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New research identifies construction skilled labor gap as a major barrier to post-disaster rebuilding

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ATLANTA, Jan. 20, 2026 /PRNewswire/ -- One year after the devastating Los Angeles wildfires, new res...

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Research from The Home Depot Foundation reveals significant issues in post-disaster recovery, particularly a skilled labor shortage. With 60% of communities struggling to rebuild efficiently, Home Depot's initiatives, like the Path to Pro program, aim to mitigate these challenges, potentially enhancing its brand loyalty and sales in the long run.

Sentiment Rationale

HD's proactive approach to labor shortages positions it favorably in the market. Historically, companies that invest in community resilience and workforce training have seen enhanced brand loyalty and revenue growth, especially after disasters.

Trading Thesis

Invest in HD for long-term growth driven by its workforce initiatives and disaster recovery efforts.

Market-Moving

  • The skilled labor shortage could hinder recovery, impacting construction retail demand.
  • Increased community reliance on Home Depot may boost sales in rebuilding materials.
  • The Path to Pro program may lead to higher brand loyalty and customer retention.
  • Investments in workforce development could position HD advantageously in the labor market.

Key Facts

  • 60% of Americans doubt their community's rebuilding skills after disasters.
  • 52% of those rebuilding face longer recovery times than expected.
  • 78% in disaster-stricken areas report long-term recovery challenges.
  • 40% of construction workforce will retire by 2031, worsening labor shortages.
  • Home Depot Foundation's programs aim to address the skilled labor gap.

Companies Mentioned

  • SkillPointe Foundation: Partnering with Home Depot Foundation for scholarships in trades education.
  • Team Rubicon: Collaborating on workforce initiatives for disaster zones and skilled trades training.

Corporate Developments

This news fits under 'Corporate Developments' as it highlights Home Depot's initiatives to address a critical workforce shortage in the construction sector, enhancing its community support and relevance in post-disaster rebuilding efforts.

Research Highlights Skilled Labor Shortage as Barrier to Post-Disaster Rebuilding

One year after the devastating Los Angeles wildfires, new findings from The Home Depot Foundation and Morning Consult reveal a significant challenge in disaster recovery: a shortage of skilled labor despite available funding. This research underscores the pressing need for workforce development in the construction industry.

Key Findings from the Survey

The survey indicates that nearly 60% of Americans have little confidence in their community's ability to recover quickly from disasters. Professional contractors working in recovery projects cite a lack of qualified labor as a primary concern, impacting timely rebuilding efforts. The following insights were pivotal:

  • 36% of adults reported their communities have been affected by a natural disaster in the past five years.
  • More than 52% of those involved in recovery believe the process took longer than anticipated.
  • 78% of residents in areas hit by disasters, including Los Angeles, Texas, and Florida, faced challenges during long-term recovery efforts.
  • Among professional contractors, 60% noted hiring skilled labor as particularly difficult in disaster recovery contexts.

The Path to Pro Program and Its Impact

With forecasts suggesting that 40% of the current construction workforce may retire by 2031, there's an urgent need for initiatives like The Home Depot Foundation's Path to Pro program. This program is designed to provide accessible career pathways in the construction trades, addressing the skills gap crucial for efficient disaster recovery.

"We are seeing a clear trend where disaster-impacted communities are experiencing delays in long-term recovery and the rebuilding process, with the lack of available labor being one of the primary issues," said Erin Izen, executive director of The Home Depot Foundation.

Upcoming Initiatives to Enhance Workforce Development

The Home Depot Foundation plans to expand its Path to Pro initiatives significantly:

  • By 2026, the Path to Pro Education Grants program will be available in all 50 states, supporting construction trade programs through funding for equipment and training spaces.
  • The Foundation has committed $3 million in 2025 for recovery efforts in Southern California, alongside ongoing scholarships for students pursuing construction roles.
  • In collaboration with Team Rubicon, the Foundation is developing a pilot program to equip veterans and volunteers with industry-recognized credentials for housing stabilization in disaster areas.

"Investing in skilled trades training alongside partners like The Home Depot Foundation is essential for building both strong communities and storm-resistant housing," stated Danica Deming, vice president of Workforce Development for Team Rubicon.

About The Home Depot Foundation

The Home Depot Foundation, supported by The Home Depot (NYSE: HD), aims to improve the lives of U.S. veterans, assist communities affected by natural disasters, and develop a skilled workforce to bridge the labor gap in construction. Since its inception in 2011, the Foundation has invested over $650 million in veteran causes and aims to reach a commitment of $750 million by 2030 for such initiatives.

For more information on The Home Depot Foundation and its programs, visit HomeDepotFoundation.org and follow them on social media.

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