The concepts of diversity, equity, and inclusion (DEI) have come under scrutiny in recent years, particularly following the 2023 Supreme Court decision ending race-based college admissions and broader political debates about affirmative action. But these principles are not new, and in construction, they have long served both legal and business purposes.
The push for equity dates back at least to the Civil Rights Act of 1964, which made it illegal to discriminate in employment based on race, color, religion, sex, or national origin. Many of today’s construction compliance programs are grounded in that legislation, not as political statements, but as tools to create access and opportunity in an industry that has historically lacked diversity at many levels.
The Construction Workforce Today
The construction industry has long been dominated by white men. According to the U.S. Bureau of Labor Statistics (BLS), as of 2020:
- Women comprised about 10% of the construction workforce (compared to approximately 47% across all industries)
- Hispanic workers made up 30% of construction (versus approximately 18% across all industries)
- Non-Hispanic Black workers made up 5.1% (compared to 11.8% overall)
- Non-Hispanic Asian workers comprised just 1.8% (versus 6.2% in the general workforce)
Yet change is underway. In 2003, non-Hispanic white workers made up 71.2% of the construction industry. By 2020, that number had dropped to 60.9%, reflecting growing participation from historically underrepresented groups.
A Shrinking Workforce, a Growing Opportunity
The construction industry is not just grappling with diversity gaps. It is also facing a critical labor shortage. After the 2008 recession, many workers left the industry and did not return. The pandemic only worsened this trend. According to the Associated Builders and Contractors (ABC), the industry will need to attract an estimated 439,000 net new workers in 2025 to meet demand. And that figure may be conservative.
Shortages increase costs and delay projects. One study by the National Association of Home Builders found that skilled labor shortages cost the homebuilding industry over $10 billion annually in lost production and carrying costs.
The math is simple. The construction industry needs more people, and more pathways for them to enter, advance, and succeed.
Equity Gaps in Leadership
BLS data shows that Hispanic and Black workers are more likely to be employed in field labor roles, such as carpenters and electricians, than in management or executive roles.
For example, 26.2% of non-Hispanic white and 24.8% of non-Hispanic Asian workers hold construction management, business, or finance roles. In contrast, only 9.9% of Hispanic and 12.3% of Black workers do.
This gap can discourage young people from entering the field at all. According to a UCLA Center for Scholars & Storytellers study of Gen Z, most teens still value the American dream of financial success through hard work. But many feel certain industries are closed off to them.
If underrepresented individuals do not see people like themselves in leadership or ownership, they may assume advancement is not possible.
Representation Builds the Pipeline
Representation matters. When women and minorities see others succeeding in construction, starting companies, managing teams, winning contracts, it creates a ripple effect. It shows that construction can be a place to build a lasting, lucrative career.
Helping diverse-owned businesses thrive also strengthens the industry’s talent pipeline. These companies become employers, mentors, and examples for the next generation.
What Compliance Actually Means in Construction
There is a common misconception that diversity goals in public construction projects are about quotas. In fact, most programs are structured around goals, certifications, and access, not mandates.
Federal, state, and local agencies often set participation goals to ensure that qualified Minority- and Women-Owned Business Enterprises (MBEs and WBEs), Disadvantaged Business Enterprises (DBEs), and Section 3 firms have a fair shot at public projects.
These programs do not require companies to hire based on race or gender. Instead, they:
- Encourage general contractors to include certified diverse subcontractors in bids
- Track progress toward more equitable participation
- Expand the pool of capable, competitive suppliers and vendors
As Construction Dive explains, set-asides or strict quotas, such as requiring 30% of all hires to be women, can cross legal lines. But merit-based hiring, outreach, and inclusive procurement that expand access are fully legal and, in many cases, expected by public agencies.
Diversity and Profitability Go Hand-in-Hand
There is also a business case for diversity. A landmark 2019 McKinsey study found that companies in the top quartile for gender diversity on executive teams were 25% more likely to outperform financially. Those with high ethnic and cultural diversity were 36% more profitable than those with the least diversity.
Put simply, diverse leadership teams are linked to better outcomes.
A Better Industry for Everyone
Construction is foundational to America’s growth. And its workforce should reflect the full range of people who live here. When the industry opens doors, builds pathways to leadership, and includes a wider set of qualified businesses, everyone benefits.
Diversity is not a new idea. It is an American tradition. And in construction, it is also a smart business move.