Impact of ICE Crackdowns on Undocumented Immigrants and Housing Construction

The recent protests against immigration raids in the US are expected to further galvanize more protests this weekend, adding fuel to a contentious debate surrounding President Trump's immigration crackdown. Several industries are facing the weight of these policies, with undocumented immigrants making up an estimated 15 to 20% or more of the US workforce in sectors like crop production, food processing, and construction.

To discuss the specific impact on housing construction, Market Domination Overtime welcomes Kinloch Partners co-founder and CEO, Bruce McNeilage. As a seasoned expert in the field, Mr. McNeilage shares his insights on how these policies are affecting businesses like his own, which focuses primarily on building-to-rent properties.

Business as Usual: Limited Disruptions to Job Sites

So far, there have been limited interruptions to job sites in the southeast region of the US, according to Bruce McNeilage. In fact, Kinloch Partners has not experienced any significant issues with construction delays or disruptions due to ICE crackdowns. Mr. McNeilage attributes this to the company's efficient management and preparation for such scenarios.

"We haven't seen anything major lately," he says confidently. "I think it was just a little lull in the first few weeks, but we've gotten back on track since then." As the CEO of Kinloch Partners, Mr. McNeilage emphasizes that his company's business has been uninterrupted by ICE crackdowns.

Regional Variations: Southeast Region Less Affected

When asked if the lack of disruption is regional or a result of the housing industry being spared to some extent, Bruce McNeilage notes that there are indeed regional variations in the impact of ICE crackdowns. The southeast region, where Kinloch Partners operates primarily, has seen fewer disruptions compared to other parts of the country.

"There's still over 60% of your roofers who are Hispanic, and over 50% of your painters who are Hispanic nationally," he explains. "In Texas and California, there's a higher percentage of Hispanic construction workers." Mr. McNeilage believes that this regional variation could be attributed to the prevalence of Hispanic workers in certain industries.

Employer Responsibility: Managing Compliance

As construction companies navigate the complex landscape of immigration policies, Bruce McNeilage emphasizes the importance of compliance. "The companies are asked to produce licenses, workmen's compensation insurance, certificates, and things like that," he notes. However, downline workers often go unchecked, making it essential for subcontractors to manage this process effectively.

"It's really the responsibility of the subcontractor, the roofing or drywall company, to manage that," Mr. McNeilage stresses. "It's not the responsibility of the home builder." By acknowledging the complexities involved in ensuring compliance with immigration policies, Kinloch Partners is taking proactive steps to mitigate potential risks and maintain its commitment to responsible business practices.

Conclusion

As the debate surrounding immigration policies continues, it remains crucial for businesses like Kinloch Partners to adapt and evolve. With regional variations in the impact of ICE crackdowns and a focus on compliance, construction companies can navigate these challenges effectively. By prioritizing efficiency, management, and responsible practices, businesses can minimize disruptions and maintain their commitment to delivering quality services.

Bruce McNeilage's insights offer valuable lessons for industry leaders and stakeholders alike. As the landscape continues to evolve, it is essential to prioritize open communication, compliance, and effective management to ensure a smooth operation of construction projects.