote Work and Learning: The shift towards remote work and online education, significantly accelerated by the COVID-19 pandemic, requires substantial data processing capabilities, which data centers provide
- Legal and Regulatory Factors: Data sovereignty laws and privacy regulations, such as GDPR in Europe, are prompting companies to localize data storage and processing, leading to increased construction of data centers across the U.S.
- Geographic Hotspots: While data centers are being built across the country, certain regions have emerged as hotspots, including Northern Virginia, which hosts the largest concentration of data centers globally. Other significant areas include Silicon Valley, Dallas, Chicago, and Phoenix. These regions are favored due to their relatively low energy costs, favorable climate for natural cooling, and robust connectivity infrastructure.
One of the most noteworthy trends in data center construction is the focus on sustainability. Companies are increasingly adopting green building practices and striving to achieve energy efficiency and reduce carbon footprints. This involves the use of renewable energy sources, advanced cooling mechanisms, and innovative architectural designs that minimize energy consumption.
Despite this trend, data centers are intensive energy users. As their number grows, so does their impact on the energy grid and resources. Balancing this demand with the need for sustainability is a continuing challenge, which is why tech giants like Amazon and Microsoft have begun exploring unique solutions such as powering their data centers with nuclear energy.
This increasing demand for technology-driven construction projects has only exacerbated the issues related to the construction industry’s severe labor shortage.
A large portion of the industry’s workforce is at or nearing retirement age. In 2022, the median age of workers in construction and extraction occupations was 41.2 years, according to the Bureau of Labor Statistics (BLS). Nearly 45% of construction workers were aged 45 or older, highlighting that a significant portion of the workforce is nearing retirement. While an aging workforce is a trend across many sectors — the median age of U.S. workers was 42.3 in 2022 — construction has been particularly impacted by this demographic shift.
The construction industry’s perception as one that is volatile and lacking job security has made it difficult to attract younger talent. The industry has also struggled to compete with other industries that offer more attractive working conditions. Seasonal work, long hours, and physically demanding tasks make the profession less appealing to younger generations, who often prioritize work-life balance and job stability.
The labor shortage has forced many contractors to turn down new projects due to a lack of staffing, resulting in delayed timelines and increased costs. This coupled with the ongoing, high demand for construction projects has left the construction industry in an untenable position.
As Rosendin is illustrating with their initiative, construction firms have had to develop more proactive recruitment and retention strategies. These include:
- Early Outreach and Education: Engaging with students at younger ages is critical to changing perceptions of the construction industry and presenting it as a viable and rewarding career path. This involves introducing skilled trades as early as elementary and middle school and investing in vocational programs at high schools and community colleges
- Enhanced Diversity and Inclusion Efforts: The construction workforce has historically been dominated by older, white males, which has created a narrow view of who is a fit for the industry. To break this stereotype, companies are placing a greater emphasis on diversity, equity, and inclusion (DEI) initiatives to attract women, minorities, and other underrepresented groups. Once recruited, retaining a diverse workforce requires creating an inclusive environment that acknowledges the unique challenges faced by these groups and offers support such as childcare and flexible working arrangements
- Technology and Innovation: Leveraging new technologies can also play a pivotal role in attracting younger generations. Digital twins, artificial intelligence (AI), and other innovations can help reduce some of the physical and repetitive aspects of construction work, making the industry more appealing to tech-savvy individuals
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