Impact Statement on National HEO training
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Impact Statement: The Economic Case for Investing in Heavy Equipment Operator Training (2026–2030)
The U.S. construction industry faces a persistent labor shortage that is projected to drive an additional $57 billion in excess payroll costs for heavy equipment operators alone over the five-year period from 2026 to 2030 if no significant action is taken. This excess arises from sustained wage premiums of 20–30% as contractors compete for a limited pool of skilled workers, pushing total annual payroll from $34.5 billion in 2026 to $43.5 billion by 2030.
By contrast, a strategic industry-wide investment in training and recruitment—estimated at just $2.74 billion over the same period (An investment of 2% of Gross payroll from each NUCA member contractor could addressed-shortage scenario, or roughly $1,100–$1,240 per operator annually)—could largely eliminate the shortage-driven wage premiums. This would hold payroll closer to $25.8–$29.1 billion annually, aligning wage growth with broader economic norms (~3% annually). This approach gives stability to funding and workforce development targeted for Heavy Equipment Operators.
Net benefit of action vs. inaction:
- Gross savings: ~$57 billion in avoided excess payroll costs
- Investment required: ~$2.74 billion in training/recruitment
- Net savings to the industry: ~$54.3 billion over five years