What DEI Program Cuts Mean for Women and Minorities in Construction

Evelyn Long

Feb 3, 2025

black and white photo of workers

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The construction industry has always had the vision to build diversity, equity, and inclusion. Each year has always been a step toward achieving a work environment and culture where people of different genders, races and backgrounds can voice their ideas and work together. DEI program policies have always been at the forefront of achieving this vision.

These initiatives have helped women and marginalized communities find more job opportunities in the construction projects field and in corporate settings. Unfortunately, company reviews and cuts can lessen the likelihood of their presence within the sector.

The Impact of Cutting DEI Programs

Companies have been practicing a variety of DEI policies for quite a while, such as:

  • Hiring people from diverse backgrounds
  • Equitable promotion practices
  • Diversity training for employees
  • Mentorship programs for minority groups 

As a result, women and minorities have felt safe enough to enter the construction industry. Unfortunately, DEI program rollbacks are rising in various sectors across the United States. According to Resume.org, one in eight companies will remove or reduce their DEI programs in 2025. 

DEI program cuts will likely mean women and minorities will likely find fewer opportunities to join the field. They will have to go through a harder time to bring their voices up against the major social identity groups in the field, like white male Americans. 

Companies that no longer prioritize diversity, equity, and inclusion can ultimately lose talent and innovation. Having people of different backgrounds working on a project means people can share their experiences and give opinions on improving it.

For example, persons with disabilities, like wheelchair users, can champion a more inclusive construction design with ramps and lifts. While there are others who may have such suggestions, having employees with those thoughts at the forefront empowers the work environment to be more considerate. 

Deviating away from DEI can also increase the risks of discrimination and bias within the workplace culture. Imagine a meeting where everyone is of the same race, age, ethnicity, and religion. A person with different views would be subject to such disrespect.

meeting of a diverse team

Why Are Cuts Happening Now?

DEI program cuts are occurring because of the new executive order from Donald Trump. His administration believes that the initiative lowers applicable professional standards and discriminates against people capable of advancing roles based on merit within the Federal government. 

What does this have to do with construction? Unfortunately, it requires federal contractors to certify that they don’t operate a program that promotes DEI. It is viewed as a violation of applicable Federal anti-discrimination laws and can create a False Claims Act penalty.

Aside from having to pay for those offenses, construction companies are now discouraged from endorsing DEI if they want to sustain their existing relationships with governments. They also steer clear of it to participate in future job opportunities. 

While the executive order came out early this year, there was already some resistance against DEI last year. For example, Caterpillar is one of the leading construction equipment suppliers in the country. It recently caved in to reviewing its DEI initiatives and introducing new guidelines in September 2024. 

The decision comes after anti-diversity activist Robby Starbuck planned to instigate a social media attack against the existing policies. In 2023, Caterpillar was also pressured to audit its DEI activities to assess their negative impact on the business, though it did not relent. 

In 2021, about 54% of the construction equipment brand workforce consisted of women or people who were racially or ethnically diverse. It is one of the most progressive workplaces that strives to be more diverse and inclusive. Unfortunately, the future is uncertain for those currently in the field.

There is still growing speculation about what these DEI program cuts will look like. Some construction businesses may overhaul their policies, while others may want to refrain from being too hasty or drastic with their decisions. Affected workers must be vigilant and pay attention to their internal communications for what’s to come within their company.

hands of different races

The Journey to DEI So Far

The construction industry has made many changes to accommodate people of different backgrounds. Women and minorities have had to face several challenges to secure a job within the field, such as gender and racial disparities. 

Men, specifically, tend to dominate the construction space. DEI paved the way for people of other genders to enter the field. In 2023, women made up about 10.8% of the construction workforce. Granted, many earned only $0.07 for each dollar their male counterparts earned.

What Workers Think About DEI

Many workers have mixed feelings about DEI. From 2023 to 2024, the Pew Research Center found that 52% of workers say their company pays about the right amount of attention to these initiatives. However, about 15% of employees think their companies pay too much attention to increasing DEI in 2024, a 1% increase from the previous year.

Many Americans say that DEI hurts white men and women, though white adults are more likely to have that opinion than other racial and ethnic groups. Generally, the policies are recognized to help groups like black women and men, as well as Hispanic women and men.

Shifting to Affirmative Action

The issue of DEI program cuts in construction has created plenty of gray. However, one thing that’s certain is that a diverse and inclusive workforce is progressive. It’s important to celebrate differences and work together to build a greater tomorrow. 

There’s also the potential for driving financial revenue. Companies with representation of women exceeding 30% are more likely to financially outperform those with just 30% or fewer. Those with ethnic diversity representation also have a 27% financial advantage over others. 

While DEI initiatives may be rolled back, construction businesses may explore other ways to create a more welcoming sector. Affirmative action may include eliminating discrimination and bias within company hiring processes and supporting educational programs for marginalized groups. 

One of the best ways to track your impact with affirmative action is to examine the graduation rates for underrepresented students in construction-related courses. Viewing the journey and career advancement of diverse hires can also be a telltale sign of building a more accepting industry.

Build a Better Space

DEI programs have been monumental for the construction industry, bringing in more women and minorities. While politically charged cuts may occur, recognize the advantages that diversity has given and deliver affirmative action. 

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