New research identifies construction skilled labor gap as a major barrier to post-disaster rebuilding
Rhea-AI Summary
The Home Depot Foundation (NYSE:HD) and Morning Consult released research on Jan 20, 2026, finding skilled labor shortages are a major barrier to post-disaster rebuilding.
Key survey findings: ~60% of Americans lack high confidence in community rebuild speed, 40% of the construction workforce is projected to retire by 2031, 36% of adults were disaster-affected in the last five years, and 52% of those rebuilding said recovery took longer than expected. The study found 60% of contractors on disaster projects reported hiring skilled labor challenges.
The Foundation will expand its Path to Pro program nationally in 2026 and continues grants, scholarships and a $1M workforce pilot with Team Rubicon.
Positive
- Path to Pro expanding to all 50 states in 2026
- $3 million committed in 2025 to Southern California wildfire recovery
- More than 70 Path to Pro scholarships awarded in Los Angeles region
- $1 million partnership with Team Rubicon for PACT credential pilot
- Original Path to Pro pledge: $50 million since 2018
Negative
- 40% of construction workforce projected to retire by 2031
- Approximately 60% of disaster-recovery contractors report hiring challenges
- 78% of residents in recently impacted regions noted long-term recovery problems
- 52% of those rebuilding said recovery took longer than expected
Key Figures
Market Reality Check
Peers on Argus
HD was up 0.27% while key peer LOW gained 0.45%; other peers like BABA (-2.58%) and FND (-1.79%) declined, and AMZN was flat, suggesting a company-specific response rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 13 | AI tools partnership | Positive | -1.0% | Adoption of Rilla’s AI coaching to enhance service and sales performance. |
| Dec 10 | Creator portal launch | Positive | +1.7% | Launch of creator portal to connect influencers and drive new revenue. |
| Dec 09 | Guidance and outlook | Neutral | -1.3% | Investor conference reaffirming FY2025 guidance and giving FY2026 outlook. |
| Dec 02 | Delivery partnership | Positive | -0.9% | Nationwide Instacart partnership in Canada for same‑day delivery from 175 stores. |
| Nov 25 | Conference announcement | Neutral | +4.3% | Announcement of 2025 Investor and Analyst Conference and store footprint details. |
Recent history shows mixed reactions: some positive strategic updates and partnerships saw negative price moves, indicating occasional divergence between upbeat news and near-term trading.
Over the past few months, Home Depot reported several strategic and financial milestones. On Nov 24, 2025, a 10‑Q detailed Q3 fiscal 2025 results and the impact of the GMS acquisition. An 8‑K the same day outlined amended by‑laws and updated shareholder proposal windows. Subsequent news included an investor conference with reaffirmed FY2025 guidance, a new creator portal, and an AI-powered coaching partnership. Against this backdrop, today’s Foundation survey and workforce development announcement extends the theme of long-term capability building and community engagement, rather than near-term financial changes.
Market Pulse Summary
This announcement highlights research on a skilled labor gap in construction and details Home Depot Foundation’s Path to Pro initiatives, including multi‑year commitments such as the $3 million Southern California wildfire recovery effort and the original $50 million launch funding. It adds a community and workforce-development dimension to recent strategic and financial updates. Investors monitoring HD may track how these programs influence brand perception, contractor relationships, and long-term labor availability in disaster-affected markets.
AI-generated analysis. Not financial advice.
With
Key insights from the survey include:
- Roughly one-third of adults (
36% ) say their communities have been affected by a natural disaster in the last five years. - Of those rebuilding after a disaster, more than half (
52% ) believe the recovery process has taken longer than expected. 78% of residents in regions recently impacted by disasters, such asLos Angeles ,Texas ,North Carolina ,Tampa, Florida , Ohio andKentucky , noted challenges with long-term recovery and rebuilding efforts.- The findings are confirmed by the industry: While more than half of professional contractors (Pros) surveyed said there have been challenges with hiring skilled labor, this number increases to
60% for those who've worked on disaster recovery projects.
More about the findings across all communities surveyed can be found here.
"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. "Our Path to Pro program will help ensure the workforce is there to meet the demand when a community is rebuilding what they've lost."
To help tackle this nationwide challenge, The Home Depot Foundation is advancing its Path to Pro workforce development initiatives. Examples include:
- In 2026, the Path to Pro Education Grants program, which has been in place to support rebuilding following the
Southern California wildfires, will expand to all 50 states so that construction trade programs nationwide, including those within K-12 schools, community and technical colleges, and nonprofits, can purchase equipment and tools or remodel training spaces for students pursuing careers in the skilled trades. - As part of the
$3 million Southern California wildfire recovery, the Foundation continues to offer Path to Pro Scholarships to students in the region, in partnership with SkillPointe Foundation. These scholarships award$2,500 Los Angeles who are pursuing post-secondary education in construction-related roles. So far, more than 70 scholarships have been awarded in addition to hundreds awarded to students through the Foundation's ongoing national scholarship program. - Through a
$1 million
"As an organization focused on community resilience, before, during and after disasters, Team Rubicon feels the impact of the increasing gap in skilled trades workers," said Danica Deming, vice president of Workforce Development for Team Rubicon. "Investing in skilled trades training alongside partners like The Home Depot Foundation is essential for building both strong communities and storm-resistant housing."
The Home Depot Foundation's Path to Pro program launched in 2018 with a
The online survey of 6,348
About The Home Depot Foundation
The Home Depot Foundation, a nonprofit supported by The Home Depot (NYSE: HD), works to improve the homes and lives of
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SOURCE The Home Depot Foundation
FAQ
What did the Jan 20, 2026 Home Depot Foundation-Morning Consult survey find about rebuilding?
How will Home Depot Foundation's Path to Pro expansion affect workforce training for HD (NYSE:HD)?
What financial commitments has the Home Depot Foundation made for wildfire recovery and training?
How many adults reported disaster impact in the last five years in the survey released Jan 20, 2026?
What proportion of contractors who worked on disaster recovery reported skilled-labor hiring challenges?
What credential is included in the workforce pilot with Team Rubicon mentioned on Jan 20, 2026?
