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Home » 4 Key Trends Shaping the 2025 Construction Industry
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4 Key Trends Shaping the 2025 Construction Industry

January 10, 2025Updated:January 10, 2025No Comments5 Mins Read
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BY CHRIS PEPPLER
TRIMBLE, A GENERAL BUILDING CONTRACTORS ASSOCIATION MEMBER

Recent interest rate cuts are expected to boost 2025 construction, and the Dodge Momentum forecast estimates a 6% increase in the dollar volume of nonresidential construction starts in 2025. Embracing evolving technology solutions is key for contractors as they scale their business in the coming year.

In a recent survey of Trimble customers, construction company leaders shared insights into what challenges and trends they anticipate for the year ahead, as well as where they’re likely to invest to make their businesses more efficient, productive and profitable. Below are four key trends that are expected to shape the construction industry in 2025.

Technology Integration, Interoperability and Security

As contractors increasingly adopt new technologies, they often face challenges with integrating these solutions into their existing tech stacks. In fact, 59% of Trimble survey respondents said that technology integration will be one of the biggest themes in 2025, while 25% said it was already one of the biggest challenges they’re currently facing today.

With any technology integration, cybersecurity becomes a concern, notes Carl Oliveri, a partner and construction practice leader at Grassi.

“I expect to see cyber-security protocols follow suit across the construction industry in 2025,” said Oliveri. “The typical contractor’s office extends beyond their office four walls to multiple jobsites, where data is constantly transmitted, creating another access point for cybercriminals. I am seeing contractors proactively implement more cybersecurity measures as hackers evolve.”

Fortunately, mitigating cyber issues is a primary focus for today’s construction technology providers, with companies focusing on creating connected data environments and adopting open API standards. These advancements enable seamless data exchange and centralized access to information from various software systems. Trimble and other construction technology companies have made significant progress in this area, recognizing the value it brings to modern contractors.

AI and Machine Learning

In the same survey, 59% of respondents believe artificial intelligence (AI) and machine learning (ML) will be among the most significant trends by 2025, and for good reason. These technologies are already transforming the construction industry by driving efficiencies and allowing contractors to meet the demands of the modern construction industry.

Aaron Faulk, a partner and the national practice leader for the construction sector of accounting firm Moss Adams, a member of multiple AGC chapters, said, “We are seeing clients place more emphasis on machine learning, AI and predictive analytics to modernize core functions like forecasting and reporting. These technologies help construction firms make quicker, smarter decisions – optimizing both time and resources – while also transforming business operations by streamlining workflows, automating repetitive tasks and providing predictive insights.”

He notes that AI-driven automation of routine administrative tasks, such as invoice processing, payment generation and anomaly detection, is also on the rise.

“Robotic process automation is transforming repetitive functions, freeing up valuable time and reducing human error,” said Faulk. “The ability to automate and accelerate routine processes will be essential as companies aim to enhance productivity and respond to project demands more effectively.”

AGC’s 2025 Construction Hiring and Business Outlook indicates that 44% of respondents plan to increase investments in AI this year. That compares to 30% of firms in the previous survey that expected to initiate or increase AI investments.

From automating tasks to enhancing decision-making and boosting team productivity, AI/ML is set to further streamline the industry. This will lead to construction projects that are safer, more cost-effective and highly efficient.

“As AI technologies continue to evolve, companies that stay informed about developments in their specific trades and regularly assess how these technologies can boost productivity will be at a strategic advantage,” noted Faulk.

Labor Shortage

The labor shortage and its associated challenges will continue to impact the construction industry in 2025. Nearly 55% of survey respondents identified the labor shortage as the biggest challenge they’ll face in 2025.

Earlier this month, AGC of America released the results of its 2025 Construction Hiring and Business Outlook survey in which 41% of respondents noted that finding salaried employees will either continue to be hard or become harder. In every region of the country, a majority of firms expect to add employees but report difficulty doing so.

“If interest rates decrease over the year, construction starts could pick up, presenting growth opportunities,” noted Faulk. “However, labor and hiring will remain a top concern as backlogs increase. A drop in rates could reignite activity in sectors that have slowed over the last two years, exacerbating the labor shortage as demand for skilled workers picks up. A renewed pipeline of projects will likely shift labor demand back into high gear, potentially straining resources.”

Technology providers are expected to continue innovating, with the goal of helping to offset these challenges – for example, by making it easier for contractors to utilize their technology solutions to their fullest potential to do more with fewer workers. Technology company investments in learning labs, task automation and easier data analysis and decision-making will also help attract younger workers and alleviate some of the labor challenges contractors are facing.

Robotics, Automation and Autonomous Machines

Robotics, automation and autonomous machines will remain critical to the future of construction, with location data, safety and security driving their adoption. These technologies provide field benefits, collect valuable data for predictive insights and enhance productivity. As autonomous machines advance into field trials in 2025, they will improve operational visibility and support better-informed decision-making over time. Additionally, task automation will continue to provide significant benefits, offering solutions to mitigate the ongoing labor shortage.

Faulk advises that construction companies should keep a close eye on software and hardware advancements, particularly in interoperability, data analytics, estimating and AI-driven solutions.

“Enhanced construction technology tools are invaluable for accurate estimating and better decision-making, allowing companies to improve project timelines, control costs and manage resources more effectively,” he said.

Chris Peppler leads Trimble’s platform team for the AECO sector. He has worked for Trimble for close to a decade, serving in leadership roles spanning product, engineering, and marketing. For more information, visit https://www.trimble.com/en/industries/construction.

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