Labour Shortage Stalls Visakhapatnam’s Construction Boom

Representative image
Representative image

VISAKHAPATNAM: Construction activity in Vizag is on the rise, both in public and private sectors. However, builders caution that this growth is being hampered by a shortage of skilled labor. Projects related to smart city upgrades, airport expansions, and housing are progressing, yet contractors report that the lack of trained workers is leading to delays and increased costs.

Contractors are struggling to find experienced masons, electricians, and finishing workers. This shortage is extending project timelines and inflating labor costs, particularly impacting small and medium enterprises. National industry assessments pinpoint this lack of skilled labor as a significant challenge for the construction sector.

A senior project manager noted, “A project moves only as fast as its workforce,” highlighting that while machinery and materials are readily available, progress halts without qualified workers.

E Ashok Kumar, President of CREDAI Visakhapatnam, stated that the gap between demand and supply is widening due to the expanding development pipeline in the city. “Most builders are willing to take on additional work, but the supply of skilled labor is lagging. For Visakhapatnam to achieve its infrastructure goals, we require a more robust and reliable workforce,” he remarked.

Kumar mentioned that CREDAI is in the process of establishing a skill development center aimed at enhancing craftsmanship and boosting the confidence of workers engaged in specialized tasks.

Builders also highlighted that major public projects in surrounding districts are attracting laborers to higher-paying jobs, making it harder for city contractors to retain their workforce. While training institutes in Vizag are introducing new programs, administrators argue that short-term courses alone are inadequate to meet industry demands and are advocating for apprenticeships and on-the-job training.

Municipal projects like road works and public hostels are already experiencing delays due to the labor shortage, which is postponing benefits for residents. Real estate developers warn that prolonged timelines could weaken buyer confidence in housing markets.

Industry representatives are calling for a coordinated strategy that includes expanded apprenticeships, connections between contractors and training institutes, and incentives for certified workers to remain in the region. Builders emphasize that the next 12 to 18 months will be crucial: if training programs expand swiftly, Vizag might sustain its growth; if not, delays and rising expenses could hinder progress.

  • Published On Dec 8, 2025 at 09:03 AM IST

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