Connecticut’s contractors and offsite construction factories are sounding the alarm over a new provision buried in the state budget that could have far-reaching consequences for public works projects and the future of industrialized construction in the state.
For decades, the state’s prevailing wage law has applied to on-site construction work for public projects, guaranteeing higher wage rates aimed at protecting local workers. But in a quiet move that caught many in the industry off guard, lawmakers expanded that requirement to include offsite custom fabrication destined for these projects.
A Factory Floor Isn’t a Construction Site
On the surface, this might seem like a win for workers. But dig a little deeper, and you’ll find contractors and factory owners worried it could price them out of public work entirely. Many of these offsite facilities are already grappling with razor-thin margins, labor shortages, and skyrocketing materials costs. Adding prevailing wage requirements to the controlled, factory environment — where different pay structures and workflows exist — may tip some operations into the red.
This expansion also raises big questions:
Will factories in other states be forced to comply if they supply modules or components to Connecticut? Could it discourage innovation just as offsite construction is gaining momentum as a faster, more efficient, and environmentally friendly alternative to traditional building?
Progress at Risk Just When We Need It Most
Industry leaders say they’re not against paying fair wages — in fact, many already offer above-average pay and benefits to attract talent. But they argue that applying a field-based wage standard to a controlled factory setting misunderstands how these facilities operate and could stifle growth at exactly the wrong time.
Connecticut, like many states, faces urgent needs for affordable housing, infrastructure improvements, and faster project delivery. Offsite construction has been one of the brightest hopes for addressing these challenges. By adding new hurdles, the state risks slowing the very progress it needs.
This move has contractors, factory owners, and industry advocates scrambling to understand the fine print and determine how to stay competitive without abandoning public projects altogether. As one factory manager bluntly put it: “It feels like we’re being punished for innovating.”
For now, Connecticut’s push for broader wage protections may seem well-intentioned, but its impact on the offsite sector deserves serious re-examination — before we end up losing more than we gain.
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With over 8,000 published articles on modular and offsite construction, Gary Fleisher remains one of the most trusted voices in the industry.
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