Spain’s Construction Giants: A Workforce in Transition and What It Means for the Future

A staggering 76,335 jobs have vanished from Spain’s six largest construction companies – Ohla, Sacyr, Ferrovial, ACS, ACCIONA, and FCC – in just five years. This isn’t a simple downturn; it’s a strategic reshaping of an industry grappling with rising costs, shifting priorities, and a fundamental re-evaluation of where growth lies. The implications extend far beyond balance sheets, impacting Spain’s labor market, infrastructure projects, and the very definition of what it means to be a major player in the construction sector.

The Great Workforce Shift: From Local Roots to Global Reach

The decline in Spanish-based employment is particularly acute. Ferrovial, for example, has seen its Spanish workforce plummet by 85.4% since 2019, now employing just 6,183 people domestically. Sacyr and Ohla have experienced similar dramatic reductions – 81.4% and 74.1% respectively. This isn’t a sign of weakness, but a deliberate strategy. These companies are increasingly concentrating their efforts – and their workforce – in international markets.

This internationalization isn’t without its complexities. While it cushions the blow of rising labor costs in Spain – particularly in the face of inflation and debates around minimum wage increases and working hours – it also introduces new challenges. Expanding into new territories means higher wages in many cases, and the cost of relocating and managing a global workforce continues to pressure margins. Currently, only 30.9% of the workforce of these six companies remains in Spain, compared to 7.6% reductions abroad between 2020 and 2024.

The Diversification Divide: Who’s Staying Put?

Not all companies are following the same path. FCC and ACCIONA stand out as exceptions, maintaining a more diversified portfolio of activities – from civil works to real estate and services – and, crucially, increasing their Spanish workforce. ACCIONA has boosted its Spanish headcount by 11%, now employing 23,184 people, while FCC has seen a 10.8% increase, reaching 49,172 employees. This suggests that a broader business model can provide stability and continued local employment opportunities.

ACS, while also pursuing international expansion, has struggled to fully divest from its service subsidiaries, like Clece, highlighting the challenges of streamlining operations and focusing solely on core infrastructure projects. The company remains a major employer in Spain, alongside retail giants like El Corte Inglés and Mercadona, but its workforce has still decreased by 16.7% domestically.

The Rising Cost of Labor: A Global Trend

Despite the shrinking workforce, overall personnel expenditure has increased by 25% over the past five years, reaching €18.632 billion. This seemingly counterintuitive trend is driven by several factors. Firstly, international expansion often involves higher wage scales. Secondly, companies are facing increased pressure to attract and retain skilled labor in a competitive global market. And finally, the cost of living adjustments and updated labor agreements contribute to the rising expense. Personnel costs consistently rank as the second-largest expenditure for these companies, after supply costs.

The Overtime Debate and the Labor Shortage

Adding fuel to the fire is the ongoing debate surrounding overtime regulations in Spain. The National Construction Confederation (CNC) warns that proposed restrictions on overtime hours could jeopardize the State Housing Plan 2026-2030 and the implementation of European recovery funds. The CNC argues that limiting overtime – currently capped at 80 hours annually in Spain, compared to a European average of 450 – would significantly reduce worker salaries and exacerbate the existing labor shortage, estimated at 700,000 workers.

This shortage is driving up labor costs, which are now at a historical high of €3,300 per worker in the Spanish construction sector, exceeding the average across all industries. The CNC advocates for greater flexibility in overtime arrangements, leaving the specifics to negotiation between employers and unions, mirroring practices in other European countries.

Looking Ahead: The Future of Spanish Construction

The transformation of Spain’s construction giants is far from over. The trend towards internationalization is likely to continue, driven by the pursuit of higher margins and access to new markets. However, companies will need to carefully balance this expansion with the need to maintain a skilled and motivated workforce. The success of FCC and ACCIONA suggests that diversification and a commitment to local employment can provide a competitive advantage.

The ongoing debate over labor regulations will also play a crucial role. Finding a solution that addresses both the needs of workers and the challenges faced by employers is essential for ensuring the long-term sustainability of the Spanish construction industry. The future will likely see a greater emphasis on automation and innovative construction technologies to mitigate the impact of the labor shortage and improve efficiency.

What strategies will Spanish construction companies employ to navigate these challenges and capitalize on emerging opportunities? Share your thoughts in the comments below!