Expanding Prevailing Wage to Custom Prefabrication – A One-Way Ticket to a Destitute New York
ABC strongly opposes the reckless legislation moving through the New York State Legislature that would impose prevailing wage mandates on construction work performed at offsite custom fabrication facilities. If passed, this law will drive the custom fabrication industry out of the state, eliminate both union and nonunion jobs, and deliver yet another gut punch to an economy already on life support.
Last week, the New York State Assembly Labor Committee advanced this disastrous bill. The 26 legislators who voted yes should be ashamed of themselves. But let’s be honest—they won’t suffer the consequences of their vote. That burden falls squarely on hardworking New Yorkers who will lose their jobs and see construction costs skyrocket.
Here are the names of those responsible:
Governor Hochul and legislative leaders love to talk about solving New York’s affordability crisis. So why are they pushing a bill that will guarantee higher costs and kill jobs? Are they serious about affordability, or is it just another empty talking point?
At ABC, affordability isn’t just rhetoric—it’s a priority. That’s why we oppose this legislation. New York is already one of the most expensive places to build, and prevailing wage laws are a huge reason why. Studies show these mandates inflate construction costs by 13 to 25% (Empire Center for Public Policy). To offset these costs, businesses—union and nonunion alike—have turned to offsite custom prefabrication, which allows them to remain competitive while delivering high-quality projects on time. That shift has created an entire industry in New York, employing thousands of skilled workers.
If passed, this legislation will:
- Destroy the incentive to use New York-based fabrication facilities.
- Waste millions of taxpayer dollars.
- Kill thousands of jobs in one of the most vital sectors of the industry.
And worst of all? New York lawmakers have no control over out-of-state facilities. Businesses will simply shift work across state lines to places like Pennsylvania, where a brand-new prefabrication facility is already gearing up to take advantage of this bill’s passage. Albany politicians will get their union endorsements, but New Yorkers will get pink slips.
Prefabrication isn’t a luxury—it’s a necessity. It requires massive investments in technology, specialized machinery, and a highly skilled workforce to produce complex building components that cannot be made on-site. In fact, offsite fabrication is often the only option due to safety risks, space constraints, and logistical challenges.
Hospitals, post offices, police stations, schools, firehouses, libraries, housing developments, office buildings—they all rely on prefabrication because it cuts costs, reduces delays, and keeps public buildings operational during construction. But Albany wants to treat prefabrication like traditional on-site work, layering unnecessary costs on an already expensive and time-consuming process.
Make no mistake: this bill is not about fairness or jobs—it’s about campaign donations.
ABC and its members vehemently oppose this legislation and the catastrophic consequences it will bring to New York’s construction industry. Albany needs to stop its war on construction and wake up to the reality that we need reform now. Lawmakers should be pushing policies that cut construction costs and get projects moving—not adding even more red tape and expense.
Supporters of this bill claim it will create jobs. That is a flat-out lie.
New Yorkers see it every day—our roads, bridges, and public buildings are crumbling. Instead of fixing the problem, Albany politicians are sticking their heads in the sand, doubling down on the very policies that got us into this mess. Why? Because they don’t work for you. They work for the special interests bankrolling their campaigns.
Enough is enough. This bill must be stopped.