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As we turn the corner into September, with fall right around the corner, activity is starting to ramp up with Vermont legislators. We are entering the second year of the 2025 biennium, and bills from last year are waiting on legislators’ desks while new ones are being drafted. A typical biennium produces over 1,400 bills, from which lawmakers must select a small group of “must-pass” items—such as the capital budget and transportation bill—along with a limited number of other legislative priorities. During the fall, legislators work with stakeholders to craft bills that reflect their priorities.
One policy area where ABC NH/VT will be engaged is the proposed prohibition of noncompete agreements. Business organizations generally oppose such prohibitions, and ABC NH/VT will look to its members to help shape a specific policy position on any legislation that emerges.
Employers cite different reasons for using a noncompete clause or agreement during hiring. Some want to protect proprietary intellectual property; others aim to safeguard client and supplier lists. Employers may also worry that investments in workforce training could lead to employees “walking across the street” to a competitor. In some cases, franchise agreements include noncompete clauses.
Labor advocates regularly argue that noncompete agreements are harmful to workers. They view them as tools employers use to suppress wages by limiting a worker’s ability to change jobs and thus avoid wage competition.
In Vermont, construction companies are facing a labor shortage. This generally requires employers to offer competitive wages and benefits to attract the right talent. Employers also recognize that asking an employee to sign a noncompete without a clear rationale could be a disadvantage in the marketplace. There are, however, circumstances in which a construction employer and employee might enter into a noncompete—such as in connection with employer-sponsored advancement training or other proprietary functions.
ABC NH/VT will participate in a stakeholder group on noncompetes throughout the fall in preparation for the legislative session. Please reach out to Vermont’s Regional Director, Matt, at matt@abcnhvt.org to share any stories or insights you may have on this topic. Also be on the lookout for invitations to the Government Affairs Committee, which will resume in a few weeks to prepare for the 2026 legislative session and election season.
In 1985, the top movie in America was the Michael J. Fox classic Back to the Future. Watching it was an experience that you enjoyed as a kid and then a movie you enjoyed sharing with your kids in turn. It stands the test of time.
1985 is also the year that a group of a dozen contractors dedicated to the merit shop philosophy and inspired by the Live Free or Die attitude of our great State, came together to form the NH/VT Associated Builders and Contractors chapter.
When asked about what the “merit shop philosophy” is, I say it is a movement for the betterment of the individual, the construction industry and our country. It is about a belief in free enterprise, and that both employees and employers should have the right to determine wages and working conditions through either individual or collective bargaining, as they choose, within the boundaries of the law but not otherwise compelled by government mandate.
The merit shop philosophy embraces responsible leadership and stewardship by both employees and employers. It reflects the belief that fair play for both employer and employee – through ensuring general employee welfare, satisfactory performance of assigned work and fair compensation for work performed - is essential to the preservation of our free enterprise system.
Today, 40 years since that initial group of a dozen founders came together, the ABC NH/VT chapter is the leading professional construction association in New England, including nearly 300 construction companies and industry serving firms. Our member companies represent thousands of skilled employees who are literally building New Hampshire every day and providing essential services to our friends, families, neighbors and businesses large and small alike.
Over the past four decades, we are particularly proud of having skilled or upskilled thousands of construction workers and craft professionals. Concern over a lack of skilled workers in the trades has finally become a regular part of the workforce development conversation, but for us, addressing that concern it has always been a top priority. To that end, ABC NH/VT is the sponsor of New Hampshire’s only multi-employer Registered Apprenticeship Carpentry program, which collaborates with New Hampshire’s Community College system to answer the industry’s need for more skilled tradespeople. We also created the “I Build New Hampshire” branding – found at www.ibuildnh.org – which helps raise career opportunity awareness to students and adult decision makers in their lives. The program even partnered with NH PBS to produce a robust “hero story” video series.
Advocacy is a critical element of ABC NH/VT, and we are proud of our role as a leading voice for improving the construction environment in our State, and as a subject matter resource for leaders of both parties to address critical issues for the common good. This year we are seeing promising gains in the future of housing construction with thoughtful building and permitting reforms promoted by Governor Ayotte and legislative leaders. We are grateful to the Governor and all leaders who come together to solve important issues like this one collaboratively and creatively.
Looking ahead, we urge the State to take on construction proposal and bid reform to ensure the most efficient process possible, and a level playing field for both union and non-union employers alike. Punitive measures such as project labor agreements often disadvantage non-union, merit shop contractors—excluding them from the negotiation process and forcing them to adhere to union-specific work rules. These agreements may require companies to recognize unions for job representation, use union hiring halls for workforce recruitment, and abide by union benefit structures.
These types of PLA agreements – common in Massachusetts – can increase construction costs by 20%, reduce competition and close the door on non-union employers. With 90% of New Hampshire’s workforce non-union, a policy that simply says government will remain neutral and not mandate PLAs would embody the New Hampshire way and ensure fair treatment for these thousands of employees.
One of the most memorable lines from Back to the Future comes from Doc Brown at the end when he says “Roads? Where we’re going, we don’t need roads.” While we may wish to see some of the futuristic elements from the movie, we’re still going to need roads. And bridges, houses, apartments, commercial buildings, schools, churches and community centers. As we celebrate 40 great years as an Association, we are proud that we too have stood the test of time. We look forward to the next 40 years and beyond of building the future for the Granite State.
Josh Reap is President and CEO of the Association of Builders and Contractors for NH / VT, based in Concord. He lives in Candia.
CONCORD, N.H., July 30, 2025 — New Hampshire continues to be a national leader in construction employment, boasting one of the lowest construction unemployment rates in the country for June 2025, according to a state-by-state analysis released today by Associated Builders and Contractors (ABC).
New Hampshire recorded a 1.3% not seasonally adjusted construction unemployment rate in June—the third-lowest rate in the nation, behind only South Dakota (0.8%) and North Dakota (1.2%), and tied with Montana and Oklahoma for a spot in the top five.
“This report confirms what we’re seeing on the ground in New Hampshire—our construction sector remains strong,” said Josh Reap, President & CEO of ABC NH/VT. “With workforce development programs like apprenticeship training and outreach to the next generation of builders, we’re working to ensure that growth continues.”
According to ABC’s analysis, every state in the country posted a construction unemployment rate below 10% in June. Nationally, the rate stood at 3.4%, with New Hampshire coming in at nearly two full percentage points lower.
This was New Hampshire’s third-lowest June construction unemployment rate on record, reinforcing the state's resilience and ongoing demand for skilled tradespeople.
Estimated state construction unemployment rates were lower than their pre-pandemic level in three-quarters of states. As of June 2025, 37 states had lower construction unemployment rates compared to June 2019 while 12 states had higher rates, and one state (Kansas) had the same rate.
“While June state construction unemployment rates continue to indicate a relatively healthy level of construction employment, uneasiness that the economy might weaken over the remainder of this year and into 2026 is producing some hesitancy among builders and developers about proceeding with new projects,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.
“The impact of tariffs on building materials is already showing up in some prices. Meanwhile, uncertainty surrounding the level of tariffs on building materials going forward and how long they will be in place hangs over the industry. Further, the industry continues to face elevated interest rates and higher labor costs. Although most builders are loath to lay off workers at present, they are more cautious in their hiring.”
Context Behind the Numbers
While construction employment remains solid across the U.S., economists caution that inflation, tariffs on materials, and high interest rates continue to shape the industry’s outlook.
“Although most builders are loath to lay off workers at present, they are more cautious in their hiring,” said Bernard Markstein, president and chief economist of Markstein Advisors, who conducted the analysis for ABC.
Strong Workforce, Strong Future
Despite broader economic uncertainties, New Hampshire’s consistently low unemployment rate in construction speaks to its vibrant construction economy and ongoing investments in workforce development.
“New Hampshire’s builders are hiring—and training—the next generation,” said Reap. “With continued public and private support, we’ll keep moving this industry forward.”
To view national and state-by-state charts of construction unemployment, visit: https://www.abc.org/News-Media/News-Releases
Click here to view graphs of U.S. and state overall unemployment rates (Tab 1) and construction unemployment rates (Tab 2) showing the impact of the pandemic, including a graphing tool that creates a chart for multiple states.
To better understand the basis for calculating unemployment rates and what they measure, check out the Background on State Construction Unemployment Rates.
ABC NH/VT represents 270 firms in Northern New England. Founded on the merit shop philosophy, ABC NH/VT is a chapter of the national Associated Builders & Contractors, and has the mission of helping members develop people, win work and deliver that work safely, ethically, profitably and for the betterment of the communities in which ABC and its members work. ABC's membership represents all specialties within the U.S. construction industry and is comprised primarily of firms that perform work in the industrial and commercial sectors.
Vermont Update July 21, 2025
Mid July is peak season in Vermont for construction and contractors are out in the field building Vermont. At the same time they are busy erecting the buildings and infrastructure we need while a new crew is learning the ropes at the Vermont Construction Academy (VCA).
We have entered week 3 which is halfway through the first VCA bootcamp pre apprentice program. Ross Lavoie the VCA instructor has been teaching a lively group of men and women both theory and hands on carpentry and safety. The group has been moving back and forth between classroom and the 8000 sq/ft hands on training lab.
Through the cohorts time here they have enjoyed “Ted Talks” from many Associated Builder and Contractors NH/VT members who came to talk about their companies and what makes them unique. These talks are set up to share some different perspectives from the field so that they will be able to consider where they would like to take their new skills to begin their careers.
In addition to construction skills these learners are also picking up soft skills from local community members. They have had weekly construction math instruction from high school math teachers donating their time. They received a financial literacy session from local bank Peoples Trust Co. Team building is another soft skill introduced by multiple group tactics.
It wont be long now before this cohort finds its way into the workforce. We trust that with Ross’ instruction and the commitment of the learners that they will be a positive force in the industry.
The demand is so high for this training that a second unplanned cohort has been created beginning in late August to account for the demand. This “good problem” of full classrooms gives us hope that trends are moving in the direction that more people are interested in the trades than any time in recent years. We must take advantage of this interest and the VCA is promoting the great values of ABC NH/VT members and the community.
The Vermont Legislature has adjourned, and our Senators and Representatives have returned to their districts to face the voters for their successes and “policies that still need work”. Be on the lookout for a detailed end of session report from ABC NH/VT coming soon. The end of the session is not the end of the ABC NH/VT advocacy, but it is time to switch gears with a focus on Washington DC.
On June 24th ABC members and staff descended upon Washington DC for its annual Legislative Conference. The conference itself is an education event for members to learn what ABC of America is doing to protect the interests of Merit Shops. Several staff and members of the NH/VT chapter went this year to stay engaged with the national organization and our representatives.
After arriving in DC several members decided it was time to see the city and check out some of the national treasures we have. They joined Vermont Regional Director Matt Musgrave on what he dubs “Honest Matts Scooter Tour” which began at the Smithsonian Natural History Museum (no scooters in building) and proceeded to go through the national mall seeing the capital building, Washington Monument, World War 2 Memorial, all the way to the Lincoln Memorial and then a loop around the Whitehouse.
After sightseeing everyone returned to the hotels to put on tuxedos for the ABC 75th Anniversary Gala which was hosted by President George W Bush. This was an amazing event where members got to celebrate 75 years of Merit Shop success and hear a very personal account of the former Presidents time in office.
Wednesday the 25th was all about business and members visited our congressional delegation. The group split to meet with both NH and VT delegates. First off for Vermont was Representative Becca Balint who invited us into the private office for a great discussion about what we were doing at the Vermont Construction Academy (VCA) to upskill and build the workforce. Balint was more than excited to hear about the industry led effort to tackle the challenges in our workforce and vowed to keep apprenticeship programs alive in the future to bolster our work.
Next, there was a rare and exclusive trip under the capital building in tunnels to go visit the Senate with the first stop being Senator Peter Welch. Welch’s staff had been reporting to him about the great work at the VCA and he applauded our efforts. He also said he would be willing to work towards expanding apprenticeship programs and wanted to work with ABC NH/VT to find good policies he would be able to introduce in future sessions.
The last stop was a trip to Senator Bernie Sanders office. Sanders has not spent a lot of time in Washington DC as he is on a national tour already working on future campaigns, but attendees got to meet with his staff. Although the staff was cordial and inviting it was clear that Sander’s policy agenda does not match that of the Merit Shop, which was no surprise to anyone.
The annual Legislative Convention happens in June and ABC NH/VT encourages members to consider the trip to see not only the power behind our national association but how impactful it is to our congressional delegates to hear directly from business leaders. Please reach out to matt@abcnhvt.org or josh@abcnhvt.org if you have any interest in joining us next year!
Closing Days of NH state Budget, ABC Encourages Funds for Construction of Housing
Additional funding for Housing could be a topic of debate. There is a section in HB 2 (page 128, section 392) that extends the lapse of the Housing Champion Designation and Grant Program from June 30, 2025 to June 30th, 2026. The sum is $5 million. Although a good move, not enough especially with the focus on Housing this session.
Deep cuts have been made to many agencies. The other day they announced the members of the Committee of Conference for the FY 26/27 State Budget. ABC sent a letter to encouraging support for housing (click here). The economic multiplier of construction work would be the most wise and prudent investment the state can make this year.
The Vermont Legislature is on its way to adjournment now two weeks past its scheduled end in May. The delay is due to three legislative priorities and negotiations to get to a “yes” from the Governor. The states housing crisis, education reform and attempts to energize legislators to override a veto of a program funding homeless staying in Vermont hotels.
As of June 13th, a deal has been reached to start repairing Vermont’s expanding school funding issues. The deal reached set targets with contingencies for consolidating schools, changing the funding formulas and changes to exemptions to the property tax for income earners under $115k/year. The full assembly still needs to vote on the bill, but if it passes the Governor has signaled that he will sign it. Of course, floor votes are riddled with amendment proposals and there will be dissent on the package itself which could ultimately kill the bill.
A housing bill has crossed the finish line and has become law with the Governors’ signature. The bill itself leaves many hoping that next year more changes will come that will significantly impact/limit the challenges from Act 250 Vermont’s development law cited as the number one reason for the housing shortage. The bill that passed expands significantly on the Community Housing Improvement Program (CHIP) which is one of the ways the state is trying to soften the cost of housing developments like permitting, engineering, and infrastructure by providing grants for different types of projects. While the grants will soften the blow of the cost, it does not directly change the causation of the high costs. Additionally, the bill would allow developers with approval from municipalities to use Tax Increment Financing (TIF) to fund infrastructure for projects by reducing the property tax on the development. These and a few other small policy changes are part of a larger effort to make housing more affordable in Vermont, while not addressing the giant elephant in the room: Act 250.
Another priority of the Democrats and Progressives in the legislature is the extension of a previously Federally funded program under COVID to place homeless families in hotels. Once the Federal funding ended legislators redirected some remaining CRF funds to the program which have since run out. Governor Scott is unwilling to extend the program citing, “Rather than continuing to fund a program that isn’t good for those in it, I believe we should focus on real solutions like building additional shelter capacity and requirements to engage in work, training, and treatment for those who need it,”. It is unlikely that the legislature will have the votes to override the veto as its unpopular with Republicans who would be needed to support it.
On May 22, 2025, ABC contractors met with the New Hampshire Department of Administrative Services (DAS) to discuss improvements to the state’s contracting process. The focus was on reducing the 110-day average timeline from bid opening to issuing a Notice to Proceed and ensuring more timely vendor payments.
Commissioner Charlie Arlinghaus acknowledged the need to address material price escalation and tariffs, which currently place a unique burden on contractors working with the state. Key concerns raised during the meeting included a lack of transparency in project budgets, lengthy inter-agency contract reviews, and poor communication—particularly around notifying contractors when contracts are ready for Governor and Council meetings.
Contractors proposed several solutions: announcing project budgets before bidding, allowing agencies to conduct contract reviews simultaneously, and exploring the use of electronic sign-offs to streamline approvals.
The DAS is actively working to improve these processes, and further discussions are planned.
ABC leadership is encouraged by the progress but notes that additional reforms are still needed, including better project documentation, change order management, and improved collaboration across agencies.
Vermont Government Affairs Update – June 3, 2025
The Vermont Legislature was scheduled to adjourn on Friday, May 30, but that deadline has been missed. One major issue remains unresolved: school funding and a sweeping miscellaneous education bill that includes significant changes to how services are delivered.
As previously reported, the Legislature has been exploring various ways to reduce school spending without cutting essential programs for Vermont students. The goal is to curb the rising statewide education property tax, which has surged in recent years due to multiple factors.
Governor Scott’s original proposal included several major reforms: reducing the number of school districts (initially down to five); replacing the current two-tier property tax system (homestead and non-homestead) with a single rate while preserving income-based relief for lower-income residents; eliminating student weighting formulas and instead allocating a flat $13,200 per student to school districts; setting a minimum classroom size of 25 students for grades 4–12 and eliminating programs with low enrollment; ending universal school lunches; and introducing a school choice program—an idea strongly opposed by many legislative Democrats.
In contrast, House Bill H.480 sidesteps most of Governor Scott’s recommendations. Instead, it prioritizes school safety, regulating cell phone and social media use in classrooms, and imposing a moratorium on new approved independent schools. It does not directly address the rising costs that concern taxpayers.
A Facebook post from Governor Scott last week signals a likely veto:
"Since Vermonters saw significant property tax increases last year, I’ve been clear: we can’t continue with the status quo because it’s not serving our kids or taxpayers well.
Both the House and Senate passed versions of the education bill spend too much money and implement the transformation too slowly. But I believe we can find a path forward and reach a compromise.
The plan I outlined in January aimed to make Vermont’s education system more equitable, transparent and effective. It focused on student needs and efficient governance, providing better opportunities for every child in Vermont, while also creating a funding structure that is clear, affordable, and sustainable.
These will remain my objectives when evaluating a final bill when it reaches my desk."
We’ll see what happens next—and whether lawmakers are truly hearing Vermonters’ calls to get school spending under control.
Vermont Government Affairs Update – May 20, 2025
As we reach the halfway point of May, it appears the Vermont Legislature is on track to adjourn by the end of the month. It has become clear which bills will make it through and which won’t—but that doesn’t mean the action is over. Expect a flurry of amendments and the use of “must-pass” bills as vehicles to advance favored policies. A scheduled veto session in June also leaves room for late-stage negotiations and influence from both sides of the aisle.
Last November, voters turned out in large numbers to support a reasonable state budget, fixes to the education funding system, and increased housing. The Legislature has listened—somewhat.
The state budget has cleared a conference committee, landing at $9.01 billion. While modest compared to Governor Scott’s proposal for fiscal year 2025, it still represents a significant increase in state spending since the COVID-19 pandemic. Federal funds created new programs that the state is now responsible for maintaining. For context, the 2019 budget was $5.8 billion. While many sections of Governor Scott’s budget were increased, there has been no clear indication yet of a veto.
A bill proposing major changes to the delivery and funding of education has passed the House and is currently being reviewed by the Senate—though it’s not generating much enthusiasm from education advocates. Notably, two Senate Democrats on the Education Committee voted “no,” signaling concern. The bill incorporates some of Governor Scott’s recommendations, sets a base payment per student, and introduces a “foundation formula” to give the state more control over school district appropriations. It also addresses classroom sizes and calls for a redistricting committee to evaluate potential district consolidation. The bill now moves to the Senate Appropriations Committee, where changes are expected. Whether it passes this year remains to be seen, but many see it as a preferable alternative to doing nothing—which last year contributed to sharp property tax increases.
Vermonters did score a win on taxes this year. The “yield” bill, which sets the statewide education property tax, was adjusted to result in only a 1% increase over last year—far lower than the 14% hike the year before.
Meanwhile, meaningful housing development legislation appears to be on life support. Governor Scott sharply criticized the Legislature last week for delaying action on this critical issue. Vermont is currently short 22,000 housing units—a shortage linked to rising homelessness, a shrinking workforce, and young people leaving the state. While some bills offer modest incentives to developers and repeat half-measures of the past, they fail to address the state’s primary obstacle to building more homes: Act 250, which allows small groups to block developments—often for capricious reasons.