The Excavation Contractor Shortage: Why Booking Your Project Early is Critical in 2025

The construction industry is facing an unprecedented labor crisis, and excavation contractors are feeling the squeeze more than ever. The Associated Builders and Contractors (ABC) predicted the industry needed 439,000 more workers in 2025 alone, creating a perfect storm of high demand and limited availability that’s directly impacting homeowners and businesses planning excavation projects.

The Reality of Today’s Excavation Market

The market size of the Excavation Contractors industry in the United States is $145.4bn in 2025, yet labor shortages have led to surging wage costs, forcing contractors to hike wages to attract and retain workers. This combination of massive demand and worker scarcity is creating significant challenges for property owners who need excavation services.

The construction sector continues to grapple with a significant talent shortage. Between August 2023 and July 2024, the industry had an average of 382,000 job openings each month—a third consecutive year with an increased average close to 400,000. For excavation work specifically, this translates to longer wait times, higher costs, and increased competition among customers for available contractors.

Why Early Booking Has Become Essential

The current market dynamics make early project planning more critical than ever. With fewer skilled professionals and trade contractors available, projects face significant delays. Even highly complex, large projects suffer, with general contractors struggling to find the necessary workforce. This shortage affects everything from residential foundation work to commercial site preparation.

The unweighted average increase in construction time due to the labor shortage is 1.98 months, with smaller builders experiencing an even greater delay. For excavation projects, this means what once took a few days might now stretch into weeks, especially during peak construction seasons.

The Financial Impact on Your Project

The contractor shortage isn’t just about timing—it’s hitting wallets hard. Higher wage costs have contributed to profit declines for contractors, costs that inevitably get passed on to customers. Average hourly earnings throughout the industry are up 4.4% over the past 12 months, significantly outpacing earnings growth across all industries.

For homeowners, this means excavation costs that were predictable just a year ago are now subject to significant fluctuations. Industry leaders warn that if the worker shortage isn’t addressed, labor cost escalation will accelerate further, potentially pricing out certain projects. In effect, the labor crunch is not only a workforce issue but also a constraint on construction capacity – fewer available workers at higher wages mean fewer projects can get built for a given budget.

What This Means for Your Excavation Project

Whether you’re planning foundation excavation, septic system installation, or site preparation, the current market requires a strategic approach. Quality contractors are booking projects months in advance, and those who wait until the last minute often find themselves with limited options or significantly higher costs.

The shortage is particularly acute for specialized excavation work. Companies that can handle complex projects—from dealing with challenging soil conditions to coordinating with multiple trades—are in especially high demand. This makes finding experienced Excavating Contractors who understand local conditions and can deliver reliable results more challenging than ever.

The Local Advantage: Why Regional Expertise Matters

In this challenging market, working with established local contractors becomes even more valuable. Companies like Emerson Excavating and Trucking, which serves Saratoga, Washington, and Warren Counties in New York, understand regional soil conditions, local regulations, and seasonal challenges that can impact project timing and costs.

Local contractors often have established relationships with suppliers and other trades, helping to mitigate some of the supply chain issues that can further delay projects. They also understand permit requirements and can navigate local regulations more efficiently than contractors from outside the area.

Strategies for Securing Quality Excavation Services

To navigate the current market successfully, property owners should start planning excavation projects well in advance. Contact multiple contractors early in your planning process, even if your project is months away. Quality contractors appreciate advance notice and may be able to provide better pricing for projects scheduled during their slower periods.

Be prepared to be flexible with timing. Contractors dealing with the current labor shortage may need to adjust schedules based on crew availability and weather conditions. Those willing to work around contractor schedules often receive better service and pricing.

Consider the total value proposition, not just the lowest bid. In a market where quality contractors are scarce, choosing based solely on price can lead to delays, additional costs, and subpar work that requires expensive corrections later.

Looking Ahead: When Will Conditions Improve?

This cooling in demand growth, combined with a younger and somewhat larger workforce (thanks to recent hiring gains), means the labor shortage won’t worsen as rapidly as before. In the meantime, contractors will continue to compete for talent in a historically tight labor market – a trend likely to persist through 2025 and beyond, with broad implications for construction costs and capacity.

The excavation contractor shortage represents a fundamental shift in how construction projects must be planned and executed. Property owners who adapt to this new reality by booking early, working with established local contractors, and maintaining flexible timelines will be best positioned to complete their projects successfully.

The key is understanding that in today’s market, quality excavation contractors are a limited resource. Those who recognize this reality and plan accordingly will find themselves ahead of the competition for these essential services, while those who wait may face significant delays and higher costs that could impact their entire project timeline and budget.