Choosing between union and non-union labor for elevator installation is a decision that continues to define schedules, costs, and project risk across the United States. As a team that manages elevator projects in every region, we see firsthand how this choice plays out not only on day one but throughout the building lifecycle—from first bid to decades of operation. If you are a developer, general contractor, or property manager planning a new installation or modernization in 2026, understanding the nuances by state and project type is essential for accurate scheduling, cost control, and risk mitigation.
How Union vs. Non-Union Structures Shape Project Cost
Labor is a dominant cost driver in vertical transportation. Here’s what we regularly see with our projects:
- Union elevator labor commands higher wage and benefit packages. In many key markets, union mechanics earn a substantial premium, driven by collective bargaining and benefit structures that can add 35–40% to direct labor cost.
- Non-union labor offers lower direct expense, but varies by state. In states with weaker union presence or more open bidding, the labor cost delta can be critical for overall project budget.
The difference is not just in raw rates. Union labor typically entails firm contributions to multi-employer benefits and a defined structure. Non-union crews, meanwhile, may have simpler or project-based benefits, which affects both total cost and workforce retention.
State-Level Variations: Matching Labor Model to Local Practice
- High-Union States: New York, Illinois, California, and Massachusetts are deeply unionized for vertical transportation. Union labor is almost required, especially in big cities. Non-union options exist but are typically met with resistance or additional risk.
- Moderate-Union States: Pennsylvania, Ohio, Texas, and Florida exhibit a blend—major metros may be strongly union, but non-union is feasible in secondary markets.
- Weaker-Union States: North Carolina, Georgia, Arizona, and others frequently use non-union labor, and developers capitalize on pricing, speed, and contract flexibility.
This variation means you need a granular understanding of your build location. If you’re managing a portfolio with sites across different states, standardized planning becomes challenging without a partner used to navigating these local differences. For more about multi-state elevator planning and compliance, see our guide on standardizing specs across the US.
Labor Availability, Tight Schedules, and Mobilization
It’s not just about cost. Labor shortages and union hiring gates can delay your timeline by weeks or months in strong-union markets. Union dispatch rules, waiting lists, and restricted entry to the trade pipeline can all impact start dates. In some high-growth secondary markets, flexible non-union labor allows us to staff quickly and accelerate project milestones when other trades can’t keep pace.
- Union hiring often requires pre-booking months in advance.
- Non-union teams can typically mobilize faster, especially in states with a more independent elevator trade culture.
Scheduling and Work Rules: Efficiency or Constraints?
Union agreements frequently require onsite assembly—even for parts that arrive pre-assembled—adding time and labor hours. This impacts not just direct cost but also soft costs such as site supervision, crane or lift rentals, and space constraints. Non-union installs benefit from pre-fab methods, for faster in-field installation. The impact is particularly notable in high-rise or complex retrofits.
Based on our data, union labor can add weeks to project timelines, especially where strict work-preservation rules require additional in-field labor. Non-union projects often complete installation 20–40% faster, leading to more predictable occupancy and less site congestion overall. However, the trade-off may be lower built-in safety compliance, which must be proactively managed by your general contractor.
Compliance, Risk, and Long-Term Operational Flexibility
Union installations must comply with complex benefit fund contributions, documentation, and strict work rules. Missing any of these requirements can result in project slowdowns or even stoppages. On public jobs, both union and non-union work may need to follow prevailing wage standards, but union projects tend to exceed these thresholds due to bargaining agreements.
Non-union projects have simpler administrative oversight and, when managed well, can carry less schedule risk due to fewer bureaucratic hurdles. However, general contractors must be vigilant, as safety standards and inspection outcomes may hinge on their enforcement rather than an external union structure.
Parts Policy: The Hidden Cost of Maintenance
This is a key point for long-term building operators. Union installations can sometimes be tied to proprietary OEM parts by local agreements. This can lock the building into higher-cost, single-vendor maintenance contracts for 20–30 years. Non-union installations, with open or non-proprietary parts, promote long-term savings and flexibility, as property managers can transition to any qualified service provider when negotiating future maintenance deals. For a property owner managing multiple elevators, the difference in maintenance spend over a building lifecycle can be enormous.
Cost and Schedule Examples from the Field
To ground these ideas, consider a six-stop passenger elevator in a mid-rise commercial building:
- Union install: Total project cost is higher by 19–20%, with typical timelines of 16–20 weeks.
- Non-union install: Up to 4–6 weeks faster installation and significant cost savings on both direct labor and indirect soft costs such as project management and site overhead.
The financial gap widens on larger or multi-phase projects, as labor, assembly time, and extended soft costs accumulate. Modernization scenarios reflect a similar split, with 20%+ savings and weeks less downtime on non-union projects, provided you have reliable supervision and post-install inspection built into your scope.
Risk Review: What Can Go Wrong?
- With union labor, schedule risk is driven by availability, strict work rules, and benefit fund audits. Delays can result from union organizing activity or disputes, and mistakes in payroll compliance can halt work until corrected.
- With non-union labor, risk shifts to the jobsite team and the GC. Safety culture may not be as deeply ingrained, so you need robust oversight and third-party inspections, especially in jurisdictions with less stringent enforcement. Additionally, watch for turnover or sub-contractor stability if the provider is less established.
For both paths, understanding regional labor politics and state-specific codes is essential. For example, in earthquake-prone metro areas, active union trades may have highly localized code requirements and inspector relationships that can influence your final sign-off.
Questions to Anchor Your Planning Process
- Does your timeline demand the shortest possible installation and occupancy date?
- Is the project public or private, and are there PLA or prevailing wage mandates in place?
- Will you need open parts and maintenance flexibility for future provider bidding?
- What is the labor climate on adjacent active job sites? Are there known union pressures or organizing campaigns in progress?
- Does your general contractor have the experience and process to enforce OSHA and code safety rigorously?
Making the Decision: Our Approach at Kaiser Elevator
Every project has its own mix of priorities: schedule, cost, long-term operational control, and local workforce realities. At Kaiser Elevator, our strategy is to conduct a clear, location-specific assessment before contract signing. We assess union presence, model project-specific labor costs, and probe local code and service requirements. On many national accounts, we blend approaches—using union labor where mandated and non-union where it delivers cost and schedule benefits.
It’s about flexibility, transparency, and pushing for owner control—not just up-front savings. We also help our clients select non-proprietary installation packages to lock in lifetime flexibility and keep maintenance and modernization contracts competitive for the full life of your assets. For details on energy savings and design upgrades that dovetail with labor efficiency, read our recent post on energy-efficient elevator design in 2026.
Summary Takeaways for 2026 Projects
- Union labor means higher upfront cost (35–40% premium) and longer install times, but can simplify statutory compliance in some markets.
- Non-union labor delivers budget and schedule advantage in many secondary and emerging markets, but requires actively managed site safety and QA.
- State and city regulations, union presence, and PLA or prevailing wage rules are the levers that determine feasibility day one—don’t assume what worked last project will work for your next.
- Parts, maintenance flexibility, and future-proofing matter just as much as installation speed and price.
Ultimately, there is no one-size-fits-all answer—the right path depends on your site, priorities, and stakeholder tolerance for cost and schedule risk. We always recommend working with teams that bring genuine national perspective and aren’t locked to one labor model or provider ecosystem. If you want direct input on your market, labor plan, or compliance questions, reach out to Kaiser Elevator for tailored guidance or to request a location-specific quote. We’re happy to walk you through the process and help you de-risk your elevator package for 2026 and beyond.
