Home Depot Caught in Trump Administration’s Immigration Crackdown: A Look at the Impact on Day Laborers and Business

In Los Angeles, Home Depot customer Ray Hudson found himself in need of laborers during a move, only to discover that they were nowhere to be found. This absence was due to an immigration raid that occurred earlier in the day at the store, where federal agents had targeted day laborers and vendors in tactical gear.

Hudson expressed his disapproval of the situation, stating, “They’re out here trying to make an honest living. They’re not hurting anybody, they’re not bothering anybody.”

If any company finds itself at the center of the Trump administration’s immigration crackdown, it’s Home Depot. The home-improvement giant has been quiet in response to multiple raids near stores across Los Angeles and the nation. During a recent earnings call with Wall Street analysts, executives declined to discuss immigration raids or day laborers.

In the aftermath of a fatal incident involving a man who died while fleeing from a raid onto a freeway and was struck by a car, Home Depot representatives did not respond to inquiries regarding the death. Earlier in the month, when asked about the company’s stance on raids and interactions with federal authorities, Home Depot issued a statement that it has repeatedly released:

“We ask associates to report any suspected immigration enforcement operations immediately and not to engage for their own safety,” the statement reads, in part. “We aren’t notified that immigration enforcement activities are going to happen, and we aren’t involved in them. In many cases, we don’t know that arrests have taken place until after they’re over. We’re required to follow all federal and local rules and regulations in every market where we operate.”

Chris Newman, the legal director of the National Day Labor Organizing Network who advocates for day laborer rights, feels frustrated with Home Depot’s response.

“I sympathize with the fact that they are now ground zero for a big polarizing political and cultural issue,” Newman told reporters earlier this month. “However, I think that they have a responsibility and certainly a moral obligation to defend day laborers, who are both customers and service the stores where they seek work.”

In a statement, Department of Homeland Security Assistant Secretary Tricia McLaughlin also confirmed that Home Depot has no role in their operations and that businesses do not receive advance notice of enforcement actions.

Although Home Depot does not have a formal relationship with day laborers, their connection runs deep within the industry. Nik Theodore, a professor at the University of Illinois Chicago who is one of the top researchers on day laborers, explained:

“Much of Home Depot’s success has led to the conditions we see in the industry today and why contractors turn to day laborers so often.”

Before the 1990s, contracting crews would shop for supplies at various wholesalers to keep costs lower than their competitors. However, now everyone pays the same prices at Home Depot, making the cost of labor a significant factor in competing with other contractors. Adding to this, the chronic worker shortage in construction has made day laborers a particularly convenient and affordable solution: an on-demand workforce right outside the store.

“The construction industry is highly volatile and the need for on-call labor remains high,” Theodore said. “And the immigrants are filling that shortage.”

Approximately half of Home Depot’s sales come from professional contractors who might require assistance with demolition, construction or cleanup. The other type of customer at Home Depot was largely created by the chain: homeowners who were taught to perform DIY projects and skip hiring a contractor. These shoppers now hire day laborers for quick repairs or landscaping as well.

“In general, day laborers love Home Depot, and Home Depot’s bottom line loves day laborers,” said Newman.

Home Depot has maintained that day laborers are not part of its business model. Wall Street analysts argue they are not a significant customer base, and people who hire them would still shop at Home Depot even if day laborers were not present.

Despite the immigration spotlight on the company, investors have remained unfazed. Home Depot’s stock price has reached its highest level since February.

Joe Feldman, an analyst at Telsey Advisory Group, commented earlier this month:

“I don’t think that it’s had any impact really on their sales. There’s nothing to say from Home Depot’s standpoint in the sense that Home Depot doesn’t hire [day laborers] — doesn’t have a network to try to help them get hired — they just happen to show up at Home Depot’s doorstep.”

On Tuesday, Home Depot reported that its U.S. sales grew by 1.4% between early May and early August, despite tepid results that still surpassed the previous quarter. Homeowners have continued to delay major projects due to economic concerns and tariffs but appear to be doing more smaller projects instead.

The company has also maintained a low profile regarding its stance on tariffs. However, in 2018, Home Depot CEO Craig Menear spoke out against the potential harm that tariffs could have on the industry. He stated: “We’re certainly concerned about tariffs and their impact on our customers and their ability to grow their businesses.”

As Home Depot continues its quiet response, critics are increasingly focusing on the company’s perceived politics. Two of its three founders have supported President Trump, although they have not run Home Depot for over 20 years. One of them passed away last year. The company donates to both political parties.

In Los Angeles, shopper Margarita Ochoa noticed a change after the raid at her local Home Depot store:

“This parking lot is always full. So right now there are many spaces.”

Ochoa runs a housekeeping business and typically sends employees to purchase cleaning supplies and liquids for her pressure washer. However, she recently visited the store herself due to the absence of day laborers. Ochoa expressed hope that Home Depot would take a stronger stance against the raids and consider taking measures to protect those who work at or frequent its stores.

As the immigration debate continues, it remains to be seen whether Home Depot will take a more proactive approach in addressing the concerns of customers like Ray Hudson, day laborers, and critics of its perceived politics.