Hardscape Industry Demand Is Up But Labor Shortage Poses Challenges
HERNDON, VA -- The hardscaping industry continues to benefit from strong demand for outdoor living spaces, but a new report from the Concrete Masonry & Hardscapes Association (CMHA) shows that delivering that work is becoming increasingly challenging. Labor shortages remain the industry's top concern, while rising insurance premiums, escalating overhead costs, increased competition and challenges securing H-2B visas are creating new obstacles to growth and profitability.
"The hardscaping market continues to offer tremendous opportunity, but success is becoming increasingly dependent on how well contractors manage the business side of their operations," said Robert Thomas, president and CEO of the CMHA. “This report provides a snapshot of the challenges shaping our industry and the opportunities available to companies that are prepared to adapt.”
CMHA's annual Contractor Industry Report surveys contractors throughout North America and tracks trends, opportunities and challenges they are facing. While the report covers a broad range of topics, five key issues emerged as the most significant concerns for contractors in 2026.
Workforce Challenges Continue to Dominate
Finding and keeping qualified employees remains the industry's most pressing concern.
Recruiting skilled workers ranked as the number one challenge facing contractors, while retaining quality employees also placed among the top concerns. As demand for experienced labor continues to outpace supply, many contractors are investing more heavily in workforce development, training and retention strategies.
Rising Costs and Workforce Access Add to New Pressures
Contractors are also navigating increasing financial and labor-related pressures across nearly every aspect of their businesses. Increasing overhead costs remains a major concern as companies contend with higher labor, fuel, equipment and material expenses. Meanwhile, rising insurance costs debuted among the industry's top challenges, highlighting the growing impact of liability, workers' compensation and vehicle coverage costs on profitability.
New survey questions this year also revealed another challenge making an immediate impact: acquiring H-2B visas. As labor shortages persist, many contractors increasingly rely on seasonal workers to meet demand, but limited visa availability and a competitive application process are creating uncertainty around workforce planning and project scheduling.
Competition Continues to Intensify
While labor and costs dominate the conversation, competition remains a significant concern across the industry. With more contractors competing for projects and customers increasingly comparing options online, businesses are looking for new ways to differentiate themselves through expertise, craftsmanship, certifications and customer experience.
"The good news is that many of these challenges are manageable when contractors have access to the right tools, training and information," Thomas said. "Through certification programs, workforce development, technical education, industry research and peer networking, CMHA helps contractors improve efficiency, build credibility, strengthen their teams and ultimately grow more profitable businesses."
Competition Continues to Intensify
While labor and costs dominate the conversation, competition remains a significant concern across the industry. With more contractors competing for projects and customers increasingly comparing options online, businesses are looking for new ways to differentiate themselves through expertise, craftsmanship, certifications and customer experience.
"The good news is that many of these challenges are manageable when contractors have access to the right tools, training and information," Thomas said. "Through certification programs, workforce development, technical education, industry research and peer networking, CMHA helps contractors improve efficiency, build credibility, strengthen their teams and ultimately grow more profitable businesses."
CMHA has made the full report accessible to the public.
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