Israeli Construction Firm Omers Engineering Reports 30% Productivity Rise Without Palestinian Workers

Omers Engineering, a veteran Israeli construction company, reports improved workforce conditions and a 30% increase in productivity since the halt of Palestinian laborers entering Israel following the October 7, 2023 war. Co-CEO Ze'ev Salant explained that workdays now start at 6:30-6:45 a.m. and extend until 7 p.m., including Fridays, compared to previous shorter hours and frequent holidays observed by Palestinian workers. Despite higher wages, the company sees better safety, quality, and efficiency on sites.

Baruch Hadad, the other co-CEO, highlighted advantages of using foreign labor, noting improved quality, reduced managerial demands, and faster construction timelines, which may lead to more economical projects. However, the sector still faces labor shortages. Salant emphasized that prior to the war, government restrictions prevented the company from hiring more foreign workers, forcing reliance on Palestinian labor.

The company, founded in 1986 and publicly listed since December 2025 with a market value exceeding two billion shekels, focuses mainly on large private projects, avoiding smaller public tenders due to pricing conflicts and disputes. Recent major projects include a 480 million shekel development at Jerusalem's entrance and a 1.2 billion shekel residential project in Acre.

Omers Engineering is expanding its real estate development activities, particularly in urban renewal, with about 13-14 projects underway. CFO Gideon Kahlon noted that the IPO was partly to fund these initiatives and strengthen the company's position with banks and institutional investors.

Safety remains a top priority, with biannual safety exams for all employees and technological monitoring on sites. The company reports improved safety standards since switching to foreign labor, who are more disciplined. Despite challenges from the war and supply chain disruptions, Omers Engineering has managed to meet most project deadlines, albeit with increased costs and overtime.

Looking ahead, the company plans to maintain its strong execution business while growing its development portfolio, aiming for sustainable long-term growth and continued improvements in safety and quality.