As the Trump administration escalates immigration enforcement efforts, a growing number of U.S. companies are warning the Securities and Exchange Commission (SEC) about the potential economic fallout from mass deportations. In recent filings, over 40 businesses across various sectors have expressed concerns that large-scale removals of undocumented workers could lead to significant labor shortages, supply chain disruptions, and increased operational costs.
These disclosures mark a notable shift in corporate risk assessments. Historically, few companies mentioned deportations in SEC filings; however, the current political climate has prompted a surge in such acknowledgments. Industries heavily reliant on immigrant labor, including agriculture, construction, hospitality, and food processing, are particularly vocal about the potential adverse effects.
ImmuCell, a company specializing in animal health products for the beef and dairy industries, highlighted in its filing that “significant deportations of these individuals could have a negative impact on the operations of our customers and of our source farms.” Similarly, Century Communities, a homebuilding firm, noted that labor shortages exacerbated by deportations could materially affect their service standards and project timelines.
The construction industry, already grappling with a workforce deficit, stands to be severely impacted. According to the National Association of Home Builders, foreign-born workers constitute approximately 30% of the construction labor force. Jim Tobin, the association’s CEO, warned that mass deportations “would be detrimental to the construction industry and our labor supply and exacerbate our housing affordability problems.” Stan Marek, CEO of Marek Brothers, echoed these concerns, stating that losing immigrant workers “would devastate our companies, our industry, and our economy.”
In the food processing sector, the consequences are already manifesting. A recent raid at Glenn Valley Foods in Omaha led to the arrest of approximately 75 workers, halving the plant’s production capacity overnight. CEO Gary Rohwer emphasized the irreplaceability of these workers, stating, “Without them, there wouldn’t be an industry.”
Financial institutions are also acknowledging the broader economic implications. Hanmi Bank, in its SEC filing, cited mass deportations alongside other factors like tariffs and inflation as potential triggers for a mild recession in 2025. Hawaiian Electric expressed similar concerns, referencing an economic forecast predicting limited GDP growth and a potential contraction in 2026 due to federal policies, including mass deportations.
Analysts from Fitch Ratings have corroborated these apprehensions, indicating that mass deportations could lead to increased labor costs and production delays, particularly in sectors dependent on low-skilled labor. They warn that such disruptions could hinder revenue growth and weaken profitability across various industries.
The technology sector is not immune to these developments. Zevin Asset Management, representing investors in Alphabet (Google’s parent company), raised concerns about the company’s government contracts related to immigration enforcement. They urged Alphabet to assess whether its services contribute to human rights harms, particularly in light of its cloud computing support for agencies like ICE and Customs and Border Protection.
The Trump administration’s directive for Immigration and Customs Enforcement (ICE) to arrest 3,000 undocumented immigrants daily has intensified workplace raids, affecting operations across multiple industries. While some sectors have been temporarily exempted from enforcement actions, Homeland Security Secretary Kristi Noem reaffirmed the administration’s commitment to widespread deportations, stating that “failure is not an option.”
As businesses brace for the continued impact of these policies, the inclusion of deportation-related risks in SEC filings underscores the profound economic implications of immigration enforcement strategies. The intersection of labor market dynamics and immigration policy remains a critical area of concern for the U.S. economy.
