During my daily Reuters read, I saw this headline "This construction project was on time and on budget. Then came ICE." which details the impacts an 84,000 square foot recreation center near Mobile, Alabama has experienced from the aggressive crackdown on illegal immigrants by ICE in the US.
So for those of my US-based colleagues who work in industries with a large percentage of imported workers, have ICE-impacts been identified as a source of schedule and cost risk? Saving Changes...
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Luis BrancoCEO| Business Insight, Consultores de Gestão, LdªCarcavelos, Lisboa, Portugal
Kiron Bondale This post highlights a critical (and often underestimated) dimension of risk management: the impact of socio-political and regulatory forces on project delivery, especially in industries that rely heavily on immigrant labor.
The involvement of ICE in this context can be framed as an external “regulatory + operational” risk with potential consequences across three fronts:
- Schedule and Cost Risks - Sudden disruptions caused by worker detention or workforce flight can lead to significant delays, re-hiring and retraining costs, and penalties for contractual non-compliance.
- Reputational and Compliance Risks - Organizations may face public scrutiny, legal actions, or regulatory penalties if perceived as complicit in informal labor practices or if they fail to properly vet subcontractors and vendors.
- Cultural and Morale Risks - Fear and uncertainty within the workforce can erode team cohesion, psychological safety, and overall productivity — undermining performance even before legal impacts materialize.
Strategic Signal: This situation underscores the need to expand our risk lens beyond technical and financial dimensions to include broader geo-regulatory and social dynamics.
Stakeholder engagement and procurement governance should reflect this complexity.
Practical Recommendation: It may be worth formally including “immigration and regulatory disruption” in your project’s risk register - especially for U.S.-based projects in construction, agriculture, logistics, or hospitality. Involving compliance and legal advisors early in the project lifecycle can also help mitigate these evolving risks.
Thanks for bringing this to light - it’s a timely reminder that projects do not operate in a vacuum.
They are embedded in dynamic ecosystems shaped by policy, people, and power.
As project leaders, our role is not just to deliver on scope and schedule.
It's to read the system, anticipate human impact, and lead with integrity in the face of uncertainty.
Saving Changes...
Besa MuthuriSenior Portfolio Manager| The Coca-Cola CompanyAtlanta Georgia, United States
This Reuters article struck a chord, it’s a clear example of how external regulatory actions, like ICE enforcement, can disrupt even the best-managed projects. The Alabama recreation center case underscores a growing risk for sectors heavily dependent on immigrant labor: sudden, large-scale workforce loss. In my experience, many organizations still treat this as a day-to-day operational issue instead of recognizing it as a formal project risk. But forward-thinking PMOs should be more proactive:
Assess risk exposure: Map out roles that rely on potentially vulnerable labor sources.
Diversify workforce pipelines: Collaborate with staffing partners who conduct thorough vetting and compliance checks.
Plan for disruption: Include buffer time in schedules to account for unexpected labor shortages.
To add on, for those working in construction, agriculture, or hospitality, have you encountered project delays due to ICE activity? And if so, how are your risk registers evolving to reflect that? Saving Changes...
Few weeks ago, I was researching the impact of ageing labor force in the mining industry and this particular question came to mind as I realized that lots of US mining companies are recruiting from Canada. Just a quick recap
"The U.S. mining industry faces a major labor shortage, with over half the workforce set to retire by 2029. At the same time, stricter ICE enforcement is disrupting immigrant labor—critical to site prep, hauling, and support services. These disruptions are causing project delays, legal risks, and rising costs. With global demand for mined materials accelerating, especially for EVs, the industry cannot afford further instability. A smarter, inclusive workforce strategy is urgently needed—one that aligns immigration policy with labor realities to ensure mining can meet both national and global sustainability goals. Immigrant labor is not a threat—it’s a necessity".
I do hope the USA government will re-access her immigration policy. For sure, ICE will always have a major impact on Cost and Schedule as most contracting firms rely heavily on this workforce. This is a very good question Kiron. Thanks for sharing.
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1 reply by Keith Novak
Jul 30, 2025 1:02 AM
Keith Novak
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Akin,
Unfortunately, some of that is very deliberate. Attitudes on immigrant labor in the US have historically changed along with economic cycles and the demand for labor. Much of the current rhetoric is recycled from the past after the slowing of rapid expansion periods.
The current administration is also promoting a strategy of targeting industries which compete with entrenched industries. Battery power storage competes with on-demand power production from fossil fuels, so it's a an immediate target, irrespective of the workforce demographics. Funding relating to sustainable energy was slashed everywhere. Having anything to do with sustainability put a target on projects and industries. The fact that industries like mining require a lot of manual labor typically far from major metro areas makes it a good fit for immigrants looking for work. ICE then becomes the tool for attacking an industry who's goals put pressure on the established giants, by targeting their labor force.
There is also a high percentage of immigrant labor in white collar STEM jobs as well, but I have not seen many reports on ICE raiding IT office buildings and hospitals checking for current paperwork.
Keith
Few weeks ago, I was researching the impact of ageing labor force in the mining industry and this particular question came to mind as I realized that lots of US mining companies are recruiting from Canada. Just a quick recap
"The U.S. mining industry faces a major labor shortage, with over half the workforce set to retire by 2029. At the same time, stricter ICE enforcement is disrupting immigrant labor—critical to site prep, hauling, and support services. These disruptions are causing project delays, legal risks, and rising costs. With global demand for mined materials accelerating, especially for EVs, the industry cannot afford further instability. A smarter, inclusive workforce strategy is urgently needed—one that aligns immigration policy with labor realities to ensure mining can meet both national and global sustainability goals. Immigrant labor is not a threat—it’s a necessity".
I do hope the USA government will re-access her immigration policy. For sure, ICE will always have a major impact on Cost and Schedule as most contracting firms rely heavily on this workforce. This is a very good question Kiron. Thanks for sharing.
Akin,
Unfortunately, some of that is very deliberate. Attitudes on immigrant labor in the US have historically changed along with economic cycles and the demand for labor. Much of the current rhetoric is recycled from the past after the slowing of rapid expansion periods.
The current administration is also promoting a strategy of targeting industries which compete with entrenched industries. Battery power storage competes with on-demand power production from fossil fuels, so it's a an immediate target, irrespective of the workforce demographics. Funding relating to sustainable energy was slashed everywhere. Having anything to do with sustainability put a target on projects and industries. The fact that industries like mining require a lot of manual labor typically far from major metro areas makes it a good fit for immigrants looking for work. ICE then becomes the tool for attacking an industry who's goals put pressure on the established giants, by targeting their labor force.
There is also a high percentage of immigrant labor in white collar STEM jobs as well, but I have not seen many reports on ICE raiding IT office buildings and hospitals checking for current paperwork.
Keith
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1 reply by Akin Fadare
Jul 30, 2025 1:52 PM
Akin Fadare
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Keith:
Thank you for educating me. I never knew that sustainability projects are being targeted in the United States. Politics is indeed filthy. Money is exchanged between executives and politicians through lobbyists. With the projected need for lithium and other EV battery required metals, the mining industry is in serious need of workers. I am sure the US government, via ICE, will start overlooking undocumented migrant workers. Hopefully!
Akin
Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Yes, it is an external risk.
Mitigation is straightforward: ensure that you employ companies that do not bring ICE targets or let them show you their backup. It will be at a higher cost, though. You should plan for redundancy anyway.
To be fair, the grey zone was there and is and will be.
Akin,
Unfortunately, some of that is very deliberate. Attitudes on immigrant labor in the US have historically changed along with economic cycles and the demand for labor. Much of the current rhetoric is recycled from the past after the slowing of rapid expansion periods.
The current administration is also promoting a strategy of targeting industries which compete with entrenched industries. Battery power storage competes with on-demand power production from fossil fuels, so it's a an immediate target, irrespective of the workforce demographics. Funding relating to sustainable energy was slashed everywhere. Having anything to do with sustainability put a target on projects and industries. The fact that industries like mining require a lot of manual labor typically far from major metro areas makes it a good fit for immigrants looking for work. ICE then becomes the tool for attacking an industry who's goals put pressure on the established giants, by targeting their labor force.
There is also a high percentage of immigrant labor in white collar STEM jobs as well, but I have not seen many reports on ICE raiding IT office buildings and hospitals checking for current paperwork.
Keith
Keith:
Thank you for educating me. I never knew that sustainability projects are being targeted in the United States. Politics is indeed filthy. Money is exchanged between executives and politicians through lobbyists. With the projected need for lithium and other EV battery required metals, the mining industry is in serious need of workers. I am sure the US government, via ICE, will start overlooking undocumented migrant workers. Hopefully!
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